The digital economy is becoming an increasingly important part of Vietnam’s economy

According to Dr. Nguyen Thanh Phong, Deputy Head of the Central Economic Commission, digital transformation and speeding up the digitalization of the economy should continue to be priorities in the coming time.

Great opportunity for Vietnam to close the gap with developed countries

On November 11, the symposium “Developing new business models in the process of industrialization and modernization to 2030, with a vision to 2045”, was chaired by the Central Economic Commission. in the form of a combination of face-to-face and online.

This is one of 10 seminars of the 3rd High-Level Forum and International Exhibition on Industry 4.0 – Industry 4.0 Summit 2021 with the theme “Strengthening industrialization and modernization of the country in the digital era”. .

Mr. Nguyen Thanh Phong, Deputy Head of the Central Economic Commission.

Talking at the workshop, Dr. Nguyen Thanh Phong, Deputy Head of the Central Economic Commission said: The Fourth Industrial Revolution (Industry 4.0) opens up many opportunities and poses many challenges for each individual. countries, organizations and individuals. In Vietnam, this revolution has had an increasingly strong impact on all areas of the country’s socio-economic life.

Over the past time, on the basis of the direction of the Politburo, the Government and the Prime Minister on improving the capacity to approach Industry 4.0, ministries, branches and localities have developed and implemented a number of policies to promote develop the IT, electronics and telecommunications industries.

The telecommunications infrastructure is built quite synchronously. The construction of e-Government, moving towards a digital government has been drastically implemented, initially achieving positive results.

Along with that, the digital economy has been formed and developed rapidly, becoming an increasingly important part of the economy. Digital technology is applied in industries, agriculture and services. More and more new forms of cross-border business services appear on the basis of digital technology and the Internet, which have created many job opportunities, income, utilities, and improved people’s quality of life.

According to the 2019 ASEAN economy report published by Temasek, Google and Bain & Company in October 2019, Vietnam’s digital economy in 2019 was worth 12 million USD, contributing 5% of the national GDP in 2019. , 4 times higher than the value of 2015; is expected to reach 43 billion USD by 2025.

From the recent reality, the ASEAN economy 2021 report also of the same research group has made a higher forecast for Vietnam’s digital economy in 2025 – with the milestone of 57 billion USD. This report also said that in 2021, Vietnam’s digital economy is expected to grow by 31%, reaching 21 billion USD.

Vietnam’s digital economy and Indonesia are leading in growth in Southeast Asia with an average of 38% per year, compared with 33% per year for the whole region since 2015 until now. Hanoi and Ho Chi Minh City are two of the seven major cities in terms of digital economic development in the region.

“The size of the e-commerce market is about 5 billion USD, while online travel is about 4 billion USD, online communication is about 3 billion USD, ride-hailing technology is about 1 billion USD.”, representative of the Central Economic Commission.

Emphasizing that the development of the digital economy is a great opportunity for Vietnam to narrow the gap with developed countries, said Mr. Nguyen The Quang, Deputy Director of the Department of E-commerce and Digital Economy, Ministry of Industry and Trade: To people With a population of nearly 100 million people, Vietnam is considered as one of the countries with a good digital economy development rate in the ASEAN region. And never before have we witnessed a digital transformation as fast and profound as from 2020 until now.

Priority should be given to accelerating economic digital transformation

The National Digital Transformation Program to 2025, with a vision to 2030, approved by the Prime Minister in June 2020, has set a goal that by 2025 the digital economy will account for 20% of GDP and the proportion of the digital economy. at least 10% in each field. By 2030, the digital economy will account for about 30% of GDP, the proportion of the digital economy in each industry and field will reach at least 20%.

Talking about the development of the digital economy in Vietnam, Toni Kristina Eliassz, a digital solutions expert of the World Bank (World Bank), said that Vietnam has set very ambitious goals and targets. But achieving these goals requires major efforts to transform the economy, including leveraging new sources of development.

The digital economy is becoming an increasingly important part of Vietnam's economy
The World Bank expert said that Vietnam needs to turn recommendations into actions and projects with specific investment strategies and plans.

On the basis of analyzing the limitations of Vietnam, WB experts have made recommendations on the future digital transformation path of Vietnam. Accordingly, digital transformation and promotion of the digitalization of the economy should continue to be a priority for Vietnam.

Making specific proposals to Vietnam, there are two main factors that WB experts hope the Government can apply in the near future, namely: In the short term, it is necessary to strengthen the knowledge base, focus on gaps. knowledge gaps and emerging and urgent needs have been identified; Turn recommendations into actions and projects with specific investment strategies and plans.

Mr. Toni Kristina Eliassz also paid special attention to the particularly important role of the Government in promoting digital transformation: “Government support is becoming increasingly important in promoting the environment for digital transformation. The role of the Government is to support, lead and create a stimulating environment for agencies and organizations to transform digitally.”.

Sharing her views on supporting the development of the digital economy and innovation in financial services, Ms. Vanessa Vizcarra, Head of Upstream Financial Institutions Department, IFC Vietnam said that: Digital transformation has an impact on the entire economy. economy. Digital transformation in the financial sector faces many obstacles. Market structure and regulations create inertia. Therefore, there is a need to increase “digital interoperability” between the financial and commodity sectors.

The representative of IFC Vietnam also proposed a number of initiatives to policy makers such as: Creating favorable conditions for the construction of digital banks and new-style banks; implementation of the Open Platform Banking agreement; market rebalancing than the bank-based financial structure is the focus; upgrading core financial infrastructure…

Van Anh

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