Vietnam is undergoing a fast-paced and profound change, placing the country as an emerging participant in the world in the technology arena. The explosion in productivity in various sectors is accompanied by radical growth of the country’s digital economy that is a direct result of government efforts as well as a national shift toward adopting digital technologies. This article analyzes important strategies and sectors driving the digital revolution, thus marking Vietnam’s prediction in the world of technology.
A Strategic Vision: Vietnam’s Digital Transformation Goals
There is no disorderly transformation in Vietnam; it is an evolution that has been strategically planned. The most important factor with regard to Vietnam’s transformation is the National Digital Transformation program, which Vietnam’s government approved in 2020. This all-encompassing program rests on three pillars, which are designated to build confidence in the country’s digital transformation vision framework:
Laying the Foundation: Infrastructure and Connectivity
Vietnam is pursuing many opportunities that aim to expand its digital infrastructure, such as SpaceX’s proposed investment for Starlink’s satellite internet service. The country also boasts impressive statistics; as of October 2024, 88.7% of mobile subscribers to cellular services owned smartphones and 82.3% of households with broadband internet possessed fiber optic connections. Additionally, Vietnam has 99.8% 4G coverage, one of the highest in the world. These figures are indicative of the access to digital tools and infrastructure, which is necessary for the development of a digital society and economy.
Public Sector Innovation: E-Government in Action
Vietnam’s digital transformation has seen an active digital public administration layer being created. This step is being taken in parallel with the active public service digitization Vietnam is experiencing. Through these efforts, there is increased participation of citizens and greater service delivery for users. The establishment of e-government systems like the National Public Service Portal is automating the administrative work and facilitating access to government services. This portal makes public services at the national and provincial level available to the citizen through a single account (dichvucong.gov.vn), therefore minimizing the need for face-to-face contact in various offices. This is likely to enhance the efficiency of citizens and the entire process.
Vietnamese Economy Growth Opportunities: The Advancement in Digital Economy
The digital economy of Vietnam has shown rapid improvements with the addition of the software and technology industries of the country. Technology centers are prolific in the country and are aiding in boosting innovations and productivity. Competitiveness of major companies in Vietnam has proven to improve with the assistance of digital tools, which enhance production in different sectors. The acceptance of novel tools has encouraged a change towards digital finance and smart production, as well as e-commerce. This supports Vietnam’s emerging position as a prospective leader globally.
Empowering Citizens: The Cultivation of a Digital Society
To foster the country’s economic progress, Vietnam needs to work towards enabling all citizens to partake and reap the benefits, which makes the digital transformation strategy vital. In the attempt to improve participation of citizens, the country aims to enhance digital literacy as well as skill training before 2025. Adapting mobile and high-speed internet services is also an important part of the plan. As quoted by Deputy Minister Pham Duc Long, the country is targeting expanding access to the internet and fast-tracking its availability “wider, faster, and safer” by the year 2025, hoping to cover the rest of the jurisdiction under 5G in 2030. Avoiding exclusion for its people remains the core motto driving these policies, making Vietnam diligent about its digital society initiatives.
Leading Sectors: Digitization of Finance and Healthcare
Vietnam has various industries that are digitizing and are among the earliest adopters of technology.
- Finance: In the banking sector, Vietcombank is using artificial intelligence and big data to improve customer service, and its VCB Digibank application has sophisticated capabilities such as voice and video calling within the application. Blockchain is also upgrading the financial sector, with HSBC and Vietcombank completing the first blockchain-based letter-of-credit transaction in Vietnam, which greatly reduced processing time.
- Healthcare: The healthcare industry is also adopting technologies from Industry 4.0. The Central Endocrine Hospital (CEH) is partnering with VNPT to create an AI system for improving thyroid cancer diagnosis. This system automates the analysis of nodule ultrasound images to ascertain if they are malignant, which makes treatment more precise and advanced.
Outsourcing Opportunities: Taking Advantage of Vietnam’s Technology and Human Resources
The global shift towards advanced technologies has brought a unique opportunity for local businesses to outsource projects related to digital transformation to Vietnam. The authors provide advice to business executives who are thinking about choosing this direction, stressing that they should pay attention to:
- Setting reasonable goals: Defining precise aims of undergoing a digital transformation.
- Choosing a good contractor: Selecting a firm that has adequate experience in the relevant industry and a proven reputation.
- Defining reasonable demands: Detailing the timelines and specific milestones for the project.
- Sustaining effective communication: Keeping in close touch with the outsourced provider.
- Tracking milestones: Monitoring project milestones cumulatively over a period of time.
- Maintaining quality assurance: Adhering to clearly outlined standards during the development process.
- Review and iterate: Adapt and enhance practices and procedures based on lessons learned from the project.
Final thoughts: The future of Vietnam’s digital landscape
The undertaking of Vietnam’s digital transformation is bold and still ongoing. Progress is being made on the digital economy, digital government, and digital society infrastructure. Being aware of these developments is important for businesses and investors who want to capitalize on Vietnam’s emerging opportunities. Attention will remain focused on Vietnam as it actively strives to strengthen its position as a leader in digital technology.
