Question

What role will technology and communications play for Vietnam in the future? How will this impact society?

Answer 1

Roles that technology and communications will play for Vietnam in the future

Vietnam is transforming into a digital economy and just like China and India, the government of the country has also launched the “Make in Vietnam” program to support the domestic businesses. The country has experienced good growth in the technology sector. VinGroup, one of the leading companies in the country manufactures the VinSmart smartphones and the Vinfast Automobiles, while the country will also have a 5G network (thrown by Viettel group) soon. Partnership with US firms will help domestic producers like VinSmart to produce 5G phones within the country.

Around 10 years ago, there was only 1 technology company in Vietnam, which was Microsoft, out of the 10 successful companies of the country. As of now, out of the top 10 successful firms of the country, 9 are in the technology sector. Entrepreneurship in the technology sector is increasing, and the relatively small nation has around 15000 tech startups and more than 400 domestic technology businesses. The digital economy of the nation was pegged at $9 billion in the year 2018 and will reach a figure of $30 billion by the year 2035. The government is also supporting growth through policies and programs. A new decree brings more incentives to science and tech companies. Sci-tech firms do not have pay corporate tax for the initial 4 years of their establishment. A new fund NATIF or National Technology Innovation Fund supports the sci-tech companies as well.

Pacing Development

Hence the Vietnamese population and government are all enthusiastic about the tech scenarios, industries, businesses, and their benefits on life, and efforts from all directions are pouring in. In the future, technology, communication, and digitalization will help the company grow faster, develop its own industries, and improve the living standards of the country’s population further. Technology and innovations have been the backbone of paced economic growth of many countries, and Taiwan can also take advantage of it to be a developed nation. The country aims to be a developed and industrialized nation by the year 2045 by bringing half of its population in the middle-income sector.

Technology for Competitive Advantage

Nations across the world are realizing that cheap labor and natural resources may not be advantages forever, but innovation and technology can help in rapid growth and development and bring in qualitative development in the socio-economic sector. Vietnam hopes to make the best use of technologies from across the world, and also wants to reciprocate by indulging in innovative efforts and innovating technologies domestically as well.

Growth and Sustainability

ICT Information and Communications Technology sector in the country has experienced exceptional growth in recent years and new IT and tech parks are being set up in the country as well, a trend that is likely to continue till 2030. The sector is witnessing a growth rate of 8% and is also enjoying government support in terms of special privileges for firms operating in the IT parks, tax relaxations, and other measures. As of now the eCommerce sector makes around the US $ 1.7 % of the nation’s GDP (at $3.5 billion) and will grow to US$ 42 billion by the year 2030.
Technology is also improving outputs in other sectors like agriculture, textiles, paper, furniture, tourism, and telecommunications and the nation managed to uplift lives of around 45 million people and bring them out of the clutches of poverty between the years 2002 and 2018 by developing and modernizing industries in these sectors. More FDI inflow through liberalization has resulted in better public infrastructure, stronger and efficient government services, and the evolution of new export markets as well.

Industrial Modernization

Only technology can help the country’s business sustain itself and compete with the rest of the world, and it is a key for industrial modernization. While earlier Vietnamese exports were limited to commodities like fisheries and agriculture, as of telecommunication exports are amongst the top 3 export sectors of the country others being integrated circuits, computers, electronics, and garments/textiles.

Vietnam is the 3rd largest textile producer in the world. The firms in these non-IT sectors are now also aiming sustainability through the use of technology and other relevant resources. Automated systems can save energy while solar energy and technologies related to the renewable energy sector will not only cut costs but will also help Vietnam have a developed and green future.

Gathering FDI and Boosting Trade

Technology has also helped the country gather more FDI with the majority of funds coming to form Japan and South Korea. With the digital sector growing at a pace of more than 40%, the country is being viewed more favorably, and as a good and profitable region for investment. The country has already achieved the “middle income” status provided by the World Bank, in the year 2010, and with a growth rate of 6.4%, it is one of the fastest developing economies of the world. Technologies will hence empower the growth and development of Vietnam in future as well and will help the country collaborate with other world economies to a greater extent.

Impact on society

The new developments will result in better income and more revenues for domestic businesses. When the government will receive more tax, the spending on health, education, public infrastructure, and other sectors will increase. This will result in better living standards. Liberalization will enhance interactions and will bring more knowledge and skills to Vietnamese people. Entrepreneurs will come forward to take risks and will assume leadership roles in developing the country further, while also chasing their own dreams. People will have a more broad view of the different subject areas, and new ideas like diversity will gain recognition and importance.