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The Digital Technology Industry Law is considered a driving force for the digital economy . Illustration photo: Bloomberg. |
On June 14, the Vietnamese National Assembly passed the Law on Digital Technology Industry. This is an important milestone for the domestic technology industry to promote innovation, develop a comprehensive digital ecosystem and reduce dependence on foreign technology.
According to Dr. Sreenivas Tirumala, senior lecturer in Information Technology (IT) at RMIT University, Vietnam is under pressure from global trade tensions, including recent US tariff moves.
“These developments have exposed Vietnam’s dependence not only on foreign markets but also on imported technology, especially in areas such as cloud computing, cybersecurity and artificial intelligence (AI),” said Dr. Tirumala.
According to Mr. Tirumala, the passage of the Digital Technology Industry Law is the right time for Vietnam to “reconsider the country’s digital strategy”, by investing in domestic technology to accelerate the process of technological autonomy.
The importance of domestic technology
Currently, Vietnam imports most of its digital infrastructure from hardware, software to cloud services and the Internet of Things (IoT). Dr. Tirumala pointed out that these technologies mainly come from the US and Israel, are expensive and have limited control over data.
“For example, services from Google, Microsoft and Amazon are subject to US export laws, which may restrict access to foreigners depending on their geopolitical relationship with the country,” said a representative of RMIT University.
From there, developing domestic platforms and tools can minimize risks and expand access for Vietnamese users. Domestic platforms and tools will store and share data according to Vietnamese regulations, thereby ensuring compliance with privacy and data sovereignty requirements in the Law on Digital Technology Industry.
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Developing local platforms and tools will help expand access for Vietnamese users. Photo: Pexels . |
In addition to cloud services and cybersecurity, Vietnam's digital consumer market was once dominated by a number of foreign e-commerce and ride-hailing platforms.
Platforms with advanced software, high speed and superior user experience make it difficult for domestic competitors. However, with the right investment in skills and infrastructure, Dr Tirumala believes businesses can overcome the imbalance.
“India is a good example. Homegrown platforms like Ola and Rapido have successfully competed with Uber by offering services tailored to local needs.
Vietnamese platforms can follow a similar path, especially when receiving financial incentives and funding support for technology procurement as proposed by the Digital Technology Industry Law,” Mr. Tirumala added.
Opportunities also open up for Vietnam in the regional market. Its strategic location, cultural similarities with ASEAN countries and growing digital literacy give Vietnam the potential to become a regional digital services hub.
“By providing customized solutions to customers at reasonable costs, Vietnam can export digital technology products and services to countries such as Cambodia and Thailand, markets that may want ‘localized’ services instead of mass-produced international products,” RMIT University representative emphasized.
Building a workforce for the digital economy
According to data from We Are Social , Vietnam will have 51.7% of its population under 34 years old by 2024. This is a demographic advantage because the young, tech-savvy workforce is “a great asset in the transition from low-cost manufacturing to the digital economy”.
However, Dr Tirumala stressed that only 28.8% of workers have degrees or certificates from primary level or higher. This shows a significant gap between supply and demand for skills.
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Dr. Sreenivas Tirumala, Senior Lecturer in Information Technology, RMIT University Vietnam. Photo: RMIT University . |
To solve this problem, Dr. Tirumala proposed a cooperation model between schools and businesses to design training programs and evaluate learners, such as the German dual vocational training model (combining theory and practice).
Next, the government can implement efforts to integrate IT into the curriculum early, and consider supporting small training institutions, providing skills upgrading courses and certifications according to industry needs. This can make IT courses more accessible to a segment of the population that cannot afford to go to university.
“The Digital Industry Law is a strategic step towards digital sovereignty and a sustainable economy.
By promoting domestic innovation, reducing dependence on foreign platforms, and investing in human resources, Vietnam is laying the foundation to become a leader in Southeast Asia's digital economy in the long term," Dr. Tirumala emphasized.
Source: https://znews.vn/viet-nam-can-lam-gi-de-tu-chu-cong-nghe-so-post1571249.html
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