Comprehensive digital transformation - the foundation for Smart Cities

Ho Chi Minh City aims for the digital economy to account for 25% of the city's GRDP by 2025 and 40% of the city's GRDP by 2030. This ratio is 5%-10% higher than the national average, showing the great aspiration and challenge for the development of Ho Chi Minh City's digital economy.

Put goods online, pay without cash

Cashless payment has become a habit for most people in Ho Chi Minh City. At many street vendors or market stalls, QR codes and account numbers are pre-printed and posted in visible locations. After purchasing, customers hold their phones to scan the QR code, and the money is immediately transferred to the seller's account.

Ms. Pham Thi Bich Han, who sells sticky rice and sweet soup at Phuoc Binh market, Thu Duc city (HCMC), said that small traders in the market are familiar with online transactions and money transfers via accounts. For example, Ms. Han's sticky rice and sweet soup stall sells 50-70 portions a day, with an average price of 10,000 VND/portion, but only receives about 100,000-200,000 VND in cash, the rest is received via bank transfer.

Staff of Thu Duc City Land Registration Office Branch handle administrative procedures for people online

Along with cashless payments, e-commerce activities are growing stronger and stronger. From traditional markets to import-export enterprises, they are competing to bring goods to the trading floor in many ways. Most recently, the livestream activity connecting online with the campaign "Super live Vietnamese goods" on TikTok promoting more than 200 specialty products, OCOP products of 45 provinces and cities held from September 26 to September 29 made a good impression.

Previously, at the end of 2023, Thu Duc City People's Committee also organized Thu Duc online market, attracting 50 retailers to participate. On TikTok platform alone, with 20 livestream sessions, more than 17,000 orders were sold in 3 days.

Through cross-border livestream sales sessions, Mr. Nguyen Ngoc Luan, Director of Global Trade Link Co., Ltd. (founder of the Meet More coffee brand) has contributed to bringing Vietnamese agricultural products to the world market. According to Mr. Luan, the digital economy is booming, each business must change its marketing methods to reach customers. Currently, e-commerce is a trend that forces businesses to participate if they do not want to be eliminated.

Over the past time, the contribution rate of the digital economy to Ho Chi Minh City's GRDP has increased steadily over the years. According to the Ministry of Information and Communications, the estimated contribution of the digital economy to Ho Chi Minh City's GRDP is 18.66% in 2022 and 21.5% in 2023. Of which, the city's software industry revenue reached VND 64,110 billion, ranking first in the country; hardware industry revenue reached VND 92,556 billion and IT service revenue reached VND 23,100 billion, ranking second in the country.

Support business transformation

Realizing the importance of promoting digital transformation in production and business, Mr. Le Mai Huu Lam, General Director of Cat Van Loi Industrial Electrical Equipment Manufacturing Joint Stock Company (Go Vap District, Ho Chi Minh City), participated in a 6-month digital transformation training course to apply to the business. According to Mr. Lam, to successfully transform digitally, first of all, business leaders and directors must learn, understand and apply it in their daily work.

He said that by visualizing the production system on MESS software (manufacturing execution system), the company's board of directors has better controlled defective products, labor productivity, reduced time to summarize production reports, shortened quotation time and provided better customer care. Mr. Lam said that, along with the efforts of businesses themselves, the Ho Chi Minh City government has had specific solutions to support businesses, especially small and medium enterprises in digital transformation.

Some results of digital economy and digital society of Ho Chi Minh City in the first 9 months of 2024

 The percentage of adult population with smartphones reached 87%

 The rate of working-age people trained in basic digital skills reached 85.5%

 The proportion of e-commerce in total retail sales reached 16.7%

 The rate of enterprises using electronic contracts reached 82%

 The rate of small and medium enterprises using digital platforms reached 71.18%

 The proportion of the population aged 15 and over with a payment transaction account at a bank or other licensed organization reached 92%.

Ho Chi Minh City is home to many large information technology (IT) enterprises in the country, with 22,773 enterprises operating in 2023. The workforce in this industry will reach 85,214 people. Ho Chi Minh City is also the locality with the first concentrated IT park in Vietnam (Quang Trung Software Park) with a scale of 43 hectares and revenue in 2023 reaching 12,720 billion VND. The city has attracted many large technology corporations, the largest software programming enterprises in Vietnam with a scale of more than 1,000 employees, playing a leading role in the IT industry in the digital transformation process and developing smart cities.

In the plan to implement the Project "Developing digital economy, sharing economy and circular economy in Ho Chi Minh City in the period of 2020-2025, with a vision to 2030" in the period of 2024-2025, the Ho Chi Minh City People's Committee has identified promoting the development of the digital economy with 4 pillars, including information technology industry, digitalization of economic sectors, digital management and digital data; creating a favorable business environment for digital technology enterprises and solving problems arising in the process of developing the digital economy.

Director of the Department of Information and Communications of Ho Chi Minh City Lam Dinh Thang said that in the last months of the year, Ho Chi Minh City will promote the replication of models to support small and medium enterprises, wholesalers, and retailers in digital transformation; cooperate with the Ministry of Information and Communications to strongly develop e-commerce; promote digital transformation of high-tech industries, seaport industry, food processing, textiles, smart tourism, etc. In particular, the Department of Information and Communications will propose that Ho Chi Minh City form more concentrated information technology parks with outstanding policies to attract investors; build more data centers to promote the digital economy in the coming time.

Mr. NGUYEN KY PHUNG , Vice Chairman of Thu Duc City People's Committee, Ho Chi Minh City:

Listening to people and businesses

In recent times, Thu Duc City has coordinated to deploy many models and solutions to support businesses and traditional markets in digital transformation, typically the "Online Market" model at Binh Khanh, Phuoc Binh, and Thu Duc markets. Thu Duc City has also developed and implemented a program to support 200 businesses and business households in digital transformation; coordinated with the Tax Department and Thu Duc Agricultural Market Management and Trading Joint Stock Company to deploy the eTax Mobile application to traders, creating favorable conditions for looking up and paying online for electronic tax services.

We have built sections on the Thu Duc City Electronic Information Portal to receive feedback and recommendations from businesses. From there, we will provide support solutions to help businesses operate more effectively; increase information and propaganda to businesses about policies and strategies for e-commerce development.

Mr. NGUYEN MINH HUNG , Deputy Head of Trade Management Department, Ho Chi Minh City Department of Industry and Trade:

Support traditional markets to transform digitally

Digital transformation in Ho Chi Minh City is developing strongly, affecting all business sectors, changing trade practices and transaction habits. Therefore, it requires business people to adapt to technology. Recently, the Department of Industry and Trade has coordinated with the Department of Information and Communications of Ho Chi Minh City to deploy digital transformation models in markets, such as livestream sales, training sales skills for small traders, and supporting market management to build communication channels to expand customers.

At the same time, aiming at sustainable development, the Department of Industry and Trade coordinated with the University of Economics and Law to research a project to develop a market system in Ho Chi Minh City to adapt to the digital transformation of the economy...

Source: https://mic.gov.vn/chuyen-doi-so-toan-dien-nen-tang-cho-do-thi-thong-minh-bai-2-dong-gop-lon-vao-grdp-cua-tphcm-197241112153801861.htm