Information and Communications Ministry proposes solutions to develop VN’s digital businesses

The Ministry of Information and Communications (MIC) is developing a national strategy on development of Vietnamese digital firms to 2030.

In the draft strategy, the Ministry has proposed many solutions to achieve the goal of having 100,000 digital firms by 2030.

Bộ TT&TT đề xuất các giải pháp phát triển doanh nghiệp công nghệ số Việt Nam

The Ministry of Information and Communications aims to have 100,000 digital technology enterprises by 2030.

Important tasks of the information and communication sector

Formulating the national strategy on developing digital enterprises in Vietnam to 2030 is the mission assigned to MIC in the Prime Minister’s Directive 01 dated January 14, 2020.

The PM’s directive emphasized: developing enterprises that apply, transfer, research, develop and manufacture digital technology-based products, platforms, and solutions, and developing digital enterprises to promote innovation and play a very important role in realizing the opportunities and potential that digital transformation brings about when digital technology is brought into all areas of social life and to each citizen.

“Vietnamese digital technology enterprises need to take the lead, create a breakthrough in the implementation of the strategy Make in Vietnam with the meaning that Vietnamese enterprises strive to step by step master technology, proactively design and manufacture products, and take the initiative in creating services, solutions, and new business models,” the directive said.

Vietnam's digital technology enterprises will contribute to the realization of the mission of making Vietnam a developed industrial country, and create a breakthrough and rapid and sustainable development of the economy with the goal of turning Vietnam into a high-income country by 2045, according to the directive.

The Prime Minister pointed out in the directive that, based on the model of some countries with developed economies based on digital technology enterprises, by 2030 Vietnam needs at least 100,000 digital technology enterprises in order to develop the digital economy, build smart cities and, e-government, apply digital technology achievements widely in socio-economic fields, and implement national digital transformation.

Implementing the assigned missions, MIC has developed a draft national strategy on developing Vietnam’s digital technology enterprise to 2030, which is available on MIC website (mic.gov.vn) for comments from agencies, organizations, businesses and people.

According to the draft, Vietnam currently has a large technology business community with about 43,000 companies operating in the ICT industry and about 17,000 businesses trading and distributing products and solutions in this field.

However, to achieve the target of having 100,000 Vietnamese digital technology enterprises, some subjective and objective challenges need to be overcome. Despite their significant number, Vietnamese technology enterprises depend on foreign outsourcing and core technology, with low value-added products and solutions, limited innovation capacity and international competitiveness.

Meanwhile, competition from international technology firms is getting fierce. Vietnam's advantage in low-cost labor in the field of technology is deeply affected by the impact of new breakthrough technologies that are replacing activities with low knowledge content.

“In that context, the formulation of the national strategy is an important task to provide both systematic and breakthrough solutions that are typical for Vietnam, and mobilize resources of the whole society to exploit the strengths and take advantage of opportunities to develop Vietnamese digital technology enterprises,” stressed the MIC.

Six groups of solutions

 

In addition to the target of the number of businesses that need to be developed, the draft National Strategy on Vietnam’s digital enterprise development to 2030 identified the important goal that technology businesses contribute more to socio-economic development, participate in solving socio-economic problems of Vietnam, and develop in a sustainable manner with high competition, reaching international markets.

The draft strategy proposed six main groups of solutions, including:

1. To perfect mechanisms and policies to create a development environment for Vietnamese digital technology enterprises;

2. To step up digital technology research capacity, in which enterprises are the pioneering force;

3. To effectively support and create a dynamic market for Vietnamese digital technology enterprises;

4. To develop a data industry and digital ecosystem;

5. To renovate human resource development models and modes of using labor specialized in digital technology;

6. To formulate breakthrough development orientations through the government's tasks and projects with spillover effects to the community of digital enterprises.

Specific targets by 2030 are set out in the draft strategy, including: Developing 100,000 digital technology enterprises, 1.5 million workers specialized in digital technology; turnover of Vietnam's digital technology enterprises to obtain an average growth rate of 2-3 times higher than that of GDP; export value of Vietnamese digital technology enterprises to grow at an average rate of 20-30% per year;

Vietnam's digital technology enterprises to contribute 20% of GDP growth, 50% increase in national labor productivity and 70% of digital economic growth; proportion of Vietnamese digital products developed based on key technologies from the 4th industrial revolution to account for 40-50%; Vietnam’s technology and innovation indexes to be in the top two in ASEAN and top 50 in the world.

M.T

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