Vietnam's Digital Leap: From Policy to People, What's Driving the Change?

I. Vietnam's Digital Revolution: What's the Hype About?

More Than Just Tech: In Vietnam, digital transformation (Chuyển đổi số) is a national mission! It's not just about adopting fancy gadgets but modernizing the entire nation. A "strategic choice and a development imperative," they call it!

The "Big Three" Pillars:

• Digital Government (Chính phủ số): Envisioning a smarter, more transparent, and citizen-friendly government. Think seamless online services and the welcomed demise of paperwork!
• Digital Economy (Kinh tế số): A catalyst for business growth, innovation, and a robust GDP. From e-commerce to a plethora of online services, Vietnam's economy is getting a digital makeover.
• Digital Society (Xã hội số): Connecting every citizen, equipping them with essential digital skills, and weaving digital services into the fabric of daily life, bridging the gap from bustling cities to remote countryside.

Why It Matters: This transformation is the engine driving economic growth, enhancing the quality of life for its citizens, and ensuring Vietnam remains competitive on the global stage.

II. A Walk Down Digital Memory Lane: How Vietnam Got Here

The Early Whispers (Pre-2018): The seeds of this revolution were sown back in 2014 with Resolution 36, which emphasized IT application. By 2019, businesses were eager, yet many were unsure how to embrace the digital realm. Resolution 52 in 2019 solidified the commitment to Industry 4.0.

The Big Bang (2020): The National Digital Transformation Program (Chương trình Chuyển đổi số quốc gia) was launched, setting ambitious goals for 2025 and 2030. COVID-19 acted as a "hundred-year push," accelerating the adoption of online learning, remote work, and digital solutions across all sectors.

Picking Up Speed (2021-2022): The concept of the "Digital Citizen" took root, particularly with the nationwide implementation of the National Population Database and chip-embedded ID cards, marking Vietnam as a pioneer in digital identity! October 10th was declared National Digital Transformation Day in 2022.

Full Throttle (2023-Now): The focus shifted from initiation to acceleration, prioritizing efficiency and citizen-centricity. "Chuyển đổi số: Nhanh hơn - Hiệu quả hơn - Gần dân hơn" is the name of the game.

III. Digital Dreams & Reality Checks: Where Vietnam Stands Now

The Wins: What's Going Right?

• Blazing Fast Internet: Over 82% of homes are now fiber optic-equipped (surpassing the 2025 target!). Mobile internet speeds rank among the world's top 20, and 5G is already being rolled out. Tốc độ Internet di động đạt trung bình 146,64 Mb/giây, xếp thứ 20 thế giới.
• E-Government on the Rise: Online public services have surged (a ninefold increase since 2019!), propelling Vietnam's e-Government ranking 15 places higher globally. Tỷ lệ hồ sơ giải quyết trực tuyến toàn trình đạt gần 40%, tăng gấp 9 lần so với năm 2019.
• Digital Economy Booming: It has been the fastest-growing in Southeast Asia for two consecutive years, with the IT industry revenue hitting approximately $118 billion in 2024. Doanh thu ngành công nghiệp CNTT năm 2024 đạt khoảng 118 tỷ USD, tăng 24% so với năm trước. Kinh tế số chiếm gần 20% GDP.
• "Digital Citizens" Everywhere: A staggering 100 million citizens are now connected, embracing the internet responsibly.
• Phát triển Hạ tầng số: Đến cuối năm 2024, hơn 82.4% hộ gia đình đã sử dụng cáp quang, vượt mục tiêu đề ra cho năm 2025.

The Headaches: Where Are the Bumps in the Road?

• Legal Labyrinth: Policies and laws are struggling to keep pace, resulting in gaps and overlaps that impede progress.
• Money Talks (and Costs a Lot!): Significant initial investments in technology pose a challenge, especially for small and medium-sized enterprises (SMEs).
• Mindset Matters: Overcoming resistance to change from employees and the short-term survival mindset of many businesses remains a hurdle.
• The Talent Gap: A shortage of skilled tech professionals in IT, digital transformation, and cybersecurity is a pressing concern.
• Cybersecurity Scares: An expanded digital landscape invites increased cyberattacks and online crime.
• Data Dilemmas: Isolated data silos and platforms hinder seamless national data sharing.

