Digital transformation and digital economy

The fourth industrial revolution, digital transformation and the digital economy are mentioned many times in documents of the Party Congress XIII. VietNamNet would like to introduce the speech of Minister of Information and Communications Nguyen Manh Hung at the Congress.

The aspiration to develop a prosperous and happy country, and the desire for a mighty and prosperous Vietnam was aroused. The tall flag was raised to gather all the Vietnamese people. The way to the destination has been shown, which is science and technology, innovation, the 4th industrialization, digital transformation, and digital economy. The decisive factor for success is the Party building and reorganization so that people always believe in the Party’s leadership.

Minister of Information and Communications Nguyen Manh Hung. Photo: Pham Hai

Digital technology, digital transformation (CDS), digital economy, digital age are a process of decades. As a global trend, an irreversible process. The physical world is being digitized. Real life is being mapped into cyberspace (KGM). The process of creation, production and business is taking place more and more on KGM. With the emergence of Industry 4.0, with the hundred-year push of the world Covid-19 pandemic, it is at the breakthrough point of the digital transformation process, accelerating digital transformation. This is a chance. Opportunities for Vietnam to realize its strong and prosperous aspirations.

Digital economy is economic activities that use digital information and digital knowledge as the main production factor; using the Internet and information networks as space for operations; and using ICT, ie electronics, telecommunications and IT, to increase labor productivity and optimize the economy. Simply put, the economy is related to digital technology.

In a narrow sense, digital economy is only related to the ICT sector. In a broad sense, these are areas that are close to digital technology, such as e-commerce, fundamental economy, and sharing economy. In the broadest sense are all of the domains where digital is used.

Digital economics is a long evolutionary process. It is the process of transforming numbers on the national level. At different levels, every industry, every business, every individual can use digital technology to better do their jobs, or even make breakthroughs to change the quality of their work.

Digital economy helps increase labor productivity, helps economic growth. Digital economy also helps sustainable growth, inclusive growth, because it uses knowledge rather than resources; The lower cost of participation in the digital economy creates business opportunities for more people; digital technology is borderless, thus reducing the rural-urban gap; Digital technology also gives us new approaches, new solutions to effectively solve long-standing human problems, such as environmental pollution, the widening gap between the rich and the poor, and measuring the social mood. associations, people’s participation in policy making, etc.

Vietnam’s digital economy over the past time has basically developed spontaneously, but it has grown quite rapidly, due to its good telecommunications and IT infrastructure, wide coverage and high user density; The Vietnamese people are passionate about technology, preferring to use the highest technology in the region; This is due to the young, well-educated, well-educated, and hard-working population of Vietnam; is due to the Vietnamese character quickly adapting to change. This is Vietnam’s advantage when converting numbers. Now is the time to need the guidance of the Government, to have a National Strategy on digital transformation and the digital economy.

In September 2019, the MOIT issued Resolution 52-NQ / TW on a number of guidelines and policies to actively participate in the Fourth Industrial Revolution. In which, emphasizes the urgent need to accelerate the process of college. In June 2020, the Prime Minister issued the National Digital Transformation Program to 2025, with an orientation to 2030. Vietnam is among the few countries in the world to soon issue a national CS strategy, a strategy. about a digital country.

The fastest way to accelerate the digital economy is to use digital technology to change the way we are manufacturing, working. But who will do this? That is digital technology businesses. Therefore, it is necessary to start digital technology and develop Vietnamese digital technology enterprises. Using digital technology to solve Vietnamese problems, Vietnam problems, and from the cradle of Vietnam, these technology businesses will go global. Technology is born to solve problems, where there is a problem, there is technology, there is a solution. Problems are everywhere, maybe in our daily work, and each of us can start up technology to solve our problems. The revolution of the entire people to start digital technology and popularize digital technology will help Vietnam digitize its economy very quickly.

Digital technology will spawn new business models that challenge or replace old business models. For example, Uber is challenging, Fintech is challenging traditional banking. Allowing mobile telecommunications accounts to pay for goods will solve the problem of non-cash payments to 100% of people, but challenge banking. The point is whether we dare to accept these new business models. If you dare to accept but are the last to accept, it is not of much value.

That is why many people say digital transformation is more of a policy revolution than a technology revolution. The first is adopting new business models, adopting new technologies that fundamentally change industries. That is often a creation that destroys the old. We accept new, new technology of the world will come, global talent will come, and new industries will emerge, and the cradle of Vietnam will create exportable digital technology products. . But it must be early acceptance, earlier than others. Following others, traveling with others, there will be no opportunity to change Vietnam’s ranking. When we accept the new, we may lose something. But we don’t have too much to lose, that’s our chance.

The traditional approach to policy is usually: Governance is open, wherever management can be opened, and if not, it will be closed. A new approach that many countries apply, called the Sandbox approach: What does not know how to manage, let self-development, but in a certain space, in a certain time, to the the problem is clearly revealed. After that, a new policy and regulations were formed to manage. This is one of the policy approaches suitable for the 4th industrialization, suitable for embracing new business models, for embracing innovation.

The fundamental factors to support Vietnam’s digital economic development are: First, the modern telecommunications-IT infrastructure, world-class, broadband, high-speed, each People have a smart phone, 5G technology will appear in Vietnam at the same pace with developed countries. Second, the Government’s policies related to digital economy, digital technology and Internet must be globally competitive so that Vietnamese people do not have to go abroad to start digital technology but also let foreigners and global capabilities in technology development Vietnam. Third, the Government spends more on digital products, leads the digital economy through building e-government, digital government to create the initial market for developing digital businesses. Fourthly, human resource training, in parallel with the introduction of English and IT training into compulsory training programs from high school, must implement retraining, advanced training in digital skills, digital competencies. for the workforce. Colleges and universities should have official retraining courses, advanced training, the time should be only 6-12 months, mainly training for certificates, not training degrees, this is the best way to deal with a serious shortage of manpower.

For digital transformation, Vietnam can choose a 3-step strategy: Step one, accelerate the digitization of fields and industries, accelerate the digital transformation of government, transform the number of businesses, digital transformation in society, to increase operational efficiency, increase labor productivity and create new growth opportunities. Step two, use digitization as a competitive advantage domestically and globally. Step three, towards a comprehensive digital economy, all sectors are digitized, forming new generation digital industries, these new industries will be the growth engine for the economy.

In digital transformation, the press and the media play an important role. The mission of the press and media is to protect the Party’s root and foundation, and to protect the good cultural values ​​of the nation; The more we want to go, the more we want to convert the number, the faster we want to develop it, the more we must be consistent, the more we have to keep our roots and backgrounds; proactively and actively fight against malicious information, clean and healthy cyberspace; reflect honestly the main flow of society, create social consensus, spread positive energy, build social trust and contribute to creating aspirations for a mighty and prosperous Vietnam. Every country that wants to develop and thrive must arouse the spiritual strength of the nation.

And finally, when the digital revolution, industrial revolution 4.0 happens, the future will not lie in the long line of the past. In countries like Vietnam we have a chance to make a breakthrough. But it must be a new, non-traditional, non-sequential thinking. Both state management, both enterprises, need a breakthrough in thinking, in policy, in approach.

Minister of Information and Communications Nguyen Manh Hung


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