Vietnam’s Digital Leap: MIC Charts Bold Course with CMC for a Powerful Digital Future

In a pivotal gathering on the evening of October 25, 2024, at the headquarters of the Ministry of Information and Communications (MIC), Minister Nguyen Manh Hung presided over a significant working session with the leadership and key executives of CMC Group, a venerable technology enterprise with 31 years of operation. This landmark meeting, the first exclusive session between MIC leadership and CMC’s top brass in the company’s three-decade history, underscored the government’s high recognition of CMC’s contributions to the nation’s technology sector and its profound confidence in the group’s potential to spearhead Vietnam’s digital transformation agenda. Deputy Ministers Nguyen Thanh Lam and Bui Hoang Phuong, along with leaders from various MIC units, were also in attendance, signaling a comprehensive governmental commitment to fostering domestic tech champions.

A Milestone in Vietnam’s Digital Ambition

The invitation extended by the MIC to CMC Group for an in-depth discussion on its future development path and strategic orientation highlights a concerted effort by the Vietnamese government to leverage the capabilities of its leading technology firms. This unprecedented direct engagement signifies not only an acknowledgment of CMC’s past achievements but also a strong belief that the company can evolve into a formidable digital technology enterprise, not merely within Vietnam but also on the international stage. Such high-level dialogue reflects Vietnam’s broader national strategy to accelerate digital transformation, an imperative articulated in the National Digital Transformation Program to 2025, with a vision to 2030, which aims to develop a digital government, digital economy, and digital society.

CMC’s Vision: A Global Digital and AI Powerhouse by 2028

Opening the session, Mr. Dang Tung Son, Deputy Chairman in charge of Strategy at CMC, presented a concise overview of the company’s 31-year journey, highlighting its key milestones and business performance in the first half of the 2024 fiscal year. Crucially, Mr. Son outlined CMC’s ambitious development roadmap towards 2028. By this target year, CMC aims to transform into a global digital and Artificial Intelligence (AI) group, adhering to international standards. This vision includes an aggressive growth target of tripling its current revenue and expanding its workforce to over 10,000 employees, double its present size. A significant allocation of this expanded human capital, approximately 40%, is earmarked for AI-related research and development, emphasizing the group’s commitment to emerging technologies. This strategic pivot aligns with global trends where AI is increasingly seen as a cornerstone of future economic growth and technological sovereignty.

Minister Hung’s Call for Technological Mastery and National Mission

Expressing profound hope for CMC’s emergence as a pioneering Vietnamese digital technology enterprise, Minister Nguyen Manh Hung urged CMC’s leadership and key personnel to embrace a renewed mindset and unwavering determination. He called upon them to contribute significantly to Vietnam’s digital transformation revolution, aiming to usher the nation into an era of robust and powerful self-reliance.

The Minister’s directives were clear and emphatic: Vietnam must master technology. He referenced General Secretary To Lam’s official declaration that mastering technology is paramount, especially as digital transformation is identified as the pathway for Vietnam to become a developed nation. This national imperative extends beyond mere adoption; it demands indigenous innovation and control over critical technological infrastructure and applications.

To achieve this mastery and lead the national digital transformation process, Minister Hung recommended that CMC and other Vietnamese digital technology enterprises prioritize substantial investment in research and development (R&D). He advised a shift from merely mastering applications to eventually mastering core technologies themselves. This long-term strategic focus on R&D is crucial for developing proprietary solutions, reducing reliance on foreign technology, and fostering sustainable growth within the domestic tech ecosystem.

Minister Hung further articulated that now is the opportune moment for CMC to boldly declare itself a leading, large-scale digital technology enterprise with not only domestic prominence but also international reach. He stressed that realizing these "pioneering, large, and international" objectives necessitates undertaking significant projects closely aligned with national missions and executing them with utmost dedication and thoroughness. "If an enterprise desires to grow big and endure with the nation, it must align itself with the national mission," Minister Hung asserted, framing corporate success within the broader context of national development.

Strategic Guidance and Future Focus Areas

Over a four-hour working session, Minister Hung, Deputy Ministers, and other MIC leaders engaged in a thorough discussion, providing insightful answers to CMC’s inquiries and offering concrete suggestions for the group’s future endeavors. The dialogue covered diverse areas, including navigating development opportunities, selecting new technology investments, and strategies for successful international expansion.

One practical challenge raised by CMC involved securing land for new submarine cable landing stations, a critical component for enhancing Vietnam’s international telecommunications network resilience and national security. The MIC leadership guided CMC to thoroughly study provisions in the revised Land Law and consult with the Department of Telecommunications. The goal is for the MIC to advise the Prime Minister on requesting provinces to plan land for these essential cable landing stations, thereby strengthening the stability of the international telecommunications network. This guidance highlights the government’s understanding of the strategic importance of robust digital infrastructure and its proactive role in facilitating its development.

