Digital economy drives HCMC’s growth

(VOVWORLD) - HCMC is the first locality in Vietnam to have developed a digital economy. It has set a target for the digital economy to account for a quarter of the city’s gross regional domestic product (GRDP) by 2025 and the figure is expected to increase to 40% by 2030.
Digital economy drives HCMC’s growth - ảnh 1(Photo:

Gia An Company in Binh Tan district, specializing in manufacturing anti-theft digital locks and car GPS navigation devices, has saved on production costs and increased business efficiency from 25%to 30% thanks to the digital transformation of production and accounting.

Gia An is digitally transforming its online sales activities and hiring fewer personnel for updating product and customer data on e-commerce platforms.

Pham Thuy An, Gia An’s Director, said her company needs support and consultation in technology solutions.

“Digital transformation is indispensable in the current market development. For a technology company like us, DX is an urgent need. We need help from a consultancy company to design a digital transformation solution that suits our financial capacity and human resources,” said Thuy An.

Digital transformation is an urgent need of businesses in Ho Chi Minh City, but many don’t know how to start.

According to the businesses which have successfully applied digital transformation, the process must be done step by step.

HCMC has established a Support and Consultation Center for Digital Transformation (DXCenter). In addition, many companies have been providing digital transformation solutions or tools for each industry and service.

Le Huu Nguyen, Director of the branch of MISA Company in Ho Chi Minh City, said,

“The digitalization and digital transformation should be made depending on the business’ demand, financial capacity, and weaknesses. Technological application is to deal with the smallest issue faced by the business. The overall application depends on the company’s financial conditions and the employees’ awareness.”

HCMC has the highest number of smartphone users in Vietnam with fiber-optic infrastructure, broadband internet, 3G and 4G mobile network infrastructure covering all communes and wards. This is also a favorable condition for the city to promote digital transformation. But it requires high-quality human resources on top of technology infrastructure.

Digital economy drives HCMC’s growth - ảnh 2Dang Thi My Chau, Deputy Director General of Viet Locus Innovation Center (Photo: Vinh Quang)

Dang Thi My Chau, Deputy Director General of Viet Locus Innovation Center, said that businesses want the government to build an ecosystem and a diverse digital platform, and promulgate a uniform and interconnected system of policies.

“HCMC should develop special mechanisms for businesses participating in digital transformation. For example they can be prioritized to receive macro-economic projects,” said Chau.

HCMC is focusing investment in digital infrastructure in industry and services, database building, shared devices, and digitization acceleration. It needs to develop a special support mechanism by promoting the research and application of digital technology between the research institutions and the industrial sector.

According to Vo Van Hoan, Deputy Chairman of the municipal People's Committee, “HCMC has outlined mechanisms and policies to support businesses in digital transformation which requires the involvement of the state and businesses, especially IT and telecommunications businesses. These companies even have to reduce fees or charge free services for others to perform the transformation. The municipal administration will issue the policies within its authority and propose to the central government those beyond its authority.”