Though Vietnam is highly valued for its initial successes in creating the foundation for comprehensive digital transformation in the next stage, the country is still facing various challenges in the digital transformation of the economy.
Digital transformation has been one of the most discussed topics in the last decade due to its inevitability for the sustainable development of each country. Many scholars said that in the volatile context of the world economy regarding digital transformation, governments needed to have a cross-cutting and consistent action strategy to coordinate and support the private sector, increase basic investment, and even hold a leading and pioneering position in certain technology sectors.
Vietnam is considered one of the countries with prompt action in building and completing legal regulations, forming development strategies in the process of the digital transformation of the economy. By 2025, Vietnam's digital economy is expected to contribute around 20% of GDP and over 30% of GDP by 2030, with annual labor productivity growth of more than 7%. Vietnam also sets the goal to 2045 to become one of the leading smart manufacturing and service centers, start-ups and innovation centers in Asia.
Vietnam has significant opportunities in the digital transformation process. First of all, the number of people using the Internet is high. Besides, all people, enterprises, and governments are willing to adapt to digital transformation. Additionally, Vietnam has a high level of competition in Internet services, which contributes to diversifying forms of services and lowering prices compared to other countries in the region. Last but not least, inter-industry linkage services and infrastructure structures have been increasingly improved.
Nevertheless, Vietnam still needs to overcome certain challenges to achieve the set goal. It appears that the high rate of cash usage causes the development of a synchronous transactional system. In addition, the proportion of highly skilled laborers is still limited (just about 10%), hindering access to technological development. Furthermore, the ability to share inter-sectoral resources is low, and regional connectivity is restricted, especially the ability to respond to inter-regional risks. At last, building several legal institutions to respond to new issues in the digital economy, particularly related to the collection of taxes on the Internet platform, is still delayed.
Being proactive about new trends
In the 21st century, the whole world has been transforming according to a new trend of the Fourth Industrial Revolution, initiating a new era called the digital age.
Vietnam has made a breakthrough in developing information, communications, and national digital transformation infrastructure. This includes opening up new space for socio-economic development, linking development in cyberspace with traditional physical development space, and creating a favorable environment for innovation to improve national competitiveness.
Up to the present, the IPv6 usage rate on Vietnam's Internet has ranked 2nd in ASEAN and 9th in the world, outpacing major powers such as China, the US, and Canada. This helps Vietnam have the basis and potential to accelerate IoT development and promote the digital economy.
Despite being a developing country with a low income, Vietnam has achieved a wide range of smart technology indicators, helping the nation be on par with or even surpass high-income developed countries. This is considered a miracle, bringing a variety of values to promote development in the Fourth Industrial Revolution.
Digital transformation is a breakthrough that shortens the national industrialization and modernization process
Recently, a great number of established businesses have soared, and smart technology projects have been implemented over the years, which can open the door for enterprises to expand both domestically and internationally. As a result, forums on new technology trends are organized and communicated. Several concepts are popular and familiar to people, including the new generation of the Internet, cloud computing, blockchain, artificial intelligence, digital space, digital resources, digital government, digital economy, digital society, digital citizen, etc.
It can be said that digital transformation will create numerous values and benefits for all humankind, each country, and each territory.
The core value of digital transformation is to ensure publicity, transparency, and science in data management and use. It also helps organizations and individuals communicate, connect and negotiate online, thereby completely reducing cumbersome traditional procedures and effectively resolving the relationship between the state, market and society. In addition, the process promotes economic growth, improves labor productivity, competitiveness, production and business efficiency, reduces costs for people and businesses; and ensures that product selling prices are close to production prices and services. Simultaneously, it assists all levels of government in enhancing their management capacity for major duties.
