Why digitally transform

“Promoting national digital transformation; and developing digital economy on the basis of science and technology; innovating, and improving productivity, quality, efficiency and competitiveness of the economy” is one of the orientations for development in the draft document submitted to the 13th National Party Congress.

The orientation was set forth in the context of the strong development of the 4.0 industrial revolution which has created breakthroughs in many fields, brining both opportunities and challenges to all nations.

Innovation – highlight of 13th Party Congress

Prof. Dr. Phung Huu Phu, Standing Vice Chairman of Party Central Committee Theoretical Council, commented that with a sharp mindset, in recent years, the Party and the State have been instructing and directing all levels and branches to promote the application and development of science and technology, improve capability and actively participate in the 4.0 industrial revolution.

On September 9, 27, 2019, the Politburo released Resolution 52 on guidelines and policies on proactively participating in the revolution.

This resolution outlines four guiding viewpoints, which emphasize “proactively and actively participating in the 4.0 industrial revolution is an objective indispensable requirement; a mission of a particularly important strategic significance, urgent and long-term for both the political system and the entire society; considering it as the breakthrough solution with appropriate steps and roadmap, and the opportunity for Vietnam to make a breakthrough in socio-economic development.”

“The sharp thinking and the spirit of the Politburo’s resolution has been confirmed and heightened in the draft documents submitted to the 13th Party Congress, and innovation can be seen as a highlight of the congress,” he commented.

According to Phu, innovation, with the philosophy ‘nothing is impossible’, is an important attribute of the 4.0 industrial revolution, reflecting the thinking and the common development method of mankind.

In the time to come, Vietnam needs to give priority to promoting innovation in digital technology development, implementing digital transformation in the economy, society and governance, gradually creating new values and new synergy of the country.

The only way for Vietnam to go

Nearly 69 percent of Vietnamese population have access to the internet. Over 71.3 percent of households use the internet, and nearly 62.6 million mobile subscribers use data, according to the ICT White Book 2020.

Nguyen Quang Thuan, deputy chair of the Party Central Committee Theoretical Council, commented that technology breakthroughs have been made in a variety of fields very quickly, generating interactions and creating a digitized, automated and increasingly smarter world.

“If we cannot exploit the revolution well, the risk of lagging behind other countries is visible,” Thuan warned.

According to Thuan, the Party, Government and the entire political system, from central to local have been actively participating in the 4.0 industrial revolution, but at a moderate initiative level.

Therefore, during the 13th Party tenure, it is necessary to set up comprehensive and drastic policies to mobilize all localities, ministries, branches, businesses and organizations to take the initiative in participating effectively in the revolution to make a breakthrough in development in the time to come.

Nearly 69 percent of Vietnamese population have access to the internet. Over 71.3 percent of households use the internet, and nearly 62.6 million mobile subscribers use data, according to the ICT White Book 2020.

If just one percent of them can become technology experts or suppliers and large businesses, Vietnam would have stronger motivation, which could create hundreds of billions of dollars each year, according to Thuan.

“If Vietnam can take full advantage of the opportunity and overcome challenges, it will be able to narrow the gap between it and developed countries and soon realize the goal of becoming an industrialized country towards modernization. If not, the gap with developed countries will be wider,” he said.

Associate Prof Dr Tran Quoc Toan, a member of the Party Central Committee Theoretical Council, also praised the new point in the draft documents submitted to the 13th Party Congress when mentioning the role of science and technology, which not only emphasizes the necessity of the development and application of science and technology, but also attaches much importance to the requirement on ‘innovation’.

He stressed that this is the only way Vietnam must go if it wants to develop rapidly and sustainably.

Competitive edge in future

According to Minister of Industry and Trade Tran Tuan Anh, the 4.0 industrial revolution, by nature, is the trend of digitizing traditional production and manufacturing methods.

Nowadays, with the support of Big Data, it is easier to accurately identify market trends, which optimizes the production process and reduces waste.

With 4.0 technology, inventories can be optimized in accordance with real time, thus optimizing demand for working capital and production cost, and improving production and business efficiency.

Similarly, in the logistics sector, transporting goods is becoming easier with lower costs and higher accuracy.

“All these changes can only be made in a society where all information and data is digitized and processed, so that big data can become useful and significant to users,” Anh said, adding that accurate information will be one of the factors to determine competitiveness in the future.

Thu Hang

Vietnam aims to become a developed country with high income by 2045. What role will the science and technology sector play in turning this into reality?

All the industrial revolutions so far in history came from innovations and new technology inventions. For a long time, Vietnam stayed backward and poor because it could not take full advantage of the revolutions.

Mai Liem Truc, former Deputy Minister of Posts and Telematics

At the end of the third industrial revolution, while countries like India created a Green Revolution in biology, Vietnam still lacked rice. When Khoan 10 (household contracting) mechanism was applied, which allowed farmers to freely cultivate on their fields, Vietnam stopped the rice shortage period and became one of the world’s biggest rice exporters.

In the telecommunications sector, Vietnam grasped the technology trend in 1980s and took a daring move to skip analog technology and go straight to digital technology. This led to strong development in Vietnam’s telecommunications, with Vietnam among the countries that soon began applying digital technology.

