National strategy for 4th Industrial Revolution

The following is full translation of the National Strategy for reference:

NATIONAL STRATEGY

ON THE FOURTH INDUSTRIAL REVOLUTION TOWARDS THE YEAR 2030
(Issued with the Decision No. 2289 / QD-TTg dated December 31, 2020 of the Prime Minister)

 

I. SITUATION AND BACKGROUND

The Fourth Industrial Revolution is making changes to socio-economic activities, opening up opportunities, but also posing many challenges for many economies. Countries around the world have been formulating and implementing different policies to actively exploit the benefits of the new technologies, promote economic development and improve competitiveness. The fourth industrial revolution is promised to bring great potential benefits to the economy such as: cutting costs, improving productivity; developing business models with very small marginal cost, creating the network effect; providing opportunities to develop new products and services; ...

The fourth industrial revolution also presents many challenges to the economy. Specifically: (i) It may pressure the job structure to change, causing unemployment among low-skilled workers, therefore leading to possible social inequality; (ii) Posing greater risks of information safety and security because socio-economic activities are carried out more on the digital platforms; (iii) Presenting economic and technological challenges for late-coming countries because new business models could create outstanding competitiveness but also nurture monopoly in the production and business operation; (iv) Pushing challenges in developing new institutions and legal regulations as the result of the emergence of new socio-economic relationships on digital platforms, such as: new types of assets, new business models, and economic activities, cross-border business. A mismatch between institutions, laws and economic practice may create conflicts or hinder development; and (v) the risk of further lag for countries that are slow to change, failing to promptly enlist the benefits of this industrial revolution.

In our country, the contribution of science, technology and innovation is still limited compared to that in many economies at the similar stage of development; and overall, the economy is not really ready for the Fourth Industrial Revolution. The economic growth does not rely much on knowledge, science and technology; the knowledge economy index is lower than the world’s average. The institutional quality is also a challenge, currently ranked at 89 in 141 economies in the World Economic Forum's 4.0 Global Competitiveness ranking (2019). In addition, cyber-security and information safety also pose disadvantaged points, ranked at a very low position (90/100) in the Report Ready for Production Future by the World Economic Forum (2018).

Realizing the benefits of the Fourth Industrial Revolution, our Party and Government have aimed to develop policies and a number of programs to actively participate in the Fourth Industrial Revolution, in which the emphasis is put on applying and developing science and technology, pushing innovation, improving the quality of the human resource. Specifically: Resolution No. 23-NQ/TW dated March 22, 2018 of the Politburo on the orientation to formulate a national industrial development policy towards the year 2030, with a vision towards the year 2045 emphasizes on “ taking the full advantage of the achievements of the 4th Industrial Revolution ”; Resolution No. 52-NQ/TW dated September 27, 2019 of the Politburo on some undertakings and policies to actively participate in the Fourth Industrial Revolution (hereinafter referred to as Resolution No. 52-NQ/TW) determines that "Active and vigorous participation in the Fourth Industrial Revolution is an objective indispensable requirement; it is a mission of special strategic importance with both urgent and long-term target of the political system and the whole society ... ". On that basis, the Government issues Resolution No. 50/NQ-CP dated April 17, 2020 promulgating the Government's Action Program to implement the Resolution No. 52-NQ/TW dated September 27, 2019 of the Politburo on some undertakings and policies to actively participate in the Fourth Industrial Revolution (hereinafter referred to as Resolution No. 50/NQ-CP); issues Decision No. 749/QD-TTg dated June 3, 2020 approving "the national digital transformation program to 2025, with a vision towards the year 2030" (hereinafter referred to as Decision No. 749 / QD-TTg).    

Implementing the assigned tasks in the Resolution No. 52-NQ/TW, the Prime Minister promulgates the National Strategy on the Fourth Industrial Revolution towards the year 2030 with following specific views, objectives and assignments:

II. PERSPECTIVES, GOALS

1. Perspectives

- Timely catch up and effectively utilize the opportunities of the Fourth Industrial Revolution to improve labour productivity, efficiency and competitiveness of the economy and strengthen the potentials of the national defence and security through research, transfer and vigorous application of advanced achievements of the Fourth Industrial Revolution to different aspects of the socio-economic life. At the same time, proactively prevent and respond to negative impacts, ensure national defence, security, safety, social justice and sustainable development.

