Digital transformation is not only a trend but also essential for businesses to thrive as the fourth industrial revolution (4IR) has boomed globally, heard at a conference held in Ho Chi Minh City on October 20.

Former Minister of Trade Truong Dinh Tuyen (second, left) speaks at the conference in Ho Chi Minh City on October 20

The conference titled “Vietnam Economic Forecasts in the Context of Digital Economy and New Trends – Adaptation and Business Process Transformation” was organised by PTI Education and Training.

The 4IR today is no longer a phenomenon in a few countries or areas but having direct impact on economic development on a global scale, said former Director of the Vietnam Institute of Economics Tran Dinh Thien.

The further Vietnam integrates into the global economy, the greater effect the global digital economy will have on Vietnamese enterprises. Therefore, in order to survive and thrive, domestic firms have no other choice but to quickly join the digital transformation or digitalise the business and management, Thien said.

However, Vietnam is lacking manpower, necessary finance and infrastructure, and more importanly, transparent institution for the digital transformation, he noted.

To shift from a physical to a digital economy, apart from essential technological foundation, the country must also change its institutional mindset because the 4IR is actually an institutional revolution, the expert explained.

Vietnam needs to promote a transparent public institution, develop an effective government, and ensure intellectual property rights and cyber security. It must also develop digital human resources and build a digital technology industry, smart agriculture, smart tourism, and an ecosystem for innovation and entrepreneurship, he recommended.

Echoing Thien’s view, former Minister of Trade Truong Dinh Tuyen said as an economy of which over 90 percent of the firms are of small and medium sizes, Vietnam is more vulnerable to new waves if it does not stay active.

He stressed that it is important to improve the competitiveness of domestic businesses and the entire economy and digital transformation is one effective solution.

To do so, the State needs to promote institutional reforms to create a transparent and stable policy environment that allows the domestic firms to develop long-term business strategies, he added.