On the morning of October 18th, in Hanoi, the Ministry of Information and Communications held a quarterly meeting with stakeholders for the third quarter of 2024. Minister of Information and Communications Nguyen Manh Hung directly chaired the meeting. Attendees included representatives from agencies and units under the Ministry, as well as representatives from businesses, associations, and media organizations.

Deeply imbued with the General Secretary 's ideology of digital transformation.

One of the key highlights of the conference was the sharing by Minister Nguyen Manh Hung, aimed at helping officials deeply understand the new ideas of General Secretary and President To Lam on digital transformation, thereby leading their agencies and units to develop and act as a driving force for national digital transformation.

Minister Nguyen Manh Hung reiterated and clarified the messages expressed by General Secretary and President To Lam in his article: "Digital transformation - An important driving force for developing productive forces, perfecting production relations, and bringing the country into a new era" on the occasion of the 79th anniversary of National Day.

Accordingly, in any historical period, the relationship between productive forces and relations of production will affect the development of a country. When productive forces and relations of production are in conflict or stagnant, the country will not be able to develop.

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Minister Nguyen Manh Hung clarifies the messages of General Secretary and President To Lam on digital transformation. Photo: Le Anh Dung.

In the current context, science and technology, especially digital technologies, are creating a strong development of productive forces, but the relations of production have not kept pace. Changing the relations of production, even slightly, will create momentum, similar to the "Renovation" period, to propel Vietnam to become a developed country.

Looking at the stories of businesses in the industry, Minister Nguyen Manh Hung believes that many businesses are unable to develop due to internal regulations, which are essentially obstacles in the internal production relations of these businesses. Therefore, whenever they encounter difficulties, businesses need to review whether these internal regulations are hindering their progress.

According to the Minister, for the first time in history, technology has transformed all three components of the productive forces (productive forces, means of production, and labor) and has become the fundamental productive force. This demonstrates the importance of digital technology.

Digital technology is not only a productive force but also a fundamental productive force. The Information and Communications Technology (ICT) sector has therefore become a fundamental productive force.

Digital transformation also creates a new environment, namely cyberspace. This new environment gives rise to new relationships, forcing top management to change. Because it creates a new space, digital transformation is more of a revolution in production relations—a revolution of change—than a revolution in technology.

Digital technology and digital transformation are the most important drivers of development because only technology can improve labor productivity, solve the problem of resource depletion, and respond to climate change.

Digital technology has also been improving the quality of life by helping to treat complex diseases through genetic technology, enhancing national competitiveness, and addressing social issues such as the wealth gap, urban overcrowding, and labor shortages in healthcare and education.

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Minister of Information and Communications Nguyen Manh Hung. Photo: Le Anh Dung

The Information and Communications Technology (ICT) sector and the digital transformation revolution.

Emphasizing the statement by General Secretary and President To Lam that digital transformation is a revolution, Minister Nguyen Manh Hung requested that businesses, public service units, and media agencies in the industry take the lead in this revolution.

The core element for success in the digital transformation revolution is institutional and policy reform. Minister Nguyen Manh Hung affirmed that to promote digital transformation, breakthroughs in institutions are needed, including increasing budget and investment in digital transformation. The government also needs to create special mechanisms to accelerate the digital transformation process.

Minister Nguyen Manh Hung also mentioned the development of digital infrastructure, emphasizing that digital infrastructure is now considered a national strategic infrastructure, alongside transportation and energy infrastructure. The State will play a pioneering role in investing in the development of telecommunications infrastructure, especially expanding 4G and 5G coverage, i.e., internet coverage. In the future, the results of digital transformation will also be used to evaluate the performance of heads of units.

Furthermore, an indispensable element in the digital transformation process is ensuring cybersecurity. Vietnam aims to become a cybersecurity powerhouse because only by ensuring information security can the nation be protected in cyberspace.

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Minister Nguyen Manh Hung answers questions and addresses requests from businesses and associations. Photo: Le Anh Dung.

In terms of the digital economy, development can be promoted by influencing the "supply" sector (digital transformation industry, IT, communications, or digital technology industry) or the "demand" sector, that is, bringing people into the digital environment.

