The urgently need to establish a legal framework for digital transformation

On May 27th, in Hanoi, the Vietnam Union of Science and Technology Associations (VUSTA), the Vietnam Automation Association, and the Institute of Creativity and Digital Transformation organized a seminar on "Digital Transformation and Automation in Economic Development."

The seminar on Digital Transformation and Automation in Economic Development is part of the program to commend the Top Industry 4.0 in Vietnam - I4.0 Awards 2023.

In his opening speech at the seminar, President of VUSTA - Prof. Phan Xuan Dung stated that the concept of digital transformation has become widespread and permeated throughout society. He emphasized that businesses and government agencies are the pioneers and consider digital transformation as a necessary trend to enhance production and business efficiency, improve competitiveness, and successfully implement the strategy of building a digital government, digital economy, and digital society in the fourth Industrial Revolution.

Prof. Phan Xuan Dung expressed the desire for experts, scientists, representatives of businesses, and local authorities to actively participate in exchanging ideas and proposing solutions to promote the application of information technology, digital technology, comprehensive digital transformation, and innovation to enhance the competitive capacity of businesses. He emphasized the importance of sharing information and experiences, linking and connecting government agencies, scientific communities, research institutes, universities with businesses, and providing support, consultation, technology transfer, and digital economic development.

During the seminar, Deputy Minister of the Ministry of Science and Technology - Bui The Duy, affirmed that digital transformation is a long-term process without an endpoint. Currently, digital transformation is not only a driving force but also a necessity for businesses to survive and thrive. He highlighted the challenges faced by two groups, namely management agencies and production businesses, in implementing digital transformation. These challenges include the difficulty of investing resources in digital transformation for management agencies and the common issue of information security and safety for both businesses and government agencies. The shift from using paper-based documents to digital data on the internet environment has introduced new vulnerabilities. Additionally, for businesses, digital transformation is more complex, involving the application of information technology in business management, changing production processes, upgrading and innovating machinery, and automation for machine integration. Finally, a crucial aspect is the change in mindset, especially the determination of top-level executives, as the decision-makers for the successful digital transformation of government agencies and business entities. Deputy Minister Bui The Duy emphasized that the leader's commitment is crucial, as the number two position has no impact. Even if a deputy director is a technology expert and enthusiastic about the change, without the recognition and willingness to change from the CEO or Chairman of the Board, nothing can be accomplished.

Deputy Minister of the Ministry of Science and Technology - Bui The Duy spoke at the seminar

Deputy Minister Bui The Duy believes that digital transformation is not simply about machinery and technological solutions. If businesses continue to produce the same old output, they will not achieve their goals. It is necessary to create a mindset for changing to new products, as original and competitive products are difficult to develop. The Deputy Minister gave examples of Rang Dong Light Bulb Joint Stock Company and Philips. These two companies have sold lighting services instead of traditional light bulbs. Businesses must recognize their own difficulties and compete for survival in the market in order to have a breakthrough mindset and determination for digital transformation.

At the seminar, Vice Chairman of the Vietnam Young Entrepreneurs Association - Hoang Cong Doan also highlighted the challenges faced by young enterprises.

Firstly, there is the issue of finance. Most young enterprises have limited capital and face difficulties in accessing funding sources for digital transformation. At the same time, they have to deal with the costs of training employees, purchasing new equipment and software, and ensuring information security.

Secondly, there is the issue of human resources and knowledge. Digital transformation requires enterprises to have personnel capable of using and leveraging digital technologies. However, Vietnam is currently facing difficulties in providing a sufficient quantity of high-quality workforce with knowledge of digital transformation. This requires strong investment in education and training, as well as creating favorable conditions for young entrepreneurs to access high-quality human resources.

Thirdly, there is the need to change the corporate culture. Digital transformation is not just about technology; it is also about the mindset and operating methods of enterprises. Many businesses face challenges in changing long-standing cultural habits, resisting the application of new technologies, and seizing digital opportunities. Lastly, an important challenge lies in ensuring security and data protection. When undergoing digital transformation, businesses must face the risk of losing important data, cyber attacks, and violations of privacy.

Sharing the same viewpoint with Vice Chairman of the Vietnam Young Entrepreneurs Association - Hoang Cong Doan, Mr. Do Manh Cuong - Deputy Secretary General of the Vietnam Automation Association also pointed out the difficulties that businesses have to face. These include the complexity of operating smart factories, especially when there is a limited availability of highly skilled workforce. Operating smart factories requires stability, safety, and the ability to avoid cyber attacks.

In his closing speech at the seminar, Chairman of the Vietnam Automation Association - Prof. Nguyen Quan, stated that our economy has never faced such challenges and difficulties as it does today. To overcome these challenges, the first step is to innovate and reform the institutional framework to avoid mistakes, fear of making mistakes, or wasting resources. For the National Digital Transformation Program, it is urgent to establish a legal system for digital transformation, including databases. The institutional framework is the first step, and it cannot be that each locality develops its own approach and then starts from scratch when it comes to institutionalization. Currently, if each locality adopts a different structure and format, the integration into the national database will lack synchronization, rendering all the efforts of that locality futile. After establishing the database, infrastructure must be put in place, creating digital technology platform applications that truly enable effective digital transformation to enhance the development of the country's economy and society, emphasized Chairman of the Vietnam Automation Association - Prof. Nguyen Quan.