Event Highlights

Encouraging Productive Participation in Vietnam’s Digital Economy

On 19 November 2024, the Tech for Good Institute (TGFI) co-hosted a public seminar with the Vietnam Academy of Social Sciences to discuss how to foster an enabling environment in order for the digital society to thrive in the digital economy.

Southeast Asia is at the forefront of a digital transformation. The region’s mobile-first population and thriving innovation ecosystem offer immense potential for economic growth. This trajectory can be observed in Vietnam, where the Ministry of Information and Communications estimates that Vietnam’s digital economy accounted for 16.5% of GDP in 2023, with projections suggesting it will rise to 18.6% in 2024. In addition, in the latest Google, Temasek, and Bain & Company report on Southeast Asia’s e-Conomy, Vietnam is projected to reach US$ 36 billion in 2024, representing a 16% increase compared to 2023.

There is, however, much potential for Vietnam’s digital economy to drive more than economic growth. Digital technologies improve access to services such as finance, healthcare and education. In addition, technology solutions are able to empower the digital society to create economic opportunities for livelihood.

The Tech for Good Institute, in partnership with the Institute of Regional Sustainable Development of the Vietnam Academy of Social Sciences, conducted a public seminar entitled ”From Tech for Growth to Tech for Good: Enabling Productive Participation in the Digital Economy”. The seminar discussed the importance of preparing a digitally empowered society to maximise the benefits of the digital economy. Moving beyond mere access to digital goods and services, the speakers emphasised the need to ensure productive and equitable participation in Vietnam’s transformative landscape.

Speakers:

Le Van Hung, Deputy Director, IRSD (Moderator)
Nguyen Hoc Ngoc, Deputy Director General of the Department of Scoail Affairs, Vietnam National Assembly Office
Ming Tan, Executive Director, Tech for Good Institute
Trinh Thu Nga, Deputy Director of the Institute of Labor Science and Social Affairs
Prof. Dr. Bui Quang Tuan, Former Director of Vietnam Economic Institute, Vice President of Vietnam Economic Association
Trang Dang, Public Affairs, Grab Vietnam
Keith Detros, Programme Lead, Tech for Good Institute

Key Takeaways

1. The development of the digital society is just as important as the digital economy. The National Committee for Digital Transformation identified four (4) key pillars for Vietnam’s digital transformation, namely: i) the information technology industry; (ii) digitalisation of key economic sectors; (iii) digital governance; and (iv) digital data. While this is key to establishing the foundational elements of the digital economy, the digital society should also be not left behind. Decision 411/QD-TTg of 2022, for example, lays down six (6) objectives for the digital economy and eleven (11) objectives for the digital society. This is particularly important for Vietnam as it is home to a young and tech-savvy population which will not only be the future workforce, but also will be the future consumers that will fuel the digital economy forward.

2. Clear regulatory frameworks are needed to promote productive participation in the digital economy. In Vietnam, alignment across various government agencies is key to address emerging policy issues related to the digital workforce. For example, the labour code and the civil code are still unclear on guidelines covering new work arrangements such as freelancers and gig work. This uncertainties in rights, roles, and obligations of the innovation ecosystem including governments, platforms, and the digital workers. More conversations between the public, private and the academia is needed to be able to create a digital workforce framework that is fit-for-purpose for Vietnam. In addition, there needs to be a conversation on having a data law that would outline how data activities will be governed and shared in the country. Speakers noted that even for the digital economy, there is no official and national statistics on the digital economy and digital workforce that can help in crafting evidence-based policies.

3. Private companies, including digital platforms, can support national digital transformation goals. Typically, the digital society engages with the digital economy through a digital good or service. This can include purchasing a product online, connecting via social media, or communicating through a messaging platform. Digital economy companies, including digital platforms, can actively promote digital literacy as they introduce and expand their offerings. For example, digital platforms often incorporate digital awareness and literacy initiatives into their partnerships with merchants, delivery riders, and driver partners. These efforts not only enhance their operational networks but also contribute to building a more informed and inclusive digital economy.

4. A holistic digital competency framework is needed to coordinate efforts in upskilling the digital society. The speakers recognise the rapid pace of innovation, adoption, and disruption in the digital age. There were recommendations for the universalisation of digital skills. Achieving this requires a multi-faceted approach tailored to the diverse needs of different population segments. For example, individuals currently in the workforce should have access to relevant digital skills training to help them adapt to the evolving nature of work. Meanwhile, those in the informal sector require specialised programmes to support their transition to formal employment, particularly within the digital economy. Additionally, reforms in the education system are crucial for cultivating a high-quality workforce capable of driving and sustaining the growth of Vietnam’s digital economy.