IT Advisory / Digital Transformation

Digital Economy Transformation in Vietnam

Tra Mac

April 20, 2021

Vietnam is one of the pioneer countries that has built a thematic program on Digital transformation approved by the Government to meet the requirements of the country’s development in the new era. 

Check out our related article: Tech Industry Trend in Singapore After Covid-19


Vietnam national digital transformation strategy

On June 3, 2020, Prime Minister Nguyen Xuan Phuc signed Decision No. 749 approving the “National Digital Transformation Program to 2025, with a vision to 2030” with a vision to 2030, Vietnam becomes a  stable and prosperous digital country.

Under this program, Vietnam is pioneering in the testing of new technologies and models, fundamentally and comprehensively innovating the management and administration activities of the Government, the production and business activities of enterprises, work for the people, develop a safe, humane and widespread digital environment.

The National Digital Transformation program aims to both develop digital government, digital economy, digital society, and form Vietnamese digital technology enterprises with global capacity.

In fact, it is not only a strategy, digital transformation has spread widely to all aspects of the economic and social life of Vietnam in 2020. During the Covid-19 epidemic, Internet and digital technology has become an effective tool to ensure the social connection, despite the social distancing and lock-downs.

2020 is also the year that witnesses the strong growth of online public services. As of December 30, 2020, 2,700 public services were integrated into the National Public Service Portal (National Service Portal) out of a total of nearly 6,700 administrative procedures at 4 levels of government (reaching 39%, exceeding Government assigned target 9%). National service portal up to now has more than 99 million hits, more than 412,000 registered accounts, more than 27.2 million synchronized status records, over 719,000 records made online and more 46,000 electronic payment transactions. The DVCQG also received and supported over 43,800 calls, more than 9,600 complaints and petitions. The social cost saved when implementing online public services on the National Service Portal is more than VND 6,700 billion / year.

Also in the past year, on every Friday, the Ministry of Information and Communications launched a Make in Vietnam platform. A total of 38 such platforms will be launched in 2020. These platforms are important tools to help governments, businesses and citizens participate in digital transformation.


Control of Covid-19 with made in Vietnam softwares and applications.

Vietnam is one of the few countries that effectively restrains and prevents the spread of Covid-19. This success has contributed significantly to Made in Vietnam technology products.

In a very short time, Vietnam has developed a lot of websites and applications serving the prevention of Covid-19.

Typical products include the Covid-19 – Bluezone suspected patient traceability application, the Covid health declaration application, the Vietnam Health Declaration application, along with the website providing quick information on disease situations.

In fact, there have been nearly 900,000 medical declarations made through the electronic medical declaration application, 8 million downloads of Covid application with nearly 18 million voluntary medical declaration records.

As of mid-November 2020, more than 23 million people have installed and used Bluezone applications. As a result, hundreds of F1 and F2 have been discovered and quarantined with the help of a Covid-19 suspect tracking application.

These are concrete and vivid evidences that show that Vietnam has applied IT very well in pandemic prevention. These technology products are all made by Vietnamese technology companies, under the direction of the Government, the Ministry of Information and Communications and the Ministry of Health.


3 major telecom companies are 5G commercially licensed to push digital transformation

By the end of 2020, three major telecom companies in Vietnam, including Viettel, VinaPhone, and MobiFone, have been licensed and deployed to test 5G commercially in Hanoi and Ho Chi Minh City.

The 5G test is an opportunity for companies to build appropriate business models, project pricing and resource usage costs before 5G mobile networks are officially licensed.

Through the process of technical testing in Hanoi and Ho Chi Minh City, 5G network provides download speeds 10 times faster, while latency is reduced 10 times compared to 4G networks.

The report of carriers after the commercial trial will be an important premise for the Ministry of Information and Communications to complete the legal basis for the deployment of 5G mobile networks. The Ministry of Information and Communications also sets a target that by 2030, it will cover 5G mobile networks nationwide.

5G is expected to bring super-speed Internet experiences to mobile users. With super-fast access speed, super low latency, this technology is also the solution for the development of smart cities, smart factories,… Also, the problem of autonomous vehicles and complex operations. trash is done remotely.

The early deployment of 5G will help Vietnam become one of the pioneers in applying 5G technology. This will become an important driving force for the development and application of new technologies, contributing to promoting digital transformation and the digital economy.


Control of Covid-19 with made in Vietnam softwares and applications.

Vietnam is one of the few countries that effectively restrains and prevents the spread of Covid-19. This success has contributed significantly to Made in Vietnam technology products.

In a very short time, Vietnam has developed a lot of websites and applications serving the prevention of Covid-19.

Typical products include the Covid-19 – Bluezone suspected patient traceability application, the Covid health declaration application, the Vietnam Health Declaration application, along with the website providing quick information on disease situations.

In fact, there have been nearly 900,000 medical declarations made through the electronic medical declaration application, 8 million downloads of Covid application with nearly 18 million voluntary medical declaration records.

As of mid-November 2020, more than 23 million people have installed and used Bluezone applications. As a result, hundreds of F1 and F2 have been discovered and quarantined with the help of a Covid-19 suspect tracking application.

These are concrete and vivid evidences that show that Vietnam has applied IT very well in pandemic prevention. These technology products are all made by Vietnamese technology companies, under the direction of the Government, the Ministry of Information and Communications and the Ministry of Health.


Congressional E-meeting for the first time

Ninth session of the 14th National Assembly (opening on May 20, 2020) marks the first time the National Assembly of Vietnam has conducted online meetings. This is considered a special session in the history of the National Assembly of Vietnam over the past 70 years.

Online sessions are conducted via videoconference from the National Assembly House to 63 bridges of the National Assembly delegation of provinces and centrally-run cities. At the meeting, the registration of speech and debate is done by delegates via hotline and using software on tablets to vote.

According to many delegates, online meeting is not only highly effective, but also has many advantages over centralized meeting.

Online meetings save budget and travel time for local delegates. In addition to the leadership positions, many local cadres and civil servants … also have more conditions to attend meetings at online bridge points.

In general, online sessions take place in a democratic, serious atmosphere that is no different from the form of gatherings at the National Assembly House. This is considered a suitable form in the period when the whole country is struggling to prevent and fight against the Covid-19 pandemic.

This event also shows flexibility and contributes to laying the foundation for the innovation of the activities of the National Assembly in the context of the Fourth Industrial Revolution.


Apple moved manufacturing from China and India to Vietnam

By the end of 2020, Foxconn – a company specializing in manufacturing and outsourcing for Apple has transferred a part of the production line of tablets (iPad) and laptops (MacBook) from China to Vietnam at the request of partners. 

This event marks the first time that iPads have been assembled outside of China. Not only iPad, a number of AirPod headset models have also been produced in Vietnam, including an upcoming headset model.

This took place in the context of a trade war between the US and China that erupted after the Covid-19 pandemic. That is also the time when many technology giants began to intend to move their investment capital to the Vietnamese market.

It is a fact that since the arrival of Intel, Samsung, LG,… Vietnam has witnessed the presence of large technology corporations.

Currently, Foxconn, Luxshare, Goertek …, major partners of Apple are constantly expanding investment in Vietnam. Of these, Foxconn is the largest investor with a capital of about $2 billion. Pegatron has also recently been granted a certificate of investment in a factory manufacturing gaming equipment, phone accessories, smart speakers and computers in Hai Phong with a capital of nearly $500 million.

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