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Samson:  Vietnam : Three packages to help businesses with digital transformation

22nd December, 2021

Three aid packages will be carried out in 2022 to help promote digital transformation in Vietnamese enterprises, according to the Ministry of Planning and Investment (MPI).

The support is part of a programme assisting businesses in digital transformation in the 2021 – 2025 period. This programme, approved by the Minister of Planning and Investment on January 7 this year, aims to help boost digital transformation in businesses through the application of digital technology, thus improving their efficiency, capacity, and competitiveness and creating new values for them.

Of the three packages to be launched, the first is designed for small-scale firms, helping them embark on digital transformation. Each enterprise will be provided with VNĐ20 million – VNĐ50 million (US$870-2,180) funded by the State budget per year.

The second one will assist medium-sized ones with a maximum of VNĐ100 million per year. Meanwhile, the third targets exporters and will cover a maximum of 50 per cent of the costs to open and maintain their accounts on transnational e-commerce platforms.

Bùi Thu Thủy, Deputy Director of the MPI’s Enterprise Development Agency, said businesses were still facing many barriers and difficulties in digital transformation such as high investment expenses, underdeveloped IT infrastructure, cybersecurity risks, and limited human resources.

However, she noted, Vietnamese enterprises were holding numerous opportunities to boost digital transformation, which would help them grasp chances relevant to changes in consumption behaviour, the shift in global supply chains, and the surge in online transactions as a result of the pandemic’s impact.  LINK

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Samson:  Việt Nam targets further digital transformation in 2022

24th December, 2021

The new year will be one of promoting digital transformation across all industries on a national scale. It will be the first year of implementing new strategies on digital infrastructure, data, technology industry and technology enterprise.

Minister of Information and Communications Nguyễn Mạnh Hùng made the prediction at a conference held on Wednesday.

A report from the ministry showed that the ranking indicators in many fields of the information and communication industry are highly regarded by international organisations. In 2021, the revenue of the information and communication industry reached VNĐ3.4 quadrillion, hitting all set targets and representing a nine per cent year-on-year increase.

The largest contribution to the industry’s revenue came from the ICT industry, with this year’s revenue estimated at more than US$136 billion, an increase of more than $11.4 billion compared to 2020. The main contributor was FDI enterprises with more than $117 billion. This year also marked a strong growth in the number of ICT businesses. Việt Nam currently has 64,000 digital technology enterprises, adding 5,600 enterprises since 2020.

The challenges of the pandemic have promoted the digital transformation process. In just a short time, the national digital transformation has spread widely at a rapid pace, creating a wave of digital transformation across ministries, branches, localities, agencies, and businesses across the country.

In this digital transformation process, Vietnamese digital technology enterprises have demonstrated their pioneering role in research, development and innovation, mastering technology and making important contributions to the development process of the digital economy. Hùng said that COVID-19 is a hundred-year push for digital transformation. The year 2021 has pushed the whole country into digital transformation.

To promote digital transformation, it is necessary to synchronise digital institutions, digital infrastructure, digital production tools, digital management tools, digital human resources, digital markets, and digital law management to create a healthy digital environment, managing risks in cyberspace.

The ministry set the target of an information technology, electronics and telecommunications industry with the new mission of shifting from outsourcing and assembly to “Make in Việt Nam”, which means making products in Việt Nam, mastering and creating technology. In which, the proportion of “Make in Việt Nam” by 2025 would reach over 45 per cent.

The country will have 100,000 digital technology enterprises by 2025, forming at least 10 digital technology enterprises that play a leading role. The firms would have international competitiveness, with a turnover of over $1 billion each. The whole country has at least 10 localities with revenue of the information technology industry over $1 billion.

Deputy Prime Minister Vũ Đức Đam said the ministry had developed strategies and projects for digital transformation. They needed to promote digital transformation and application of information technology in localities by modelling, leading and supporting.

From experience in dealing with the COVID-19 pandemic, the Ministry of Information and Communications needed to continue to set up many working groups with the participation of businesses and experts to solve the specific digital transformation problem for each commune, district and province. He said that in 2022, there should be stronger changes in database building. Three large databases on population, business, and land, along with e-payments, digital transformation, digital economy, digital society and the digital government would make substantial progress.

In the face of unpredictable developments of the COVID-19 pandemic, the information and communication industry needed to continue to improve technological solutions to help control the pandemic, in the spirit of proactively taking the initiative and changing platforms in response to the situation. In addition, the ICT industry and IT enterprises needed to continue to develop platforms that promote digital transformation such as e-commerce, e-learning with the support of sectors, localities and people. LINK

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Samson:  World Bank official optimistic about Việt Nam’s 2022 GDP growth prospects

27th December, 2021

Việt Nam’s target of bringing its GDP growth to 6-6.5 per cent in 2022 as set in the recent session of the National Assembly is entirely possible if it can effectively control COVID-19, and improve the supply – demand balance, an official of the World Bank (WB) has said.

