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NEWS: Vietnam’s Digital Economy

There are so much innovation and investment circulating in Vietnam with an optimistic future, the economy has a digital focus which will take effect over the next 20 years.

The main challenges that face Vietnam are the implementation of Artifical intelligence, advanced automation, digital – biological – physical networks and advanced GPS tracking, cloud-based platforms and blockchain systems.

These forms of technologies will enable labor productivity and encourage high levels of employment, increase social inclusion as well as push for equality and financial inclusion.

Digital transformation

Each industry will have its own influence in the country as it implements digital technologies. The IT industry specifically is set to grow and transform the Vietnamese economy by 8 -10% of the country’s GDP by 2020.

The Vietnamese Government is also playing an important and active role by implementing accelerator developments and increasing policies that support E-commerce, Master Plan 7 and the IT Masterplan.

The manufacturing industry is becoming increasingly supported by the private sector which is pushing for the digital age.

The consumers of Vietnam have also shown a desire, need and want for digital good and products.

 There were more than 132 million mobile devices (including 32 million smartphone users) in Vietnam in 2017, and about 50 million Internet users – over half the population. Digital technologies associated with Industry 4.0, including AI, robotics, automation, drone technologies and big data analytics, may also disrupt existing markets and employment – particularly in agriculture and textiles and goods manufacturing. The composition of Vietnam’s industrial base makes the country particularly vulnerable to job losses due to automation over the next two decades. Understanding the next wave of transformation will be vital for harnessing opportunities and managing risks related to the adoption and use of digital technologies in Vietnam’s industries.

 

Increasing Economic growth

In the last 30 years, there has been such significant growth in the last 30 years in Vietnam that the only competitor for this sort of growth has been China.

The digital economy has taken effect in Vietnam and is a sought-after emerging sector with industries such as Fintech, telecommunications, electronics and computer manufacturing changing the whole dynamics of the country.

Vietnam has a thriving startup community filled with software developers, digital products, and services which are undertaking software developments which are propelling the IT sector significantly.

Fintech Digital

The Fintech technologies have given way to new business models and emerging industries. The significant impact that Fintech can have on this fast-growing country is immense.

In 2017, Vietnam had 48 Fintech firms providing services from payment to remittances and cryptocurrency.133 Though payments still accounts for a large proportion of fintech startups (48%), emerging segments such as insurtech (insurance), wealthtech (wealth) and regtech (regulation) are attracting interest from both local and international investors.

Telehealth

The rise of E-health can provide important services to the Vietnamese population and has even attracted the government health agencies to make a significant contribution. The implementation of E-health will help with a disparity in geographical mass and an ageing population.

The Department of Health in Quang Ninh Province is deploying a telehealth network system to provide immediate healthcare services to rural and remote communities in mountainous regions or islands, which can be a day away from city centres by car.

 

E-commerce:

Data and digitalisation are the key developments in Vietnams Industry 4.0. As Agriculture is their main industry, it’s the area that needs the most development, however, when technology takes effect it will change the whole workforce and potentially put people out of work.

Vietnam will have to quickly change the dynamics to retrain and skill up the population into other areas of work and service that will benefit the country as 4.0 takes effect.

Data is at the heart of the digital transformation and E-commerce is based on technology and the internet. Many new models of e-commerce have appeared with the participation of people from all walks of life. E-commerce can help with payment settlements and enable us to monitor tax collection activities. That’s why, if we want to check or monitor the tax collection activities, the first thing we have to do is to review all the websites, particularly big websites to see their transactions.

Overall the growth and digitalisation of Vietnam is imminent and will have an increasing impact on the whole country and ASEAN as a whole as more and more investors make their mark on lifting and enabling the tech startup scene to develop their products in each sector.

Source: https://techsauce.co