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Thursday, December 2, 2021

Digital technology expected to earn US$74 billion for Vietnam by 2030

By Phu Duc

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HCMC – Digital technology if optimized can bring more than VND1.73 quadrillion (US$74 billion) to Vietnam by 2030, equivalent to 27% of the country’s gross domestic product in 2020, according to the report “Unlocking Vietnam’s digital potential” by consultancy firm AlphaBeta.

The report was delivered at a seminar, “Potential of Vietnam’s digital economy”, jointly held by the Vietnam National Innovation Center (NIC) under the Ministry of Planning and Investment and Google on October 18, where Vietnam’s current digital economy, its development prospects and policies to boost its development were discussed.

Under the report, the sectors benefiting the most from digital technology are production, agriculture and food, and education and training.

Speaking at the seminar, Deputy Minister of Planning and Investment Tran Duy Dong said amid the severe impacts of the Covid-19 pandemic, Vietnam needs to accelerate the development of the digital economy to improve the productivity, effectiveness and competitiveness of the local economy.

According to Jacques Morisset, lead economist of the World Bank in Vietnam, to head toward a contactless economy, Vietnam should focus on upgrading the digital skills of laborers, encouraging innovation among enterprises and enhancing the accessibility and quality of information.

Vietnam has many strengths to develop the digital economy, such as a 70% proportion of young, educated and tech-savvy citizens aged under 35, a literacy rate of over 98% among the people aged from 15 to 35, and a 70% proportion of residents using smartphones. In addition, Vietnam has the second fastest growing Internet economy in Southeast Asia, after Indonesia.

The report also showed the need to employ digital technology in responding to the Covid-19 pandemic and recovering in the post-pandemic period by supporting enterprises in connecting with their customers and reducing logistics blockages.

NIC Director Vu Quoc Huy said the center would continue developing programs to support innovation among enterprises to create the most favorable environment for them to develop the digital economy.

The report also recommended three main solutions for Vietnam to fully capture opportunities to develop the digital economy–developing the local technology ecosystem, a conducive environment for digital trade, and improving the digital skills of laborers and students.

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