Upgrade your membership plan for the full website experience.
View Membership Plans
June 16, 2023

Opportunities and challenges for digital transformation in Vietnam

Authored by
placeholder
placeholder
June 16, 2023

Vietnam’s digital transformation landscape presents significant opportunities for growth and progress. The industry is growing fast and is widely integrating into the global value chain, attracting increased foreign investment to Vietnam. During a meeting to announce the inauguration of Vietnam's press digital transformation support center, Deputy Minister Nguyen Thanh Lam of the Ministry of Information and Communication (MIC) shared details revealing that the revenue of Vietnam ICT sector reached US$12.03 billion in May 2023, increasing 5% on-month and down 2% on-year. The Vietnamese government has also set ambitious goals on digital government, such as having 100% of state agencies providing open data and more than 10 ministries, sectors and localities establishing open data portals by the end of 2023.

However, the ICT sector in Vietnam faces numerous challenges in its efforts to sustain strong growth and achieve ambitious goals. One such challenge is the insufficiently developed ICT institutional framework and the government's limited capacity to drive digital transformation, which results in delayed investment procedures, difficulties in piloting new technologies; and a lack of skilled IT human resources. Another challenge for Vietnam’s digital transformation is the poor management of e-commerce activities and tax administration, resulting from an inadequacy of coordination between the government and businesses. Prevention of cyberbullying is also regarded as an important area that requires legislation improvement as there have been ongoing concerns about risks for internet users, especially children. Furthermore, the recent issuance of regulations such as Decree 13 on Personal Data Protection (PDPD), following Decree 53 issued in 2022 clarifying the Law on Cybersecurity, has the potential to adversely affect the future growth of Vietnam's digital economy. Although the decree aims to protect personal privacy, human rights, and enhance cybersecurity in Vietnam, it may inadvertently restrict cross-border data flow and create barriers for foreign companies seeking to invest in Vietnam or provide services for Vietnamese citizens. 

Join the Council to continue reading this article
Enhance your business impact in Southeast Asia: Become a member of the US-ASEAN Business Council and tap into a network of possibilities.
Free Related Articles

Membership Plans

Corporate Council

Corporate membership provides general advocacy support, access to all country- and industry-specific updates, and access to most Council events.

  • Business missions to all 10 ASEAN markets which engage governments at the highest levels.
  • Off-the-record roundtables and policy briefings with senior government leaders in ASEAN and the U.S.
  • On-the-ground support for promoting your positions/policy priorities with policy makers.
  • Industry-specific, country-specific, cross-sector and regional advocacy through committees that target their engagement based on member priorities.
  • Advocacy on your behalf in situations where your company should not be directly identified or is unable to be present.

Chairman’s Council

Corporate membership provides general advocacy support, access to all country- and industry-specific updates, and access to most Council events.

  • All Corporate benefits.
  • Assistance with resolving company-specific trade or investment issues through our six regional offices and U.S.-based staff.
  • Develop effective advocacy strategies to impact policy concerns.
  • Identification of, and engagement with appropriate policy influencers to impact policy concerns.
  • Assistance in conducting follow-up after engaging government leaders (can include providing officials with additional materials, setting up meetings with their staff, getting a readout of the government’s reaction to the discussion).
  • Support for developing arguments that will resonate with target stakeholders.
  • Leading and setting the agenda and policy priorities of the Country and Industry Committees.