Digital transformation: Faster - Smarter - Greener

Deputy Minister of Planning and Investment Tran Quoc Phuong

This is the second year that VIR has organised the forum on digital transformation to create opportunities for representatives of state management agencies, policymakers, experts, and both local and international tech enterprises to meet and exchange information.

The National Digital Transformation Programme for 2025, with a vision to 2030, emphasised three main focus points, including digital government, digital economy, and digital society.

According to the Ministry of Information and Communications, in 2022, the total revenue of Vietnam's ICT industry reached about $148 billion, and the digital economy reached 14.26 per cent of GDP.

To achieve the goal that, by 2025, the digital economy will account for 20 per cent of GDP under its rapid development scenario, Vietnam needs to maintain average annual digital economic growth of about 20 per cent, more than three times the projected GDP growth.

Deputy Minister of Planning and Investment Tran Quoc Phuong said that after some decades of rapid growth, Vietnam has been struggling with major challenges affecting its economic development, which have slowed growth. The economy based on cheap labour and natural resources is not a competitive advantage any more, there is a risk of falling into the middle-income trap, and the population is ageing.

"These challenges require Vietnam to find new growth models and engines for the economy. In this context, the nation has approached opportunities from the Fourth Industrial Revolution and the rapid development of digital technologies," said the deputy minister.

"In the process of formulating strategies and master plans for socioeconomic development, the Ministry of Planning and Investment always cooperates with ministries, branches, and localities to integrate tasks and solutions to apply the achievements of Industry 4.0 into perspectives, goals, and solutions to promote innovation in growth models," he reaffirmed.

In October 2021, Prime Minister Pham Minh Chinh issued Decision No.1658/QD-TTg approving the National Strategy on Green Growth for the 2021-2030 period, with a vision to 2050, which highlighted increasing green growth with investment into advanced technology, digital transformation, smart and sustainable infrastructure, all as an impetus for private investment to play an increasingly important role in the green economy.

"The requirement for digital transformation and green growth is a big challenge for the nation and its businesses, especially small- and medium-sized enterprises," said Phuong.

"Around the world, experts consider digital transformation as a catalyst for many businesses to transform and adapt to green and sustainable models. Recently, dual transformation (green and digital) has been mentioned by the European Union and is an important future trend," added the deputy minister.

Denis Brunetti, chairman of Ericsson in Vietnam, Laos, Cambodia, and Myanmar

According to Denis Brunetti, chairman of Ericsson in Vietnam, Laos, Cambodia, and Myanmar, each country and market has its own way and plan, and Vietnam is highly appreciated as one of the most dynamic and attractive destinations in the world thanks to a rapidly growing digital economy and a strategy focused on digital transformation across the country.

"Ericsson fully supports this and is committed to helping Vietnam achieve this important vision," confirmed Brunetti.

"We are proud to be Vietnam's long-term, trusted, and valuable strategic partner, and always share our global insights, expertise, and experience here. The future of the ICT industry is digital, and we are committed to working with Vietnam's government in accelerating digital transformation across all economic sectors through 4G and 5G, as well as 6G in the future," he continued.

He also acknowledged the importance of 5G-enabled digital transformation as a key factor in improving labour productivity and efficiency in all industries, especially in manufacturing, logistics, agriculture, and energy.

At the forum, the delegates focused on discussing the trend of digital transformation and the three pillars of a sustainable economy – manufacturing, banking, and e-commerce. They highlighted the importance of 5G for economic growth and innovation, policy mechanisms to promote rapid growth and sustainable development, and practical lessons from digital transformation pioneers.

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