Experts at a virtual talk themed “Why Vietnam” on October 21 shared the view that Vietnam is in a favorable position to be an ideal destination for IT firms globally.

Overview of the talk.

Deputy Head of the Authority of Information Technology Application under the Ministry of Information and Communications (MIC) Do Cong Anh said Vietnam is prioritizing a number of fields for digital transformation, including healthcare, education, finance, banking, agriculture and transportation, among others.

By 2025, Vietnam targets to be among the leading 70 countries in e-government development, while the digital economy would account for 20% of total GDP, said Mr. Anh at the online talk, which is part of the International Telecommunication Union (ITU) Digital World 2020 co-organized by the MIC and ITU from October 20 – 22.

Meanwhile, the contribution of digital economy in each field is set to reach at least 10% of GDP, leading to productivity growth of around 7% per annum.

By 2030, Vietnam would be among top 50 countries in e-government development and the majority of the population is expected to access 5G and broadband internet services.

Additionally, the government targets 80% of the population to have online payment accounts and Vietnam is among the world’s top 30 countries in cyber security.

To achieve these targets, Mr. Anh noted the government has laid out detailed strategies and vision for the digital transformation process, with a view for the country to becoming the ideal destination for the development of IT firms around the world.

A number of cities and provinces in Vietnam are investing in infrastructure, human resources and investment polices to attract digital companies.

Deputy Director General of the MIC’s Department of Information Technology Nguyen Thanh Tuyen said it is essential for Vietnam to focus on developing new technologies and an ecosystem of innovative startups to aid the digital transformation process.

Thieu Phuong Nam, General Director of Qualcomm in Vietnam, Laos and Cambodia referred to Resolution N.52-NQ/TU dated September 27, 2019 of the Politburo on the participation of Vietnam in the Industry 4.0 as a major step towards in the digital transformation.

Qualcomm is willing to cooperate and support local enterprises in manufacturing smart phones and 5G devices, said Mr. Nam.

CEO of NashTech Vietnam expected huge business opportunities for foreign firms in fields of AI, big data development, as the country boasts over 50 million smart phones users and was ranked 7^th globally in terms of number of downloaded smartphone apps.

President of Ericsson Vietnam – Myanmar – Cambodia – Laos Dennis Brunetti said he is looking forward to cooperating with multinationals in Vietnam and contributing to the digital transformation process.

Strong investment in IT infrastructure would help boost Vietnam’s sustainable development and become even more attractive in the eyes of foreign investors, asserted Mr. Brunetti.

Golden opportunities

As the world is entering a new phase of development with a focus on innovation and technologies, existing advantages such as cheap labor costs or natural resources are diminishing.

Therefore, countries have to look for new comparative advantages, which could be done via the sandbox approach or investing in high quality human resources.

Aurelien Palasse, Director of Ubisoft Vietnam.

Aurelien Palasse, Director of Ubisoft Vietnam, said the country should pay more attention to developing digital content on e-commerce platforms.

Mr. Anh from the MIC said from the government’s point of view, institutional framework and technologies would be key factors for the digital transformation process.

According to Mr. Anh, Vietnam would adopt a new management model for new business models and working methods, while promoting a new culture for piloting new ideas and products.

At a time when the world is still struggling with the Covid-19 pandemic, Vietnam remains a bright spot for investment activities in general, and in the IT sector in particular.

This comes from the government’s preferential policies for IT development, stable political environment, and adequate infrastructure, among others, noted Mr. Anh.

Moreover, as Vietnam is a member of next-generation free trade agreements such as the CPTPP or EVFTA, investors would have opportunities to access huge markets when investing in Vietnam, he concluded.