(Photo: tuyengiao.vn)

Deputy Prime Minister Vu Duc Dam has signed a decision approving a national strategy on developing a digital economy and digital society until 2025, with orientation to 2030. It is believed that developing a digital economy will help Vietnamese people become richer and help Vietnam rise above the low-middle income level by 2025, reach the upper-middle income level by 2030, and reach a high income level by 2045.

Vietnam’s digital economy development goals

The digital economy will comprise the ICT digital economy, which is information technology and telecommunications services; the platform economy, which is the economic activity of digital platforms, online systems connecting supply and demand, and online services; and the sectoral digital economy, which is digital economic activity in industries and other fields. Developing the ICT digital economy will focus on businesses and “Make in Vietnam” digital products, coordinated with selective FDI attraction and expanded exports.

Developing the platform digital economy, focused on national digital platforms, will drive the digital development of all sectors and fields. Developing the sectoral digital economy will focus on creating shared, integrated digital platforms for each industry and sector.

Basic targets for 2025 include expanding the digital economy to 20% of Vietnam’s GDP and to at least 10% in each industry and field, expanding e-commerce to 10% of total retail sales, getting 80% of enterprises to use e-contracts, getting 50% of small and medium-sized enterprises to use digital platforms, and making 2% of the labor force digital economy employees.

Resolution 52 dated September 27, 2019, of the Politburo of the Communist Party of Vietnam, called “Some guidelines and policies to actively participate in the 4^th Industrial Revolution" targets that the digital economy will account for 20% of GDP by 2025 and 30% of GDP by 2030, with labor productivity increasing at least 7% annually. By 2045, Vietnam hopes to be one of Asia’s leading smart manufacturing, service, start-up, and innovation centers.

Important foundations

Vietnam is timely in creating and fine-tuning regulations and development strategies to promote economic digitalization.

Many respected international financial institutions say Vietnam is poised to develop a digital economy. According to the World Bank, Vietnam’s ICT organizations’ competitiveness outstrips other Southeast Asian countries and Vietnam’s Internet service prices are among the lowest in the region. The market for telecommunications services, computers, and IT products in Vietnam is growing rapidly.

Vietnam’s internet connection capacity – the most fixed broadband Internet subscribers in Southeast Asia – is a huge advantage for digitalization. The rate of Vietnamese customers switching from 3G to 4G services is one of the highest among countries with a similar income level. Vietnam also benefits from a higer average connection speed in the region.

Deputy Minister of Planning and Investment Tran Duy Dong (photo: sggp.org.vn)

Deputy Minister of Planning and Investment Tran Duy Dong says: “Revenues from innovation account for 9% of GDP. The strategic goal of Vietnam's socio-economic development is for the digital economy to account for 30% of GDP. This is an ambitious goal. Given the growth of investment in innovation, we believe this target is achievable. The Ministry of Planning and Investment will work with ministries and sectors to implement measures to ensure that the digital economy contributes 30% of GDP by 2030.”

Vietnam has built a solid foundation for digitalization and has seen encouraging success so far. With sound direction and strong determination on the part of the government, the business community, and all economic sectors, Vietnam surely can achieve its digitalization goals.