Addressing CMC’s concerns about identifying new development spaces ("blue oceans"), Minister Hung offered a broader perspective. He suggested that while seeking unexplored areas is valuable, enterprises should not shy away from "red oceans" – existing markets with many players – if they can approach them with innovative and unique strategies. "Sectors within the information and communications industry, such as telecommunications, digital technology, digital infrastructure, and cybersecurity, are constantly evolving. Therefore, the industry should not overthink finding new spaces. The question is whether enterprises dare to do it and do it thoroughly," Minister Hung emphasized, encouraging bold innovation.

For large enterprises like CMC, the Minister advised focusing on foundational infrastructure and platform development. This includes areas such as Cloud computing, Data Centers, and foundational software that other entities can "stand upon." By building these core components, CMC can create a robust ecosystem that supports the growth of smaller enterprises and contributes to the overall digital economy.

Regarding AI development, a key focus for CMC, the MIC leadership recommended concentrating on "narrow AI," specialized AI, custom AI, and AI tailored for individuals and specific enterprises. This targeted approach allows for deeper expertise and more effective solutions compared to broad general AI. Furthermore, companies could focus on building foundational AI platforms, enabling individuals and organizations to train their own virtual assistants by feeding in their proprietary data.

Minister Hung also underscored the importance of internal digital transformation. Before offering digital transformation services to other enterprises, CMC must first undergo its own comprehensive digital transformation. This internal experience, he noted, would provide invaluable insights into the process, challenges, and benefits of digital transformation, making CMC more effective and credible in assisting others.

A Collaborative Path Forward

Minister Hung reiterated the MIC’s commitment to being a "home" for Vietnamese digital technology enterprises, a place where they can seek support and share their difficulties. He articulated the Ministry’s firm belief that the development of digital technology enterprises is intrinsically linked to the development of the MIC itself and the success of the national digital transformation agenda. "If digital technology enterprises do not develop, the Ministry and the industry will not develop, and the national digital transformation story cannot be realized," he concluded.

In response, Mr. Nguyen Trung Chinh, Chairman of CMC Group, expressed his sincere gratitude for the candid, insightful, and enthusiastic contributions from Minister Hung, Deputy Ministers, and other MIC leaders. He reaffirmed CMC’s dedication to its ambitious development goals and its desire to contribute to national development, aiming to project Vietnamese intellect onto the global stage and affirm Vietnam’s position internationally.

Chairman Chinh acknowledged the significant challenges inherent in realizing CMC’s ambitious targets and strategic orientations. He expressed hope for the continued companionship, support, guidance, and assistance from the MIC. This collaborative spirit between government and industry is seen as vital for navigating the complexities of technological advancement and achieving Vietnam’s aspirations in the digital age.

To further aid CMC’s strategic planning, Minister Hung presented Chairman Chinh with two significant books: "Information and Communications Industry" and "Digital Transformation Overview: Strategy & Roadmap." These resources symbolize the MIC’s commitment to equipping its industry leaders with the knowledge and vision necessary for effective leadership in the digital era.

Broader Implications for Vietnam’s Digital Future

The meeting between the MIC and CMC Group is more than just a corporate discussion; it is a microcosm of Vietnam’s broader national strategy for technological self-reliance and economic advancement. By fostering strong domestic technology champions like CMC, Vietnam aims to achieve several critical objectives:

1. Technological Sovereignty: Reducing dependence on foreign technology providers by developing indigenous capabilities in critical areas like AI, cloud computing, and digital infrastructure. This is crucial for national security and economic resilience.
2. Economic Growth: The digital economy is a key driver of Vietnam’s future growth. Strengthening large digital enterprises will lead to job creation, increased R&D investment, and higher value-added services. Vietnam aims for its digital economy to contribute 20% of GDP by 2025.
3. Digital Transformation Acceleration: Large enterprises play a pivotal role in leading national digital transformation initiatives across various sectors, from government to healthcare, education, and industry.
4. Global Competitiveness: Encouraging Vietnamese companies to expand internationally not only boosts national exports but also elevates Vietnam’s profile as a hub for innovation and technology.
5. Infrastructure Resilience: Investments in foundational infrastructure like submarine cables and data centers are essential for robust, secure, and high-speed national connectivity, which underpins all digital activities.

The clear directives from Minister Hung, particularly the emphasis on R&D, foundational technologies, specialized AI, and linking corporate mission to national destiny, provide a robust framework for CMC and other Vietnamese tech companies. This synergistic approach, combining governmental vision with corporate ambition, positions Vietnam to make significant strides towards becoming a powerful digital nation in the coming decade. The commitment to internal digital transformation within companies before leading external efforts also ensures a practical, experience-driven approach to national development. This comprehensive strategy, rooted in collaboration and a shared national vision, marks a significant step in Vietnam’s journey to harness the full potential of the digital age.