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Vietnam Digitalization Landscape

24/05/2024

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Looking back on Vietnam IT Day 2024, let’s revisit the key takeaways we shared! From bustling tech startups to the smartphones in our pockets, Vietnam’s digital landscape is undergoing a fascinating transformation. While the country boasts a skilled IT workforce and exports software services globally, how exactly is digitalization transforming the everyday lives of Vietnamese citizens?

Digital Government

Vietnam’s digitalization journey is based on a National Digital Transformation Program (DTA) that was approved in 2020 (OpenDevelopment Vietnam, 2022). This program uses technology to streamline government services, enhance public administration, and boost transparency. It encompasses various aspects like e-services, e-participation, and e-administration – all designed to modernize how the government functions and delivers services digitally.

The ultimate goal? A digital society, economy, and government. This translates to accessible, responsive services tailored to citizens’ needs, and a secure, transparent environment where public participation thrives.

This pursuit of digital government is essentially a restructuring of public administration through technology. Streamlined services, efficient processes, and improved interaction between government, citizens, and businesses are all key objectives. The days of endless queues and paperwork are fading fast, thanks to the DTA and the National Centralized Database of Citizenship.

E-commerce

Vietnam’s e-commerce sector is experiencing unprecedented growth, driven by major players like Shopee, TikTok, and Lazada. With widespread internet access and a population increasingly using smartphones, online impulse buying has become a significant economic force. 

This growth has boosted affiliate marketing, with influencers and Key Opinion Consumers (KOCs) leveraging platforms like Facebook, Instagram, TikTok, and YouTube to drive substantial sales. Vietnam’s e-commerce market is booming with a valuation of 16.4 billion U.S. dollars in 2022 (Statista), and the growth trajectory shows no signs of slowing down. The demand for live-stream shopping has led to the formal recognition of live-streaming as an occupation, with around  200 job listings for live-stream positions on Vietnamese job portals (Careerviet, 2024), highlighting the growing importance of this role in the e-commerce ecosystem.

Logistics 

Infrastructure

As Vietnam’s e-commerce sector rapidly grows, the country’s logistics infrastructure is evolving to meet increasing transportation demands. In 2023, significant advancements were made in roads, railways, maritime transport, and aviation to enhance logistics efficiency and connectivity. These improvements reflect Vietnam’s commitment to developing a comprehensive logistics framework, essential for supporting the continued expansion of e-commerce and ensuring efficient and reliable transportation for businesses and consumers.

Technology

The surge in e-commerce is driving significant transformations in Vietnam’s logistics sector to meet higher standards, increased speed, and more complex requirements. Advanced technologies like Automation and Robotics, including Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs), are revolutionizing warehouse operations.

Explore HOPE’s Warehouse Automation for streamlined e-commerce logistics here!

Systems like the Wheel Sorter Matrix and cross-belt sorters improve sorting efficiency, while AI-powered sensors ensure seamless operations. Internet of Things (IoT) technology enhances storage management by providing real-time monitoring of conditions, which is essential for preserving perishable goods. RFID technology speeds up goods processing, and AI algorithms optimize transportation routes for faster deliveries and reduced costs. These advancements are crucial for sustaining e-commerce growth and adapting to future challenges in logistics.

Fintech

Cashless payment

Vietnam’s fintech sector is paving the way for a cashless future, with non-cash payments currently at 4.9% of all transactions (VOV, 2024), according to a World Bank report. Central to this progress is VietQR, a standardized payment system used by digital wallets and banks nationwide. 

This standardization ensures consistent payment experiences across various platforms. Cashless payments are now common in high-end shops, luxury restaurants, e-commerce sites and even street food vendors. Small transactions are frequently conducted digitally in cities like Ho Chi Minh, Da Nang, and Hanoi, showcasing fintech’s widespread integration into daily life.

Fintech Startups

Vietnam’s fintech landscape is rapidly expanding, with fintech companies increasing from 39 in 2015 to 154 in 2019. Digital wallets and P2P lending are particularly prominent. Investor interest has surged, with FDI in Vietnamese fintech rising to 36% of all ASEAN fintech FDI in 2019, up from 0.4% in 2018. Notable investments include $300 million for VNPAY and $500 million for Momo. In 2020, Vietnamese fintech startups attracted around $7.8 billion in investments (Ngoc), showcasing significant global investor confidence and positioning Vietnam as a burgeoning fintech hub in the region.

PropTech

Another exciting area transforming Vietnam’s landscape is PropTech, which leverages technology to enhance the real estate experience.  VR and AR technologies allow for the creation of digital twins of real properties for immersive virtual tours. This innovative approach is a game-changer for both investors and agencies.

Hoshu

As we explore PropTech’s potential, it’s worth noting the role of Augmented Reality (AR) in enhancing communication and guidance. Here at HOPEE, we’ve developed our own innovative AR product that tackles the challenge of ineffective expert guidance- Hoshu.

Imagine a world where communication with specialists is clear, vibrant, and stays exactly where you need it.  Our AR solution utilizes this technology to create a seamless and immersive experience. 

Are you ready to unlock the potential of AR in your business?  Our team of experts is here to help you explore how AR technology can revolutionize the way you connect with clients and enhance their real estate experience. Contact us today for a free consultation and discover how our AR solution can transform your business!

References

Ngoc, Dinh Bao. “Thị Trường Fintech Tại Việt Nam: Cơ Hội và Thách Thức.” Tapchinganhang.gov.vn, 21 July 2022, tapchinganhang.gov.vn/thi-truong-fintech-tai-viet-nam-co-hoi-va-thach-thuc.htm.

“Non-Cash Payment Programs Encounter Barriers.” VOV.VN, 20 Dec. 2017, english.vov.vn/en/economy/non-cash-payment-programs-encounter-barriers-365021.vov. Accessed 01 May 2024.

Statista. “Vietnam: E-Commerce Market Value 2014-2020.”Statista, 8 Dec. 2023, www.statista.com/statistics/986043/vietnam-ecommerce-market-value-revenue/.

“Tìm Việc Làm Livestream Lương Cao, Tuyển Dụng Mới 24/05/2024 | CareerViet.vn.” CareerViet, 24 May 2024, careerviet.vn/viec-lam/Livestream-k-vi.html. Accessed 01 May 2024.

“Vietnam Digital Transformation Agenda – Open Development Vietnam.” OpenDevelopment Vietnam, 9 Dec. 2023, vietnam.opendevelopmentmekong.net/topics/vietnam-digital-transformation-agenda/.