Digital transformation as the driver of economic and productivity growth

This year’s National Digital Transformation Day theme is “Popularising digital infrastructure and creating digital applications for digital economic development – New driver for economic and productivity growth”.
Rang Dong Company showcases its smart lighting solutions.
Rang Dong Company showcases its smart lighting solutions.

After four years of implementing the national digital transformation programme, digital transformation in Vietnam has been carried out widely and touched all aspects of life with significant benefits. According to Minister of Information and Communications Nguyen Manh Hung, Vietnam’s perception of digital transformation is no lower than advanced countries, and Vietnam is attracting investment from many global technology companies.

The outstanding results of the national digital transformation programme are improving the perception and action about digital transformation at all levels of government and localities with the people’s broad participation. The institutions, mechanisms and policies that facilitate national digital transformation are gradually fine-tuned.

The digital government continues to develop, with 16.4 million accounts on the national public service portal, which provides 4,543/6,325 administrative procedures and 43/53 essential public services for the people and enterprises. The connection, integration and sharing of the national and specialised databases have operated in a stable manner.

Revenue from exporting digital products rose from 113.5 billion USD in 2021 to 117.3 billion USD in 2023. In the first half of 2024, the figure was 64.9 billion USD, up 23%. Many international organisations highly appreciate Vietnam’s digital transformation results.

In April 2022, the Prime Minister chose October 10 as National Digital Transformation Day to enhance social awareness about digital transformation's role, significance and benefits and accelerate the implementation of national digital transformation tasks.

In response to National Digital Transformation Day, ministries, agencies and localities have organised numerous practical activities. The Vietnam Digital Communications Association presented the 2024 Vietnam Digital Awards to 45 outstanding units, products and solutions. The National Economics University held a workshop on enhancing the quality of education with digital transformation. The spirit of digital transformation has spread far and wide in society, helping to provide a better quality of life and enhance the efficiency of public services.

According to IT experts, the digital transformation process still faces many challenges that must be addressed soon. For example, leaders of some ministries, agencies and localities have not considered digital transformation a key task and are slow in fine-tuning institutions and reforming administrative procedures.

Notably, economic development is uneven between regions in the country, with limited access to the digital environment in ethnic and mountainous areas with a high poverty rate. The connection and sharing of data between state agencies remains limited, with small added values, and the quality of online public service delivery is poor.

To date, Vietnam’s e-government ranking is only at an average level in the region. Cybersecurity risks remain significant, while there is inadequate investment in attracting IT and cybersecurity human resources.

Digital transformation is a new and difficult undertaking, requiring resources, time and several other conditions. It is difficult because it will radically change the way organisations and enterprises function and interact. But however difficult it is, digital transformation must be carried out. For digital transformation to be successful, leaders themselves must enhance their technological and management levels and set an example in fulfilling digital transformation tasks under their jurisdiction.

According to Vu Xuan Nguyen, Chairman of software and technology company IGB, to ensure that digital transformation is effective and not wasteful, enterprises need to make smart investments, harmonise human resources training with technology platforms, and carry out digital transformation step by step following the actual situation.

Providers of digital transformation software must learn thoroughly to offer solution packages and transformation roadmaps that are appropriate with each enterprise’s size, business model, value and culture.

To successfully implement the national digital transformation programme, the Prime Minister has directed several key tasks, including developing digital human resources, digital citizens, digital skills and digital talents; prioritising resources for digital transformation; developing comprehensive, appropriate, economical and effective digital infrastructure; and quickly perfecting mechanisms and policies on digital transformation in a direction that increases devolution.

NDO