The path for Vietnam to become owners rather than just wage earners

Technology and innovation are the answers to the question about how Vietnam can to escape from doing only outsourcing for foreign partners.

The path for Vietnam to become owners rather than just wage earners

“If we dare not make investment in science and technology and innovation, we will get stuck in the low-productivity, low-added value and middle-income trap,” former Prime Minister Nguyen Xuan Phuc said at the groundbreaking ceremony of the Hoa Lac Hi-tech Park in Hanoi.

Investing in technology and innovation will bring Vietnamese products to a new height, helping the country escape the status of doing primarily outsourcing, which it has done for decades now. This is not only true for technology firms, but for all enterprises.

Using new technologies or inventing new technologies will help enterprises increase turnover and improve their business positions. Electric cars and smartphones bearing Vietnamese brands are products that show the strong capability of Vietnamese enterprises in the 4.0 era.

TP Bank, established in 2008, is one of the youngest banks in Vietnam. In the first four years of operation, it ranked at the bottom of commercial banks. However, the bank has applied digital transformation and technology application in recent years.

“Going digitized to become a technology-based digital bank is a must for us, because we cannot compete with powerful traditional banks which have existed for many years,” a representative of the bank said at the Vietnam digital technology firm development forum in 2020.

The military telecom carrier Viettel is also building a digital culture with flexibility, creativity, customer orientation, and open culture. It is stepping up digital transformation in internal governance, applying modern technology with international standards.

All of its documents have been digitized, while 50 percent of manual work has been liberalized, and 30-40 percent of task operations have been automated.

Its digital ecosystem provides B2C and B2B services, spanning a wide range of fields, from finance (Viettelpay), digital banking, and OTT (Mocha, Keng), to customer care (MyViettel, Viettel++), e-government, Smartcity, medicine and vaccination.

The "Make in Vietnam"message put forward by the Ministry of Information and Communication has created vitality and excitement among the startup community. The fact that Vietnam has become the fifth country in the world mastering 5G technology, producing 5G infrastructure equipment and manufacturing 5G smartphones was inspired by Make in Vietnam.

More than 13,000 technology firms were set up after only one year, raising the number of technology firms to 58,000, which is a new record and proof showing that Make in Vietnam has been brought to life.

Wage earners or owners?

Nguyen Minh Quy, CEO of Novaon, commented that if Vietnam’s enterprises continue doing outsourcing for foreign companies, they will earn little in the value chain.

One iPhone can sell for $1,000 and the biggest value of the smartphone production chain belongs to the first phase -- learning about customers’ needs, researching and designing products to satisfy customers’ needs, and the last phase – distribution and marketing. Those who make the phones pocket a very small value.

 

“We need to think carefully to answer the questions: What will happen if we don’t innovate, and where will we go if we innovate,” he said.

Closing the national forum on digital technology firm development in Vietnam, Minister of Information and Communication Nguyen Manh Hung mentioned some statistics worth thinking about.

In every revolution, only five or six developing countries can become developed countries. And so too in the 4.0 industrial revolution. The opportunities will be grabbed by several countries and they will be reserved only for the pioneers. In the 4.0 era, Vietnam and developed countries are at the same starting line.

“If Vietnam pioneers in the revolution, other countries will come to Vietnam, and Vietnam’s products will reach out all over the globe,” Hung said.

Becoming a pioneer is the aspiration of the entire nation and every Vietnamese. It is difficult but not impossible.

Vietnam has lagged behind many countries and has missed a lot of opportunities in the development process, but this does not mean that it should accept a low position.

In fact, Vietnam is among the top countries in the region and the world in many fields, including telecommunication and electricity. In the last 20 years, Vietnam has been one of the countries with the highest economic growth rates.

Nowadays, empowered by the 4.0 era, digital transformation, and Make in Vietnam, Vietnam’s growth will have an important boost, with the aim of becoming a high-income country by 2045.

Le Xuan Sang, deputy head of the Vietnam Economics Institute, thinks that Vietnam has a "golden opportunity" to make a breakthrough and speed up thanks to the development of science and technology.

In order to reach these goals, space for creativity needs to be expanded and managerial thinking must also be enhanced so that creativity is not hindered by rigid documents and the bureaucracy of many state officials. 

Ha Duy

Outsourcing no more

Outsourcing no more

When we only dominate the processes of assembly, we are lost at the most important stages of the value chain, from invention to design to distribution...

Digital transformation cannot be achieved overnight

Digital transformation cannot be achieved overnight

The Covid-19 pandemic has accelerated digital transformation, forcing businesses to adapt quickly even though they are not ready for it.

 
 

Other News

.
Industrial development needs State’s long-term vision
Industrial development needs State’s long-term vision
FEATUREicon  10/07/2021 

To develop the processing and manufacturing industry, the State needs to have stronger policies that focus on domestic enterprises. To have strong policies, it needs strong resources.

Vietnam needs more private corporations
Vietnam needs more private corporations
FEATUREicon  10/07/2021 

After over 30 years of Doi Moi (reform), Vietnam has had large private groups operating in many industries with international stature. There are also Vietnamese USD billionaires, but only a handful.

