General

How does the Vietnamese government boost digital transformation?

Linh Pham

September 3, 2020

Digital transformation is a trend of all sectors around the world. According to the Ministry of Information and communications, the digital transformation process in Vietnam is less risky and simpler than that in other countries in the US and Europe. Vietnam has its own advantages of application digital transformation in all processes or working procedures to create efficiency and productivity for both employees and customers. Then how does the Vietnamese government approach the digital transformation? and what are typical examples of companies applying successfully the digitalization? This article will guide you with the trend of digital transformation in the perspectives of the policies of the government to this trend. 


What is digital transformation?

According to “The Enterprisers Project”, digital transformation is “the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver the value of to customers. It’s also a culture change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure”.


What are the Vietnamese government approaches to strengthen digital transformation?

Platforms of digital transformation

These following platforms of digital transformation would help firms make their customers contented.

– Cloud computing: Cloud computing permits your company to access data quicker and the transformation process becomes more agile. 

– Artificial Intelligence: AI is applied in a lot of fields. It is able to support three significant business requirements: automating business processes, interpreting insights through data analysis, and engaging with customers and employees via chatbots, for instance. 

– Advanced Analytics: This tool will transfer data into insights, make sophisticated algorithms easier, which boosts the accuracy and speed of the analyzing process.

– Customer Intelligence: this type of software provides customer insights with a view to aiding your enterprise to offer better services.

– Internet of things (IoT): Thanks to this tool, the decision-makers can gain diverse data analysis, then take action quickly. 

– Big data analytic: Big data lets your business unlock potential value. Using this tool, your enterprise can make faster-paced and forward-thinking decisions. 

The Vietnamese government’s approaches

Healthcare sector

Digital transformation has been applied in healthcare sectors. First, based on Decree No. 49/2017/TT-BYT on telemedicine, the platform of distance consultation and treatment is encouraged in domestic health facilities. Furthermore, upper-level healthcare facilities are required to assist lower-level healthcare facilities in supporting and offering medical consulting to local patients.

Accompanied by 5G internet connection, the distance treatment platform can also help leading surgeons to participate in remote surgery operations. Second, the government is also applying the electronic medical records (HIS), in accordance with Decree 46/2018/TT-BYT. As such, E-medical records are not just about converting paper records into digital ones, but it also integrates many utilities for doctors, nurses, and managers to increase the effectiveness of treatment and patient safety.

According to the Director of the Department of Information Technology, the application of electronic medical records will be implemented through 2 stages. From 2019 – 2023, medical facilities of grade I and above will actively upgrade their IT systems at the facility to deploy electronic medical records. The second stage from 2024 – 2028 is expecting that all medical examinations and treatment facilities nationwide must deploy electronic medical records.

Logistics

In recent years, the government has initiated several projects to encourage logistics enterprises to further adapt digital transformation, in order to reduce costs. The implementation of the ASEAN Single Window and the National Single Window has been legalized in the Customs Law 2014 and the Government’s Decree No. 08/2015 / ND-CP, providing logistics services with many benefits such as: Reducing the time taken to administrative procedures; Shortening the number of records to be submitted to regulatory agencies; Simplifying the communication process with regulatory authorities.

Electricity

According to Resolution 52-NQ/TW of Ministry of Politics and Directive 16/CT-TTg of the Prime Minister on adapting the 4.0 technology Revolution into manufacturing, the EVN (Vietnam Electricity Group) – holding a monopoly position in distributing electricity country-wise – is proceeding to upgrade shared and integrated software systems into an Information Management system, while implementing digital conversion programs to restructure data. Its latest goal is to complete the construction of information safety and security systems.

In addition, 13 out of 40 upgrading projects were approved in 2019. Some projects have been implemented successfully namely Digitizing the technical management of the electrolysis grid coordination of Central Power Corporation; Smart grid development of Ho Chi Minh City Power Corporation Ho Chi Minh City for grid automation components.

Resources and Environment

Firstly, in accordance with Resolution No. 73, the Ministry of Resources and Environment is embarking on the implementation of collection, management, and exploitation the use of natural resource and environmental data. The year 2020 has seen the implementation of this plan by 17 provinces (over 63). The collected data and information and published on the web portal of the provincial People’s Committee and Department of Natural Resources and Environment. Hence, interested parties can look for relevant information for better decision-making.

Secondly, in accordance with Resolution No.17/NQ-CP – issued on 2019 – on implementing the electronic government system, several provinces such as Bac Giang, Hai Phong, Hanoi, Bac Ninh, Thai Nguyen has utilized nearly 100% of E-Cabinet’s operations (an integrated system of document management, work records, online public services, and software to support management and operation).

Telecommunication

5G, the fifth-generation of wireless mobile, has been implemented as pilot projects in major cities in 2019. Viettel, one of the telecommunication companies joining the 5G pilot program, gained great success in their program. Currently, the Ministry of Information and Communications has licensed 5G testing for three carriers (Viettel, Mobifone, VNPT), and many Vietnamese businesses have started to research and learn about 5G devices.

Moreover, government support’s attempts are also witnessed through preferential policies such as tax exemption, licensing procedures for units investing in the research and production of 5G chipsets, while adopting Internet of Things.

Banking

The Vietnamese National Bank is actively supporting digital transformation by completing policies, legal frameworks in banking activities to adapt to the 4.0 revolution, facilitate and promote business models. Moreover, the government is also developing technological infrastructure in a synchronous, focused, unified manner, capable of integrating and connecting with other branches and fields.

Investments in digital transformation are also prioritized, specifically for digital payment, which is used as a gateway to connect seamlessly with other banking services such as mobilization, lending, investment and insurance, in accordance with Resolution No.101/2012/NĐ-CP.

Education

Digital transformation is encouraged to apply in education management and operation. In education management, the whole sector has implemented digitization, built a shared database from the central to 63 provinces, 710 education offices and about 53,000 institutions. In terms of teaching, teachers are mobilized to participate and contribute to share learning materials in the entire digital learning warehouse. The current amount of contributions to the Vietnamese Knowledge System digitizing are nearly 5,000 quality e-learning electronic lectures, around 7,000 doctoral thesis essays, and a multiple-choice question bank of over 31,000 questions.  

SEE ALSO: Digital Transformation Guide in Vietnam.

In conclusion, digital transformation is a process that helps your business unleash its potential and brings conveniences to employees and customers. Vietnam is one of the countries that have advantages in implementing digital transformation in a lot of sectors because the process is less risky and simpler in the country.

Understanding the potential and significance of digital transformation in the economy, the Vietnamese government has initiated programs and projects to encourage enterprises to apply digitalization in working procedures. If your business would like to create a smarter software or solve IT-related problems, Viettonkin’s service – IT advisory – will assist your firm and empower your competitive edge in the age of innovation. 

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