Vietnam strives towards building the digital government

On the basis of results achieved in the process of building an e-Government, Vietnam is preparing to move to a digital Government according to the policy set out in Resolution 52- NQ/TW of the Politburo.

The information was given at the 15th national conference on e-Government (eGov) held in HCM City on Thursday. Speaking at the seminar, Ngo Hai Phan, director of the Administrative Procedures Control Agency (APCA) under the Government Office, said the Government Office had co-ordinated with ministries, branches, localities, IT corporations, domestic and foreign experts to focus on building and implementing many important information systems as the foundation for the e-Government development of the country in the 2018-20 period.

This also provided the impetus for the implementation of an e-Government and contributing to the realization of the dual goals of economic development while minimizing the negative effects of the COVID-19 pandemic on people and businesses, he said. 

It was reported at the conference that the National Public Service Portal had provided 1,039 public services and 6,842 administrative procedures online at four levels by the end of last month. The portal had also reached over 60 million visits, over 235,000 registered accounts, more than 15 million synchronized records, and over 295,000 online records. The online payment system on the portal was also deployed from March, performing over 9,000 transactions.

The Vietnam government focuses on building foundation for the e-Government development (Photo: SmartCitiesWorld)

Currently, according to the e-Government development ranking of the United Nations, Vietnam has increased two places, ranked 86th out of 193 countries, 24th out of 47 in Asia, and 6th in Southeast Asia. However, in order to reach the target to be in the top four countries in ASEAN by 2025 and among the top 70 countries in e-Government, there were still many things to be done, said the director, including listening to domestic and international experts and organizations in order to perfect the roadmap and choose suitable solutions for the country.

Pham Anh Tuan, Deputy Minister of Information and Communications, said that the policy on building a digital Government was outlined in Resolution 52-NQ/TW of the Politburo. Accordingly, it targeted to basically complete the digital transformation for the Party and State agencies by 2025 and complete the building of digital government by 2030.

To implement this policy, the Ministry of Information and Communications is currently preparing to submit to the Prime Minister to issue a national strategy on digital government for the 2021-2025 period.

Source: Vietnam News

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Digital transformation challenges many Vietnamese firms

On August 20, 2020, the Hanoi Association of Small and Medium Enterprises (HANOISME) collaborated with an accredited technology firm to organize a webinar on the critical role of digital transformation for business post-COVID-19 pandemic.

At the event, Mac Quoc Anh, Secretary-General cum Vice President of HANOISME, said the national digital transformation program sets out to increase the total number of digital transformation enterprises from 50,000 to 100,000 within the period of the next five years. He also emphasized that digital transformation is the only way for enterprises to develop sustainably and consolidate their grounds in the playing field with the most economical costs.

Also speaking at the event, Nguyen Xuan Phu, Vice Chairman of HANOISME, said firms plan to operate on a large, widespread scale should focus significantly on embracing digital transformation. Only digital tools can help executives and managers operate departments and branches effectively and efficiently in a synchronous manner. In the digital age, people use cellphones for an average of 8-10 hours a day, thus requiring businesses to create data links on different platforms to assert dominance for sustainable development.

Digital transformation in business operations plays a critical role so as to effectively respond to crises and minimize external impacts. (Photo: Devprojournal)

Obstacles to digitization

According to a report by the market research company International Data Corporation (IDC) on the importance of digital transformation, 90% of businesses are interested in digital transformation, with 30% viewed it as a critical issue. Nevertheless, not all businesses understand correctly and apply digital transformation to their own scale or field of business.

In spite of acknowledging the important role of digital transformation, there are still many barriers hampering such progress. Small and medium-sized enterprises find it challenging to deploy complex solutions due to their limited resources and untrained staff. Whereas, larger enterprises also find foreign solutions too cumbersome and expensive yielding a low success rate (25-30%) or they have to seek out different solutions provided by many suppliers, thus undermining synchronous and linkage among departments.