IV. Digital Dilemmas: The Hot Debates & Sticky Wickets

The SME Struggle is Real:

• "Too Expensive, Too Risky": Many SMEs view digital transformation as an unaffordable luxury, fearing high costs and uncertain returns. Chi phí đầu tư ban đầu lớn cho hạ tầng, thiết bị, phần mềm, dịch vụ đám mây, nhân sự chuyên môn và chi phí duy trì như bảo trì, nâng cấp, đào tạo.
• What Even IS Digital Transformation? Confusion prevails, with some mistaking it solely for cutting-edge technologies like AI or blockchain, overlooking the fundamental business benefits. Nhiều SME còn đồng nhất chuyển đổi số với việc chạy theo các công nghệ phức tạp và đắt tiền như AI, blockchain hay IoT, trong khi bỏ qua bản chất thực sự của quá trình này là nâng cao năng lực số trong các hoạt động cốt lõi.
• Security for the Small Guys: How can SMEs afford robust cybersecurity measures?

Legal Labyrinth Continues:

• Gaps & Overlaps: Navigating new laws around data protection (Decree 13/2023/ND-CP) and cross-border data (Decree 53/2022/ND-CP) is particularly challenging for SMEs with limited resources. Hệ thống pháp luật hiện hành vẫn còn những khoảng trống, nhiều nội dung chưa được điều chỉnh hoặc đã được điều chỉnh ở nhiều văn bản khác nhau, gây khó khăn trong việc số hóa toàn diện quốc gia.
• Avoiding Waste: How can we ensure new laws are consistent, preventing redundant and costly projects?

The Dark Side of Digital:

• Cybercrime on the Rise: The digital realm offers new avenues for tech-savvy criminals, demanding a robust legal framework. Cần rà soát kỹ lưỡng để tránh bỏ lọt tội phạm sử dụng công nghệ cao trong quá trình xây dựng luật.
• Misuse of Technology: Concerns linger about the exploitation of digital transformation for national security threats, the spread of misinformation, or AI-generated content causing confusion.

V. Crystal Ball Gazing: What's Next for Vietnam's Digital Future?

Full Steam Ahead! The motto for 2025 is "faster, more efficient, and closer to the people," signaling a full-scale rollout from the testing phase. Chủ đề của Ngày Chuyển đổi số năm 2025 là "Chuyển đổi số toàn dân, toàn diện, toàn trình để tăng tốc, bứt phá phát triển kinh tế số".

Tech-Tastic Trends: Prepare for deeper integration of Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), Big Data, and Cloud Computing.

Strengthening the Foundation: Expect refined legal frameworks and a significant push for modern, nationwide digital infrastructure (hello, more 5G!).

"All-People" Digital Transformation: A strong emphasis on ensuring universal access to and benefit from digital services, including rural and ethnic minority communities. Cần tổ chức các chiến dịch truyền thông quy mô lớn để nâng cao hiểu biết về lợi ích của chuyển đổi số, giúp người dân, đặc biệt ở vùng nông thôn và dân tộc thiểu số, tiếp cận dễ dàng hơn với các nền tảng số phục vụ đời sống.

Tech Independence is Key: Vietnam views self-reliance in technology as vital for both economic prosperity and national security in the data and AI era.

2025: The Big Pivot: This year marks a pivotal transition from experimentation to widespread deployment of digital services and enhanced data integration. Việt Nam đang tập trung vào giai đoạn tăng tốc, hiệu quả và gần dân hơn trong chuyển đổi số. Đặc biệt, năm 2025 được xem là năm bản lề, đánh dấu bước chuyển trọng yếu từ thử nghiệm sang triển khai toàn diện, mở rộng quy mô dịch vụ số và tăng cường liên thông dữ liệu.

Viet Business Forum

The Ginseng That Rewrote a Village's Future: The Story of Nghia Hung

For generations, the farmers of Nghia Hung commune in Nghệ An province knew the rhythm of hard work, but not the relief of security. They poured their labor into traditional crops like sugarcane and custard apples, living under the constant anxiety of an unpredictable market. A good harvest could be wiped out by plummeting prices, making it impossible to plan for the future, pay off debts, or dream of a better life for their children. They were caught in a draining cycle of intense effort for uncertain returns, a reality that tethered their ambitions to the soil. But the seeds of change were about to be sown by one person's journey and a bold idea.

1. A Spark of Hope from Afar

The catalyst for transformation was Mrs. Lê Thị Dần. During a trip to the former Bắc Giang province, she encountered the Nui Danh ginseng cultivation model. She saw more than just a plant; she recognized a powerful solution to the very challenges that held her community captive. Observing its high economic value and, most importantly, the stable demand for its products, Mrs. Dần realized this medicinal herb could offer the security her community so desperately lacked.

