Vietnam facing great challenges in speeding up digital transformation

As outlined during the seventh edition of the e-Conomy SEA report by Google, Temasek, and Bain, the Vietnamese digital economy hit US$23 billion in 2022 and is on track to reach US$49 billion by 2025, making it the fastest in Southeast Asia.

Data compiled by the Ministry of Information and Communications indicates that the revenue of the Vietnamese information and communications technology (ICT) industry reached US$148 billion last year, accounting for 14.26% of the country’s gross domestic product (GDP).

As a means of achieving the goal of the digital economy making up 20% of Vietnamese GDP, it can be viewed as essential for the country to maintain an annual digital economic growth of approximately 20%, more than three times higher than the projected GDP growth.

Lessons learned from developed countries will prove to be valuable suggestions for the nation as it seeks to achieve this goal, insiders stated.

According to Denis Brunetti, president of Ericsson Vietnam, Myanmar, Cambodia and Laos, 5G technology will enable numerous industries to accelerate digital transformation and reduce energy requirements, as well as cutting carbon emissions.

Ericsson will therefore continue to share its experience with customers in Vietnam as a means of helping to ensure successful coverage and capacity deployment, he said, adding that the focus will be on a stable network, simplicity, and security.

A representative of the European Chamber of Commerce in Vietnam (EuroCham) noted that an important lesson from their experience in the EU is to harmonise data protection standards to minimise negative impacts and develop public and business trust.

Moreover, David Liden, trade commissioner of Sweden in Vietnam, said that since 2000 his country issued the Electronic Signatures Act to be helpful in signing, storing, and tracing important documents such as employment or service contracts.

This action has therefore helped to reduce emissions from physical movement, paper, and the energy used for storage, he went on.
In terms of Vietnam, Vietnamese ICT businesses anticipate the Government and ministries and sectors to quickly complete a legal system in line with the requirements of international integration and digital economy development, as well as with international standards.

It can be viewed as essential for the National Assembly to consider promulgating the revised Law on Electronic Transactions with appropriate regulations and mechanisms to regulate the activities of organisations, individuals, and businesses which are compatible with the digital economy, they said.

Small- and medium-sized enterprises, which play a vital role in the digital transformation process, should therefore be encouraged to invest in the digital economy.

It remains imperative to carry out a project on the digital transformation of State-owned enterprises by 2025, with an orientation towards 2030, they said.