Phạm Xuân Hòe from the Banking Strategy Institute speaks at a forum in Hà Nội yesterday. — Photo infonet.vn

HÀ NỘI — Việt Nam needs a “revolution in its policy-making mind-set” before it can take advantage of the fourth industrial revolution, said Phạm Xuân Hòe from the Banking Strategy Institute, at a forum in Hà Nội yesterday

Attending the forum held by the Việt Nam Institute for Economic and Policy Research (VEPR), Hòe said: “if Việt Nam can catch up with the revolution in time, the digital economy can help the country close the gap with other nations around the world.”

However, he was concerned about policies to help boost digital transformation, saying: “Việt Nam still applies outdated policies in a new economic context.”

Economist Nguyễn Trí Hiếu told the forum: “Since 2016, the country has spoken a lot about the advantages from the fourth industrial revolution but, after four years, I don’t see where it is in such a revolution.”

Responding to both comments, Hồ Tú Bảo from the Japan Advanced Institute of Science and Technology, said: “Việt Nam is in the initial stages of the revolution,” adding that each revolution takes between 50 to hundreds of years.

Bảo said the fourth industrial revolution is one of digital transformation, which helps close the gaps in social relationships, ease the burden on labour and remove the role of intermediaries to develop the economy.

Bảo is working with the Ministry of Health on a plan to connect the medical records of more than 50 million people with their health insurance details and another plan with the Ministry of Transport to connect transport records of 1.2 million vehicles.

“It is the last chance for Viet Nam to take advantage of the era,” Bảo said.

The two most important areas for digital transformation were tourism and agriculture, as the main drivers of economic growth in Việt Nam.

“Some ministries go fast and some go slower in digital transformation, however, the awareness of many leaders has been improved.

“Digital transformation is a long term project, and should take at least 10 years,” Bảo said.

Hosting the forum, VEPR director Nguyễn Đức Thành agreed that the economy was changing.

Recognising the Government’s efforts, VERP’s director said Việt Nam was spending on building an e-Government but the process was slow. Half of the country’s ministries were not yet digital.

Thành told the forum: “The transformation will take time as the people (who make decisions) are still the same. There is no other way than to wait for them to change their minds.”

Professor Cao Đoàn told the forum that: “Việt Nam should define a clear plan for the revolution, or it will lose out.”

According to the Central Institute for Economic Management (CIEM), the implementation of the fourth industrial revolution can help boost economic growth from $28.5 billion to $62.1 billion, equivalent to 7-16 per cent of GDP over the next ten years.

Lucy Cameron, lead author of the report “Việt Nam’s Future Digital Economy Towards 2030 and 2045”, in 2019 forecast that in the best scenario, Việt Nam will carry out a digital transformation across industries and export ICT products and services, GDP could see an increase of VNĐ3.750 trillion in the next 20 years, an annual increase of 1.3 per cent.

According to the SBV’s Payment Department, ending 2019, the country had 78 organisations providing payment services online, 45 organisations providing payment services via mobile banking and 83.3 million personal bank accounts. — VNS