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Vietnam's Future Digital Economy – Towards 2030 and 2045

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Vietnam's Future Digital Economy – Towards 2030 and 2045 VIETNAM’S FUTURE DIGITAL ECONOMY TOWARDS 2030 AND 2045 May 2019 SUPPORTED BY Ministry of Science and Technology, Vietnam CITATION • Dr Can Van Luc from the Bank for Investment Cameron A, Pham T H, Atherton J, Nguyen D H, Nguyen and Development of Vietnam T P, Tran S T, Nguyen T N, Trinh H Y & Hajkowicz S (2019). • Mr Nguyen Duc Hien from the Central Vietnam’s future digital economy – Towards 2030 and 2045. Economic Commission CSIRO, Brisbane. • Ms Pham Chi Lan from the Prime Minister’s Research Council COPYRIGHT • Mr Tran Minh from the Ministry of Information and Communication © Commonwealth Scientific and Industrial Research Organisation 2019. CSIRO grants Vietnam’s Ministry of • Mr Le Chi Dung from CMC Technology Group Science and Technology perpetual and royalty-free licence • Ms Pham Thi Thu Hang from the Vietnam Chamber to use these materials. To the extent permitted by law, all of Commerce and Industry rights are reserved and no part of this publication covered • Mr Dao Quang Vinh from the Ministry of Labour, by copyright may be reproduced or copied in any form or by Invalids and Social Affairs any means except with the written permission of CSIRO. • Ms Asysa Akhlque from the World Bank • Dr Olga Memedovic from the United Nations IMPORTANT DISCLAIMER Industrial Development Organization, and CSIRO advises that the information contained in this • Mr Jiri Dusik from the United Nations Development publication comprises general statements based on Programme Vietnam. scientific research. The reader is advised and needs to be aware that such information may be incomplete or unable Comments and input were also provided by Mr Phung to be used in any specific situation. No reliance or actions Bao Thach, Dr Nguyen Quang Lich, Mr Hoang Xuan Thanh, must therefore be made on that information without Mr Trinh Dang Ha, and Mr Nguyen Tuan Anh from the seeking prior expert professional, scientific and technical Ministry of Science and Technology; and Mr Dave Dawson advice. To the extent permitted by law, CSIRO (including and Dr Alex Bratanova from CSIRO’s Data61. its employees and consultants) excludes all liability to any Workshops in Vietnam were organised with assistance person for any consequences, including but not limited from Mr Huynh Kim Tuoc and Ms Dang Thi Luan from the to all losses, damages, costs, expenses and any other Saigon Innovation Hub; Mr Tran Vu Nguyen, Mr Pham Duc compensation, arising directly or indirectly from using Nam Trung, and Ms Ly Phuong Dung from the Danang this publication (in part or in whole) and any information or Business Incubator; Mr Nguyen Thanh Ha and Ms Thi Vu material contained in it. Van Anh from the Vietnam Academy of Social Sciences; CSIRO is committed to providing web accessible content and Mr Nguyen Duc Thanh, Ms Vu Thi Thu Hang, Ms Pham wherever possible. If you are having difficulties with Thi Tuyet Mai, and Ms Dang Thi Bich Thao from the accessing this document please contact [email protected]. Vietnam Institute of Economic and Policy Research. Training was provided to the research team in Vietnam by ACKNOWLEDGEMENTS Dr George Quezada, Dr Stefan Hajkowicz, Dr Kelly Trinh, Mr Dinesh Devaraj, Mr Roy Chamberlain, Mr Dan Bailey A Steering Committee guided the production of this report. and Ms Cathy Pitkin. Members include Dr Nguyen Duc Hoang and Dr Bui The Duy from Vietnam’s Ministry of Science and Technology; This report has been supported by the Australian Mr Nguyen The Trung from DTT Technology Group; Department of Foreign Affairs and Trade through Ms Nguyen Hoang Ha and Ms Duong Hong Loan from the Aus4Innovation program. Australia’s Department of Foreign Affairs and Trade; and Dr Stefan Hajkowicz, Ms Liza Noonan and Mr James Dods from CSIRO. Several experts reviewed the report, including: • Dr Nguyen Hoang Ha, Dr Dang Quang Vinh, Dr Vo Tri Thanh, and Mr Nguyen Hoa Cuong from the Ministry of Planning and Investment • Ms Tran Thi Thu Huong, Mr Le Xuan Dinh, Mr Dam Bach Duong, Ms Nguyen Thi Ngoc Diep, Mr Nguyen Phu Hung, Mr Pham Hong Quat, Mr Nguyen Nam Hai, and Ms Phan Hoang Lan from the Ministry of Science and Technology VIETNAM’S FUTURE DIGITAL ECONOMY TOWARDS 2030 AND 2045 May 2019 FOREWORD Over the last four decades Vietnam has experienced Science and Technology have worked together to deliver rapid industrialisation, modernisation and international this report. Several of the project’s early findings were integration. In the new Vietnam, science, technology discussed in the thematic workshop on Industry 4.0 and innovation, have a critical role to play in furthering megatrends – identification of impacts and incentives for Vietnam’s development: improving manufacturing Vietnam hosted by the