Digital transformation will help realize the aspiration to develop the country: expert

Mai Liem Truc, former Deputy Minister of Posts and Telematics, believes that technology and digital transformation is the key to robust growth.

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.

Digital transformation will help realize the aspiration to develop the country: expert

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

Digital transformation: smart homes invented by Vietnamese

Digital transformation: smart homes invented by Vietnamese

The digital transformation process is being carried out throughout Vietnam, from large enterprises to small shops.

Govt seeks 7.5-8% annual growth in next 25 years via digital transformation push

Govt seeks 7.5-8% annual growth in next 25 years via digital transformation push

To become a powerful and prosperous country by 2045, Vietnam needs to obtain a GDP growth rate of 7.5-8 percent per annum for the next 25 years. Only digital transformation can helps make this a reality.

 
 

Other News

.
Hazardous waste: an increasingly serious problem in large cities
Hazardous waste: an increasingly serious problem in large cities
FEATUREicon  10/04/2021 

A report found that Vinh Phuc province discharges over 800 tons of waste every day, of which 180 tons are from urban areas and 700 tons from rural areas.

Foreign firms take over petroleum market, Ministry of Industry and Trade anticipates risk
Foreign firms take over petroleum market, Ministry of Industry and Trade anticipates risk
FEATUREicon  09/04/2021 

The Ministry of Industry and Trade (MoIT) has proposed removing the rule in a decree that says foreign investors are allowed to hold no more than 35% of shares in petroleum trading businesses.

The Prime Minister of drastic actions and breakthrough thinking
The Prime Minister of drastic actions and breakthrough thinking
FEATUREicon  09/04/2021 

Mr. Pham Minh Chinh has taken office as the new Prime Minister of Vietnam. 

Where will costly promotion e-commerce campaigns lead?
Where will costly promotion e-commerce campaigns lead?
FEATUREicon  11/04/2021 

Online sale apps are spending big money on promotion campaigns to retain consumers, but the money seems to have been spent in vain.

BOT projects incur losses, investors and banks worry about bad debts
BOT projects incur losses, investors and banks worry about bad debts
FEATUREicon  09/04/2021 

Investors are worried as their Build-Operate-Transfer (BOT) projects cannot satisfy requirements as revenue has been lower than expected.

Why do Vietnamese PhDs want to write  research articles and not pursue applied research?
Why do Vietnamese PhDs want to write research articles and not pursue applied research?
FEATUREicon  09/04/2021 

Professor Truong Nguyen Thanh says four challenges exist for the development of applied research in Vietnam.

Newly-elected Hanoi Party Secretary faces great responsibility, high expectations
Newly-elected Hanoi Party Secretary faces great responsibility, high expectations
FEATUREicon  10/04/2021 

To succeed, the first breakthrough a nation needs is institutional reform and laws. For Dinh Tien Dung, who has been elected as Hanoi's Party Secretary, this coincides with his view.

One must be brave to be able to do great things
One must be brave to be able to do great things
FEATUREicon  11/04/2021 

Minister of Information and Communications Nguyen Manh Hung has emphasized that the biggest fear of youth is wasting time without learning anything valuable. Young people should get involved, and do what they never thought they could do.

Farmer looks to the internet to improve skills, income
Farmer looks to the internet to improve skills, income
FEATUREicon  08/04/2021 

Phan Van Hung now earns half billion dong a year after studying farming techniques on the Internet.

The politician who goes to wholesale market, wades in water to visit people
The politician who goes to wholesale market, wades in water to visit people
FEATUREicon  08/04/2021 

President Nguyen Xuan Phuc, 67, on April 5, took the oath of office before the National Assembly, people, and voters. This is the first time that an incumbent Prime Minister was elected State President.

Female scientist pursues in-depth study about tertiary education
Female scientist pursues in-depth study about tertiary education
FEATUREicon  10/04/2021 

Nguyen Thi Lan Huong, 43, resigned from her post as a dean to which she was appointed at aged 27 to begin a new path of research about tertiary education.

Vietnamese enjoy high-end tours at surprisingly low fees
Vietnamese enjoy high-end tours at surprisingly low fees
FEATUREicon  07/04/2021 

Travel firms have been advised to focus on the domestic market for the immediate time. However, they also need to draw up new strategies and new programs to conquer this group of travelers.

Hybrid electric vehicles to account for 30% of market by 2030
Hybrid electric vehicles to account for 30% of market by 2030
FEATUREicon  07/04/2021 

Hybrid electric vehicles (HEV), which have maximum fuel economy, low emissions and smooth operation, are suited to Vietnam’s climate and transport conditions, experts say.

Father of young chess champion becomes internationally certified chess referee
Father of young chess champion becomes internationally certified chess referee
FEATUREicon  10/04/2021 

Nguyen Thanh Cong initially knew nothing about chess, but became an internationally certified chess referee after years of studying along with his prize-winning daughter.

Sai Gon’s ‘knights' offer aid to people in distress
Sai Gon’s ‘knights' offer aid to people in distress
FEATUREicon  07/04/2021 

The kindness of "night-road knights" has made a massive contribution to reducing traffic accidents, and has won acclaim from the people and the government of Binh Tan District, HCM City.

ICT Minister answers key questions about digital transformation
ICT Minister answers key questions about digital transformation
FEATUREicon  06/04/2021 

Minister of Information and Communications Nguyen Manh Hung posed key questions and outlined solutions to digital transformation issues at a recent meeting with officials of the southern province of Ba Ria - Vung Tau.

National Assembly - Highest organ of State power, highest representative body of the people
National Assembly - Highest organ of State power, highest representative body of the people
FEATUREicon  06/04/2021 

Within the State apparatus of Vietnam, the National Assembly (NA) is the highest representative body of the people and the highest organ of State power of the Socialist Republic of Vietnam.

Vietnamese engineers register inventions in the US
Vietnamese engineers register inventions in the US
FEATUREicon  06/04/2021 

The strategy of mastering the high-tech industry at a world-class level has been the foundation for Viettel Group’s engineers to now have four patents protected as intellectual property in the US.

Prices surge on stock market, VN Index reaches record high
Prices surge on stock market, VN Index reaches record high
FEATUREicon  05/04/2021 

Many new investors have made high profits after the stock market reached a record high.

From Tho Nguyen to Ryan Kazy: high profits are made from YouTube content for children
From Tho Nguyen to Ryan Kazy: high profits are made from YouTube content for children
FEATUREicon  06/04/2021 

Developing content on YouTube has proven to be very profitable for young creators, from a 29-year-old Vietnamese girl to a 9-year-old boy from Texas.

 
 
 
Leave your comment on an article

OR QUICK LOGIN