Smart Operation Center of Binh Phuoc province

Digital transformation comprehensively develops for all

At the 7th meeting of the National Committee on Digital Transformation, Prime Minister Pham Minh Chinh affirmed that digital transformation has brought very specific and practical results in management and administration at all levels, sectors and localities as well as positively affected the economic and social life of people and enterprises, thus making important contributions to rapid and sustainable socioeconomic development.

Vietnam's Global Innovation Index 2023 climbed two places to rank 46th out of 132 countries and territories to continue its Top 50 standing since 2018, according to the report released by the World Intellectual Property Organization (WIPO). Vietnam’s Integrated Index for Postal Development 2023 ranked 38th, according to the Universal Postal Union (UPU). Vietnam also had the fastest digital economic growth in Southeast Asia in two consecutive years (2022 and 2023). Its e-commerce expanded 11%, the digital tourism economy soared 82%, and digital payment grew 19% (according to Google and Temasek).

According to the Ministry of Information and Communications, the digital economy in 2023 contributed 16.5% to the gross domestic product (GDP). By 2023, Vietnam had more than 1,500 digital businesses. Total revenue from foreign markets was estimated at US$7.5 billion, representing a 4% increase from 2022. The revenue of information technology parks was about US$15 million per hectare a year, about 15 folds higher than that of industrial parks.

National and sector-specific databases are promoted for construction, connection and sharing to create utilities in providing online public services for people and businesses (like residential management, business registration, insurance and electronic civil status).

In particular, the national population database has brought practical results. 100% chip-embedded citizen identification cards are granted to citizens, with over 70 million electronic identity accounts granted. VneID electronic citizen identification application has been encouraged for popular use, integrated 2.2 million vehicle registration data, 10.2 million driver's license data, and 16.8 million health insurance data. Data are connected, shared, authenticated and cleaned with 15 ministries, 63 localities and three telecommunications firms. 38 out of 53 essential public services are provided online.

Online public services are promoted to build a professional, modern administration to better serve people and businesses. Digital infrastructure development is optimistic. Cyber security and information security are becoming more important. By the end of 2023, ministries and branches reduced and simplified nearly 2,500 business regulations, and streamlined 528 out of 1,086 citizen-related administrative procedures.

Speaking highly of national digital transformation, Minister of Information and Communications Nguyen Manh Hung said that Vietnam is one of the first countries to launch a national digital transformation program and strategy and become aware of digital transformation as advanced countries in the world. This is a favorable condition for Vietnam to actively grasp opportunities of the Fourth Industrial Revolution. The 2021 - 2025 period is determined to be an accelerating period with specific actions. The achievements are also the foundation and basic motivation for Vietnam to realize the goal of leapfrogging to rapid and sustainable development in 2030 and in 2045.

Developing the digital economy with four priority pillars

Reviewing the 4-year journey of implementing the national digital transformation program, Minister Hung pointed out that digital transformation was initiated in 2020 and rehearsed nationwide to prevent COVID-19 epidemic in 2021. The year 2022 witnessed total development of national shared digital platforms and 2023 was the year of digital data. “It’s high time for digital transformation to couple with central socioeconomic development tasks” he emphasized.

Digital economy is an important economic growth driver, he added. Vietnam's digital economy always grows three times higher than GDP growth. The digital economy is a double catalyst, both growing GDP and increasing labor productivity.

In 2024, digital transformation will focus on developing the digital economy with three pillars: Information and communications technology (ICT), digitalization of industries, digital management and digital data. 2024 will also be the year of universalizing digital infrastructure, universalizing fundamental elements of digital transformation and developing digital applications for digital economic growth - a new driving force for economic growth and labor productivity. Press and media will use cyberspace as the main battlefield to mainstream social flows, spread positive energies, manage healthy cyberspace, create social consensus and arouse aspirations for a strong and prosperous Vietnam.

In 2024, digital economic development will be based on knowledge and digital data as the main production factor, digital technology as the core driving force, and modern digital infrastructure as an important foundation to accelerate economic restructuring, coupled with new growth patterns, civilized and modern governance models to realize the country's aspirations for industrialization and modernization. If the traditional economic growth pattern requires capital, labor and resources, and moves to develop the digital economy, Vietnam must have new capital (fintech), new labor (smart robots and additive manufacturing), new resources (digital data, cloud computing), new technologies like artificial intelligence and new ideas like blockchain.

In the coming time, Vietnam will continue to enhance the effect of online public service delivery; speed up the development of national digital infrastructure; build the national data center; commercialize 5G in 2024 (digital infrastructure must be constructed in advance); effectively deploy and develop digital platforms, digital applications and digital services, with a focus on developing and promoting artificial intelligence platforms, virtual assistants, VNeID digital citizen application, digital payment applications, electronic invoices, electronic contracts and personal digital signatures.

In addition, Vietnam will boost extensive information and communications to raise awareness of digital transformation to all classes of people; and strengthen international cooperation in real estate, especially investment cooperation, technology transfer and high-quality personnel attraction.