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Vietnam Today VIETNAM TODAY First report of the Vietnam’s Future Digital Economy Project March 2018 Current profile and trends impacting Vietnam’s economy and digital economy CITATION CONTRIBUTIONS Cameron A, Pham T, Atherton J (2018) Vietnam Comments and input were provided by Dr Bui The Duy, Dr Nguyen Duc Today – first report of the Vietnam’s Future Hoang, Dr Nguyen Truong Phi, Dr Nguyen Quang Lich, Mr Hoang Xuan Digital Economy Project. CSIRO, Brisbane. Thanh from the Ministry of Science and Technology, Vietnam, and Mr Nguyen The Trung from DTT Technology Group. COPYRIGHT This report has been supported by the Australian Department of © Commonwealth Scientific and Industrial Foreign Affairs and Trade through the Aus4Innovation initiative, and by Research Organisation 2018. To the extent Vietnam’s Ministry of Science and Technology. permitted by law, all rights are reserved and no part of this publication covered by copyright may be reproduced or copied in any form or by any means except with the written permission of CSIRO. IMPORTANT DISCLAIMER CSIRO advises that the information contained Ministry of Science and in this publication comprises general statements Technology, Vietnam based on scientific research. The reader is advised and needs to be aware that such information may be incomplete or unable to be used in any specific situation. No reliance or actions must therefore be made on that information without seeking prior expert professional, scientific and technical advice. To the extent permitted by law, CSIRO (including its employees and consultants) excludes all liability to any person for any consequences, including but not limited to all losses, damages, costs, expenses and any other compensation, arising directly or indirectly from using this publication (in part or in whole) and any information or material contained in it. CSIRO is committed to providing web accessible content wherever possible. If you are having difficulties with accessing this document please contact [email protected]. CONTENTS Executive summary ......................................................................................................................... 1 1 Vietnam – country profile and trends .....................................................................................7 1.1 Introduction .............................................................................................................................................................7 1.2 Geography ...............................................................................................................................................................8 1.3 Demographic profile and trends ..........................................................................................................................10 1.4 Economic trends ....................................................................................................................................................12 1.5 Trade and investment ..........................................................................................................................................14 2 Vietnam’s digital economy ....................................................................................................23 2.1 Introduction ...........................................................................................................................................................23 2.2 What is the digital economy? ...............................................................................................................................24 2.3 Policies supporting the digital economy ............................................................................................................27 2.4 Supportive telecommunications infrastructure ..................................................................................................30 2.5 Digital adoption ...................................................................................................................................................32 2.6 ICT – the booming base of Vietnam’s digital economy .....................................................................................33 2.7 Industry 4.0 – the next wave ...............................................................................................................................38 3 Challenges and opportunities ................................................................................................ 41 Appendix 1: Companies operating in the digital economy in Vietnam ......................................47 Appendix 2: Main regulations on Information Technology in Vietnam .................................... 48 References .................................................................................................................................... 50 EXECUTIVE SUMMARY With youth, innovation and investment, the people of This is the first report in a larger study, Vietnam’s Future Vietnam have good reason to be optimistic about the Digital Economy, an innovative joint project between future of the economy, and development of the digital Australia’s Data61|CSIRO and Vietnam’s Ministry of Science economy over the next 20 years. The paths that may be and Technology. It examines the state of Vietnam’s taken for the development and growth of Vietnam through economy and digital economy at the beginning of 2018, digital transformation are not risk-free, however, and will and the trends that will affect its development over the need to be navigated carefully. next 20 years. Like many countries around the world at this point in The broader study will explore how different rates of history, the main challenge in the development of the next digital transformation could create a number of plausible wave of the digital economy (implementing technologies futures for Vietnam’s digital economy. The project will such as artificial intelligence, advanced automation, also look into the possible impacts of digital technologies digital-biological-physical networks and advanced GPS on two of Vietnam’s more significant industrial sectors: tracking, cloud-based platforms and blockchain systems) manufacturing and agriculture. will be to lift labour productivity while maintaining high employment levels, social inclusion and equality; to transition the labour market and government systems along with the systems of wealth generation. Scenario development – Vietnam’s future digital economy in 2038 Methodology Workshops, interviews and primary Trends of the macro and data analysis to create plausible Conclusions and digital economy 2018 scenarios for Vietnam’s economy policy implications in 2038 based on varying rates of Methodology digital transformation. Methodology Horizon scan, Discussion of final results. literature review, Workshops to list policy issue identification. Industry case studies: implications and possible Agriculture and manufacturing future actions. Methodology Baseline surveys with industry leaders and businesses will provide data to create an Industry 4.0 readiness This report Vietnam’s future digital Index for components of Vietnam’s economy – Final report Agriculture and Manufacturing sectors VIETNAM (April – June 2018). March 2019 TODAY First report of the Vietnam’s Future Digital Economy Project March 2018 Current profile and trends impacting Vietnam’s economy and digital economy Figure 1 Methodology of the Vietnam’s Future Digital Economy Project 1 Vietnam – a development Vietnam’s changing economy success story Over the last 30 years, Vietnam’s traditional industries and exports – commodities from oil and mining, agriculture, At 6.4% per annum GDP growth, Vietnam is one of the fisheries and aquaculture – have been supplemented fastest-growing economies in Asia and the world. Vietnam with the relatively newer sectors of manufacturing, achieved the World Bank’s middle-income status in 2010, construction, tourism and business services. Vietnam’s and is now the sixth-largest economy in the 10-member top three export sectors are now telecommunications ASEAN trading bloc. Vietnam is considered one of the equipment; textiles and garments; and computers, world’s development success stories: it was one of the few electronics and integrated circuits.2 These sectors have countries to meet most of the United Nations Millennium grown to provide job opportunities for millions of Development Goals before 2015.1 Vietnamese people, with most of the employment growth Vietnam’s transition from one of the poorest countries in Vietnam’s urban districts.3 in the world to a middle-income country with continually As new tertiary industries emerge, Vietnam’s services high growth rates resulted from opening up the economy sector has increased its relative share of gross domestic to private enterprise and attracting high levels of foreign product.4 The country’s economic transformation direct investment, creating new markets in Vietnam and is continuing under the Master Plan on Economic for Vietnam’s exports, modernising industry, maintaining Restructuring in 2013-2020.5 This document sets out strong government services and building infrastructure. further divestments in state-owned enterprises (SOEs) and Since Vietnam adopted a path towards a market-based restructuring of banking, foreign direct investment and economy in 1986, incomes and employment rates across public investments. the country have risen sharply and over 40 million people have been lifted out of poverty. 2 Vietnam Today Digital
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