Ministry of Science and Technology capacity and competitiveness in product value chains, on 13 July 2018 under the Industry 4.0 Summit 2018 revolutionising business models, and attracting organised by the Central Economic Commission and new sources of investment in the information and Vietnam Government. The results were greatly appreciated communications technology (ICT) sector. by ministries, sectors and participants. At the launch of Aus4Innovation in January 2019, the project’s results were Cooperation between Vietnam and Australia has once again presented and acknowledged by international developed strongly over the forty five years since the partners and communities such as the World Bank and formal establishment of diplomatic relations in 1973. The Asian Development Bank. relationship today rests on three pillars of cooperation: security, economic and innovation. The Australia-Vietnam We greatly appreciate the collaborative efforts made by Innovation Partnership was launched at the APEC Summit both the Ministry of Science and Technology and CSIRO in in November 2017 in Da Nang. This partnership has been completing this report. We strongly believe the analysis, given life by Aus4Innovation, a AU$10 million program findings and recommendations contained in the report of cooperation between the Australian Department will have implications for the development of Vietnam’s of Foreign Affairs and Trade and CSIRO and Vietnam’s economy and society over the next 25 years. Ministry of Science and Technology on science, technology and innovation. On behalf of the Ministry of Science and Technology of Vietnam and the Department of Foreign Affairs and This report on Vietnam’s Future Digital Economy Trade of Australia, we pledge to continue promoting represents the first project undertaken under the further cooperation in science, technology, research Aus4Innovation program. CSIRO and the Ministry of and innovation between our two countries. Minister of Ministry of Science and Technology Department of Foreign Affairs and Trade Chu Ngoc Anh Ambassador to Vietnam Craig Chittick iii CONTENTS Foreword ....................................................................................................................................... iii Glossary ....................................................................................................................................... viii Acronyms and Abbreviations ....................................................................................................... ix Executive summary .........................................................................................................................2 Part I Vietnam Today and the Digital Economy ............................................................................ 9 1 VIETNAM ECONOMIC OVERVIEW – A DEVELOPMENT SUCCESS STORY.................................10 1.1 Economic trends – From Doi Moi to Vietnam today...........................................................................................11 1.2 Vietnam in 2019 – A leading emerging market ..................................................................................................14 2 CONCEPTUALISING THE DIGITAL ECONOMY ........................................................................... 15 2.1 What is the digital economy? ...............................................................................................................................15 2.2 Other definitions related to the digital economy...............................................................................................18 3 THE PREMISE FOR DEVELOPING VIETNAM’S DIGITAL ECONOMY ......................................... 20 3.1 Benchmarking Vietnam in the international economy ......................................................................................20 3.2 Policies supporting the digital economy in Vietnam .........................................................................................20 3.3 A promising start for the digital economy ..........................................................................................................25 Part II Vietnam’s current status and potential for digital economy development.....................27 1 DIGITAL TRANSFORMATION TRENDS IN VIETNAM ................................................................ 28 1.1 Foundation for digitalisation ...............................................................................................................................28 1.2 ICT – the booming base of Vietnam’s digital economy .....................................................................................28 1.3 Digital content on a roll ........................................................................................................................................31 1.4 Moving towards
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