Data compiled by the Business Registration Management Agency (under the Ministry of Planning and Investment) show that in the first seven months of this year, nearly 63,500 enterprises have withdrawn from the market, up nearly 11% over the same period last year, reflecting the negative impact of the Covid-19 pandemic.

Source: Vietnam Economic News

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Foreign technology innovation giants eye Vietnam shift

Several of the world's largest technology innovation corporations are making plans to shift their production chains including innovation centers to Vietnam post-COVID-19, according to the Ministry of Industry and Trade.

LG Electronics recently moved its entire smartphone production line from South Korea to the northern city of Hai Phong, the ministry said, the South Korean company had set up a $1.5 billion plant in Trang Due in 2015. South Korea was the leading investor in Vietnam last year with $7.92 billion. Added that, Japan’s Panasonic is also reportedly making solid plans to move a production line that makes white goods to Vietnam in early September to improve cost efficiency. Whereas, through its key contractor Foxconn, U.S. tech giant Apple expanded production of its wireless earphones in Vietnam to four million in the second quarter, made up of 30 percent of all AirPods production. 

Experts say Vietnam has become a lucrative destination for multinationals thanks to its early and effective efforts to contain the novel coronavirus. The country of 96 million people has reported 372 infection cases and no deaths so far.

Vietnam is among the "brightest" spots in Asia despite the challenge of trying to contain the pandemic, and its economy is poised to rebound, a UBS economist recently said.

"Retail sales, imports and industrial production were all actually up on the year in June, which is better than you can say for most economies in the region," Edward Teather, ASEAN economist at UBS Research told CNBC’s "Squawk Box Asia".

"Vietnam is growing and is well-positioned to continue to take global market share in terms of exports going forward, so pretty bright prospects in a relative sense in the region," Teather said. The country’s free trade deal with the European Union, which was ratified last month, could boost inflows of foreign direct investment and technology innovation, he added. Thus, quickly moving towards a digital society for the lands of descending dragons.

Source: VnExpress

 

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Technology Innovation contributes significantly to COVID-19 fight

Telecom service providers sent over 15 billion text messages on COVID-19 control and prevention during the first half of 2020 and received donations via text for victims of the pandemic with total VND 152 billion (USD 6.58 million).

During the period, the sector put into use 20 COVID-19 control and prevention applications and 12 platforms for social distancing. Despite an increase in online activities, the number of cyberattacks fell by 26% (compared to the second half of 2019 and 27.1% from the previous year).

The MIC announced they have completed the provision of all online administrative procedures at Level 4. This means that service payments can be done online and transaction results are available either online or by post, upon request.

It is stated that from now until the end of the year, there will be instructions to help all localities across the countries build telecom infrastructure development plans - so as to increase the rate of its sharing to 17-20%. Added to that, MIC is reportedly making efforts to work closely with telecom businesses and manufacturers to ensure each citizen has a smartphone.

Mr. Phan Tam, Deputy Minister of Information and Communications, stated that the ministry will begin piloting Made in Vietnam 5G devices as soon as July and a 5G network using such devices in October, thus speeding up to become a digital innovation society.

Minister Nguyen Manh Hung, meanwhile, touched on the priorities the ministry needs to carry out, including helping all localities implement the local government service platform and ensuring that the IT systems of all public agencies have four-layer security.

Source: Ministry of Information and Communications

 

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Country to go digital through decade of all-purpose action

Vietnam has made a new policy move in its journey to transform itself into a digital economy and improve its legal framework, much to the appreciation of investors and businesses.

Over a week ago, the Politburo enacted Conclusion No.77-KL/TW on overcoming impacts of COVID-19 for national economic recovery and development. The conclusion underlined the need for Vietnam to develop a digital government, economy, and society with renovations and applications of science and technology.

Meanwhile, PM Nguyen Xuan Phuc last week approved a national programme on digital transformation until 2025, with a vision to 2030.