However, it would be not enough if Vietnam only relied on technology and still maintained the natural monopoly. GPO made a daring decision on opening the telecom market to many different economic sectors despite controversy and certain obstacles.

So, you may see that science and technology is a foundation and important key to development. However, whether to effectively use the key will depend on institutions and people.

Which bottlenecks does Vietnam need to remove to develop the digital economy on the basis of science and technology, innovation, and the improvement of productivity, quality, efficiency and economic competitiveness?

Previously, we carried out renovation, market opening and global integration on the basis of natural resources and cheap labor force. However, these are the factors which now set limitations for us and force us to enter a new development stage with new technologies, especially digital technology.

The world is shifting to a 4.0 industrial revolution with the strong presence of digital technology and Vietnam has no other choice to become involved in the revolution. This, by nature, is a digital transformation process. This is a great opportunity for Vietnam to change rapidly and implement the aspiration of becoming a developed country by 2045.

To successfully be digitized, Vietnam needs to rely on three pillars. First, technology. Second, institutional mechanism. And third, human resources.

In terms of technology, Vietnam is behind other countries in heavy industries, mechanical engineering and material industry. However, the 4.0 revolution is intellectual technology which isn’t based on existing infrastructure.

The world is shifting to a 4.0 industrial revolution with the strong presence of digital technology and Vietnam has no other choice to become involved in the revolution. This, by nature, is a digital transformation process. This is a great opportunity for Vietnam to change rapidly and implement the aspiration of becoming a developed country by 2045.

We can see the strong development of many Vietnamese technology firms in recent years. Now we have nearly 50,000 digital technology firms and we expect to have 100,000 in the time to come. These will be the pioneering force in Vietnam’s digital transformation.

The second pillar – institutions – is the biggest problem that needs to be solved, or it will hinder the application of technology and innovation. The ‘institution’ here means legal framework.

It is necessary to convert the legal framework for a traditional physical environment to a framework for an internet environment.

Nowadays we talk about the role of data in digital transformation, but there exists the problem that data is not connected and shared. We still don’t have laws on data collection, storage and sharing, data protection and use, but we only have decrees to cover the issues.

Previously, Vietnam developed science and technology with reliance on the state. But now, the main subjects of developing science and technology are enterprises. Therefore, the policies need to be changed accordingly. Policy must be issued quickly to satisfy the requirements of development.

Regarding the third pillar, Vietnamese people have capability in digital transformation. Vietnam has a population of nearly 100 million, the 15th most populous country. It is a big market and a condition for robust development. Whether the digital transformation succeeds will depend on the leaders.

Do you believe that Vietnam will successfully grab this opportunity?

I do, but there are many challenges.

Our country has gone through a thorny path in history and many wars, so it has the desire to walk abreast with other nations in the world.

The country’s leaders believe that digital transformation will be the opportunity to realize the aspiration. Following a series of important decisions including the Politburo’s Resolution 52 about the 4.0 revolution, the Prime Minister has released a strategy on digital transformation.

Meanwhile, technology firms have captured the digital transformation trend and prepared their human resources. Moreover, Vietnam has a strong telecom infrastructure system and high number of smartphone users.

What would you say about the capability of Vietnam’s IT firms?

We have some economic groups which have reached out to the world market, such as Viettel, Vingroup and FPT. Other smaller businesses are also ‘going to the open sea’.

I believe that more and more Vietnam’s enterprises will join global value chains. Obviously, the country’s opportunity and mission is being put on technology firms’ shoulders.

Thai Khang

Hanoi (VNA) – Vietnam’s information and communications sector must seize the special opportunities presented by COVID-19 to help the country take the lead in digital transformation, Minister of Information and Communications Nguyen Manh Hung has said.

2020 saw a rigorous start to digital transformation in all fields. The Ministry of Information and Communications (MIC) built numerous programmes and plans over the course of the year to facilitate a prompt digitalisation process towards digital transformation as well as the engagement of businesses in the information technology (IT) sector.

A programme introducing “Make in Vietnam” tech products has to date endorsed nearly 40 such products and platforms in digital technology.

Vietnam’s advantages in digital transformation lie in a strong contingent of telecoms and IT businesses and nationwide infrastructure.

Of particular note, in 2020, the IT sector quickly teamed up with others to develop digital products serving efforts in COVID-19 prevention and control and adapting to the “new normal”.

As a result, Vietnam was deemed to be among the world’s leaders in digital platform development during the time of the pandemic.

Furthermore, via the “ Make in Vietnam ” campaign, Vietnamese tech giants have launched numerous products of global quality, which are gaining a foothold in the international market.

Deputy Prime Minister Vu Duc Dam said that to facilitate digital transformation, the Government will soon complete institutions and regulations and roll out suitable strategies, mechanisms, and policies on improving the business climate.

He also called on the IT business community to play a pioneering role in research, development, and innovation, contributing to national digital transformation.

Digital transformation will increase productivity and effectiveness, changing management models and generating new value and services.

Before COVID-19 broke out, only 20 percent of companies paid attention to digital transformation. Six months later, however, the figure had surged to 70 percent and more than half of all companies are now undergoing the process./.