According to Jacques Morisset, WB Lead Economist and Programme Leader for Việt Nam, the biggest risk to Việt Nam’s economy in 2022 can be the complicated developments of the pandemic with the emergence of new variants.  He also mentioned internal economic risks, saying that Việt Nam was an open economy which would depend on the situation in other countries in the world.

Another risk is related to inflation, according to the economist. Việt Nam’s economy is currently facing import inflation, while domestic commodity prices have not yet increased because demand remains lower than supply.

Regarding Việt Nam’s economic prospects, Morisset pointed out three new motivations for growth.

The emergence of the COVID-19 pandemic has indirectly made Việt Nam one of the reliable destinations for many large foreign enterprises, which have the goal of diversifying their supply chains. The country can also take advantage of opportunities from green economy. Việt Nam is one of the most affected by climate change, but it can also take advantage of this.

The third growth driver is domestic demand. As Việt Nam becomes a higher income country with a growing number of middle class people, the domestic demand will be stronger.

Morisset affirmed that the WB would continue to support Việt Nam in achieving its ambitious goal of becoming a high-income and prosperous country by 2045.

The bank was working closely with the Vietnamese Government to promote sustainable development and effectively respond to climate change in the Mekong Delta region, and reduce air pollution in big cities, he said. In addition, the two sides were working in areas of inclusive development and gender-related issues in order to ensure people’s participation in the economy, minimise the impact of the pandemic, and fully tap future opportunities, the economist said.

Meanwhile, HSBC has also been optimistic about Việt Nam’s economy. Việt Nam’s economy should get back to GDP growth of 6.8 per cent next year, which will be driven by a return of strong foreign direct investment into the market, mainly focusing on the manufacturing sector, according to HSBC Vietnam. HSBC Vietnam said this would benefit Việt Nam’s exports, especially as free trade agreements that have been signed over the past two years start to bear fruit.

The continued expansion of the middle class and in particular the rising affluent sector would lead to changes in consumption as Vietnamese people start spending more and more on leisure and travel.

Infrastructure roll-out would also continue to fuel economic activities especially in the renewable/green arena given the strong ambitions made by the Vietnamese Government following the recent 26th United Nations Climate Change Conference of the Parties in Glasgow, the UK.   LINK

Samson:  Vietnam : FDI forecast to recover in 2022

25th December, 2021

A recovery in the global investment flow will open up a bright future for Việt Nam’s investment attraction, according to experts.

Nguyễn Ánh Dương, director of the general research department under the Central Institute for Economic Management (CIEM), said that the fact that Việt Nam was among countries with a positive economic outlook in 2022 and recovery momentum in the Asian production network would make an important contribution to accelerating foreign investment.

Thargbodee Serng Adichaiwit, deputy chair of the Thai Chamber of Commerce and Industry, said that Việt Nam’s economic growth could double in 2022 compared to this year, thus making Thai investors pour more capital into the country going forward.

Many Thai businesses want to invest in Việt Nam when the pandemic is under better control. They have faith in Việt Nam due to its large consumer market and commitments to improve its business climate, according to the Thai businessman.

Foreign direct investment (FDI) in Việt Nam reached US$26.46 billion as of November 20, up 0.1 per cent year on year, according to the Ministry of Planning and Investment. Total additional registered capital stood at over US$8 billion, an annual rise of 26.7 per cent.

During the period, US$14.1 billion was poured into 1,577 newly-licensed projects, up 3.76 per cent in value but down 31.8 per cent in volume over the same period last year. The remaining investment capital was used for capital contribution and share purchases in a total 3,466 transactions.

Foreign investors landed investments in 18 sectors, with processing and manufacturing absorbing the largest amount of capital (over US$14 billion or 53 per cent), followed by power generation and distribution (over US$5.7 billion), real estate (US$2.41 billion), and wholesale and retail sales (US$1.27 billion).

It is estimated that in the last month of the year, several billion US dollars in FDI will be added to Việt Nam’s total investment attraction this year.

The move in recent days has shown a more positive trend in FDI attraction. For example, LEGO Group recently signed an agreement to invest in a US$1 billion project in Bình Dương Province.

In addition, within the framework of the visits to India and the Republic of Korea by National Assembly Chairman Vương Đình Huệ, multi-billion-USD co-operation agreements were also signed, in which, Đại An Group in Hải Dương Province signed a memorandum of understanding on the construction of a US$500 million Pharmacy Park with India’s Sri Avantika Contractors Ltd.

Saigon Telecommunications Technology Joint Stock Company and Ecologic Engineering Private Ltd. of India signed a cooperation agreement in the fields of infrastructure development, industry and innovation with an investment value of up to US$4 billion.  LINK