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| Digital Transformation: The Path to Innovation and Inclusive Growth for Vietnam. Image illustrating the 2030 Agenda with 17 Sustainable Development Goals adopted by the United Nations General Assembly to end poverty, protect the planet and ensure prosperity for all. (Photo: Vu Phong) |
In today’s changing and volatile world, digital transformation has emerged as a key driver in driving inclusive growth. By harnessing the power of technology, governments, businesses and societies can bridge gaps, empower disadvantaged communities and create economic opportunities.
Vietnam recognizes the catalytic role of digital transformation. By approving ambitious national targets to support the overall vision of a prosperous digital nation by 2030, Vietnam sets out fundamental and comprehensive reforms in the operations of the Government, the economic activities of enterprises, and the way people live and work.
UNDP puts digital transformation at the heart of its global work, focusing on creating a world where digital transformation plays a key role in empowering people and the planet through economic empowerment, access to information and services, and digital literacy. In line with this global approach, UNDP is supporting Viet Nam to mainstream digital solutions to enhance transparency, inclusion, and e-governance service delivery, contributing to the implementation of national digital transformation goals.
Key tasks
The Prime Minister's approval of the "National Digital Transformation Program to 2025, with a vision to 2030" on June 3, 2020 is an important milestone in Vietnam's digital development process. This demonstrates the aspiration to become a leading digital country and economy in the ASEAN region by 2030 and promotes comprehensive testing of new technologies in Vietnam's digital economy. This program sets out key tasks that Vietnam needs to carry out to develop an effective, transparent digital government that is accessible to all people, to create an inclusive and sustainable digital economy, to build a safe, secure and fair digital society, and to form Vietnamese digital enterprises with global capabilities.
Vietnam’s national programme is people-centred, emphasizing digital transformation as a key approach to achieving the United Nations (UN) Sustainable Development Goals (SDGs). The programme highlights key areas such as digital infrastructure, human resources, policy development, and research and development.
Through this program, Vietnam aims to enhance the competitiveness of its economy, with the digital economy accounting for 20% of total GDP and increasing annual productivity by at least 7% by 2025. One of the key targets is for 80% of eligible online public services at level 4 to be accessible via mobile devices by 2025, ensuring the integration of digital advances into all aspects of governance.
With this national program, Vietnam is well-positioned to unleash its potential in digital transformation. The total number of information technology (IT) human resources in Vietnam is about 1.15 million, with 160 universities nationwide offering technical training programs in this field.
By May 2022, all 63 provinces and cities had established a Steering Committee for Digital Transformation, 55/63 localities had issued resolutions on digital transformation, and 59 localities had issued programs, plans, and projects on digital transformation for the next 5 years, demonstrating political determination to achieve the goals set by the Prime Minister. In addition, digital transformation has been strongly applied in businesses, with many IT enterprises playing a pioneering role in the fields of research, development, and innovation, playing an important role in promoting technology and contributing to the growth of the digital economy.
However, Vietnam’s digital transformation journey is not without challenges. A key requirement of digital transformation is to establish a new, high-quality digital infrastructure system nationwide. This requires significant investment in high-speed broadband connectivity, covering major cities, IT hubs and industrial zones, but also nationwide coverage to connect rural and remote areas, government agencies, schools and healthcare facilities, and ultimately every home. This also requires significant investment in developing effective digital platforms that can support the digital transformation of government, businesses and society while ensuring a safe and secure digital environment.
There is still a significant gap in digital literacy among Vietnamese consumers. While about three-quarters of Vietnamese people use the internet, making Vietnam one of the most connected countries in the world, many, especially in rural areas, still prefer to use cash rather than digital wallets or bank accounts and online financial services.
The most recent UNDP annual Provincial Governance and Public Administration Performance Index (PAPI) survey in 2022 found that less than 5% of respondents nationwide had accessed e-governance services through the National Public Service Portal. The development of effective online services must go hand in hand with raising awareness and developing digital literacy, supporting citizens to move from cash and paper to accessing digital financial and e-governance services, non-cash payments and other digital services confidently and securely while maintaining options for those who do not have access to digital services.
Ensuring equitable digital access for all segments of society is also a challenge, especially in Vietnam’s mountainous and remote areas and for poor and vulnerable households. In remote and disadvantaged areas, access to secure internet connectivity and digital devices can be limited, hindering the widespread adoption of digital services. While digital transformation can empower disadvantaged communities, the digital divide remains a concern and strategic, sustained efforts are needed to ensure that no one is left behind.
In response to these challenges, UNDP is leveraging its international expertise and experience to support Viet Nam’s digital transformation journey, in partnership with the Government of Viet Nam, including key ministries such as the Ministry of Industry and Trade, the National Innovation Center of the Ministry of Planning and Investment, and the National Technology Innovation Center of the Ministry of Science and Technology, as well as with specific ministries to support key components of their digital transformation plans.
Bridging geographical gaps
UNDP’s role in Vietnam’s digital journey is multifaceted, including a focused approach to enhancing transparency, expanding inclusion and improving e-governance service delivery.
