Speaking recently at the forum “Digital Transformation in the Public Sector – A Foundation for Socio-Economic Development”, Nguyen Huu Thai Hoa, Deputy Director of Tri Viet Institute, noted that digital transformation improves the quality of online public services and provides services at levels 3 and 4 (as per Vietnam’s model), enabling citizens and businesses to complete administrative procedures anytime and anywhere.

From business registration and construction permits to online tax payments, the next phase of digital transformation focuses on personalizing services. Big data and AI can be used to analyze citizens’ needs, such as suggesting business support policies.

Hoa noted that budgets for digital transformation, however, are often limited, especially at local or grassroots levels. Data centers, 5G networks and management software require significant costs, but financial resources are often insufficient.

The public sector struggles to attract and retain tech talent due to uncompetitive salaries compared to the private sector. AI, cybersecurity, and data analysis experts often prefer working for large tech companies.

“The lack of a unified technological architecture among agencies creates challenges in data integration, such as databases about population, taxation, or healthcare. Public officials often lack the skills to use digital tools, particularly in rural areas or small agencies. Retraining requires significant time and resources. Meanwhile, some officials are hesitant or unwilling to adapt to new digital processes, fearing job losses or unfamiliarity with technology,” Hoa highlighted.

A purely technological mindset impoverishes economic vision

Associate Professor Ngo Tri Long, a respected economist, said that digital transformation in the public sector is not merely a technical choice but a strategic decision, driving reforms in governance models and enhancing the state’s capacity to shape markets. 

As a leader in institutions, infrastructure, and innovation, the public sector is the primary force in creating a comprehensive digital economy.

“To succeed, digital transformation in the public sector must be approached from an economic-policy perspective, aiming for efficient allocation of public resources and increased societal productivity. This is an irreversible process that must be accelerated in the 2025-2030 period as a pillar of sustainable growth and national innovation,” Long said.

According to the expert, the state must lead as a creator, not just a service provider. The public sector should not only transform internally but also build a digital ecosystem for the whole society.

However, the digital transformation approach is still biased towards technology and lacks an economic-organizational perspective. According to Long, if digitalization is reduced to installing software or buying equipment without reforming governance models and resource allocation, it will remain “modern in form but outdated in mindset.”

In fact, this is structural reform at the national level, tied to the productivity of the administrative system and the state’s ability to regulate markets. Digital transformation cannot be the sole responsibility of the technology sector; it is a strategic policy choice, measured by economic efficiency.

The public sector is also struggling with limited human resources and budgets. Uncompetitive salaries make it hard to attract AI, cybersecurity, and big data experts to government roles. 

Meanwhile, current officials, especially at grassroots levels, lack digital skills and resist change, thus slowing adaptation.

“Some officials still avoid using public service portals because they are unfamiliar with the processes or fear job losses if procedures are fully digitized,” Thai Hoa noted.

Additionally, the legal framework for digital transformation lacks consistency, particularly in regulations on electronic identification, data protection, and inter-agency information sharing, which complicates system integration. When laws lag behind technology, reform initiatives risk being “tied up.”

Digital transformation as institutional reform

The forum’s consensus was that digital transformation in the public sector can only succeed if placed within the broader context of institutional reform and national governance innovation. It is not a “technical task” but the foundation of a new development model, where the state is not just a “service provider” but a creator of digital markets and a driver of efficient public investment.

Experts suggest that in 2025-2030, Vietnam should prioritize sustainable investment in data infrastructure and computing centers, develop a unified, interconnected technological architecture, and issue updated regulations on data protection and information sharing. 

They also recommend retraining officials to become “digital public servants” and engaging the private sector to develop AI and blockchain applications for the public sector.

Thai Khang