Utilising digital transformation to boost labour output

DNHN - Without vigorously advocating for digital transformation, fostering the growth of the digital economy, and establishing employment prospects within the digital milieu, Vietnam's objective of augmenting labour productivity will deteriorate

By 2024, the National Assembly intends for labour productivity to have increased by between 4.8% and 5.3%. According to Ms Nguyen Thi Thanh Mai, Deputy Director of the Department of Population and Labour Statistics (General Statistics Office), the promotion of digital transformation, the development of the digital economy, and the creation of jobs in the digital environment are essential for achieving this objective. Additionally, Ms Mai emphasised that Vietnam will fall behind other nations in the region in terms of labour productivity if these measures are not implemented.

The General Statistics Office has calculated the digital economy's contribution to the gross domestic product. The Organisation for Economic Cooperation and Development (OECD) predicts that this proportion will reach 12.6% in 2022. Furthermore, the Ministry of Information and Communications projects that by June 2023, this proportion will have increased by 15.2%. Ms Mai explained that this discrepancy arises from the fact that countries have distinct conceptions of the digital economy, which causes calculation inconsistencies.

By the Resolution of the 13th Party Congress, which aims to increase the proportion of the digital economy to 20% of GDP by 2025 and 30% of GDP by 2030, Ms Mai acknowledged that while there are numerous definitions of the digital economy, The General Statistics Office primarily employs the OECD concept, which is utilised by many nations.

Ms. Mai elaborated that the digital economy encompasses the narrow, broad, and core digital economies, as well as the digital society. These groups consist of sectors that use information technology and digital data extensively. She further underscored that the promotion of digital transformation and digital economic development is equally as significant as the proportion of the digital economy.

Ms. Mai emphasises the significance of individuals in the process of digital transformation. About the impending ageing of Vietnam's population from 2035 to 2037, she cautioned against adverse consequences that may ensue if employees lack the requisite knowledge and competencies to operate effectively in a digital setting.

The success of digital transformation, according to Ms Mai, depends not only on technological advancements but also on human readiness.

"Although the digital economy, digital transformation, and digital society rely more and more on information technology, artificial intelligence, and big data, people remain the focal point and determining factor; without them, no matter how much technology they employ, Regardless of technological advancement or artificial intelligence development, labour productivity and efficiency cannot be increased.

Due to the demographic transition, Vietnam's population is undergoing significant shifts in the distribution of ages, similar to that of many other nations. Vietnam is projected to experience a phase of population ageing between 2035 and 2037. Ms Mai asserts that if individuals lack the necessary knowledge and skills to operate effectively in a rapidly evolving digital environment, there will be a severe labour shortage upon the country's entry into an ageing population. Such a shortage would have profoundly detrimental consequences for economic and social stability and development.

Kieu Diem