The digital economy is destined to play a big important part in Hanoi’s socio-economic growth in the future, and the city authorities are working to fulfill such a target.

Production line operated by South Korean firm Hanwha Aerospace at Hoa Lac Hi-Tech Park. Photo: Thanh Hai/The Hanoi Times

Under the plan issued by the municipal People’s Committee on making Hanoi a digital and smart city in 2030, revenue from the digital economy sector is expected to account for 30% of the city’s total in 2025 and 40% in 2030. The digital economy is also anticipated to account for at least 10% of each sector and industry.

By the end of 2025, the capital city plans to become one of the top five localities in digital transformation, competitiveness index, innovation, and cybersecurity. In ASEAN, Hanoi hopes to become a leading metropolis in data science and artificial intelligence (AI).

Hanoi also wants to facilitate the e-Government, digital economy, and digital society while formulating a community of capable, global digital enterprises.

Regarding e-Government, Hanoi expects to process 100% of level-4 administrative tasks via online platforms. At the municipal, district and commune levels, Hanoi will explore internet-based solutions to proceed with 60-90% of the paperwork.

In addition, 100% of professional data will be shared via the national database of population, land, business registration, finance, and insurance.

The entire activities are expected to be completed by 2025.

Economist Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy, said that Hanoi has developed itself a firm foundation for sciences and technological developments.

The city is home to many universities, colleges, research institutes, and technological centers, he said, adding that Hanoi has benefited in years from the support of the Government to become the national technological and innovative center.

Hanoi is now among the top three localities in digital transformation, information and technology, and cyber security.

The e-Government system is well-received and proves effective, with all the figures on the likes of population and insurance regularly updated and explored.

Municipal authorities have also encouraged the use of cashless payments in all districts and facilitated the development of e-invoices, e-bills,s and other forms of electronic transaction.

As of the end of 2022, Hanoi had some 9,300 ICT companies whose total revenue was estimated at US$12.8 billion and they created some 207,000 jobs.

Many have acquired core technologies and developed 40 “Make in Vietnam” platforms, such as Viettel, CMC Solutions, and Phenikaa MaaS.

At the Hoa Lac Hi-Tech Park, there are some 94 projects with a total registered capital of VND89.3 billion ($3.6 million). Fifty-two projects are operating, including foreign-invested ones such as Hanwha Aerospace (South Korea) and Nissan Techno (Japan).

The Hoa Lac Hi-Tech Park is also the cluster where startup businesses are encouraged to develop. Science and technology studies at the industrial park have resulted in many solutions for 4G and 5G technologies and aero engineering.

In recent meetings with authorities and businesses from Shenzhen (China), Gyeonggi (South Korea) and Australia, Hanoi’s top officials have reaffirmed their intention to draw foreign investment capital into the hi-tech park to diversify its operations, thus creating more added values for the people and society.

Not only businesses but academics have also taken steps to get more involved in science and technology development.

The Hanoi University of Sciences and Technologies has recently launched a working space at its technological and digital economy center. The working space is projected to become the source of a high-quality workforce and digital products, which will assist the formation of the digital economy and society.

For infrastructure projects, Hanoi authorities have asked developers to integrate smart and digital solutions in their plans to create smart infrastructure for the city. The city has also initiated a project to originate the policies for the startup community, thus making the capital the city of entrepreneurship and innovation.

“Hanoi has positioned itself with incentive and preferential policies for startup companies,” said Nguyen Thi Mai Anh, Deputy Director of the Hanoi Trade Promotion Agency.

“The city also hopes that large-cap enterprises will lead, among others, to adopt technologies in production and trading,” she said.