“The internet economy of Việt Nam is booming,” Prime Minister Nguyễn Xuân Phúc said. “It is forecast that the internet economy of Việt Nam will reach a value of $33 billion by 2025.”
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Living life in a digital age is a key component for the future growth of Việt Nam. That was the message from Prime Minister Nguyễn Xuân Phúc who was speaking at the Việt Nam Economic Forum (VEF) held by the Central Economic Commission on Thursday in Hà Nội. He said the digital economy would be a new driving force for Việt Nam to achieve the goal of rapid and sustainable growth.
“The internet economy of Việt Nam is booming,” Phúc said. “It is forecast that the internet economy of Việt Nam will reach a value of $33 billion by 2025.”
With 70 per cent of mobile subscribers were using 3G and 4G network and each person owning on average 1.7 smartphones per person, Phúc believes the country can benefit hugely from the digital age. Access to e-commerce sites via smartphones accounted for 72 per cent and online shopping conducted via smartphones made up for 53 per cent.
These impressive figures indicated that Việt Nam could be confident of a successful transition from a traditional to a digital economy, Phúc said. Phúc cited findings of Google and Temasek’s report that Việt Nam’s internet economy grew at an impressive rate of 35 per cent in 2015-18 period to reach a size of US$9 billion, or 4 per cent of gross domestic product (GDP) – the highest among ASEAN countries. E-commerce transactions nearly doubled in 2018 compared to the previous year.
The PM said the Vietnamese Government would focus on promoting entrepreneurship and encouraging innovation. This year, the Government would prioritise policies to encourage investment in high-quality human capital and infrastructure, especially for Industry 4.0.
More incentives would be given to investment in science and technology, research and development (R&D) capacity and infrastructure development to grasp the opportunities arising from the Industry 4.0, Phúc stressed, adding that Việt Nam’s spending for R&D remained modest in comparison with the rest of the world.
Other solutions would be ensuring macro-stability to enhance the resilience against the global shock and improving business climate and national competitiveness which would continue to create competitive advantages in the face of global uncertainties, Phúc said.
“Việt Nam should achieve rapid and sustainable economic growth at the same time without any trade-off between growth quality and speed,” Phúc stressed.
According to Nguyễn Mạnh Hùng, Minister of Information and Communication, increasing the use of digital technology would be a solution to promote digital economy, in which, enterprises played a significant role.
The problem was if the Government accepted new business models of the digital economy and how the Government reacts.
“Digitalising the economy is a policy revolution rather than a technology revolution,” Hùng said, adding that Government’s reaction of accepting new business models early would be critical.
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18 January 2019