Strategy for digital economy development in Vietnam
- QTH-3Q19 Nguyen Thi Nhung
- Dec 25, 2019
- 3 min read
Updated: Mar 28, 2022
Overview
The digital economy is being considered as one of the most important driving forces to turn Vietnam into a developed country by 2045. This is an economy based on digital technology and digital platforms, with economic activities, by digital technology and digital platforms, especially electronic transactions conducted on the Internet.
Digital economy includes 3 components: Digital economy and telecommunications (ICT); Platform digital economy (Internet); and Digital Economy (sector). Thus, digital economy is understood as economic activities that use digital information and digital knowledge as the main factor of production. In addition, the digital economy will use the Internet as a space to operate and use telecommunications and information technology to increase labor productivity and optimize the economy. To put it simply, the economy is concerned with all fields that use digital technology.
Digital Economy in Vietnam
The Ministry of Information and Communications has completed the formulation of the National Strategy on Digital Economy Development in August 2021. The digital economy is identified as one of the three important pillars of the "National Digital Transformation Program to 2025, with a vision to 2030" approved by the Prime Minister. The program sets a target that by 2025 the digital economy will reach a proportion of 20% of GDP and 30% of GDP by 2030. Develop and promulgate a National Strategy on digital economic development with the aim of serving as a basis for widespread mobilization. resources of ministries, branches and localities at the same time.
Opportunities and Challenges
Vietnam is considered to have great opportunities to develop the digital economy and a lot of potential for new business models, with a large population. In addition, Vietnam is also in the period of golden population structure, with a large number of labor force. The number of Internet and smartphone users in the country is also large and growing rapidly. These conditions will create attractive markets for digital economy development.
Currently, the specific institutional, legal and strategic system in Vietnam has not created favorable conditions for the development of the digital economy. Digital skills and digital human resources have not met the requirements and the digital transformation capacity of enterprises is still weak. Moreover, the force of digital-based businesses is not strong, young and subject to stiff competition from other countries.
Solution
To achieve the goal, it is needed to improve the business environment, promote innovative start-ups, develop industries, fields and businesses on the basis of strong application of achievements of science and technology, especially the revolution. Fourth Industrial Revolution. It is needed to focus on perfecting institutions, policies and laws in line with the market mechanism and international practices to develop the digital economy. At the same time, strongly develop information technology infrastructure, build and develop synchronously national, regional and local data infrastructure to connect synchronously, creating a foundation for digital economy development.
According to Minister of Information and Communications Nguyen Manh Hung, to achieve the target of 20% by 2025, Vietnam's digital economy must grow 3-4 times faster than GDP growth (20-25%/year). To do so requires a combination of a strong market in the short term and a strong state in the long term. Need foresight, using public spending and public investment, estimated 1-1.5% of the annual budget to activate and lead all social resources to participate in the development of the digital economy.
More specifically, there is a need for awareness and a legal framework to promote the digital economy. It is needed to define the digital economy as not merely promoting the development of information technology but also the process of comprehensive digitization of all areas of life, shifting the focus from building digital infrastructure to the application of digital technologies. digital technology to improve value and quality, develop socio-economic. In addition, it is necessary to synchronously develop essential infrastructure, issue a national strategy on the digital economy and train and develop information technology human resources.Policies to promote information technology human resources must both have clear priorities and take account of disadvantaged groups in society to promote equal development.
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