Digital economy and digital economic development in Vietnam

Digital economic development is a trend and a driving force for the global economy. The digital economic sector accounts for an increasing proportion of global GDP. Many countries have developed strategies to promote digital economic development, and Vietnam is no exception to this general trend.

Digital economy is essentially all economic activities based on digital platforms and digital economic development is using digital technology and digital data to create new business models.

According to the Commonwealth Scientific and Industrial Research Organization (CSIRO), compared to the traditional economy, the digital economy has new characteristics such as: 1- Data is a valuable resource in the digital economy. The development of digital technologies allows data collection from many different sources, from smartphones to millions of sensors in factories, vehicles and even in each individual. These large data streams, along with the ability to analyze big data, can create value in all activities of individuals and communities; 2- The digital economy is the result of the development of new digital technologies that have a transformative impact beyond the field of information and communication technology to all other fields; 3- Business models based on digital platforms allow many groups of people to interact with each other, thereby creating positive effects for the whole network and improving efficiency by reducing transaction costs; 4- Digital technology puts consumers at the center. The Internet makes consumers more powerful because they can freely express their opinions and share them.

In the digital economy, digital platforms and digital data are the two main drivers. Digital platforms are open infrastructures, connecting intermediaries that allow producers and users to interact online. Digital data is the “fuel” of the digital economy. Digital data is at the core of all digital technologies, such as data analytics, AI, blockchain, IoT, cloud computing and all Internet-based services.

Digital economic development is not only a new trend but also a new business model, opening up opportunities for labor, employment and income for people, businesses and the country, contributing to improving the quality of life services. Moreover, the digital economy also helps to grow more sustainably, by using new resources - digital resources, and digital technology itself will give us more suitable and effective solutions for resource use and handling environmental pollution problems. The digital economy is also a way for shortened development, creating conditions for countries to take shortcuts in the development process.

The documents of the 13th National Congress of the Communist Party of Vietnam emphasized digital transformation and digital economic development. This is new content compared to the documents of previous Party Congresses. However, the digital economy in Vietnam is still modest in scale, only reaching 5% of GDP in 2019. To achieve the goal of digital economy accounting for 20% of GDP by 2025; 30% of GDP by 2030; 50% of the population having electronic payment accounts by 2025 and 30% of the population by 2030 as set out in the Plan of the Vietnamese Government, requires the synchronous implementation of many solutions:

- Raising general awareness of society, especially businesses, about the need for digital transformation and digital economic development, in which businesses are the pioneering force.

- Promote the building and completion of development institutions, including digital economic development institutions;

- Focus on completing the construction and connection of national database platforms to be interconnected and unified;

- Invest in synchronous development of digital infrastructure . Undeveloped digital infrastructure will have a general impact on the foundation of economic development in the context of the Fourth Industrial Revolution;

- Focus on training and using high-quality human resources, especially in the digital economy. Implement policies to promote talent and promote brainpower;

- Expand cooperation, attract international resources and experience for digital transformation and digital economic development.

Associate Professor, Dr. Vu Van Ha - Institute of Postgraduate Training