Vietnam: Innovation to adapt to the Industrial Revolution 4.0

With the population size currently ranks 13th in the world and is expected to reach 100 million by 2025, the rate of using internet-connected smartphones in 2017 is up to 55 %, higher than the world average of 44%, Vietnam is considered as one of the top countries with advantages for rapid development and modernization, maximizing the achievements of the Industry Revolution (IR) 4.0.

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Vietnam: Innovation to adapt to the Industrial Revolution 4.0
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Bank cooperation – Fintech:

In order to improve operational efficiency and customer experience, a number of Vietnam banks have been beginning the process of transforming to a digital bank; deploying innovative banking services, such as, VPbank has application of digital bank Timo, Vietcombank has Digital Lab trading space, Vietinbank has new generation-high performance Corebank, integrated modern multi-service and enterprise data warehouse (EDW), MB has ChatBot virtual assistant application for 24/7 customer service on social network sites; …

An achievement of IR 4.0 is that many digital banks will appear. This is a business model, banking governance and management bases on a digital basis, which potentially assist many banks to adapt well and develop sustainably in a digital era. It will be greatly benefitials, namely increasing revenue, reducing costs, improving operational efficiency, enhancing customers’ engagement, and directly profiting to individual customers and businesses using banking services.

Banks in Vietnam have actively strengthened cooperation with Fintech organizations providing payment intermediary services licensed by the State Bank to take advantage of the lean business model, towards customer experience and innovation. Fintech’s innovation combines with a strong risk management framework and a large customer database of banks will create a synergied strength in service provision. This creates a new development of the banking and financial industry in Vietnam, bringing practical benefits, reducing costs, increasing utilities for customers, contributing to effectively universalizing financial areas in rural and remote areas. Customers can perform daily retail payment transactions such as buying movie tickets, paying taxis, paying telecom-electricity-tuition fees, transfering small amount of money to other banks, and so on from their smart phones without going to branches or banking counters.

Boosting digitialisation, making Vietnam a powerful nation in cyber security:

The Minister of Information and Communications of Vietnam, Nguyen Manh Hung, spoke at the International Security Conference (Vietnam Security Summit 2019): “In 2019, Vietnam will declare a digitialisation strategy to transform the country to a digital economy and a digital society”.

He said: “Cyber security is a basic condition, a vital factor to successfully carry out the transition of countries. Our prosperity depends on the Internet, but the Internet may not be safe. Making Internet a safer place is making the country more prosperous. Cyberspace is the future of the world. A country with powerful and safe network security in virtual world is like a country with powerful army in the real world.”

The Minister said that Vietnam can become a cyber security powers if it makes a good use from one of the top IT human resources in the world, who carrying the country aspirations and a mighty big dreams.

Welcoming the 5G technology:

5G is one of the breakthrough points for Vietnam to approach the Industrial Revolution 4.0. Vietnam has implemented the 5G network test after only 3 months being licensed. Currently, Vietnam has 2 test licensed network providers, which are Viettel and MobiFone.

On May 10th 2019, Viettel has successfully connected 5G mobile network. Accordingly, the network connection speed with the terminal is recorded to reach 1.5 – 1.7Gbps (equivalent to commercial optical fiber caple), and is expected to be commercialized by 2020.

The goal of 5G network testing phase are: (1) coverage area; (2) capacity; (3) maximum speed; (4) compatibility with modern infrastructure. Previously, the Minister of Information and Communications of Vietnam, Nguyen Manh Hung, once affirmed: “5G is an opportunity for Vietnam to change the ranking in the world”.

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Vietnam: Innovation to adapt to the Industrial Revolution 4.0
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With the population size currently ranks 13th in the world and is expected to reach 100 million by 2025, the rate of using internet-connected smartphones in 2017 is up to 55 %, higher than the world average of 44%, Vietnam is considered as one of the top countries with advantages for rapid development and modernization, maximizing the achievements of the Industry Revolution (IR) 4.0.
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The Policy Times