VN must be one of world's leading countries in digital, green transition

June 25, 2024 | 03:09 pm GMT+7

To become a new "tiger" in Asia and a developed high-income country, Vietnam has no other choice than to join the group of leading countries in digital transformation and green transition.

VN must be one of world's leading countries in digital, green transition- Ảnh 1.

Minister of Information and Communications Nguyen Manh Hung, attending the 2024 Vietnam-Asia DX Summit held in Hanoi on May 28, affirmed the importance of the digital and green transformation, saying that these are the two most important changes in the first half of the 21st century.

Digital and green transformations are twins, accompanying and supporting each other. The two help a country develop rapidly and sustainably. Vietnam has defined digital and green transformation as strategic options, which serve as the major driving force of economic growth.

Hung pointed out the urgency in carrying out digital transformation and economic development using green digital technologies. The countries that can go faster will become richer than others.

Going green aims at preserving natural resources and protecting the environment where people are living.

According to Hung, in order to develop rapidly, it is necessary to digitize, and to develop sustainably, it is necessary to go green. Both digital and green transformation need digital technology, and the core digital technology is the semiconductor chip.

He said the Ministry of Information and Communications (MIC) has completed the national strategy on semiconductor chip development and opened the draft to public opinion.

“We are living in a special period when the future is not on the extended path of the past since a singularity has appeared in the development curve of humanity, especially with the technology and AI (artificial intelligence),” Hung said.

“Only if grasping the opportunity will Vietnam become a new tiger and a high-income developed country. There is no other choice for Vietnam to join the group of leading countries in digital and green transformation,” he said.

However, Hung said, if Vietnam is digitized and green, it will be just among the middle countries, and won’t be able to change the position of the nation. A new industrial revolution will only reward pioneering countries.

VINASA’s (Vietnam Software & IT services) Truong Gia Binh said digital and green transformation is a world trend as the aim is sustainable growth.

According to the World Bank, when handling climate change, adaptation and mitigation of the impact are most important. In order to go green, it is a must to digitize, because digital technology helps accelerate adaptation and mitigation. The technology itself also needs to be greener as it consumes much energy.

Recently, digital and green transformation have been associated with another transformation – AI.  AI super computer technology has created new labor sources.

“Previously, we had engineers in software, and now we have engineers in AI. AI has been making its presence in all fields,” Binh said.

In the process of transformation, Vietnam has a great advantage – high-quality human resources.

Vietnam's fast transformation

Tran Minh Tuan, director of the MIC’s Department of Digital Economy and Digital Society, said the digital economy makes up 16.5 percent of total GDP in Vietnam, and the figure is expected to rise to 20 percent by 2025.

Regarding the economic structure, 60 percent of Vietnam’s digital economy is in ICT firms, and 40 percent in digital economy in different fields. However, the structure will change in the future, with the former decreasing to 20 percent and latter increasing to 80 percent by 2030.

According to Dao Phuong Lam from Temasek, Vietnam is the fastest growing digital economy in Southeast Asia with GMV (gross merchandise volume) expected to increase from $30 billion in 2023 to $43 billion by 2025.

While facing difficulties in capital mobilization and divestment, Temasek still is optimistic about the future of Southeast Asia, including Vietnam.

Le Viet Anh from the Ministry of Planning and Investment (MPI) said when committing net-zero emissions, Vietnam has promptly launched the national action plan on green growth.

The national action plan sets four major goals – mitigating greenhouse gas emissions, greening business fields, greening lifestyle and promoting sustainable consumption, and greening the transformation process.

The World Bank has estimated that Vietnam could consume 6.8 percent of GDP, or $368 billion, from now to 2040, to reach the goal of green growth. The real figure may be double, according to MPI, if counting other expenditures and inflation.