Digital transformation for a more sustainable Vietnam

A report entitled, 'Breaking the Digital Frontier: Innovations Shaping Vietnam’s Transformation 2024 – 2025' was released by Acclime Vietnam in collaboration with UOB Vietnam and investor community partner AVV today. The report delineates the intricacies of Vietnam’s digital economy and its transformational journey towards sustainable development, offering investors a systematic and in-depth understanding of the digital ecosystem in Vietnam.

The report pointed out that digital transformation and environmental, social, and governance (ESG) are critical priorities within the global business community. It is imperative for business leaders to comprehend and effectively harness these trends. In Vietnam, these two trends will continue to be closely intertwined, as digital transformation has already demonstrated tangible and measurable benefits in promoting environmental sustainability and enhancing wellbeing.

The integration of digital transformation and ESG principles embodies the new standard for responsible business conduct, where leveraging technology enhances operational efficiency and facilitates the systematic incorporation of ESG considerations. Embracing ESG implementation isn’t just a choice; it’s a strategic imperative for businesses navigating an increasingly interconnected and conscientious global marketplace

Vietnam ranks 78 among the most vulnerable countries in the world that are at particular risk of flooding, rising seas, landslides, and intense heat waves, based on the latest data provided by The INFORM Risk Index 2024. It is the reason why digital transformation can play a cornerstone role in climate change mitigation.

The report indicates that digitalisation stands poised to expedite Vietnam’s swift progression towards sustainable development and achieving low carbon emissions by 2050. Its role in driving efficiency enhancements and fostering cross-sectoral coordination is instrumental in this endeavour.

Vlad Savin, partner at Acclime Vietnam, said, "As Vietnam progresses its industry 4.0 advancement, digitalisation is an imperative mandate for the private and public sector alike. Looking at the entire value chain from a sustainable, interconnected perspective, instead of a silo viewpoint, will enable investors who are part of the digital economy to thrive and reap the benefits that the Vietnam’s economy brings. Digitalisation and sustainability are not a zero-sum game, but are deeply interconnected, leveraging each other to drive long-term growth."

Green-digital mission holds cost-saving potential More investments are headed for the green-digital transition, giving new momentum to Vietnam’s foreign investment attraction strategy.

The twin transition and key impacts on the financial sector The financial sector finds itself in the midst of two transitions – a green and a digital transition. These transitions can clash, but also reinforce each other, and are shaping Vietnam’s financial regulation landscape.

Enticing FDI legal framework for dual transformation Vietnam is preparing for future foreign direct investment (FDI) shifts to ensure funding reaches the right areas and embraces green and digital goals.