Together with the Politburo's hallmark Resolution No.52-NQ/TW released last September on a number of guidelines and policies to actively participate in the Fourth Industrial Revolution, and Conclusion 77, this programme is a big addition to Vietnam’s effort to showcase its strong determination to become a digital economy, in which new products, services, solutions, and business models are accepted in tandem with the country’s gradual completion of legal framework.

Vietnamese enterprises are to be facilitated to cooperate with global technological giants to research, develop, transfer, and apply new technologies and models in Vietnam. In its digital economy development programme, the government will aim to develop four types of digital business, namely major trade and service groups focusing on digital technology investment and core technologies, IT firms focusing on research and development (R&D) and production, and digital startups that create innovative products.

The country will “research, develop, and master all technologies, and produce digital equipment such as smartphones, smart TVs, tablets, and IoT equipment, while meeting all technical standards on ensuring cybersecurity.” Added PM Phuc.

Jeff Paine, managing director of the Asia Internet Coalition (AIC), told VIR that Vietnam has full potential to become a digital economy. Vietnam’s open policies have enabled it to attract leading global technology companies who have chosen the country as a place to build major manufacturing facilities that supply equipment and products to the world, creating more jobs and developing human capital.

According to the Vietnamese Ministry of Planning and Investment, one of the key factors for the successful construction of a digital economy and successful implementation of Industry 4.0 is that the government will issue special incentives for foreign firms to establish R&D centres in Vietnam.

Currently, many foregin business are already operating R&D centres in the country, such as Singapore’s Grab, South Korea’s Samsung, Sweden’s ABB and Germany’s Bosch. The US telecommunications giant Qualcomm is also considering founding such a centre in Vietnam.

Source: Vietnam Investment Review
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Future Vietnamese Digital Economy (Part 2)

Vietnam's Digital Economy
1. Introduction 

The digital economy is booming in Vietnam. In 2016, PC Magazine described the country as South-East Asia's Silicon Valley. Emerging sectors and fast-growing sunrise industries in Vietnam include finance technology (fintech), telecommunications, electronics and computer manufacturing, and ICT services.

In 2016 Vietnam was home to an estimated 24,501 businesses spanning IT hardware, software and digital content. There are specialist training centers and technology parks for IT programmers and engineers in eight locations, including the major cities of Hanoi, Ho Chi Minh City and Danang.

The Vietnam government has prioritized IT sector development with the IT Master Plan, giving tax incentives and building education infrastructure to support new ICT firms looking to develop or invest.

The country has a thriving community of software developers and start-ups, developing digital products and services for use within Vietnam as well as undertaking software development offshored and outsourced from advanced economies.

2. Digital adoption 

2.1 Vietnam's appetite for digital is increasing

 The adoption of high-speed Internet services, smart devices and mobile phones in Vietnam has been comparatively high since 2003. In 2017, more than half of the country had Internet access, compared to around 15% a decade ago. Rural areas still lag behind metropolitan areas, although the provision of satellite and wireless services is now boosting take-up rates in even the most remote provinces.

The adoption of broadband Internet services is also increasing in the business sector. The share of manufacturing and service firms using the Internet for business activities rose to 71% in 2007 and 86% in 2011. Around 500,000 Vietnamese business accounts had been created on Alibaba.com by 2016. Over the last three years, the number of accounts increased by an average of 100,000 per year.

Vietnam has the highest number of registered domains in ASEAN: there are around 422,000 active '.vn' domain names, from a total of nearly 1 million domains registered in ASEAN nations. Vietnam also has around 16 million allocated IPv4 addresses.

2.2 Wireless rather than fixed broadband

Vietnam's Internet use is dominated by mobile phones. From 2005 to 2016, the number of mobile subscriptions increased nine-fold. By 2017, Vietnam had 136 million mobile subscriptions. This is 144% of the total population, with many Vietnamese have more than one mobile subscription. More than half the mobile phones used in Vietnam are smartphones able to access the Internet.

