Digital transformation for local economic development

At the Digital Transformation (DT) forum of the Industry and Trade sector on December 3, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that, in the face of new development requirements, DT continues to be identified as a strategic and resolute goal, closely linked with green transformation and sustainable development. This is an important driving force to promote comprehensive restructuring of the Industry and Trade sector by 2030. "The sector is determined to implement dual transformation, in which digitalization helps optimize costs, greening helps minimize harm, while enhancing the competitiveness of enterprises, towards sustainable development in the long term" - Deputy Minister Tan said.

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

Notably, digital transformation in industry - smart manufacturing recorded many positive signals with the IIP index increasing by 8.4% - the highest level in 5 years; about 90% of processing - manufacturing enterprises have partially deployed digital solutions; 35% applied robots and sensors in production; and 10 - 12% 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 operating data, AI load forecasting, EMS systems in enterprises, and the expansion of renewable energy models.

Mr. Ninh emphasized that Vietnam's digital economy is expected to reach 39 billion USD in 2025, continuing to be among the fastest growing in the region; More than 40 AI startups have attracted 123 million USD in private capital; 81% of users interact with AI daily and 96% express their trust in AI agents. From these results, Mr. Hoang Ninh said that 2026 will be the time for the Industry and Trade sector to create a number of strategic breakthroughs, including standardizing national e-commerce data and expanding the 3.0 - 4.0 generation smart factory model.

However, not only at the national level, digital transformation is making significant marks in local economic development, in which, the most obvious is that farmers have boldly participated significantly in the process of "digitalizing production and sales". According to Party Secretary and Chairman of the People's Council of Phuong Duc commune ( Hanoi ) Le Van Binh, the impact of digital transformation in the commune's traditional craft villages is most clearly demonstrated through the story of "awakening the land of hundreds of professions with digital transformation".

Mr. Binh said that digital transformation has helped craft villages gradually approach the market, increase product value and improve management quality. The transformation from a manual business model to a modern distribution model through a digital platform has contributed to proving that digital transformation is only truly sustainable when it spreads to every grassroots level, where small-scale production and business activities are facing new requirements for innovation and market access.

Ms. Dang Thuy Trang - External Relations Director of Grab Vietnam affirmed that digital platforms are becoming an important tool to support localities in developing the digital economy by providing a multi-service ecosystem, meeting people's daily needs, while promoting digital transformation in the fields of tourism, promoting heritage, culture and cuisine, thereby promoting strong local economic development.

Citing the specific impact of digital transformation activities on the way workers in Hue do business and earn a living, Ms. Trang said that through digitalizing local restaurants, promoting multi-channel cuisine and supporting e-commerce, it has contributed to promoting the flow of goods and services in the locality. "For the first time, traditional Hue cyclo drivers have been supported to decorate their vehicles with modern equipment, equipped with support devices, and have fixed pick-up/stop points to improve service quality. At the same time, they get acquainted with the digital platform, have more customers, and directly introduce local restaurants to customers through the digital platform," Ms. Trang said.

The representative of the Department of E-commerce and Digital Economy commented that the way Grab Vietnam has done has clearly demonstrated the role of technology enterprises in promoting digital transformation at the local level, when this process does not only stop at building technical infrastructure but also involves reorganizing service lines, transportation and distribution on digital platforms. This is demonstrated through the digitalization of traditional forms of transportation such as Grab cyclo in Hue, as well as initiatives to promote smart mobility models or take advantage of digital platforms to promote local cuisine; Support and guide local food stores to access digital platforms.

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