HCMC set to lead Vietnam’s digital economy expansion

The southern economic hub of Ho Chi Minh City is supposed to take the lead in Vietnam’s digital transformation and smart city building projects, Deputy Prime Minister Le Minh Khai said Friday.

Speaking at Ho Chi Minh City Economic Forum 2022 (HEF), he said the government is determined to step up Vietnam's digital economy development, and the city, as the country’s economic powerhouse has to drive the national transformation program.

Citing an industry report by Google, Temasek Holdings and global consultants Bain & Company, published late last year, he said Southeast Asia’s internet economy is forecast to reach $1 trillion by 2030, with Vietnam second only to Indonesia.

Vietnam’s digital economy was expected to expand 31% to $21 billion in gross merchandise value (GMV) in 2021, bolstered by a 53% year-on-year growth in e-commerce, and to reach $57 billion by 2025, according to the report. The digital economy, with almost 100 million people, is projected to hit $220 billion in GMV by 2030 to become the region’s second largest after Indonesia.

The prediction is a foundation for Vietnam to continue increasing investments for digital economy expansion, thus HCMC needs to try its best, said the Deputy PM. “I believe the city will make it.”

The city’s Department of Information and Communications recently put into operation its official digital transformation portal, a move to implement the economic hub’s digital transformation and smart city building projects.

Thanks to the portal, city officials and civil servants can promptly systematize and adjust municipal digital transformation documents, programs, and projects, the department said.

Experts, the general public, organizations, and companies can access and learn information about local transformation. They can search for applications and public services being provided on digital platforms, it added.

The city has plans to set up at least two technology innovation centers by 2025 to help enterprises digitize operations, according to the municipal administration. The new facilities will enhance supply chains, transfer technologies and innovations, research digital products, increase the awareness of digital transformation, promote an innovation ecosystem for start-ups, and help businesses develop digital products.

Regarding the goal of developing the digital economy, HCMC has set higher goals than the entire country. By 2025, its digital economy is expected to contribute 25% to the city’s gross regional domestic product (GRDP and 40% by 2030), while the national targets are 20% and 30%, respectively.