Digital transformation drives local economic development.

(PLVN) - Vietnam's digital economy is projected to reach US$39 billion in 2025, continuing to be among the fastest-growing in the region, with the digital economy's impact at the local level being strongly promoted by the involvement of technology companies.

At the Digital Transformation Forum of the Industry and Trade Sector on December 3rd, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan stated that, in response to new development requirements, digital transformation continues to be identified as a strategic and resolute goal, closely linked to green transformation and sustainable development. This is an important driving force for the comprehensive restructuring of the Industry and Trade sector by 2030. “The sector is steadfast in implementing a dual transformation, in which digitalization helps optimize costs, greening helps minimize harm, and simultaneously enhances the competitiveness of businesses, aiming for long-term sustainable development,” Deputy Minister Tan said.

According to Mr. Hoang Ninh, Deputy Director of the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), e-commerce continues to be the main growth driver, with the B2C (retail e-commerce market) reaching approximately US$25 billion in 2024, accounting for 10% of total retail sales of goods and consumer services.

Notably, digital transformation in smart manufacturing has shown many positive signs, with the Industrial Production Index (IIP) increasing by 8.4% – the highest in 5 years; approximately 90% of processing and manufacturing enterprises have partially implemented digital solutions; 35% are applying robots and sensors in production; and 10-12% have reached the level of smart factory 3.0. In addition, the energy sector continues to transform strongly with the application of smart metering, real-time operational data, AI load forecasting, EMS systems in enterprises, and the expansion of renewable energy models.

Mr. Ninh emphasized that Vietnam's digital economy is projected to reach US$39 billion in 2025, continuing to be among the fastest-growing in the region; over 40 AI startups have attracted US$123 million in private capital; 81% of users interact with AI daily, and 96% express confidence in AI agents. Based on these results, Mr. Hoang Ninh believes that 2026 will be the year when the Ministry of Industry and Trade creates several strategic breakthroughs, including standardizing national e-commerce data and expanding the smart factory model of generations 3.0 and 4.0.

However, not only at the national level, digital transformation is making significant strides in local economic development, most notably in the significant participation of farmers in the "digitalization of production and sales." According to Le Van Binh, Secretary of the Party Committee and Chairman of the People's Council of Phuong Duc commune ( Hanoi ), the impact of digital transformation in the commune's traditional craft villages is most clearly demonstrated through the story of "awakening a land of hundreds of crafts through digital transformation."

Mr. Binh stated that digital transformation has helped craft villages gradually access the market, increase product value, and improve management quality. The shift from a traditional handicraft business model to a modern distribution model through digital platforms has further demonstrated that digital transformation is only truly sustainable when it spreads to the grassroots level, where small-scale production and business activities are facing new demands for innovation and market access.

Ms. Dang Thuy Trang, Director of External Relations at Grab Vietnam, affirmed that digital platforms are becoming important tools to support local development of the digital economy by providing a multi-service ecosystem, meeting the daily needs of people, and promoting digital transformation in the fields of tourism, heritage promotion, culture, and cuisine, thereby boosting the strong development of the local economy.

Citing the specific impact of digital transformation on the way workers in Hue earn a living, Ms. Trang said that through the digitalization of local eateries, multi-channel food promotion, and e-commerce support, the flow of goods and services in the locality has been boosted. “For the first time, traditional cyclo drivers in Hue have received support in decorating their vehicles with modern equipment, providing support devices, and having fixed pick-up/drop-off points to improve service quality. At the same time, they have become familiar with digital platforms, gained more customers, and directly introduced local eateries to customers through digital platforms,” Ms. Trang said.

Representatives from the Department of E-commerce and Digital Economy noted that Grab Vietnam's approach clearly demonstrates the role of technology companies in promoting digital transformation at the local level. This process goes beyond simply building technical infrastructure; it also involves reorganizing service flows, transportation, and distribution on digital platforms. This is evident in the digitization of traditional modes of transportation, such as Grab's cyclo service in Hue, as well as initiatives promoting smart mobility models or leveraging digital platforms to promote local cuisine; and supporting and guiding local food establishments in accessing digital platforms.

Source: https://baophapluat.vn/chuyen-doi-so-phat-trien-kinh-te-dia-phuong.html