Civil servants go to office to work, not to show off fashion
Civil servants go to office to work, not to show off fashion
FEATUREicon  10/07/2021 

Dinh Van Minh, Director of the Legal Department under the Government Inspectorate supports the Ministry of Home Affairs' decision on banning civil servants from going to the office in jeans, T-shirts without lapels, shorts and high-cut skirts.

Vietnam should not be slow in opening its door: economists
Vietnam should not be slow in opening its door: economists
FEATUREicon  10/07/2021 

Prime Minister Pham Minh Chinh has said that Vietnam should not adjust the development goals and agrees with the two GDP growth scenarios designed by the Ministry of Planning and Investment (MPI).

Three enchanting beauty spots on the coastal road of Ca Na
Three enchanting beauty spots on the coastal road of Ca Na
FEATUREicon  11/07/2021 

To travel from Ninh Thuan to Binh Thuan, drivers usually choose to go on National Highway No 1. But travel enthusiasts choose another way - the coastal road connecting the city of Phan Rang and Ca Na Port.

Lychees and the agricultural revolution in Vietnam
Lychees and the agricultural revolution in Vietnam
FEATUREicon  09/07/2021 

Farmers in the northern province of Hai Duong have earned revenue of VND1,600 billion in the lychee season this year, the highest ever. 

Minister, officers run against time to bring VND26 trillion support package to people
Minister, officers run against time to bring VND26 trillion support package to people
FEATUREicon  09/07/2021 

Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung said agencies and localities cannot be slow in disbursing the VND26 trillion support package.

Exports increase sharply, but concerns persist about trade deficit
Exports increase sharply, but concerns persist about trade deficit
FEATUREicon  09/07/2021 

Vietnam’s merchandise trade balance in the first half of the year resulted in a trade deficit. Last year, it had a trade surplus for the same period.

Zero Covid and the new quarantine strategy
Zero Covid and the new quarantine strategy
FEATUREicon  08/07/2021 

The Prime Minister’s approval to pilot home quarantine for F1 cases instead of concentrated quarantine is considered a turning point in Covid-19 prevention in Vietnam.

Unemployment in the time of Covid-19
Unemployment in the time of Covid-19
FEATUREicon  08/07/2021 

The unemployment statistics in Vietnam are always controversial.

Opening the huge market for e-sports
Opening the huge market for e-sports
FEATUREicon  08/07/2021 

Along with the development of the game market and digital entertainment platform, eSports has potential for development in a diverse and highly globalized ecosystem.

Vietnam takes a big step forward in international publications in social sciences
Vietnam takes a big step forward in international publications in social sciences
FEATUREicon  08/07/2021 

About 10 years ago, a mathematician said that Vietnam did not yet have social science study works. The comment seemed to be a bit harsh, but it did make sense, especially when it comes to international publications.

Vietnam needs to cure ‘stagnation disease’ to 'take off'
Vietnam needs to cure ‘stagnation disease’ to 'take off'
FEATUREicon  11/07/2021 

Prime Minister Pham Minh Chinh, after taking office, has been paying high attention to fostering the public apparatus’ proper implementation of their functions and tasks, especially the fulfillment of the great responsibilities assigned to them.

Vietnamese children need safer environment in cyberspace
Vietnamese children need safer environment in cyberspace
FEATUREicon  07/07/2021 

Children often spend a lot of time learning, playing and exploring on the internet. Besides the undeniable benefits, unseen threats are also part of cyberspace.

Vietnam’s retail market: global giants unexpectedly fall short
Vietnam’s retail market: global giants unexpectedly fall short
FEATUREicon  09/07/2021 

Vietnamese have turned the tables to become dominant in the retail market, while many foreign giants have had to leave.

Farm produce exports: specialties reach new markets
Farm produce exports: specialties reach new markets
FEATUREicon  08/07/2021 

Despite Covid-19, Vietnam’s farm produce exports still achieved impressive results, especially litchis.

Newspapers and social media: cooperation or confrontation?
Newspapers and social media: cooperation or confrontation?
FEATUREicon  07/07/2021 

VietNamNet spoke with Nguyen Ngoc Chu, a respected mathematician, who is a well-known Facebooker whose posts on his page attract at least 1,000 likes each.

Is Vietnam’s Covid-19 treatment Favipiravir drug effective?
Is Vietnam’s Covid-19 treatment Favipiravir drug effective?
FEATUREicon  07/07/2021 

Vietnam has never included any antiviral drugs in its Covid-19 treatment regimen because of unclear and unproved effectiveness of the drugs in clinical trial results.

What’s behind the high GDP growth rate?
What’s behind the high GDP growth rate?
FEATUREicon  07/07/2021 

The high GDP growth rate of 5.64 percent reported for H1, when a number of large cities and provinces were under social distancing, businesses had to close, and people lost their livelihoods, has puzzled many people.

Strengthening tools to protect children in cyberspace
Strengthening tools to protect children in cyberspace
FEATUREicon  05/07/2021 

The strong development of the Internet and social networks has made children become digital citizens early, which brings many benefits in the service of learning, entertainment, and enhanced social interaction.

 
 
 
Leave your comment on an article

OR QUICK LOGIN