Filled with a powerful conviction, she returned home and, with her husband, made a courageous decision to go all-in on this new opportunity. Their commitment was immense, a high-stakes gamble backed by significant financial risk and painstaking labor.

• The Loan: They borrowed 350 million VND to purchase tens of thousands of Nui Danh ginseng seedlings.
• The Land Prep: They meticulously improved over 6 sào (a Vietnamese unit of area) of land, mixing in thousands of bags of rice husks and fertilizer to create the loose, fertile soil the ginseng needed to thrive.
• The Technology: They invested in modern farming techniques, covering the soil with nylon to suppress weeds and installing a sophisticated automatic irrigation system.
• The Total Cost: The entire initial investment for their new venture exceeded 500 million VND.

This high-stakes gamble, backed by meticulous effort, soon began to yield extraordinary results.

2. Reaping the Rewards: From Flowers to Fortune

The Nui Danh ginseng plants began producing valuable flowers in their second year. This cultivation cycle provides a sustained financial benefit, offering an annual income from the flowers for several years before the final, more lucrative root harvest after five to seven years. The main flower harvest season, running from late August to mid-October, is now a time of excitement and prosperity for the growers.

The financial return from Nui Danh ginseng dwarfed the income from traditional crops, creating a powerful new economic engine for the family and their neighbors.

Product Component	Market Price (per kg)
Dried Ginseng Flowers	600,000 - 700,000 VND
Ginseng Roots (Củ)	1,500,000 VND

From their 6 sào farm, Mrs. Dần's family now earns an estimated 350-400 million VND each season—an income many times higher than they could have ever achieved with sugarcane. The ginseng's high value is rooted in its potent medicinal properties. It is rich in Saponin, an active compound known to enhance vitality, boost the immune system, prevent aging, and offer relief for coughs by loosening phlegm. Furthermore, it is highly sought after for its ability to improve sleep quality, making it a prized ingredient in traditional wellness. Mrs. Dần’s success was not a private victory; it was a beacon of hope that inspired her entire community.

3. A Community Transformed

Seeing the tangible success and feeling the new sense of excitement (phấn khởi), other farmers began to follow her lead. Mr. Lê Viết Hiển, for example, converted his 7 sào of land from unstable traditional crops to Nui Danh ginseng. He took the model a step further by investing 30 million VND in a drying machine. This individual investment in quality control was a crucial first step, demonstrating a new potential that the local government was quick to recognize and build upon. The technology allowed him to perfect his dried ginseng flowers, securing a contract with a company that agreed to purchase his entire output and eliminating all market uncertainty.

Under the guidance of Vice Chairman Phạm Văn Thông, the commune began supporting residents in processing the raw ginseng into higher-value goods. This initiative led to the creation of "trà nụ sâm núi Dành" (Nui Danh ginseng bud tea). This strategic move was a game-changer. The tea achieved OCOP 3-star certification, a prestigious designation for high-quality local products, validating its quality and opening doors to larger, more lucrative markets.

The introduction of Nui Danh ginseng did more than just boost incomes; it fundamentally changed the community's entire approach to agriculture, sparking a shift in mindset.

• From subsistence to strategy: Farmers moved from planting traditional crops for survival to cultivating a high-value asset with a long-term business plan.
• From manual methods to modern technology: The community embraced tools like drying machines and automatic irrigation to improve efficiency, guarantee quality, and increase yields.
• From selling raw materials to owning the brand: They began capturing significantly more profit by processing, branding (with OCOP-certified tea), and marketing their own finished products.

This journey, from a single farmer's risk to a community-wide success, fundamentally reshaped the village's identity and its economic destiny.

Conclusion: A Blueprint for a Brighter Future

In just a few short years, Nui Danh ginseng transformed Nghia Hung. It brought not just wealth, but a new sense of purpose, confidence, and collaborative spirit. The community's story is a powerful testament to how vision, courage, and cooperation can turn a struggling village into a thriving one. It stands as a blueprint for other communities, proving that a single, well-researched idea, when embraced by many, has the power to rewrite a region’s future, turning a cycle of uncertainty into a legacy of prosperity.

 

Read "The Ginseng That Rewrote a Village's Future: The Story of Nghia Hung" on Viet Business Forum