Digitizing government goes far beyond merely putting government services online or converting paper documents into PDFs. It encompasses a comprehensive effort to rethink and redesign governance operations in a digital context…

Global Trends in E-Government Development

When considering technological innovation leaders, Silicon Valley often comes to mind—a hub renowned for its pivotal role in shaping the global digital landscape. Home to industry giants such as Tesla, Apple, Google, Facebook, Palantir, and YouTube, it has become synonymous with the digital revolution that has redefined our world over the last three decades. Remarkably, many of these transformative companies did not exist 20 years ago, and the innovations they offer today would have seemed futuristic just 30 years ago at the end of the Cold War.

This example underscores the transformative power of digital technology in driving societal development at an unprecedented pace. As the global digital transformation accelerates, numerous countries have embarked on national digitization strategies to remain competitive in the digital era.

While Vietnam has only recently begun its digital transformation journey, many nations have already implemented concrete strategies and initiatives with a strong commitment to embracing the digital age.

Leading Nations in Digital Government

Denmark and Estonia stand out as global leaders in e-government, with 100% digitalized public services utilized by over 90% of their populations.

In Asia, South Korea and Singapore have also successfully implemented digital government models. In Singapore, for instance, a business can be registered online in just 15 minutes, and customs clearance times have been significantly reduced. Known for its transparency and minimal corruption, Singapore sets a global benchmark in e-government.

Other countries excelling in digital governance include Iceland, Saudi Arabia, the United Kingdom, Australia, Finland, and the Netherlands, each demonstrating exceptional efforts in advancing government digitization.

What are the concepts of National Digital Transformation, Government Digitization, Digital Government, and E-Government? How do these concepts differ from one another?

Clarifying Key Concepts

1. National Digital Transformation

• Definition:
  – The process of leveraging digital technology and data to transform national governance, management models, and service delivery systems, aiming to enhance productivity, improve quality of life, and foster sustainable economic growth.
  – National Digital Transformation encompasses three main pillars: Digital Government, Digital Economy, and Digital Society.

• Objectives: 
  – Digitize all aspects of life, from public services to economic and social sectors.
  – Develop an economy based on digital technology and digital data.

2. Government Digitization

• Definition: 
  – Government digitization is the process of transforming data, documents, and processes from physical or traditional formats into digital ones. This serves as the foundational step toward building e-Government and Digital Government.
  – The focus lies on digitizing documents (converting paper-based records into electronic formats) and internal operational processes (automation).

• Objectives:
  – Enhancing the efficiency of management and operations within government agencies.
  – Establishing a foundation for the development of digital systems.

3. E-Government

• Definition: 
  – E-Government involves the application of information and communication technology (ICT) to deliver public services online, enabling citizens and businesses to easily access government services and information.
  – This encompasses online public service portals, electronic document management systems, and technology platforms designed to enhance the efficiency of communication between the government and its citizens.

• Objectives:
  – Enhancing transparency, accountability, and operational efficiency of the government.
  – Improving the quality of public services.

4. Digital Government

• Definition:
  – Digital government represents an advanced evolution of e-government, where digital technologies and data are comprehensively integrated into governmental operations. This model is data-driven, leveraging artificial intelligence (AI), big data, cloud computing, the Internet of Things (IoT), and blockchain technology.
  – Digital government not only provides services but also proactively predicts and responds to the needs of citizens.

• Objectives:
  – Transforming the way the country operates and is governed in a comprehensive manner.
  – Creating a data and technology ecosystem that optimally serves citizens and businesses.

The key differences between the concepts:

In summary

Digital Government is the initial step in transferring documents and processes to a digital environment.

E-Government focuses on providing online public services.

Digital Government represents a higher stage, aiming to use data and technology to optimize management and predict societal needs.

National Digital Transformation encompasses all three aspects above and extends across all sectors of the economy and society.

The Impact of COVID-19: A Catalyst for Global Digital Transformation

“For Vietnam in particular, the Covid-19 pandemic has had a negative impact on the entire political, economic, and social life, but at the same time, it has served as a driving force that has propelled Vietnam’s digital transformation forward with great momentum.”

