Forum spotlights business development in digital age

Hanoi (VNA) – Telecom and Internet providers in Vietnam have recorded 6.1 billion USD in revenue and created more than 851,000 jobs, as heard at a forum on enterprises in digital age held in Hanoi on May 17.

The forum took place in conjunction with the announcement of the Vietnam Chamber of Commerce and Industry (VCCI)’s annual report on Vietnam business for 2017/2018.

As heard at the forum, IT and telecom sector’s production value contributed over 0.7 percent to the nation’s GDP on average. In 2016, the number of IT/telecom businesses surpassed 11,000, accounting for 2.2 percent of Vietnam’s total figure.

Apart from the application of advanced technologies in traditional sectors, the digital age has given birth to a number of non-traditional business models in Vietnam, like online car hailing and financial technology (fintech) services.

Expert said fast changes of these new models have sometimes left legal regulations behind, thus causing difficulties for their providers and benefit conflicts between them and their traditional peers.

VCCI Chairman Vu Tien Loc said last year, the Prime Minister issued Decree 16 on capacity building for the 4.0 industrial revolution.

He said the decree put forth key measures on IT infrastructure development, and prioritised the building of digital industry, smart agriculture, and smart cities.

He noted companies ought to design their relevant action plans and join the public sector’s efforts in building strategies for smart governance and innovation.

Loc also acknowledged achievement of the business sector last year, with the establishment of 126,859 new firms, the highest number recorded to date.

Pham Thi Thu Hang, head of the Vietnam Business Insight Survey – a VCCI initiative, said the year saw improvements in the private sector, but the trend of smaller-scale firms persisted and the rate of performance failure among small scale businesses remained high.-VNA