Vietnamese people and enterprises are the central targets, beneficiaries and driving factors of the national digital transformation, Prime Minister Pham Minh Chinh has said.

A database center of the telecommunication corporation CMC Telecom. Source: CMC Telecom

The digital transformation must facilitate people and enterprises with higher quality public services, which should become more convenient, faster and more efficient, PM Chinh said.

PM Chinh made his remarks on October 10, the first National Digital Transformation Day was launched under the 13th Party Congress Resolution and the Government's National Digital Transformation Program to 2025 with a vision to 2030.

The Prime Minister regarded digital transformation as an inevitable factor that “fuels the national growth from inside and outside, harmonizes the relations between the State, market and society, bolsters economic growth, and increases productivity, production efficiency and competitiveness of enterprises.”

The technologies also "lower the selling prices of products, reduce the administrative workload for both individuals and businesses, and improve the administrative capacity of local authorities," he said.

In recent years, Prime Minister Chinh said that Vietnam had improved public awareness of digital transformation, better developed digital transformation policies, and boosted the development of digital infrastructures and the national database.

“People and enterprises have enjoyed a more efficient and smoother system of online public services, cybersecurity has improved, and digital transformation has made up a bigger proportion of the nation’s total GDP year after year,” he said.

According to the National Digital Transformation Authority of the Ministry of Information and Communications, as of June 2022, the value of digital activities accounted for 10.41% of Vietnam’s total GDP, up from a 9.6% ratio recorded at the end of 2021 but still far from the target of 20% set for 2025.

The Prime Minister said there is still room for improvements, which require well-developed policies and better management of socio-economic development.

"The Government must continue to develop regulatory policies that focus on infrastructure growth and human resources development to raise Vietnam's global ranking in e-government, innovation and competitiveness," he said.

Governmental agencies need to improve their public services and set up a national database to meet the demand of people and enterprises by 2025 with a vision to 2030, the PM added.

PM Chinh also asked officials to improve human resources quality based on innovations, sciences and technologies to meet the labor market demand.

He also urged local enterprises to bring their operations onto the digital platform, focus on digital infrastructure development, enhance investment in R&D, and seek further international cooperation in digital transformation.

Prime Minister Pham Minh Chinh speaks at the launching ceremony of the National Digital Transformation Day on October 10. Source: VGP

"Communication activities should be improved to educate government agencies, individuals and businesses about digital transformation and its benefits and provide clear instructions on using online public services," Chinh said.

According to Minister of Information and Communications Nguyen Manh Hung, the ministry has released a list of 16 digital platforms and applications that are essential for people.

"The ministry has conducted training for more than 100,000 governmental officials at all levels on digital transformation and provided access to training courses for more than five million people," Hung said

US$30 billion added to GDP

Hung said if Vietnamese small- and medium-sized enterprises (SMEs) successfully adopt digital transformation solutions, their operations may raise the nation’s GDP by US$30 billion.

The SMEs account for 98% of the total number of all Vietnamese firms, employing 70% of the total number of workers in the country and contributing 50% of the nation’s GDP.

Electronic components made at SGK Company in Hanoi's Chuong My Industrial Park. Photo: The Hanoi Times

A recent study by the Vietnam Software and IT Services Association (Vinasa) has shown that 72% of SME leaders have no idea how to start digital transformation inside their firms. More than 90% do not know how to begin digital transformation properly, and nearly 70% do not know where to seek potential partners to kick off the digital transformation. Up to now, only 20% of all SMEs have completed the digital transformation.

Many SME executives are clueless about where and how to start digital transformation despite being aware of the benefits of digital transformation on their businesses. At the same time, some take digital transformation for granted, Le Thi Thu Thuy, Deputy General Director of the Enterprise Development Foundation under the Vietnam Chamber of Commerce and Industry, said.

"High expense is one of the major obstacles preventing SMEs from adopting digital transformation solutions besides proper planning and leaders’ determination," Thuy said.

Companies are also concerned about the risks of cyber security and information breach," she added.

To help SMEs overcome obstacles in technology and finance, the Ministry of Information and Communications, in cooperation with some top Vietnamese tech firms, has launched a program to support small and medium enterprises in digital transformation since late January 2021.

More than 318,000 SMEs have benefited from the program, a sharp increase from the 37,000 SMEs registered in 2021. By 2022, some 360,000 SMEs are expected to enjoy SMEdx program incentives.