Hanoi has all the conditions to lead the country in digital economic development.

However, to achieve this goal, the capital needs breakthroughs in infrastructure, institutional and human resource development.

Hanoi Moi Newspaper reporter had a conversation with economic expert, Dr. Nguyen Minh Phong about this content.

Three major bottlenecks

- How do you evaluate the current state of digital economic development in Hanoi in recent times?

- It can be seen that Hanoi is one of the three leading cities in the country in digital transformation, information technology, competitiveness index, innovation, safety and network security.

Hanoi has issued Plan No. 57/KH-UBND on digital transformation and building a smart Hanoi city by 2024. Accordingly, Hanoi will develop a digital economy with four pillars, including: Information technology industry, digitalization of economic sectors, digital governance, and digital data.

Hanoi is on the right track and achieving quite an impressive speed. In 2024, the proportion of the digital economy will account for about 16.25% of GRDP. Information systems and core databases, such as residents, insurance companies, etc., are maintained and exploited quite effectively. Non-cash payment activities, e-commerce, e-invoices, etc. are increasingly expanding.

In the capital, there are nearly 10,000 enterprises operating in the field of information technology and electronics industry with a total revenue of about 12.8 billion USD, attracting more than 207,000 employees. Many technology enterprises have mastered core technologies, developing about 40 "Make in Vietnam" platforms such as Viettel Enterprise Solutions Corporation; CMC Technology and Solutions Corporation; VNPT Hanoi; DTT Technology Company; Phenikaa Maas Technology Joint Stock Company...

The areas that are thriving are digital businesses, online public services and e-commerce. For example, Hanoi’s online retail revenue now accounts for nearly 13% of total retail sales of goods, double that of 2020.

However, the digital economy in the capital is still below the potential and requirements expected in State management, as well as in reality, market demand and capacity...

- So, in your opinion, what are the bottlenecks that prevent Hanoi's digital economy from breaking through?

- In my opinion, there are three major bottlenecks for the capital's digital economy.

The first is the difference in the level of digital transformation between regions. While the public administration sector and large enterprises have progressed quite far, the small and medium enterprises sector is still slow. According to the Hanoi Association of Small and Medium Enterprises, in general, small and medium enterprises in Hanoi have been aware of digital transformation, but have not reached expectations. 35.75% of enterprises have used some digital transformation solutions but are no longer using them; 39.45% of enterprises have digitized data and processes.

Second is data infrastructure and information security. Although Hanoi has built a Public Administration Service Center and upgraded nearly 1,200 online public services and integrated them into the National Public Service Portal, the data systems of departments and branches are still incomplete and inconsistent. When Big Data is lacking and not shared, the digital economy will find it difficult to break through and the ability to analyze and apply it to policy making or digital service development is still very limited.

Third , regarding digital transformation thinking, many agencies and businesses still consider digital transformation as just “digitalizing documents”, while the essence must be to innovate operating models based on data and technology. Without changing the way of thinking, it will be very difficult to create real growth.

Digital payments are being promoted in all shopping activities with an increasing number of users. *Photo: Nguyen Vinh*

Focus on the pillars

- Hanoi aims for the digital economy to reach 30% of the city's economic structure by 2030 and 40% or more by 2045. In your opinion, what are the pillars that need to be focused on to realize this goal?

- According to the Prime Minister's direction, Hanoi needs to strive to be a leading locality in innovation and development of digital economy, digital society, digital citizens, towards a civilized and modern society.

I think Hanoi needs to promote 5G coverage and continue to expand the fiber optic network to 100% of households and businesses. The city is deploying an international standard data center, which will be the foundation for a smart city and data economy.

Regarding innovation, Hanoi currently has more than 1,000 startups operating, accounting for about 26% of the total number of innovative startups nationwide, along with two-thirds of leading research organizations and scientists nationwide. However, Hanoi needs to continue improving its institutions, supporting innovative businesses, and expanding international cooperation...

And what is very important is that in terms of digital human resources, the City needs to focus on training digital skills for workers. Major universities such as Polytechnic, National Economics... are opening more majors in data, AI, blockchain - this is the right direction.

In addition, it is necessary to expand the digital economic space to rural areas. The models of “digital communes”, “digital cooperatives”, and “digital craft villages” need to be replicated. Putting OCOP products on e-commerce platforms not only helps expand the product consumption market, but also creates a new value chain for the capital’s agriculture.

- What specific policies or mechanisms does Hanoi have to stimulate innovation in technology businesses, startups or research organizations, sir?

- Hanoi has had many necessary policies to promote digitalization, stimulate innovation in technology enterprises, startups or research organizations in the area, typically Plan No. 57/KH-UBND dated February 8, 2024 of the Hanoi People's Committee on digital transformation, building a smart Hanoi city by 2024; Plan No. 259/KH-UBND dated August 29, 2024 of the Hanoi People's Committee on overcoming some shortcomings and limitations to ensure the completion of the Hanoi City Digital Transformation Plan in 2024; Decision No. 6785/QD-UB dated December 31, 2024 of the Hanoi People's Committee on approving the project "Some breakthrough tasks on digital transformation of Hanoi City by 2025".

In particular, the 6 resolutions just passed at the 26th session (special session) of the Hanoi People's Council on concretizing the Capital Law 2024, if well implemented, will certainly create an important legal corridor, unlocking resources for the Capital to make a breakthrough in science and technology development, innovation and digital transformation...

In fact, Hanoi is currently allocating at least 3% of its budget to science and technology, innovation and digital transformation. This is a large investment compared to the national average, showing the special priority the capital gives to this field.

- As the political and economic center of the country, what do you expect from Hanoi's leading role in the national digital economy?

- I think Hanoi is not only a leader, but also has the responsibility to be a model for the whole country. Hanoi has all the conditions - from technology infrastructure, human resources to creative environment - to become a "digital creative city" of Southeast Asia.

If done well, the digital economy will not only be a new strong growth driver, but also a new brand and identity that positions the Capital in the technology era and strengthens the Capital's position on the journey to reach regional and global stature.

It is important to thoroughly grasp and maintain the spirit of correct thinking, quick action, flexible policies and long-term vision, Hanoi for the whole country, accompanying the whole country and the whole country together with Hanoi striving to build our capital and country to be more and more dignified and beautiful according to the sacred will of President Ho.

Thank you very much!

Source: https://hanoimoi.vn/ha-noi-hoi-tu-du-dieu-kien-de-dan-dau-ca-nuoc-ve-phat-trien-kinh-te-so-720376.html