A notable success story is the collaboration between UNDP and the Ministry of Health and the Departments of Health of 8 provinces to develop, pilot and scale up the grassroots telemedicine system “Doctor for every home”. “Doctor for every home” is a digital platform and web-based mobile application that supports commune health facilities to connect with higher-level medical, specialized and specialized facilities to support access to consultation, examination and treatment for people directly at commune health stations, including in remote areas and in areas that are particularly vulnerable to the impacts of climate change.
The initiative has empowered healthcare workers, especially those in rural areas, and significantly improved healthcare services for vulnerable communities. The growth of the initiative has been remarkable, with over 5,000 accounts created for healthcare workers and over 755,000 community accounts set up by citizens. Approximately 28,000 appointments were booked through the system from March 2023 to the end of June 2023, with approximately 2,693 remote consultation video calls and briefings.
UNDP has also partnered with the Ministry of Labour, Invalids and Social Affairs (MOLISA) to develop a social protection mechanism that is more resilient, increases adaptability, and promotes socio-economic development and multidimensional poverty reduction. Particularly during the period of social distancing due to the Covid-19 pandemic, UNDP has supported MOLISA to pilot electronic payment methods and electronic registration for beneficiaries of social protection packages.
Pilots of an e-payment system for ethnic minority women have been successfully conducted in five provinces, including Bac Kan, Dak Nong, Ha Giang, Bac Lieu and Ca Mau, enabling them to access money transfers through their phones or bank accounts. In four other provinces, including Bac Giang, Thai Nguyen, Quang Nam and Binh Phuoc, UNDP has supported the transition from paper-based, door-to-door surveys to digital self-registration for social assistance, empowering people to proactively declare their multidimensional poverty status, promoting comprehensive and efficient data collection. This digital self-registration system will be scaled up nationwide, contributing to a more comprehensive understanding of poverty and improving the speed, efficiency and effectiveness of interventions.
In 2023, UNDP and the Institute for Policy Studies and Media Development conducted an assessment of the accessibility and user-friendliness of 63 provincial-level online public service portals. The assessment aimed to identify digital capacity gaps between service providers and users, and inform training programs for public sector staff to close these gaps and prioritize user-friendly approaches.
This assessment has made practical recommendations to enhance the accessibility and usability of the public service portal for citizens, including the development of user-friendly and effective search tools, including: (1) easy accessibility, with the search tool displayed prominently on the home page; (2) optimizing keyword-based searches and including suggestions for the closest search results; and (3) including voice search functionality. The recommendations also aim to support accessibility for specific user groups such as the visually impaired and ethnic minorities, for example through the inclusion of tools such as screen reader browsers and voice search functionality, as well as video tutorials on how to log in and search for procedures in ethnic languages.
Initiatives to engage citizens
In the area of policy advice and advocacy, UNDP’s involvement has been important. Initiatives such as PAPI and the Social Support Project II (also known as SAP-II) have created ways to measure e-governance progress and promote policy advocacy through digital reporting systems and digital self-registration processes. These initiatives facilitate citizen participation in governance systems and policy development.
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| Ms. Ramla Khalidi, UNDP Resident Representative in Vietnam. (Source: UNDP) |
UNDP, in collaboration with the Ministry of Agriculture and Rural Development, introduced a model of an electronic traceability system to track the origin and carbon footprint of each dragon fruit produced in Binh Thuan, enabling domestic and international consumers who purchase or import dragon fruit from this key production area of Binh Thuan to scan a QR code to trace the origin of the fruit and the level of “green” or environmentally friendly practices applied to produce the fruit.
UNDP is also working with the Department of Dyke Management and Natural Disaster Prevention under the Ministry of Agriculture and Rural Development to support the upgrading and digital transformation of the Vietnam Disaster Monitoring System. UNDP is also working with other national and provincial partners to promote digital transformation as a cross-cutting issue in the overall programme in Vietnam.
Digital transformation is a multifaceted effort that involves integrating digital technology into various areas of a country’s operations. For Vietnam, learning from the experiences and best practices of other countries can be instrumental in streamlining its transformation journey, and here are some initiatives that have been beneficial but can be scaled up to the Vietnamese context.
UNDP is ready to share more lessons and models developed through our Global Digital Strategy that Viet Nam can adapt to support its national digital transformation. For example, UNDP has partnered with the government of Estonia to share expertise in developing e-government platforms to ensure seamless interactions between government and citizens. In Turkey, UNDP is supporting the digital transformation of small and medium-sized enterprises (SMEs) through training and consulting on the development of integrated models to improve productivity and competitiveness. Viet Nam can adopt similar strategies to support its SMEs to compete in the global market in the context of the Fourth Industrial Revolution.
Other lessons and models are also available in our global work to support the development of digital infrastructure, digital payment systems, regulatory frameworks, cybersecurity and privacy, and public-private partnerships to accelerate digital transformation.
As these digital initiatives gain traction and deliver impactful results, UNDP’s commitment to continue to accelerate these efforts together with the Government of Viet Nam and other stakeholders remains steadfast. Viet Nam’s commitment to the power of digital transformation, coupled with UNDP’s strategic engagement, is well placed to promote inclusive growth, resilience and equitable development.
As the country navigates the complex landscape of digital innovation, UNDP’s role as a trusted partner and knowledge exchange facilitator remains integral to shaping a digital future that leaves no one behind.
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