Google CEO: Digital transformation in Vietnam opens an era of innovation
Báo Dân trí•31/12/2024
(Dan Tri) - Vietnam's journey to become the leading AI center in Southeast Asia opens up attractive opportunities for the digital economy to grow and develop.
Vietnam has emerged as a Southeast Asian technology hub, attracting investment from many of the world's leading technology corporations and companies. Notably, Vietnam's digital economy has grown impressively in recent years, even leading the region in some areas. Dan Tri reporter had a conversation with Mr. Marc Woo, Managing Director, Vietnam, Google Asia-Pacific to better understand the picture of Vietnam's digital economy, as well as the potential for economic development through technology in our country in the future. According to the report "Southeast Asia's Digital Economy 2024", Vietnam's digital economy has grown strongly thanks to technology. Can you share about the prospects and growth drivers of Vietnam's digital economy? - Vietnam's digital economy has witnessed impressive and persistent growth over the past five years, overcoming many obstacles and challenges. In 2024, Vietnam maintained a double-digit growth rate, driven mainly by e-commerce and online tourism. This sustained growth demonstrates Vietnam's potential and position as a rapidly growing digital market, forecast to reach 200 billion USD by 2030. The online media sector in Vietnam has also emerged as the fastest growing in Southeast Asia, up 14% year-on-year. In addition, talented Vietnamese developers are also making a splash globally by developing many popular applications that are well received by global users. The growing interest of Vietnamese people in artificial intelligence (AI) and the Government's support for AI and semiconductor technology have added momentum to the development of Vietnam's digital landscape. Although private capital is affected by the challenges of the global economy, investor confidence remains strong, especially in areas such as software, fintech, medical technology and AI. In addition, strong growth potential with a high proportion of young population, a dynamic startup ecosystem and supportive government policies have made Vietnam a promising digital market in Southeast Asia. Which industries and sectors benefit the most from the development of Vietnam's digital economy, sir? -Digital transformation in Vietnam has ushered in an era of innovation, revolutionizing industries and reshaping business models; by leveraging cutting-edge technologies, organizations can enhance customer experience, streamline operations and make data-driven decisions. Key sectors benefiting from the digital revolution include financial services: digital banking, AI-enabled fraud detection and personalized financial advice; healthcare: remote health care, AI-assisted diagnostics and electronic medical records; retail: e-commerce, personalized shopping experiences and supply chain optimization). Technology also contributes to developments in the manufacturing sector with IoT-connected smart factories, predictive maintenance and supply chain visibility; education: online learning, personalized teaching and AI tutoring. Along with that comes the transportation and logistics industry: GPS tracking, autonomous vehicles, and real-time logistics. As the digital economy continues to grow, these sectors will experience greater growth and innovation, driving economic prosperity, job creation, and social progress. In your opinion, what are the key factors contributing to the development of the digital economy in Vietnam? - The close combination of digitalization and artificial intelligence (AI) is poised to drive Vietnam's digital economy to growth, by leveraging AI-powered solutions, Vietnam can reap huge economic benefits. Attracting investment and promoting innovation in the AI field are key steps for Vietnam to realize its goal of increasing the contribution of the digital economy to GDP from 16% in 2024 to 30% in 2030. Taking full advantage of the potential of AI will accelerate economic development and help Vietnam affirm its position as a high-income developed country by 2045. It is expected that by 2030, Vietnam's digital economy will reach 200 billion USD. Artificial intelligence (AI) will play an important role in realizing this ambitious vision. Could you share some of the advantages that Vietnam has to promote this development? - Currently, Vietnam has some advantages to develop a digital economy based on artificial intelligence (AI) such as active support from the Government and strategic initiatives showing that the Vietnamese Government plays an active role in promoting and facilitating the development of a digital economy based on AI. Vietnam’s National Strategy for Research, Development and Application of Artificial Intelligence outlines a specific vision for the development of AI, aiming to make Vietnam an AI innovation hub in Southeast Asia. This vision is supported by specific plans to invest in AI research and development, build AI infrastructure and train human resources to be ready for the era of artificial intelligence. The Government’s commitment to digital transformation is further demonstrated in its