Digital gains are in reach for Vietnam

Participants at a VIR conference on enablers for digital economy development last week heard that 5G will likely account for half of Vietnam’s mobile subscribers by 2029. More than one-quarter of data traffic is transmitted via 5G, and commercial 5G could be available in Vietnam before the end of this year. Similarly, AI is transforming industries worldwide, especially in sectors like manufacturing, healthcare, and logistics, and is being used to automate processes, improve decision-making, and enhance customer interactions.

At the conference, there were highlights on the application of AI and GenAI to 5G infrastructure so as to significantly improve user experience and optimise performance.

Processes can be automated, and software code can be written by GenAI, which boosts productivity within organisations. This is an important factor for telecom providers hoping to get the most out of 5G, experts said.

For example, as a cloud service provider, AWS is willing to partner with Vietnamese telecom operators to provide technology, expertise, and experience in building infrastructure and upskilling the workforce so that telecom companies can maximise returns on their 5G investments.

“Whether new technologies are 5G or AI, it is vital to provide the support for workforce capacity building with both top-down and bottom-up approaches. With a well-supported environment, businesses may fully unlock the potential of AI to boost productivity and thoroughly change the way they operate, which will have a positive impact on organisations and end users as well,” said Eric Yeo, country general manager of AWS Vietnam.

According to the Ministry of Information and Communications, the digital economy accounted for 12 per cent of GDP in 2020 and grew to 16.5 per cent by 2023. Vietnam’s digital economy is forecasted to account for 30 per cent of GDP by 2030.

Meanwhile, a report by Acclime Vietnam pointed out that 5G testing has been conducted in 59 provinces and cities, and the number of smartphone users has risen to 84.4 per cent, surpassing the global average of 63 per cent. It said an anticipated foreign investment surge will concentrate on high-tech sectors such as semiconductors, electronics, AI, and renewable energy. These strategic investments aim to elevate Vietnam’s economic value chain and foster sustainable long-term growth.

With the rise of 5G and AI, companies like Ericsson are committed to fostering innovation through partnerships with universities and research institutions like RMIT to develop the skills needed for Vietnam’s digital future. The pair are working to establish a lab to help students get hands-on experience with 5G and emerging technologies. Moving forward, Ericsson plans to expand these efforts to include more students and focus on areas like AI, blockchain, and cloud computing. It is also working on launching similar initiatives with the Postal and Telecommunications Institute of Technology to equip the next generation with the skills they need to leverage 5G tech.

Commenting on the interest of Singapore companies in Vietnam’s digital economy, George Choo, president of the Association of Telecommunications and Technology Industry in Singapore, said Singaporean enterprises are interested in Vietnam, Malaysia, and Indonesia.

“Vietnam needs to support businesses and investors by ensuring transparency and creating better conditions for them. Vietnam and Singapore have a strategic partnership. This is a good premise for us to identify and adjust policies to attract and retain investors, and Singaporean investors in particular,” he said.

From the perspective of European companies, Khanh Nguyen, vice chairman of the Digital Sector Committee under the European Chamber of Commerce in Vietnam, said that Europe is a key player in the global digital economy due to several factors, including a strong foundation in research and development, data privacy, consumer protection, and advanced digital infrastructure.

“A culture of innovation and entrepreneurship, along with collaboration and standardisation, has further contributed to its success. Notably, the digital age is one of the European Commission’s top priorities, with the 2030 Digital Compass outlining a plan for the EU’s digital transformation,” Nguyen said.

“Vietnam should learn from Europe’s example by adapting these lessons to its specific context to accelerate its digital transformation,” he noted. “Vietnam should focus on improving policies and institutions to attract digital technology investments and facilitate business activities such as capital contributions and mergers. The government should provide businesses with clear guidelines and financial resources to support digital transformation, emphasising sectors that can leverage international trade agreements and local strengths.”