According to the Minister, Vietnam has an opportunity in the digital transformation revolution because the country aspires to become a strong and prosperous nation, is led by the Party, and is not burdened by the weight of the past. Furthermore, digital transformation is not a technological revolution but a change in mindset, something Vietnam is fully capable of achieving.

Listen to and thoroughly address the suggestions and requests of businesses and associations.

Taking the time to engage in direct and thorough discussions and responses to issues and suggestions from agencies, businesses, and associations is a hallmark of the Ministry of Information and Communications. This tradition was once again upheld at the Q3/2024 briefing meeting with the managed entities.

Accordingly, the proposals from Viettel, Indochina Telecom, IoTLink, Vietnam News Agency, Vietnam Printing Association, Vietnam Software and IT Services Association (VINASA), Vietnam Education Publishing House, etc., have all been listened to and clarified by the Minister and relevant units within the Ministry.

For example, the Vietnam News Agency proposed that the Ministry of Information and Communications provide input on ensuring annual operating funds, especially for its overseas bureaus. While the workload is constantly increasing, according to the Party's policy, major news agencies are required to reduce their budgets by 2-3% each year.

Regarding this issue, the Minister requested the Press Department to hold a meeting to gather and synthesize opinions and data from media agencies, in order to gain an overall perspective and then propose solutions to the Government.

Following the Vietnam Printing Association's proposal to postpone the relocation of printing facilities out of residential areas, the Minister instructed the Department of Publishing, Printing and Distribution to hold meetings with each locality to fully consider the impacts, and then propose clear policies to provide support mechanisms for the localities.

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Representatives of the Vietnam Software and IT Services Association present proposals and recommendations to the Ministry of Information and Communications. Photo: Le Anh Dung

Following VINASA's proposal to maintain the 0% export tax rate for software products and services, the Department of Information Technology and Communications will soon hold a meeting with software businesses to listen to their opinions and suggestions, and then submit proposals to the Ministry of Finance and relevant agencies.

At the briefing conference, Mr. Nguyen Anh Cuong, Deputy Director of the Telecommunications Department, also shared important information about the current state of development of the Internet of Things (IoT) in Vietnam.

According to Statista, the total number of global IoT connections is currently 2.44 billion and is projected to increase to 5.12 billion by 2030. Global revenue from mobile IoT in 2024 was $78 billion. With a compound annual growth rate of 14%, global IoT revenue is expected to increase to $148 billion by 2030.

Currently, Vietnam has approximately 6 million mobile IoT devices, with an average ARPU of around 14,000 VND per subscriber. Global estimates suggest that a 10% increase in the total number of IoT devices will contribute to a 0.7% increase in GDP growth. Therefore, Vietnam aims to have 100 million mobile IoT connections by 2030, with an average ARPU of 86,000 VND per subscriber, thereby generating new revenue of 103 trillion VND per year for telecommunications companies.

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Mr. Nguyen Anh Cuong, Deputy Director of the Telecommunications Department, shared recommendations aimed at promoting IoT connectivity in Vietnam. Photo: Le Anh Dung

The development of IoT connectivity is a growing trend and an essential need for the development of Vietnam's digital infrastructure, opening up new opportunities for telecommunications businesses to grow and move away from the saturated traditional mobile market. To boost the number of IoT connections, the Deputy Director of the Telecommunications Department suggested that Vietnam could learn from international experiences in China and South Korea.

China is currently promoting research and development of a complete IoT industrial production system and encouraging all localities nationwide to apply IoT technology, piloting it for nationwide expansion. China is boosting IoT applications in key areas such as public services, smart cities, and smart homes, starting with smart water, electricity, and gas meters, public parking management, and environmental monitoring.

In South Korea, the country has combined the strengths of the government, telecommunications companies, and manufacturing businesses to boost the number of IoT connections. Local governments in South Korea also collaborate with large companies to provide platforms and networks, while small and medium-sized enterprises (SMEs) develop hardware and applications. Meanwhile, the government invests in developing core IoT technologies and the IoT ecosystem, reducing the pressure on SMEs to enter the market.

Regarding this issue, Minister Nguyen Manh Hung stated that to increase the number of IoT connections, the monthly cost per IoT subscriber must be affordable, but also based on the actual consumption of that subscriber. Subscription fees for these devices are currently high, therefore the Minister requested that network operators consider adjusting prices to encourage the development of IoT devices.

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