Assoc. Prof. Dr. Pham Khanh Nam and the research team from the College of Economics, Law and Government, University of Economics Ho Chi Minh City (UEH) have shared their perspectives.
A six-pillar model
The traditional approach to measuring the digital economy consists of three layers, being the digital core, digital platforms in a narrow sense and the digitized economy. While this framework is convenient for calculating indicators and the contribution of the digital economy, it offers limited support for planning orientation or investment prioritization.
To address this gap, the research team proposes a new six-pillar model aimed at clearly identifying the current state and components of the digital economy, assessing strengths and weaknesses, and determining investment needs for each pillar.
As for the first pillar, data collection and digitization from both the physical world and cyberspace are considered the “core” of the economy. Resolution No. 57-NQ/TW also identifies data as the most critical pillar for digital economy development. Data originates from real-world activities via sensors, cameras, measurement systems and so on and from digital platforms such as e-commerce, social networks and others.
To meet requirements in terms of data scale and quality, Ho Chi Minh City needs to build a citywide sensor and Internet of Things (IoT) network, along with systems for data collection, management and standardization. The city is currently implementing the Smart City Project, developing shared data repositories and an open data ecosystem. However, data remains fragmented, legal frameworks for data protection and governance are incomplete, and operational capacity is still limited.
From a policy perspective, two key requirements for this pillar are personal data protection and cybersecurity, which are essential for building “digital trust”, a condition under which citizens and businesses are willing to share and provide data. In addition, data-sharing regulations must be established to ensure data is used safely and effectively.
The second pillar features network infrastructure representing the “circulatory system” of the digital economy, encompassing device connectivity and data transmission networks. It includes not only 5G, 6G, and international connections, but more importantly, internal networks linking city centers, industrial zones and households, ensuring continuous and stable data transmission. Developing this infrastructure requires massive investment and close coordination at the national level, as well as the participation of major telecommunications enterprises.
The third pillar is identified as computing infrastructure and data centers, providing the capacity to store, process and analyze data across the entire economy. This pillar demands substantial investment and a stable energy supply. Even Singapore, with approximately 70 data centers, has had to adjust its strategy due to power constraints, shifting toward green energy solutions. Although Ho Chi Minh City has a dynamic and growing energy ecosystem, it still faces major challenges, including high land costs, unstable power supply for large-scale data centers and a shortage of specialized experts.
The fourth pillar consists of shared platforms that support digital applications, ranging from basic programming tools to collaboration and rapid development platforms, backed by significant investments in land, capital, skilled labor, and applicable international experience.
For this pillar to grow in a robust and sustainable manner, the formation of a high-quality workforce and a large, dynamic software development community is indispensable, as demonstrated by leading global technology ecosystems such as Silicon Valley (the U.S.) and Bangalore (India).
A key requirement in designing a digital economy framework is the operation of the index system in real time, allowing for prompt assessment of strengths and weaknesses and facilitating early policy intervention and effective governance.
The fifth pillar focuses on artificial intelligence (AI) models, which are decision-making systems of the digital economy. While investment in large-scale AI models faces many constraints, a more feasible strategy, similar to Japan’s approach, is to focus on developing applied AI for robotics, automation, and industrial production, sectors that align well with the needs and comparative advantages of the economy.
The sixth pillar refers to digital economy applications, including ride-hailing services, accommodation-sharing platforms, e-commerce and digital systems facilitating interaction among businesses, consumers, and public authorities. Singapore’s Smart Nation initiative serves as a benchmark for the comprehensive integration of digital technologies into everyday life.
Leveraging strengths to seize new opportunities
By leveraging its strengths and expanding opportunities, Ho Chi Minh City can concentrate on strengthening the first pillar as a strategic priority. The city’s extensive data resources from social and administrative systems offer a significant advantage for digital economy development. Effective data governance will both protect state interests and unlock innovation potential for businesses.
Although supported by a large university system, the city’s workforce requires further development in digital infrastructure operations and innovation-oriented product design. Addressing these gaps through training and talent-attraction policies is essential.
In terms of digital applications, the city’s advantages are even more pronounced. A large market, diverse demand and strong purchasing power create ideal conditions for the development of new digital products and services. With supportive policies, technology firms can take the lead in innovation across multiple sectors.
