Digital transformation has become a key factor in enhancing national competitiveness and driving socio-economic development.

It is no surprise that digital transformation has become an irreversible global trend, with over 90% of countries having implemented national digital transformation strategies. Vietnam is no exception and has made significant strides in this field.

Extending digital transformation to the people

One of the most profound impacts of digital transformation in Vietnam has been the shift toward cashless payments.

Instead of using physical cash, people can now make transactions anytime and anywhere through digital payments, ensuring convenience, speed, and security.

From paying for a simple iced tea via QR code to grocery shopping with just a smartphone or placing online orders from home, cashless payments have deeply integrated into everyday life.

According to the State Bank of Vietnam, in the first seven months of 2024, cashless transactions reached nearly 9.3 billion transactions, with a total value exceeding VND 160 quadrillion. This surge in cashless payments is closely linked to the rapid expansion of e-commerce.

A recent report on Southeast Asia’s digital economy by Google, Temasek, and Bain & Company revealed that Vietnam’s total digital economy gross merchandise value (GMV) grew by 16% to reach USD 36 billion in 2024.

E-commerce and online travel were the two main drivers, with e-commerce GMV increasing by 18% to USD 22 billion and online travel growing by 16% to USD 5 billion.

Additionally, online ride-hailing and food delivery services reached a GMV of approximately USD 4 billion, reflecting a 12% increase. The report also highlights Vietnam as one of the fastest-growing digital economies in the region.

Another area significantly impacted by digital transformation is public administration services. The National Public Service Portal, which provides essential e-government services under Scheme 06, has become an indispensable tool for citizens.

Through online platforms, people can complete various administrative procedures, such as birth registration, residency declarations, ID card applications, passport issuance, and driver’s license renewals. Additionally, tax payments and traffic fine payments can now be processed from home.

The National Public Service Portal has contributed to significant cost savings, estimated at nearly VND 3.5 trillion per year (as of the first half of 2024).

Digital transformation has also strengthened the connection between citizens and local governments through digital applications.

These apps allow residents to report urban management issues, environmental concerns, administrative inefficiencies, and even submit local development initiatives.

Some notable applications include “Hue-S” in Thua Thien Hue, “iHanoi – Digital Citizen of the Capital” in Hanoi, and “Digital Citizen” in Ho Chi Minh City, all of which have been widely embraced by the public.

Since its official launch in late June 2024, iHanoi has emerged as a pioneering digital transformation initiative in the capital. As of November 2024, it has attracted 1.5 million registered users and recorded over 16 million visits.

Notably, the “incident reporting” feature enables citizens to report issues such as flooding, fallen trees, urban order violations, and traffic safety concerns, allowing authorities to respond swiftly.

Approximately 70% of user feedback has indicated satisfaction with the government’s handling of reported issues.

Establishing an advanced production model

Digital transformation involves integrating digital technologies into all aspects of an organization or enterprise to enhance efficiency, create new value, and adapt to the evolving technological landscape. Failure to embrace digital transformation risks falling behind.

For businesses, digital transformation enhances productivity through process automation, minimizes errors, and reduces time costs. It also improves customer experiences, strengthens competitiveness, and expands market reach by opening new distribution channels, ultimately driving revenue growth.

One of the core objectives of Vietnam’s national digital transformation strategy is to accelerate socio-economic development. From the government to various ministries and localities, digital transformation has been implemented extensively.

The government has adopted paperless meetings, while the tax sector’s adoption of electronic invoicing has saved businesses trillions of dong annually and enhanced tax transparency.

In the transportation sector, the implementation of electronic toll collection has improved convenience for commuters while ensuring greater transparency in revenue management. In healthcare, digital health records have provided significant benefits, enabling proactive and efficient health monitoring.

The banking and finance sector, a leader in digital adoption, has leveraged digital transformation to optimize operations and create personalized financial products.

Vietnam ranks 10th globally in mobile app downloads and 29th in total in-app purchase revenue. Digital applications in healthcare, education, finance, and social networking have seen impressive monthly growth rates of 40%, 17%, 14%, and 9%, respectively. These figures underscore the immense potential for further digital transformation.

In his article, Digital Transformation – A Crucial Driver for Advancing Productive Forces and Refining Production Relations to Propel the Nation into a New Era, General Secretary To Lam emphasized that digital transformation goes beyond merely applying digital technology to socio-economic activities. It signifies the establishment of a new, advanced digital production model.

This model is characterized by the seamless integration of human intelligence and artificial intelligence, where data becomes a critical resource and a fundamental means of production.

Additionally, digital transformation reshapes production relations, particularly in ownership structures and the distribution of digital production resources.

Digital technology is thus identified as the primary driver of transformation, serving as the foundation for the digital revolution and the core productive force in the modern era. While this transition presents substantial opportunities, it also brings numerous challenges.

Under the leadership of the Communist Party of Vietnam, with collective effort and determination, digital transformation will create groundbreaking progress in advancing productive forces and refining production relations, propelling the nation toward a future of innovation, progress, and prosperity.

Hanoimoi