ambitious digitalization roadmap, prioritizing AI and semiconductor technology along with economic growth. Notably, Vietnam has a young population that is tech-savvy and ready to embrace digital technologies. The high literacy rate and rapidly increasing smartphone ownership rate demonstrate the readiness of Vietnamese people to adapt and use digital services. Along with that, the interest and demand for AI among Vietnamese people is also increasing significantly, especially in urban areas such as Ho Chi Minh City and Da Nang, combined with the strong double-digit growth of the digital economy, the technology savvy of Vietnamese people creates a favorable foundation for the integration of AI application solutions. Vietnam also owns a dynamic startup community, attracting global investment resources. The startup market has many positive fluctuations, mostly focusing on digital services, creating a favorable environment for businesses focusing on AI to start up and develop vigorously. In addition, the country has successfully attracted significant foreign direct investment (FDI) in the manufacturing sector. International manufacturing enterprises in Vietnam are integrating AI into their production processes, further promoting the growing adoption and development of AI technology in the country. This FDI inflow, combined with the Government’s commitment to supporting technological change, creates a favorable cooperation environment for the development of AI. By effectively leveraging these factors, Vietnam can fully exploit the potential of AI to accelerate digital transformation, enhance economic competitiveness and improve people’s well-being. What challenges does Vietnam need to address to promote digital economic growth? - Vietnam's journey to become a leading AI hub in Southeast Asia opens up attractive opportunities for the digital economy to grow and develop. Although there are some challenges, these are also areas with great potential when invested strategically and focused efforts are made to exploit them. The current shortage of digital and AI skilled workers shows the potential of education and training programs in nurturing and developing a workforce to meet market demand. By equipping the workforce with the necessary expertise, narrowing the gap between market demand and workforce skills, Vietnam can increase its ability to attract investment in the AI sector in particular and the digital economy in general. Similarly, the challenges that Vietnamese startups are facing are opportunities for a targeted investment and support strategy through nurturing a dynamic startup ecosystem. Vietnam can accelerate innovation, create more jobs and affirm its regional leadership in AI development. In addition, Google has introduced the "Vietnam AI Opportunity Report - Some Recommendations" - built on Google's three pillars of responsible AI progress. This opens up opportunities, promotes social responsibility, and enhances security, this report makes three main recommendations for the Government, businesses, and research institutes in Vietnam to bring the benefits of AI to the majority of Vietnamese people. To achieve this goal, collaboration among stakeholders is essential, including on innovation infrastructure, building an AI-ready workforce, and promoting inclusive adoption and access to AI. Could you share about the role of education in the development of the digital economy? - Talent is an important driving force to promote innovation and progress in all industries, especially in the rapidly growing technology and digital transformation fields. In fact, the growth of the digital economy leads to an increase in the demand for highly skilled digital talent. To ensure Vietnam's competitiveness in the global AI landscape and promote sustainable digital economic growth, cultivating and equipping the highly skilled workforce with AI skills is essential. This requires significant investment in education and skills development, with a focus on digital, AI, and data science. Vietnam can close the digital skills gap and position itself as a regional AI hub by equipping individuals with the necessary skills. In the future, what are your expectations for the development of the digital economy in Vietnam compared to other Southeast Asian countries in general and the APAC region in particular? - Vietnam has many unique factors that are driving the breakthrough growth of the national digital economy. The combination of a proactive digitalization roadmap promoted by the Government, a young, tech-savvy population, and a vibrant startup ecosystem has created an ideal environment to promote digital transformation and innovation. Over the past six years, Vietnam has emerged as a leading digital market in the region, continuously growing sustainably. By fully leveraging the potential of AI, Vietnam can consolidate its position as a regional innovation hub and take the national digital economy to the next level, reaching US$200 billion by 2030. Google is committed to supporting Vietnam on its digital transformation journey and benefiting from the next wave of AI-powered innovation. Thank you for taking the time to chat!
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