Vietnam’s National Data Strategy Aims to Propel Digital Transformation and Green Development
The development of data infrastructure and services is poised to become a cornerstone of Vietnam’s economic advancement, with a newly approved national strategy aiming to position the country as a leader in digital and green transformation. This strategic initiative, launched amidst the Vietnam – Asia DX Summit 2024, underscores the critical role of data in shaping the nation’s future. Deputy Minister of Information and Communications Nguyen Manh Hung emphasized this pivotal shift, stating that digital transformation is creating a new form of resource: data. He highlighted that humanity’s progress has historically been driven by the exploitation of natural resources, but the current era marks a paradigm shift where data, rather than consumption, becomes the primary engine for resource creation and economic growth. This contrasts with the industrial era, where the focus was solely on resource depletion, whereas today, the digital economy is simultaneously generating new forms of wealth and, potentially, new challenges.
The Ministry of Information and Communications (MIC) has proactively sought to align Vietnam with global leaders in data-driven development. The approval of the "National Data Strategy until 2030" signifies a crucial step in Vietnam’s digital transformation journey, laying the groundwork for a robust data infrastructure. This strategy is envisioned as a new engine for national digital transformation, aiming to foster innovation and create new economic opportunities.
The Strategic Imperative: Data as a New Resource
Speaking at the opening of the Vietnam – Asia DX Summit 2024 on May 28th, Deputy Minister Hung articulated the profound impact of data. He noted that data is not merely a byproduct of digital activities but a fundamental resource with the potential to drive unprecedented economic and social progress. The historical trajectory of human development has been intrinsically linked to the utilization of tangible resources. However, the advent of the digital age has introduced a novel resource – data – which possesses unique characteristics and transformative capabilities. Unlike finite natural resources, data can be continuously generated, processed, and leveraged to create value, optimize processes, and inform decision-making across all sectors of the economy. This paradigm shift necessitates a reevaluation of traditional economic models and a strategic focus on harnessing the power of data.
The National Data Strategy, approved in the second quarter of 2024, sets a clear direction: data-centricity. Its overarching goal is to leverage data as the central element in executing all activities related to the development of infrastructure and data-driven platforms. This strategic document is a critical component of Vietnam’s broader digital transformation agenda, aiming to build a comprehensive data ecosystem that serves as the foundation for national digital progress.
Key Pillars of the National Data Strategy
At a workshop on May 29th, titled "Managing Enterprises Effectively with Data," Mr. Tran Minh Tan, Deputy Director of the Institute of Digital Economy and Digital Transformation (under MIC), elaborated on the core tenets of the national strategy. He highlighted that the strategy’s main thrust is to elevate data as a core asset, enabling the development of digital infrastructure and data-driven platforms.
"A data infrastructure with abundant, large-scale, structured, and unstructured data will create a strong foundation for digital transformation, fostering the development of artificial intelligence (AI) applications," stated Mr. Tan. He emphasized that the state will play a guiding role, driving and directing the entire nation to participate in data development and collaborate for mutual benefit. This leadership role will involve establishing standards, promoting data sharing, and ensuring the ethical and secure utilization of data resources.
The strategy outlines six key points and three specific objectives. The primary objectives are:
- Developing public data services: This involves establishing mechanisms for data sharing and utilization to foster social development.
- Developing digital data: This aims to create a vibrant data market and contribute to economic development.
- Ensuring data security and privacy: This critical aspect focuses on exploiting data resources efficiently and securely, particularly in navigating cross-border data flows and establishing the concept of "data sovereignty" in Vietnam.
Laying the Foundation: Infrastructure and Governance
To implement the national data strategy, the MIC has developed an action plan. This plan guides the ministry’s efforts and provides directives for other ministries, sectors, and localities to engage with this crucial initiative. A significant undertaking for these entities will be the swift compilation of a national data catalog. This catalog will serve as a comprehensive inventory of data resources, both big data and specialized datasets, and will be integrated into the data strategy frameworks of ministries, industries, and localities. It will also involve the amalgamation of data development content within the digital transformation plans of ministries, sectors, and localities, ensuring alignment with the national data strategy.
This compilation is deemed essential for creating the necessary conditions for all government agencies, organizations, and businesses to actively participate in data development, sharing, and utilization. As representatives from the Institute of Digital Economy and Digital Transformation noted, this collaborative approach is vital for fostering a data-driven ecosystem.
Enterprise Adoption: Challenges and Opportunities
The drive towards data-driven operations is not confined to government initiatives; the private sector is also recognizing its immense potential. At the "Managing Enterprises Effectively with Data" workshop, Mr. Nguyen Ngoc Lo, Director of MISA’s Business Center, shared insights from a technology enterprise actively supporting digital transformation. He asserted that organizing and exploiting data effectively will enable businesses to operate more efficiently, enhance their competitiveness, and significantly boost productivity, especially when data is integrated with AI.
Mr. Lo further stressed the importance of proactive data management, urging businesses to establish data infrastructure and services early in their lifecycle. He explained that the cost of building data capabilities is considerably lower when initiated from the outset compared to retrofitting existing large-scale enterprises. "Businesses need to plan and have a strategy for data-driven management and operations right from the beginning. An essential requirement is the availability of technology solutions to support data processing," advised Mr. Lo.
He identified three key challenges that Vietnamese small and medium-sized enterprises (SMEs) face in adopting data-driven practices:
- Fragmented systems and high costs: Many businesses employ various solutions that do not interconnect, leading to data silos and inefficient data utilization. Furthermore, the cost of comprehensive data solutions can be prohibitive for SMEs, especially when considering advanced features.
- Lack of integrated data: In many cases, businesses have not yet established a unified data management system. This often results in data being fragmented, making it difficult to derive meaningful insights.
- Limited access to integrated ERP solutions: SMEs often struggle to access comprehensive Enterprise Resource Planning (ERP) solutions due to their high costs, making it challenging to implement advanced functionalities.
MISA has developed its MISA AMIS platform to address these challenges. This platform has been deployed to over 250,000 businesses and 25,000 business households across various scales, offering an integrated solution for business management. MISA AMIS provides updated reports that offer a panoramic view, enabling business leaders to make strategic decisions and optimize operational efficiency. Additionally, MISA AMIS has integrated the MISA AVA AI assistant, which enhances the effectiveness of AI in management and business operations.
Broader Implications and Future Outlook
The national data strategy is not merely about technological advancement; it is intrinsically linked to Vietnam’s broader economic and social development goals, including its commitment to green development. By leveraging data, Vietnam aims to optimize resource allocation, improve environmental monitoring, and foster sustainable practices. The development of data-driven services is expected to create new job opportunities, stimulating economic growth and improving the quality of life for its citizens.
The strategy acknowledges the evolving landscape of data and its potential to drive innovation. The emphasis on structured and unstructured data, coupled with the development of AI applications, signals a forward-looking approach. By building a robust data ecosystem, Vietnam is positioning itself to be a significant player in the global digital economy, capable of attracting investment, fostering innovation, and enhancing its competitiveness on the international stage. The successful implementation of this strategy will require sustained commitment from all stakeholders, including government agencies, private enterprises, and academic institutions, to ensure that data becomes a true engine of progress for Vietnam. The journey towards becoming a data-driven nation is underway, promising a future shaped by informed decisions and unprecedented innovation.
