Vietnam's digital transformation trend in the Global Value Chain

Vietnam's digital transformation trend in the Global Value Chain

Vietnam's digital transformation trend in the Global Value Chain

13:53 - 16/09/2020

The 4th industrial revolution has had a strong impact on the globe, forcing Governments and businesses around the world to face great challenges, requiring changes to match the progress set of technology, science and engineering.



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  1. The value of the global value chain

The Global Value Chain (GVC) is a system that links the steps carried out in different countries in the investment, production and trade of complete goods and services. Joining the global value chain provides access to master one or more stages in the world production chain, thereby expanding export markets, promoting growth.

For developing countries, joining the global value chain (GVC) opens up job opportunities, boost exports and access world-class production. However, the question is how being a link in the global production network will bring added value to each country. Each different production position in the value chain will bring a different amount of added value.


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Another important concern is the environmental impact of the host country in the GVCs. But the solution is that industries can move to the most efficient place of production, GVC can reduce the net resource intensity of global agricultural production.

New technologies, new scientific innovations and modern knowledge can allow the dissemination of more environmentally friendly production techniques throughout the GVC. Leaders in the GVC can drive innovation, be environmentally friendly, and drive higher standards.

GVC also facilitates the production of new and environmentally friendly goods. Products such as solar panels, electric cars and wind turbines are produced at a lower cost in GVCs and help reduce environmental consumption costs.

  1. The trend of digital transformation in the global value chain

Going up a higher ladder in the global value chain - an indispensable choice is that the Government and enterprises accompany to innovate, apply science and technology to facilitate, basic foundation and good environment; most for businesses to grow, create higher added value, gain more while participating in global value chains. This is a way to improve the capacity and competitiveness of each product, each enterprise and the whole economy, contributing to the confidence of rapid and sustainable development of Vietnam.

Digital transformation is a strong trend in the world when the achievements of science and technology are present in all aspects of life. For businesses, digital transformation will contribute to increase the competitiveness and capacity of businesses in the market.

Availability of information dissemination is at the core of digital transformation. With the right organizational and governance design, they can enable outstanding collaboration and communication on digital platforms, helping to improve reliability, agility, and efficiency. This performance difference will force organizations to adapt to new digital realities or risk lagging behind in competition. The digital operational model is all about implementing digital capabilities across the organizational layers of governance, processes, data, and performance management, and Information and Communication Technologies (ICT). It allows the degree of process integration and standardization required. The benefits of the digital operating model are divided into three categories - Centralization, process automation, and the digital management of corporate assets that help organization manages their people and operating more efficiently. Better visibility allows companies to manage their own assets as well as contract assets in a more cost-effective way and optimize product and customer portfolios.

Source : Internet

  1. Vietnam's goals in the global value chain.

    Vietnam has participated in many free trade agreements (FTAs) between Vietnam - Japan, Vietnam - Korea, Vietnam - European Union (VN-EAEU FTA), Vietnam - European Union. Europe (EVFTA), the Trans-Pacific Partnership Agreement (TPP) as well as Vietnam have joined the economic community such as ASEAN (AEC) ... and a number of Free Trade Agreements are in the process of negotiating ASEAN. - China, Korea, Japan, India, New Zealand, Australia (RCEP); Vietnam - EFTA (Switzerland, Norway, Ice Land, Liechtenstein) and Vietnam - Israel.

On June 3, 2020, the Prime Minister of Vietnam approved the "National Digital Transformation Program to 2025, with an orientation to 2030". In particular, Vietnam aims to be among the top 50 countries in e-Government (EGDI - E-Government Development Index).

Source : Internet

The National Digital Transformation program aims to develop digital government, digital economy, digital society, and establish Vietnamese digital technology enterprises with global capacity.

In which, in terms of developing digital government, improving operational efficiency and effectiveness, the program's basic targets by 2025 are: 80% of online public services.

The program defines a vision to 2030 Vietnam becomes a digital, stable and prosperous country, pioneering in the experiment of new technologies and models; fundamentally and comprehensively renovate the management and administration activities of the Government, production and business activities of enterprises, the way of living and working of the people, developing a safe, humane and wide digital environment everywhere.

Nguyen Van Toan


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