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The digital transformation is an institutional revolution, not only a technological one

17:18 | 14/09/2021

VCN - Digital economist, Dr. Nguyen Thi Bach Tuyet, Head of Economic Informatics Department, Institute of Information Technology and Digital Economy, National Economics University spoke with Customs News.

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The digital transformation is an institutional revolution, not only a technological one
Dr. Nguyen Thi Bach Tuyet

How do you comment on the contribution of digital transformation to the growth of the Vietnamese economy?

Vietnam has clearly expressed its desire to join the race by considering digital transformation as one of the key goals in the socio-economic development strategy 2021-2030, Resolution No. 52-NQ/Central Committee of the Central Committee, which emphasized the urgent need to accelerate the digital transformation process, then the Prime Minister's Decision No.749/QD-TTg on the national digital transformation program to 2025, with an orientation to 2030.

Due to a very low starting point, Vietnam's position on the digital transformation map of the region and the world is still at a low average level. In other words, Vietnam is classified as a country in the transitional stage of the digital transformation process but has a rather positive position in relation to other countries at the same level of development.

However, overall, digital transformation contributes to economic growth through five main channels.

Firstly, digital transformation helps increase production and business efficiency and business management efficiency, helping to reduce costs, expand markets and increase customer service quality. Digital transformation also creates cohesion and cooperation in developing digital ecosystems, online commerce services, social networks, automation, artificial intelligence and other applications.

Second, digital transformation greatly increases the volume and quality of information, the ability to communicate, helps make information and transactions transparent in all areas from environmental quality to perception of customers and citizens. As a result, all activities are monitored and handled in a timely manner. On that basis, social trust will be strengthened and economic growth will become more sustainable.

Third, digital transformation helps businesses and people increase their access to global knowledge and share ideas quickly and in a timely manner. This advancement fosters learning and creativity, the driving force behind growth.

Fourth, digital transformation helps create a sharing and communicative economy, attracting all resources of society. Both supply and demand of the economy increased sharply in quantity and quality due to synergistic effects.

Fifth, digital transformation helps to improve the quality of the decision-making process, especially in resource allocation. Thus, growth is generated from increased efficiency of investment and development.

In your opinion, what is the reason for the low level of digital transformation in the private sector, is it due to financial resources?

Finance is also an important factor for successful digital transformation, but it is not the most important factor. Most importantly, businesses must have a suitable digital transformation model. Therefore, the reason that digital transformation in the private sector as well as small and medium-sized enterprises is slow is because there is no suitable digital transformation model.

What extent does the quality of our country's legal system meet the digitalization of the economy?

First of all, it must be said that digital transformation is not only a policy and institutional revolution but also a technological revolution. In terms of institutions, the most important is the policy of attracting global talent, the acceptance of new technologies, new business models, new relationships in the virtual world.

Therefore, the current legal system of our country has many points that have not yet met digital transformation, so it is necessary to improve and focus more on the field of law directly related to state and social institutions; ensure fairness, human rights, fundamental rights and obligations of citizens; virtual environment management, high-tech crime, representation or issues of non-contractual damages, intellectual property, corporate governance, consumer protection, e-commerce, and digital assets.

How do you evaluate the contribution of digital transformation in the field of public administration to the development of businesses and the digital economy?

The government has been stepping up efforts to streamline procedures and deliver public services through digital means because digital transformation in public administration, including customs, to build and develop digital services to restructure processes and reform administrative procedures. The application of information technology, application of digital technology, bringing all public administrative activities to the digital environment in order to improve the effectiveness and efficiency of state management, improve the quality of public service provision at level 4 is essential to serve people and businesses. Therefore, digital transformation will help publicity, transparency, reduce time, costs, and prevent corruption.

Vietnam has set a target that by 2025, the digital economy will contribute 20% of GDP and have 100,000 digital technology enterprises, according to you what is the driving force and what solutions are needed to achieve this goal?

The 2021-2025 period is considered the time to accelerate digital transformation, to create a new driving force for economic growth and social development. Achieving the above goals requires Vietnam to master digital infrastructure, master digital platforms, thereby mastering the national cyberspace based on "Make in Vietnam" products.

In addition, the Government needs to take initiatives to attract talent worldwide, train digital human resources, widely and effectively use digital technologies, as well as strengthen the legal basis, improve technical capacity of the workforce and improve accountability of public institutions.

Thank you very much!

By Binh Nam (recorded)/Quynh Lan