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Digitizing Vietnam




Being already submerged and digested into the internet era leaves very little wonder for life without advanced technologies. My personal life is so dependent on the connection to others through devices that as soon as I open my eyes I touch my phone. But it is important to realize that it was not always like this, and that there are several countries that straggle behind the digital wave let along have access to the internet at all. It is fairly simple to dream about a digital transformation because if its positives, but involving an entire society in such a big step takes a lot of preparation. By implementing a digital initiative, the entire dynamic of a process will become broader in its change due to the seemingly unlimited range of informational sources and conventional screens that may go undetected due to its style of convenience. According to SmartBrief, one must think about the “bandwidth and saturation” for a stable and reliable enough connection, the “readiness” of the end-users to transition from their previous practices, what types of “devices/platform” will be given to support the essentials and the demand for connection, and overall the actual “implementation” which requires a clear execution (change-management) plan in place and communicated as far in advance to as many stakeholders so everyone knows what to expect and when changes will happen. “While it is rare that everything goes according to plan, front-loaded communication and continuous updates go a long way toward buy-in and support even when things are delayed.”

Vietnam is entering a very exciting time and digitization is an opportunity for the country to leapfrog into becoming an industrialized nation very soon. They must decide on where to start their digitization journey and what to fix first before going any further. Digitization can help manufacturers with their complete value chain, starting from product design, production planning, product engineering, to product manufacturing and, finally, operational services. There are several companies like Siemens USA that are working directly with cities worldwide like Ho Chi Minh City, Hanoi, and Danang to ensure that digital technologies are integrated into planning so they deliver benefits immediately by reducing congestion, improving air quality, and increasing energy reliability.
On the other hand, there is a need to educate oneself as a part of the broader shift as the country. This is better known to Americans by the controversy underneath the Vietnam War aftermath during the '60s and '70s where past President Ho Chi Minh originally decided that the three key priorities of the new, independent government would be to fight against illiteracy as well as poverty and invaders. There's just one problem: Even after they graduate, CNET reports that students will need additional training to do more than assemble devices, says more than a dozen manufacturers and startups. Many require months, if not years, of supervision.

To help close the knowledge gap, a number of global tech giants, including Samsung and LG, have launched programs to educate their Vietnamese workers. Their readiness to invest in further development illustrates the country's appeal to outside resources. Vietnam has an allegedly stable government that's willing to give tax breaks to foreign companies. It also boasts a cheap labor force, particularly compared with China, where wages have risen with the country's improved economy. "A tech worker in Vietnam typically makes about a third as much as a Chinese employee (in 2013, a factory worker in Hanoi made $145 a month versus $466 a month in Beijing, though wages have risen since then)." Technology manufacturing has helped boost Vietnam's economy. The country's gross domestic product in the first half of 2015 grew 6.3 percent from the same period in 2014, according to Vietnam's General Statistics Office. That growth was "powered by $14.7 billion of worth of telephone and spare parts exports. That sector (largely mobile phones) accounts for about 19 percent of Vietnam's total exports, topping every other category."

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