Vietnam seeks to seize opportunities for digital economy

The digital economy has become an inevitable development trend

Opportunities

Vietnam has many advantages in terms of digital economy development stemming from the impact of the fourth industrial revolution, the state’s mechanisms and policies, and the inevitable needs of the economy in the context of the Covid-19 pandemic, which has forced individuals and businesses to change their thinking and habits in business and daily activities.

A 2019 Politburo resolution calls for the digital economy to account for about 30 percent of Vietnam’s gross domestic product (GDP) by 2030. In addition, the 13th National Party Congress adopted a resolution identifying the digital economy as one of the key criteria in socioeconomic development in the coming years. Specifically, it calls for the digital economy to account for 25 percent of GDP by 2025 and 30 percent of GDP by 2030.

The Vietnamese government has also issued many policies to develop digital infrastructure (telecommunications networks and digital services) and build digital resources (open knowledge and data ecosystems), as well as digital transformation policies.

Nguyen Ngoc Dung from the Ministry of Planning and Investment’s Vietnam National Innovation Center said revenue of the information and communications technology (ICT) sector has seen a high growth rate of 7.1 percent per year, creating advantages for Vietnamese businesses to participate in the digital transformation market or digital services.

Workforce shortages

The digital economy has become an inevitable development trend in not only Vietnam but also many other countries around the world. However, Vietnam must overcome challenges to promote its development.

Nguyen Ngoc Dung said Vietnam needs 450,000 information technology (IT) employees in 2021, but only has 430,000. Some 16,500 people graduate each year, but the number cannot meet recruitment demands immediately. A shortage of digitally skilled human resources is forecast to increase to 150,000 people in 2022.

Vietnam has also been at a disadvantage in terms of the quality of human resources compared to regional countries, such as Singapore, Malaysia, the Philippines, China and Thailand, affecting the development of the digital economy as well as digital transformation, Dung said.

Dung proposed that the government direct relevant agencies to develop specific training programs and strategies and issue policies to attract young, educated and tech-savvy human resources. Dung said great powers like China have special policies to attract high-quality IT human resources, adding that Vietnam, too, should create favorable conditions for foreign IT experts.