Digital economy to support $74 billion of annual economic impact in Vietnam by 2030

AlphaBeta and Google highlighted the potential in Vietnam's digital economy in a report launched at a workshop held by the National Innovation Centre.

Digital economy to support up to $74 billion of annual economic impact in Vietnam by 2030
MPI Deputy Minister Tran Duy Dong highly appreciated the role of the digital economy in future development. Photo: MPI Portal

The new report titled "Vietnam's digital economy potential" by AlphaBeta and Google was released at a workshop yesterday (October 18) held by the Ministry of Planning and Investment's (MPI) National Innovation Centre (NIC).

At the meeting, MPI Deputy Minister Tran Duy Dong said that the digital economy was not unknown before the emergence of Industry 4.0 and the Internet of Things (IoT), but they been the starting pistol for a new race to digitalise all manufacturing and business operations across the entire economy.

“Amid the COVID-19 pandemic, Vietnam needs to accelerate the digital economy based on science and technologies, innovation, enhancing productivity, efficiency, and competitiveness of the economy," the MPI deputy minister said.

To support these goals, the Party and the government have made digital economic development a key orientation for Vietnam such as resolution No.52-NQ/TW adopted in 2019 by the Central Committee. The legislation set the target that by 2030, the digital economy would contribute 30 per cent of GDP. The government and the MPI have been doing their utmost to implement these directions and reach the targets set forth.

Digital economy to support up to $74 billion of annual economic impact in Vietnam by 2030
Jacques Morisset, World Bank lead economist and programme leader for Vietnam. Photo: MPI Portal

Jacques Morisset, World Bank lead economist and programme leader for Vietnam said that to develop a contact-free and high-tech economy, Vietnam needs to be more efficient in the use of its resources. He offered three priorities to make the most of the digital transformation: improving digital skills, promoting information quality and access, and encouraging dynamic and innovative businesses, although Vietnam is lagging in terms of digital skills among the population, and not enough companies embrace disruptive ideas.

"However, the silver-lining of the COVID-19 crisis is that it has accelerated the digital transformation in Vietnam. 60 per cent of businesses are now using online tools and platforms, and more than 2,000 procedures can be conducted online," he emphasised.

 

The new report "Vietnam's digital economy potential" of AlphaBeta and Google pointed out that if all of its advantages were utilised, digital transformation could generate VND1.73 trillion ($74 billion) in value for Vietnam by 2030, equivalent to 27 per cent of the country's GDP in 2020. The most promising fields highlighted were agricultural products and food, education and training, retail, services, and tourism.

Vietnam's advantage is a young, educated, and tech-savvy population accounting for 70 per cent of citizens under 35, and around 70 per cent of the population use smartphones. Besides that, Vietnam is the second-fastest-growing internet economy in Southeast Asia (following Indonesia).

The report highlighted eight key technologies for the digital economy, including mobile internet, cloud computing, big data, AI, fintech, IoT and remote sensing, advanced robotics, and additive manufacturing.

New business models will increase revenue, save cost, and enhance the productivity of businesses. They can create significant economic value for businesses and the government of Vietnam, contributing to GDP growth.

Additionally, the report also said that digital adoption is also essential for Vietnam to respond to and recover from COVID-19. By helping businesses connect with customers through digital technology and reducing logistics bottlenecks caused by supply chain disruptions, technologies can help businesses manage the severe impacts of COVID-19. It is estimated that about 70 per cent of Vietnam's total digital opportunities (VND1.216 trillion ~ $52 billion) can be generated by such technology applications.

Highly appreciating the innovation ecosystem and digital economy in Vietnam, Vu Quoc Huy, NIC director said that the centre has already shaken hands with tech giants like Google and Amazon to organise programmes including online training on technologies, e-commerce, as well as digital transformation for human resources and businesses. "In the time coming, NIC will continue building and deploying programmes to facilitate and support enterprises in digital transformation. We will propose more policies to the MPI to develop the digital economy in Vietnam," said Huy.

Source: VIR

 
 

Other News

.
President co-chairs Vietnam - Switzerland Business Forum
President co-chairs Vietnam - Switzerland Business Forum
BUSINESSicon  27/11/2021 

Vietnamese President Nguyen Xuan Phuc and his Swiss counterpart Guy Parmelin co-chaired a Vietnam - Switzerland Business Forum in Bern on November 26.

Concerns on money investment during high inflation
Concerns on money investment during high inflation
BUSINESSicon  27/11/2021 

According to the Economist Intelligence Unit (EIU), the world economy could lose trillions of dollars due to the prolonged pandemic, with developing economies suffering the most damage. 

Only 1% of American businesses plan to withdraw from Vietnam
Only 1% of American businesses plan to withdraw from Vietnam
BUSINESSicon  27/11/2021 

Only 1% of American businesses plan to withdraw from Vietnam, according to the latest survey of the American Chamber of Commerce in Vietnam (AmCham Vietnam).