Source: Vienam Today - Data61 - 2018
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Future Vietnamese Digital Economy (Part 1)

Digital technologies and online connectivity will be a driving force of growth and transformation of the Vietnamese economy over the coming decades. The ITindustry alone is expected to contribute 8-10% of the country’s GDP by 2020. The Vietnam Government is playing an active role in accelerating the development of the digital economy through policies such as the E-commerce Master Plan and the IT Master Plan. These have recently been bolstered by whole-of-government directives on transformation towards Industry 4.0.
The private sector is also investing heavily in digital industries in Vietnam, particularly in manufacturing facilities. In 2010 the world’s largest manufacturing plant of Intel computers and processors opened in Ho Chi Minh City. This was followed in 2015 by over US$11 billion in investment by Samsung in two factories to produce smartphones, digital displays and consumer goods. In late 2017 Seoul Semiconductors announced it would build a facility in North Vietnam. IBM, Siemens, Sony, HP and Toshiba also have a significant presence in offices and facilities in Vietnam.
The presence of big technology companies has been supplemented in recent years by a thriving tech start-up scene, concentrated in the urban centers of Hanoi, Da Nang and Ho Chi Minh City. Young tech entrepreneurs are developing new apps, software, platforms and services  for consumers and businesses.
The Vietnamese population has shown a voracious appetite for digital goods and products. There were more than 132 million mobile devices (including 32 million smartphone users) in Vietnam in 2017, and about 50 million Internet users – over half the population.
Change can come at a cost to many, however. Digital technologies associated with Industry 4.0, including AI, robotics, automation, drone technologies and big data analytics, may also disrupt existing markets and employment – particularly in agriculture and textiles and goods manufacturing. The composition of Vietnam’s industrial base makes the country particularly vulnerable to job losses due to automation over the next two decades.
Understanding the next wave of transformation will be vital for harnessing opportunities and managing risks related to the adoption and use of digital technologies in Vietnam’s industries.

Source: Vienam Today – Data61 - 2018
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Vietnam digital economy could reach US$43 billion by 2025

Vietnam’s digital economy is projected to reach US$12 billion in 2019 and US$43 billion by 2025, according to E-Conomy Southeast Asia 2019 Report jointly released Thursday by Temasek, Google and Bain & Company.

Vietnam is one of the two fastest-growingdigital economies in Southeast Asia, with the average growth rates in excess of 40% since 2015, in which e-commerce is a key driver behind the impressive numbers.

These dynamics are unlocking opportunities for entrepreneurial Vietnamese SMBs, which have jumped onboard the Internet economy to do business, says the Report

Investor confidence in Vietnam is on the rise. Over the last four years, Viet Nam’s Internet economy has attracted almost US$1 billion in funding, with 2019 in line to be a record year.

Vietnam has set goal to increase the GDP share of digital economy to 20% by 2025, according to the Resolution No. 52-NQ/TW of the Politburo on guidelines for participation in the 4th Industrial Revolution.

The 2019 report covers five key sectors of the Internet economy: Online Travel, Online Media, Ride Hailing, e-Commerce, and DigitalFinancial Services across Southeast Asian countries.

Just over a decade ago, four in five Southeast Asians had no Internet connectivity and limited access to the Internet. Today, Southeast Asians are the most engaged mobile Internet users in the world. There are 360 million Internet users in the region and 90% of them connect to the Internet primarily through their mobile phones.

Southeast Asian people communicate with their families, friends and colleagues, entertain themselves, learn new skills and become more productive. Increasingly, they also buy products, plan trips and order food online. All of this takes place millions of times every day across the region. A vision that was almost impossible to imagine is now daily routine.

Powered by these fundamental changes in consumer behavior, the Internet economy continues to grow at an unprecedented pace, soaring to US$100 billion for the first time in 2019, more than tripling in size over the last four years.

Source: http://dtinews.vn/en/news/018/64457/vietnam-s-digital-economy-forecasted-to-reach-us-43-billion-by-2025.html

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