Accelerating the digital transformation process is considered to be an important premise for Vietnam to realize the opportunities brought by the industrial revolution 4.0.

In the draft report on the implementation of the 2011-2020 Socio-Economic Development Strategy, building the 2021-2030 Strategy, the strong development of science, technology and innovation to create a breakthrough to improve competitiveness of the economy is emphasized.

According to experts, to develop rapidly and sustainably, it is necessary to rely mainly on science and technology, innovation and digital transformation.

To not fall behind

According to a report by IDC, last year the world spent $1.18 trillion on digital transformation. In 2020, this market will expand by 67% to nearly $20 trillion, and by 2025 the digital economy is expected to contribute 24.3% to global GDP. Today, digital transformation has become a specific action for each country and each business if they do not want to lag behind.

Digital transformation is an irresistible trend in the world and Vietnam is not an exception. Accelerating the digital transformation process is considered to be an important premise for Vietnam to realize the opportunities brought by the industrial revolution 4.0. Experts say that, in this general development trend, all businesses and organizations must accept the change.

Malaysian Prime Minister Mahathir Mohamad (middle): Malaysia is creating a new ecology to attract stakeholders from key economies

The fact shows that digital transformation is a powerful development engine for countries. During a visit to Vietnam's technology firms in August last year, Malaysian Prime Minister Mahathir Mohamad shared experience in successful digital transformation. Accordingly, Malaysia is creating a new ecosystem to attract stakeholders related to the key economies. In addition, Malaysia is preparing infrastructure, knowledge, capabilities and human resources for industrial revolution 4.0

"By 2025-2026, Malaysia can implement four national goals, including: Increasing labor efficiency, raising investment and contribution to GDP, improving innovation capacity and having more human resources with high skills", Mr. Mahathir Mohamad said.

According to the World Economic Forum (WEF)'s forecast, in the near future, 3 out of 4 people will lose their jobs due to outdated skills. Therefore, Vietnamese people need to know digital technology, digital thinking, and how to live, work and communicate to reach a digital level.

Digital transformation brings about many benefits such as reducing operating costs, reaching more customers in a longer time, and leaders making decisions faster and more accurately thanks to a transparent and timely reporting system. Thus, the operational efficiency and competitiveness of organizations and businesses are improved.

Experts say that the most important factor driving the digital economy, thereby changing the way we produce, the way we work, is none other than Vietnamese digital enterprises. Using technology to solve Vietnamese problems, and from the cradle of Vietnam, these technology firms will go global. The revolution of all-people digital start-ups and digital technology universalization will help Vietnam digitize its economy quickly.

The direction of local businesses

According to Mr. Lam Viet Tung, IT - Telecom consultant for Vodafone Ziggo (Netherlands), digital transformation appeared in 2013, when the sales of retail stores in the US during Christmas and New Year holiday fell 50% and online sales through the Internet increased 81% compared to three years earlier.

By not writing letters on paper but texting, sending email over the phone and the Internet, the traditional post office almost went bankrupt. Sony Walkman has dominated the music market since 1979, and then overslept on its victory and had to stop production in 2010 when digital devices such as iPod, iPhone and Samsung smartphone came out. And the name Sony kept fading.

Mr. Lam Viet Tung: Digital transformation is the inevitable direction of businesses that want to exist in the next 10 years

Netflix has no telecom infrastructure but has successfully developed on-demand movie-watching services around the world by accommodating a huge number of movie-watching customers. Netflix with the usual software over the Internet has been successful. Booking.com in the Netherlands can decide hotel prices in Venice, London, Paris ... According to Wikipedia, this website with 43 languages has a list of 148,000 destinations in 228 countries and territories around the world. Every day, more than 1.5 million rooms are reserved on the site.

"Why are Apple, Amazon, Netflix, Booking, Grab ... successful? Do they capture digital technologies that are the trends of the times and know how to apply digital technologies creatively in their business? Digital transformation is a challenge but an inevitable direction for businesses that want to survive in the next 10 years," said Mr. Lam Viet Tung.

Mr. Nguyen Van Khoa, FPT Group’s CEO, said: “The world is changing every second with an explosion of new innovations and new technologies. Therefore, in order to survive and thrive, businesses need to rapidly innovate with technology, digital transformation towards building digital operating models and beyond, digital enterprises.

Mr. Nguyen Van Khoa: Enterprises need to rapidly innovate with technology, digital transformation...

Universalizing digital skills

According to the Minister of Information and Communications Nguyen Manh Hung, the digital technology - digital transformation - digital economy - digital era is an irreversible process because this is a global trend. "With the emergence of industrial revolution 4.0, the world is near the point of the digital transition. This is an opportunity for Vietnam to realize its aspiration of building a mighty Vietnam.

As a person dedicated to promoting digital transformation in Vietnam, Mr. Truong Gia Binh, FPT President, emphasized that the transformation of the 4th industrial revolution will determine the destiny, the future of each individual, family, organization, and country. This is the aspiration to prosperity in a mighty country. "Digital transformation is not just about upgrading the information system, innovating, enhancing activities to work more quickly, but most importantly, converting people, building new digital skills and capabilities."

Digital transformation cannot be done without digital leadership, digital management, and digital staff. Training enterprises and organizations need to work closely to organize certified training programs.

The economy, workforce, and training need to be restructured. “We need digital skills for digital transformation. This should be implemented early by popularizing skills, using machines and digital tools to work more efficiently, and at the same time bring the level of automation in production processes", Mr. Truong Gia Binh said.

According to Mr. Binh, humanity is entering the digital age when all organizations will become digital organizations, all leaders will become digital leaders, all spending will become digital spending. “Even each person will be a digital business. Anyone who doesn't perform digital transformation, he/she will ‘die’. Digital transformation or death!”

"The world understands that there is a great transition from the real world to the virtual world. Reality and virtual world become one. Each of us will radically change the way we work, communicate, and entertain. Retail will become digital retail. All organizations are digital organizations. Leaders will also become digital leaders,” said the FPT Chairman.

Thai Khang

Reference: https://vietnamnet.vn/en/feature/digital-transformation-to-realize-vietnamese-aspirations-687417.html