Vietnam’s digital transformation Outlook 2022

Vietnam’s digital transformation is considered by the Vietnamese Government 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 would contribute 30% to the country’s GDP.

1/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 in order 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 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 countries’goals

By the middle of this century, Vietnam wants 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. And the other is to become a high-income country by 2045 in accordance with 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.

2/The main sectors targeted by this digital transformation

Manufacturing

Đây là một lĩnh vực quan trọng được chuẩn bị và sẵn sàng cho chuyển đổi kỹ thuật số , vì 85% doanh nghiệp sản xuất đã tiếp cận với công nghệ kỹ thuật số. Các công nghệ liên quan đến sản xuất hầu hết được đánh giá cao do hầu hết các doanh nghiệp đều tham gia vào giai đoạn lắp ráp và gia công. Những công nghệ này bao gồm giám sát và điều khiển, robot và công nghệ tự động hóa.

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.

E-commerce

Một trong những lĩnh vực phát triển nhanh nhất của nền kinh tế số tại Việt Nam là thương mại điện tử. Theo Cục Thương mại điện tử và Công nghệ thông tin Việt Nam (VECITA), thị trường thương mại điện tử của quốc gia này đang mở rộng 35% mỗi năm , nhanh hơn 2,5 lần so với Nhật Bản . Sự tăng trưởng của thương mại điện tử tại Việt Nam được dự đoán sẽ mang lại doanh thu 16,4 tỷ USD , một kỷ lục cho ngành này.

Logistics

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 in order 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. The creation of a digital logistics map, a centralised 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 successes of the country’s digital economy. Vietnam is moreover well prepared for its digital transformation.

Source: Source of Asia