New Space, New Opportunities for Vietnam’s Digital Economy – A new space with many new opportunities, plenty of room to accelerate the rapid development of Vietnam’s digital economy.

That is the general consensus reached at Internet Day, the annual event on the Internet, new technologies, and applications in the digital environment held on November 22nd in Hanoi.

With favorable conditions for the Internet and digital infrastructure, many new products and business models are continuously introduced. This is the key to Vietnam’s digital economy maintaining impressive growth and consistently leading Southeast Asia for many years.

24 hours a day, 7 days a week, virtual assistants can support people anytime, anywhere. If travelers want to travel to Vietnam, virtual assistants can advise on destinations, transportation, or ticket prices, not only for tourism but also for other industries. This is the result of artificial intelligence, the Internet, and new technologies.

“Virtual assistants can support businesses in customer care, consulting, and personnel assistance within companies. Currently, such AI models are not yet widely available on the market, so we don’t have specific figures. However, in some of our case studies, optimization has increased by up to 50%,” said Mr. Nguyen The Duy, Vice Chairman of ADT Global.

According to experts, Vietnam’s Internet is currently well-positioned to apply new models such as the Internet of Things, artificial intelligence, or big data.

“The Internet in Vietnam has the lowest fees in the world, which is a significant advantage. Additionally, Vietnam has abundant resources, a young workforce, and a stable political situation. There is still plenty of room for developing the digital economy of the country, which is why Vietnam has been attracting many international businesses, including ours,” said Mr. Vladimir Kingin, CEO of IPTP NETWORKS.

“By 2025, the digital economy could reach $45 billion. This will require us to take a proactive stance in seizing opportunities, unlike before when we were waiting for them to come,” evaluated Mr. Vu Hoang Lien, Chairman of the Vietnam Internet Association.

With Internet infrastructure covering nearly 100% of the territory and an average of about 72 million people accessing the Internet daily, Vietnam is well-positioned to maintain its leading position in the region’s digital economic growth.

The Internet cloud is shaping new models and driving business activities

When it comes to transitioning entire business models or operations to a new environment, many people are concerned about the initial investment costs. However, when the Internet is sufficiently robust and widespread, cloud computing technology becomes the solution to alleviate such concerns. The advantages of this technology include lower costs, faster deployment times, and no need for additional personnel.

Over the past year, transportation companies have implemented online booking platforms. This helps reduce the need for some staff while still ensuring passenger service. When buses leave the station, the occupancy rate of empty seats is higher, and customers arrive according to their scheduled appointments without having to wait.

“The demand of customers is to ensure certainty when booking tickets, so transactions and ticket bookings need to be done through the app. Once the transaction is completed, neither the business nor the customer has to worry about cancellations. Both the business and the customers ensure that the schedule remains unchanged, allowing for appropriate transportation arrangements,” said Mr. Trinh Huy Hieu, Deputy Director of the Quang Trung Transport Cooperative.

Bringing ticket booking systems, data, and information online, storing and operating them in real-time not only improves operations but also allows for remote business expansion, significantly reducing pressure on ticketing offices and information reconciliation departments.

“In the past, we operated by phone, and sometimes a seat could be sold by one ticket office, but another ticket office could still sell the same seat. That’s the story of everyone accessing the platform. The role of the Internet has helped data communication become faster and increased efficiency for bus companies,” said Mr. Phan Ba Manh, Founder of Anvui transportation platform.

“In general, with this model, customers only have to pay according to their needs, expanding according to the corresponding budget for the resources they use, significantly reducing the investment costs of businesses and improving the performance of technology infrastructure. This cloud computing technology also helps businesses access the latest and most advanced service platforms and security solutions similar to large companies worldwide from the outset, significantly reducing barriers and costs to business innovation,” said Mr. Li Chufei, Director of Cloud Computing, Huawei Southeast Asia.

The demand for business model innovation through the Internet has propelled Vietnam’s cloud computing market to reach $400 million and is expected to exceed $1 billion in the next two years.

Digital transformation: The most important factor is the human element

Vietnam’s digital economy has seen a compound annual growth rate of nearly 20% between 2022 and 2023. A report by Google and Temasek forecasts that the total value of goods will increase from $30 billion in 2023 to $45 billion in 2025, the fastest growth in Southeast Asia.

Many leading global digital transformation experts believe that while Vietnam has a wide-reaching Internet network and readily available digital infrastructure, like any other country, the most challenging aspect of digital transformation is human transformation. Therefore, unlocking this potential only requires creating self-motivation and readiness in each individual.

“In digital transformation, the digital is the condition and the transformation is the motivation. The most important transformation is the transformation of people. The economy will soar when the unique potential of each individual is unleashed. Our job is to use digital transformation to remove barriers and make life better, easier, and more convenient. Looking at Vietnam, you see these barriers can change completely, and all it takes is your willingness to transform, and everything will be simpler,” said Dr. Paul J. Bailo, Columbia University, USA.

“I see a lot of potential in Vietnam. When I came here, I saw everything truly transforming from business models, both state-owned and private. In places like banks, I see them really dynamic in exploring and experiencing new digital business models. I also see many outstanding startups in Vietnam, and that’s why you are leading digital growth in Southeast Asia. In the next 5 years, everything will be even more optimistic for you,” said Dr. David L. Rogers, Columbia University, USA.

The contribution of the digital economy to Vietnam’s GDP currently stands at around 15%. With current growth conditions, most experts assess that the goal of reaching 20% by 2025 and 30% by 2030 is entirely feasible.

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