Digital transformation and the digital economy, although discussed for quite some time, have not yet become fully familiar or easily understood by the majority of the population. The role and contribution of digital transformation and the digital economy to society and the national economy have not been clearly defined, which has been a concern for those working in information and communication technology. However, it is surprising that during the Covid-19 pandemic, digital transformation and the digital economy quickly became more accessible, easier to understand, and more widely known. Many things that people can now see, feel, and experience have made the role of the digital economy in the national economy gradually become more defined. The most obvious example is that conferences, seminars, meetings, and educational activities have all moved online. Video conferencing technology has existed for a long time, and many government agencies and businesses have equipped video conferencing systems. However, most meetings used to be offline, primarily because of the habit that people felt they needed to meet in person and have direct exchanges to reach conclusions, which would then lead to the implementation of tasks. This was not just the case in Vietnam but also in other countries, including Western nations and international organizations.

Covid-19 is viewed as a sudden crisis that disrupted people’s daily lives and business operations globally starting in early 2020. With social distancing measures in place, to ensure the integrity of operations within government, businesses, and society, all industries had to continuously update and apply digital technology to every aspect in order to adapt and thrive during that difficult period. This became the foundation driving the strong wave of digital transformation worldwide.

Clearly, while Covid-19 was a global crisis, it also presented many opportunities for digital transformation and the application of technology to optimize operations, which we should deeply acknowledge, seize, reflect on, and act upon. Digital transformation not only plays a role as a tool for governments but can also help businesses adapt, change their business models, customer strategies, and operational methods during the crisis. The digital economy is becoming a defining feature and an inevitable trend worldwide, with many countries researching, applying, and developing it. Especially under the impact of the Covid-19 pandemic, digital transformation has become a mandatory requirement for every country and business. In general, Covid-19 has changed how we view the importance of digital transformation, accelerating the process and ultimately creating tremendous value for society and humanity.

What are the challenges in the current national digital transformation efforts?

For each agency or organization, change can only begin with leadership. The biggest challenge for government agencies is the awareness and genuine commitment of their leaders, which is ultimately about whether they are willing to take action or not.

For the general public, change requires a shift in skills and habits. The immediate challenge for society is the digital skills of its citizens, followed by changes in habits and the culture of living in a digital environment.

For businesses, change involves implementing digital technology solutions, some of which are entirely new and unprecedented. The biggest challenge for businesses is the digitization of data systems, applying digital methods in management and employee training, as well as the willingness to invest in digital technologies to restructure the company.

Government Support as a Driving Force for Business Digital Transformation

Recognizing the importance of digital transformation for the nation’s development, on June 3, 2020, the Prime Minister of Vietnam issued Decision No. 749/QD-TTg approving the “National Digital Transformation Program by 2025, with a vision to 2030.” In this framework, Vietnam aims to be among the top 50 countries in terms of e-Government Development Index (EGDI).

The National Digital Transformation Program aims to achieve dual objectives: developing a digital government, digital economy, and digital society, while also fostering Vietnamese digital technology enterprises with global competitiveness.

“Digital transformation must center on the people and businesses; it must be genuine, effective, and deliver tangible benefits to the people and enterprises” — this was the message emphasized by the Prime Minister during the 2024 National Digital Transformation Day celebration.

The Prime Minister highlighted that digital transformation is an inevitable trend and a top priority for rapid and sustainable development. In particular, digital transformation helps drive new growth drivers, restructure the economy, transition to a greener and more digital growth model, simplify processes for citizens and businesses, eliminate opportunities for corruption and negative practices, reduce compliance costs, and enhance the competitiveness of products and the economy.

In line with this policy, the Vietnamese Government has also introduced projects and created a favorable legal environment to support businesses in their digital transformation efforts:

• Financial and Technological Support: The Vietnamese government has implemented various policies to help businesses, particularly small and medium-sized enterprises, access new technologies such as AI, IoT, and blockchain through training programs, preferential loans, and investment incentives.
• Online Public Service Portal: Administrative procedures have been streamlined through the government’s digitalization efforts, helping businesses reduce costs and time when applying for licenses or registering businesses.

Overall, the National Digital Transformation Program serves as an essential foundation for the sustainable development, international competitiveness, and innovation of Vietnamese enterprises. It is not only an opportunity for growth but also a decisive factor for survival and prosperity in the era of Industry 4.0.

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