Stock trading booms, money flows to bankers’ pockets
Stock trading booms, money flows to bankers’ pockets
BUSINESSicon  26/11/2021 

Bank shares continue to attract cash flow. The VN Index has climbed to new highs, exceeding the 1,500 point benchmark.

International, domestic gold price gap widens to VND11 million
International, domestic gold price gap widens to VND11 million
BUSINESSicon  26/11/2021 

While the gold price in the world market is falling sharply, the domestic price keeps rising, with the gap between prices hitting VND11 million per tael.

Cold storage is more attractive  during the pandemic
Cold storage is more attractive during the pandemic
BUSINESSicon  26/11/2021 

There has been a sharp rise in demand for cold storage in the Asia-Pacific region which has pushed foreign investment into Vietnam, strengthening the value of the local supply chain.

13th EuroCham White Book released at Meet Europe 2021
13th EuroCham White Book released at Meet Europe 2021
BUSINESSicon  25/11/2021 

Despite the COVID-19 pandemic, two-way trade between Vietnam and the EU still expanded by nearly 20 percent annually, reaching more than 56 billion USD last year.

Ministry takes action as market sets up new price levels
Ministry takes action as market sets up new price levels
BUSINESSicon  25/11/2021 

It was recorded on November 23 in Ho Chi Minh City that some products and many services set new price levels.

2021 Black Friday is truly ‘black’ for shop owners
2021 Black Friday is truly ‘black’ for shop owners
FEATUREicon  26/11/2021 

Many retailers say that consumers ate indifferent to sale promotion programs for Black Friday 2021, the biggest sale campaign of the year.

VIETNAM BUSINESS NEWS NOVEMBER 26
VIETNAM BUSINESS NEWS NOVEMBER 26
BUSINESSicon  26/11/2021 

Aviation authorities proposes full resumption of domestic flights from 2022

Average tourism wages fall by nearly 18% due to Covid
Average tourism wages fall by nearly 18% due to Covid
BUSINESSicon  26/11/2021 

Due to the heavy impact of the Covid-19 pandemic on enterprises and workers in the tourism industry, the average tourism wages in Vietnam have fallen by nearly 18%, with the decline for women employees even higher at almost 23%.

Seven commodities with export value hitting over US$10 billion each
Seven commodities with export value hitting over US$10 billion each
BUSINESSicon  25/11/2021 

Vietnam has boasted seven commodities with an export turnover exceeding US$10 billion each as of November 15 following the post-pandemic resumption of various businesses.

HCM City pilots price stabilised sale points to benefit factory workers
HCM City pilots price stabilised sale points to benefit factory workers
BUSINESSicon  25/11/2021 

The HCM City Department of Industry and Trade has begun a programme called ‘Mobile price-stabilisation sales points’ at export processing zones and industrial parks to ensure workers there can buy safe foods at fair prices.

Vietnam shows resiliency and sustainable growth amid pandemic: experts
Vietnam shows resiliency and sustainable growth amid pandemic: experts
BUSINESSicon  25/11/2021 

Vietnam’s economy is recovering with strong prospects for resiliency and sustainable growth, experts said on Tuesday at a conference in HCM City.

Vietnam Grand Sale 2021 to take place in December
Vietnam Grand Sale 2021 to take place in December
BUSINESSicon  25/11/2021 

The Vietnam Grand Sale 2021 will take place across the country from December 1, 2021 to January 1, 2022.

More people are pursuing IT careers as the digital economy takes off
More people are pursuing IT careers as the digital economy takes off
FEATUREicon  25/11/2021 

By September 2021, Vietnam had more than 1.3 million unemployed workers. Meanwhile, the local IT industry, with its growth momentum and large contribution to GDP, is hungry for human resources. 

Japan’s investment in Vietnam soars 90%
Japan’s investment in Vietnam soars 90%
BUSINESSicon  24/11/2021 

Japanese investors poured approximately US$3.4 billion into Vietnam from January to October 2021, soaring 90% compared with the same period last year.

42 wind power projects permitted to operate commercially
42 wind power projects permitted to operate commercially
BUSINESSicon  24/11/2021 

A total of 42 wind power plants featuring a total capacity of 2,131.3MW have been approved for commercial operation as of mid-November, according to data released by Electricity of Vietnam (EVN).

Vietnam-Malaysia-India container shipping route to be inaugurated
Vietnam-Malaysia-India container shipping route to be inaugurated
BUSINESSicon  24/11/2021 

The Vietnam Maritime Corporation (VIMC) announced on November 23 that it will inaugurate a container shipping route linking Vietnam, Malaysia and India on November 25.

Worrisome concerns about stock market bubble
Worrisome concerns about stock market bubble
BUSINESSicon  25/11/2021 

At the National Assembly last week, there were worrisome arguments about the structure of the budget revenue based on the stock market bubble and the real estate sector. 

 
 
 
Leave your comment on an article

OR QUICK LOGIN