On 27th January, British Consulate General Ho Chi Minh City organised a technology reception event, titled �UK and Vietnam innovation partnerships�, to spotlight UK and Vietnam tech ecosystem and meet with leaders in bringing the two countries tech scene together. The event also featured a panel discussion about UK-Vietnam bilateral tech partnerships and opportunities to promote the prestige of tech on both sides. NashTech was honoured to be a part of the event our Chief Technology Officer, Loan Pham, featured in the panel to discuss about the technology scene in Vietnam.
Technology has become an indispensable part of our lives and it is even more firmly asserted during the COVID-19 pandemic as we have witnessed an outstanding growth of consumer-oriented and online services such as digital payments, online education, remote healthcare, online medical assistance, online collaborations, online entertainment, personalising customer services, manufacturing operation assistance. These activities would not be able to be formed and bolstered without tech such as artificial intelligence (AI), robotics, Fintech, cloud alongside with IT factors including bandwidth connection, infrastructure and cybersecurity.
"These trends are irreversible and continuing to shape the growth of the global technology sector in 2021 as well as in the post-COVID world. And, Vietnam is not an exception. We can observe that these technologies are already being explored and they will be more focused and exploited in Vietnam in the near future"
Loan also emphasised that thanks to the increasing support from the government, Vietnam is now seeing a diversity of players from different countries with dynamic innovation ecosystem leading to the growth of technology. The Vietnamese government has imposed a wide range of policies and deployed many activities to boost the growth of technology, this includes:
The government provides an overarching plan to create favorable conditions for start-ups in hi-tech sectors. This involves a corporate tax exemption for four years and nine subsequent years of 50% reduction for qualifiers (Tax summaries by Deloitte) and visa friendly proposition to support foreigners.
The government identifies AI as one of the breakthrough technologies, and should be in focus to accelerate the development and growth of the nation (VietnamNews). Many national projects have been approved with the goal of bringing innovative, breakthrough technology ideas alive (VietnamNews). AI has also been applied in many practical fields such as healthcare, education, agriculture, transportation, entertainment and commerce. In public sectors it is used for smart transport systems, such as in Ho Chi Minh City, self-propelled vehicles, improving the quality and efficiency of medical examinations and treatment (aids in the prediction and treatment of diseases, with the accuracy up to 90%), enabling the instant customer or patient support. Although these are just at the early stages but they are very promising.
According to Loan, it's a great opportunity for FinTech companies to seize the chance and grow in Vietnam as the government is promoting Vietnam to be a country with cashless economy and piloting the digital banking project with the FinTech enterprises and Vietnam's banks.
As reported in a VietnamNews article capturing the key highlights of Cashless Day 2020, Dung Pham, Director of the Central Bank's Payment Department, said the use of cash as a ratio of payments has gradually decreased over the years and payment trends in the economy have shifted towards non-cash modes and e-banking channels. On the way to boosting the cashless trends in Vietnam, the Prime Minister issued Directive No. 22/CT-TTg on May 26 2020 to promote non-cash payments. He instructed the SBV to review and strengthen the legal framework to facilitate cashless and electronic payments.
According to the State Bank of Vietnam, the number of financial transactions, currency exchanges, and mobile payments has doubled compared to the same period in 2018 as of March 2019. By 2025, digital payment is expected to become the payment method of choice and will exceed 1 trillion USD. Also, the Vietnamese mobile payment market is expected to reach 70.9 billion USD by 2025, increased from 16 billion USD in 2016 (Vietnamnet).
Organisations in Vietnam are putting more effort in to exploring digital transformation and are willing to spend big budgets on digital transformation and modernization projects. Speaking about the tech trends of 2021, Loan summarised the key highlights into six aspects: AI, Digital Business Automation, FinTech, Cloud-based applications, 5G and Cybersecurity.
Loan Pham emphasised that to keep up with the fast pace of the rapid changing technology world and take the right route on their digital transformation journey, companies need to watch out for several important points, including evaluation of where they are, are they ready for business process to be transformed and adapted to new technologies and what is the right approach and the suitable scope for them to start with. From there, they will need to decide on whether they need a partner to support them on their tech journey and start looking for a suitable one.
If you are looking for a trusted partner to explore the emerging technologies and apply them to your business, we would be delighted to talk to you about how tech such as RPA, AI, etc. add real business value and may be able to help transform your business. Get in touch today and email info@nashtechglobal.com and a member of the team will be in touch.