An intelligent operation center (IOC) of Binh Phuoc province. IOC is an important solution to promote the development of e-Government in the national digital transformation process. Vietnam expects to receive support from the UK in the country's digital transformation. (Photo courtesy of VNPT) Vietnam was making strong efforts towards the goal of becoming ahigh-income country by 2045, to which digital transformation and energytransition are considered launch pads for the economy.
During a visit to the UK from August 10 to 15, Politburo memberand Head of the Party Central Committee’s Economic Commission Tran Tuan Anhsaid that Vietnam had set strategic goals in digital transformation, digitaleconomy and green energy conversion to achieve rapid, sustainable and inclusivegrowth and net zero carbon emissions as well as adaptation to the FourthIndustrial Revolution (Industry 4.0).
The two countries had established a solid relationship framework,especially with the UKVFTA which came into force more than a year ago, he said,emphasising many similarities in priority development goals.
“Similarities in priority development goals create a veryimportant foundation to boost the bilateral relations, especially in areaswhere the UK has strength in and Vietnam has demand for, such green growth anddigital transformation.
According to the Vietnam Chamber of Commerce and Industry, the UKVFTAnot only liberalised trade in goods and services but also integrated many otherimportant factors, many of which were geared towards ensuring green growth andsustainable development in the cooperation between the two countries.
Green growth
Energy transition has been becoming an unavoidable trend to builda green and sustainable economy and cope with climate change.
At the 26th United Nations Framework Convention onClimate Change of the Parties (COP26) held in November 2021, Vietnam stronglycommitted to achieving net zero carbon emissions by 2050.
Vietnam, with a rapidly growing economy, is facing manydifficulties and challenges in ensuring energy security, green and sustainabledevelopment when the demand for power keeps increasing along with the country’sindustrialisation and modernisation process.
Deputy Minister of Industry and Trade Dang Hoang An said thatbuilding an appropriate and feasible energy transition strategy was of criticalimportance to ensure national energy security in the medium and long term andensure access to energy at reasonable costs.
An said that energy transition was not only an issue for the energyindustry but also the entire economy about how to transform from anenergy-intensive model to an energy-efficient model.
As Vietnam was striving to accelerate post-pandemic economicgrowth, the view was to develop quickly and sustainably based on science,technology, innovation, creativity, digital transformation, environmentalprotection, and adaptation to climate change.
At the third meeting of the National Committee on DigitalTransformation in August, Prime Minister Pham Minh Chinh stressed that digitaltransformation was an inevitable trend and a must-do task to promotesocio-economic development, urging international cooperation in digitaltransformation to be enhanced, especially in technology transfer, talenttraining and attraction of high-quality investment.
Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan alsocalled on the UK to provide support to Vietnam in technology transferring andworking out appropriate management policies and models to promote industrialdevelopment in the era of digital transformation and Industry 4.0 and in theprocess of transition toward renewable energy.
According to Will Cavendish, global digital services leader ofArup Group, a British multinational professional services firm headquartered inLondon, digital transformation played an important role in the process oftransition toward a net zero carbon economy.
He stressed that there was a huge potential for cooperationbetween Vietnam and the UK in this field.
The UK was in the process of digital transformation and hadexperiences in building laws and regulations as well as approaches in this areawhich Vietnam could learn from, Will said.
He added that digital transformation would also create newindustries such as electric vehicle production and offshore wind power – thesewere areas the UK had experience in and there were a lot of opportunities forthe two sides to promote cooperation.
According to Adrian Scholtz, Global Head of Energy Deals at KPMG, Vietnamis a Southeast Asian market that is highly appreciated by many British andEuropean renewable energy developers, stressing that Vietnam and the UK hadsignificant opportunities to cooperate in energy conversion, especiallyoffshore wind power.
The UK can support and share experiences with Vietnam indeveloping long-term policies on energy transition, building offshore windpower infrastructure and developing low-carbon energy sources, he said.
He stressed the importance of the development of a legal frameworkfor energy transition, which would be the base to attract large investments inoffshore wind power and renewable energies.
Some large groups from the UK were expanding cooperation topromote renewable energy in Vietnam.
For example, Shire Oak International recently signed cooperationagreements in developing rooftop solar power projects in Bao Minh and Nam CauKien industrial parks.
Deputy Minister of Information and Communications Phan Tam saidthat green transition was one of the focuses of Vietnam’s digitaltransformation progress.
With the digital economy expanding on average 30% per year, therewas significant room for Vietnam and the UK to enhance cooperation in improvinginstitutions for digital transformation, developing digital government, digitalinfrastructure, promoting digital transformation at small and medium-sizedenterprises, enhancing digital skills and promoting innovations.
Under the national strategy on developing a digital economy anddigital society by 2025 with a vision to 2030, digital economy would make up 20%of the country’s gross domestic product (GDP) by 2025 and 30% by 2030.
Vietnam’s digital economy was estimated at 21 billion USD in 2021,contributing 5% to GDP and seven times higher than 2015. The digital economy ofVietnam was expected to reach 57 billion USD in 2025 to rank second in theSoutheast Asia.
According to Tran Tho Dat, former dean of the National EconomicsUniversity, digital economy would be the new driver for growth modeltransformation and economic restructuring.
Dat pointed out that Vietnam had been slower than other countriesin the previous industrial revolutions and this was the first time Vietnam hadthe opportunity to go along with other countries in the Industry 4.0 to createbreakthroughs./.
VNA
