New models are opened
Phygital Labs, a startup based in Ho Chi Minh City, has demonstrated the application of the digital economic model across various sectors, including retail, One Commune One Product (OCOP) products, and fashion. A notable example is the specialty coffee brand Le J', part of The Le's Brothers Coffee Corporation. Initially, each 200g bag of their specialty coffee was priced at VND800,000. However, after implementing identification technology that highlighted the unique story behind the farm and the Le J' coffee products, the price rose to VND1.2 million for the same package.
The digital economy in Vietnam presents numerous opportunities; however, to align with global advancements, the country must establish unified standards for digital transformation that encompass both tangible and cultural products. CEO Huy Nguyen of Phygital Labs Company emphasized the importance of fostering legal frameworks that support the experimentation and development of emerging technologies such as blockchain, digital physics, and identification systems.
Chairman Nguyen The Vinh of the Ho Chi Minh City Blockchain Association (HBA) and Director of the NinetyEight project, stated that as government agencies develop a legal framework for digital currency, the implementation of a controlled pilot mechanism (sandbox) to facilitate an exchange for these activities presents a significant opportunity. This approach aims to recognize crypto assets broadly and digital currency specifically, which could enhance investment attraction and foster the growth of Vietnam's digital economy.
According to his calculations, Vietnam's cryptocurrency transaction volume is estimated at US$800 billion annually. This figure is 4.4 times higher than the country's $180 billion stock market.
He added that this platform holds approximately 34 percent of the market share in centralized cryptocurrency exchanges (CEX), while decentralized exchanges (DEX) represent around 10 percent of the trading volume. "The $800 billion figure pertains solely to cryptocurrencies in use (coins and tokens) and does not factor in the NFT market, which consists of digital assets stored on the blockchain. The total could potentially reach $1 trillion annually including NFTs, thus benefiting Vietnam's digital economy through the transaction fees and taxes generated by this platform.
HCMC promotes deep digital transformation
Projected to reach $36 billion in 2024 and potentially $90-200 billion by 2030 as per Google's e-Conomy SEA 2024 report, Vietnam's digital economy presents significant growth opportunities. Leveraging its status as an international financial center, Ho Chi Minh City is actively driving digital transformation through supportive policies, fostering this economic expansion.
From 2020 to now, Ho Chi Minh City has focused on completing many key digital transformation tasks and solutions such as innovating thinking and unifying awareness, developing digital infrastructure, developing shared digital platforms on a city-wide scale to ensure information security and safety, promoting digital economic development in key industries and fields such as e-commerce, transportation, logistics, finance - banking, energy, tourism.
The survey conducted among 2,154 enterprises and wholesale and retail businesses reveals that 56.41 percent of the respondents are interested in receiving assistance for digital transformation. In contrast, only 3.75 percent of these units have implemented information technology in their business operations. This indicates a significant demand for digital transformation among small and medium-sized enterprises, retail stores, and business households.
Ho Chi Minh City also continues to complete the plan to build digital government by 2025, promoting the development of the digital economy with the goal of striving to contribute 22 percent of the added value of the digital economy in 2024, 25 percent in 2025 and 40 percent by 2030.
The Digital Transformation Program for Ho Chi Minh City aims to position the city among the top five regions for e-government by 2025, with the digital economy projected to contribute 25 percent to the Gross Regional Domestic Product (GRDP).
By 2030, the initiative plans to establish a comprehensive data platform for smart cities, facilitating the growth of digital governance, the digital economy, and a digital society, with data being extensively shared across the community, according to Lam Dinh Thang, Director of the Ho Chi Minh City Department of Science and Technology.
Vice Chairwoman Tran Thi Dieu Thuy of the Ho Chi Minh City People's Committee said that to achieve this objective, the city recognized digital technology as a primary and innovative catalyst for its economic growth. Consequently, advancing digital transformation—particularly for small and medium-sized enterprises—and fostering the digital economy would be essential priorities moving forward, she added.
Ho Chi Minh City provides funding, consulting, and digital transformation support to local businesses, particularly small and medium-sized enterprises, cooperatives, and household businesses. This aims to improve production and operational efficiency, as well as enhance competitiveness through digital transformation.
