Vietnam’s digital transformation Outlook 2022
The Vietnamese Government considers Vietnam’s digital transformation as an essential aspect in maintaining growth and prosperity. With an estimated Gross Merchandise Volume (GMV) rise of 28% in 2022, Vietnam is said to be one of the fastest-growing digital economies in Southeast Asia. By 2030, it is predicted that Vietnam’s digital sector will contribute 30% to its GDP.
The need for digital transformation to enable Vietnam to achieve its development goals
The impact of Covid-19
Vietnam was one of the few nations that handled COVID-19 reasonably effectively partly thanks to the fact that the country’s digital push has been accelerated. Regardless, Vietnam still has a long way to go to establish the right conditions for domestic organizations to adapt to the newest global digital technology if it wants to become a digital powerhouse in the future.
EVFTA as a driver of Vietnam’s digital transformation
The EVFTA will help to boost Vietnam’s digital economy and development by encouraging the development of electronic commerce between the EU and Vietnam by enhancing Vietnam’s regulatory environment for digital transformation. This will be accomplished through consistent and productive discussion of the regulatory concerns brought up by e-commerce and digitalization. The regulations, laws, and frameworks governing e-commerce in Vietnam will be gradually improved, advancing and enabling the country’s digital transformation.
Digital transformation is a major asset of Vietnam’s National Pland to achieve the country
By the middle of this century, Vietnam wanted to accomplish two major goals. One is to achieve net-zero carbon emissions by 2050 as pledged by Prime Minister Pham Minh Chinh at the COP26. The other is to become a high-income country by 2045 by a resolution of the 13th National Party Congress. Digital transformation would be the key to unlocking these goals. That’s why it is highlighted as a top priority by many national programs.
The main sectors targeted by this digital transformation
This is a key sector that is primed and ready for digital transformation, as 85% of manufacturing businesses already have access to digital technology. Technologies related to manufacturing are mostly appreciated because most businesses are involved in the assembly and processing stages. These technologies include monitoring and control, robotics and automation technology.
Finance and Banking
Vietnam’s fintech market is expanding, and at an impressive pace for such a young sector. Digital payments mediated 93% of the venture capital invested in Vietnam in 2021. The country’s strong internet penetration, high proportion of smartphone users, and quickly expanding e-commerce are credited with the development of FinTech.
One of the fastest-growing areas of the digital economy in Vietnam is e-commerce. According to the Vietnam E-commerce and Information Technology Agency (VECITA), this country's e-commerce market is expanding 35% per year, 2.5 times faster than Japan. The growth of e-commerce in Vietnam is predicted to bring in revenue of 16.4 billion USD, a record for this industry.
Governments and businesses are becoming more concerned about the role of digital transformation in logistics. Nguyen Hong Dien, Minister of Industry and Trade, claims that Vietnam’s logistics service sector will continue to grow quickly and responsibly to keep up with global trends. A strategy for the digital transformation of the local logistics sector in the years 2022–2025 and its direction to 2030 has been released by the Ho Chi Minh City People’s Committee. Creating a digital logistics map, a centralized data warehouse, and digital platforms linking multimodal transport services will all be finished by 2025 in the city.
Despite significant progress, there is still work to be done to close the gap in the development of digital skills in Vietnam. This is to guarantee that everyone has an equal chance at achieving the success of the country’s digital economy. Vietnam is moreover well prepared for its digital transformation.
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Source: Source of Asia