- Implement the Fourth Industrial Revolution on the basis of: (i) reforming and perfecting economic institutions and ensuring the network safety and security are the premise; (ii) promoting research and development and vigorous application of technology in enterprises and public management, building a digital Government are the breakthrough; (iii) education and training of high-quality workforce, research and mastering priority technologies to actively participate in the Fourth Industrial Revolution are the core factor.

- Transfer management thinking to an open approach, facilitate and promote innovation; take full advantage of resources, ensuring proactive participation in the Fourth Industrial Revolution.

2. Objectives

The National Strategy on the Fourth Industrial Revolution towards the year 2030 aims to realize the goals set out in Resolution No. 52-NQ/TW, as followed:

a) General objectives

Proactively take advantage of effective opportunities of the Fourth Industrial Revolution; basically master and widely apply new technologies in socio-economic fields; gradually develop new technologies in order to promote the process of renewing the growth model, restructuring the economy while implementing strategic breakthroughs and national modernization; strongly develop the digital economy; foster rapid and sustainable development based on science and technology, innovation and high quality human resource; improve the quality of life, well-being and health of the people; firmly ensure the national defence and security, protect the ecological environment; improve the efficiency of international integration and closely link the process of the Fourth Industrial Revolution with digital security protection.

b) Specific objectives

Targets by 2025:

- Maintaining the rank of the three leading ASEAN countries in the Global Innovation ranking (GII) of the World Intellectual Property Organization (WIPO);

- Being listed in the group of 40 leading countries in the Global Network Safety and Security Index of the International Telecommunication Union (ITU);

- Being listed in the group of four leading ASEAN countries in the United Nations E-Government Index;

- Digital economy accounting for about 20% of GDP; labor productivity increasing 7%/year on average;

- Broadband network infrastructure covering over 80% households, 100% villages; popularizing 4G/5G mobile network service and smart phones; 80% of the population using the internet; providing 80% of level 4 online public services on different means of access, including mobile devices; over 50% of the population using electronic payment accounts;

- Developing at least 3 smart cities in 3 key economic regions (North, Central, and South) and deploying 5G networks in these cities.

Targets by 2030:

- Maintaining the rank of 40 leading countries in the world in the WIPO's Global Innovation (GII);

- Being listed in the group of 30 leading countries in the ITU's Global Network Safety and Security Index;

- Being listed in the group of top 50 countries in the United Nations E-Government index;

- Digital economy accounting for about 30% of GDP; labor productivity increasing by 7.5%/year on average;

- Universalizing the broadband Internet services, 5G mobile network services;

- Completing the construction of the digital Government;

- Developing a number of smart urban chains in key economic regions in the North, the South and the Central; gradually connecting with smart urban networks in the region and the world.

III. STRATEGIC UNDERTAKINGS TO PARTICIPATE IN THE FOURTH INDUSTRIAL REVOLUTION

Fully complying the direction, objectives, guidelines and policies of Resolution No. 52-NQ/TW; following the objectives, assignments and solutions set out in Resolution No. 50/NQ-CP and Decision No. 749/QD-TTg; and the following key undertakings:    

1. Improving the institutional quality and policy making capacity

a) Developing new institutions for new technologies, new business models and practices; implementing the digital Government and network safety

- Developing and improving institutions for industries with new business models (such as: e-commerce, sharing economy, financial technology, digital banking,...) to secure space for development and encourage innovation, creativity and ensure the appropriate risk level of each industry, business and business activity. Applying a regulatory sandbox for new business lines to create a legal framework for innovative products and services.

- Reviewing and improving regulations towards encouraging domestic digital technology enterprises to invest in development and research to master the core technologies to actively participate in the Fourth Industrial Revolution (such as tax incentives; flexible use of financial tools as a lever for research, development and technological application;...).

- Developing the legal framework on the prevention and control of non-traditional and high-tech crimes.

b) Implementing strong measures to improve the business environment and encourage innovation in the private sector

- Strictly and fully implementing the instructions of the Government and the Prime Minister on improving the business environment and reducing costs for businesses as stated in the Resolution No. 19/NQ-CP (for the 2014 – 2018 period) and Resolution No. 02/NQ-CP (for the 2019 – 2020 period) on improving business environment; Resolution No. 35/NQ-CP (2016) on business support; Directive No. 20/CT-TTg (2017) on reorganizing inspection and examination of enterprises; Resolution No. 139 / NQ-CP (2018) on cutting costs for businesses.          

- Reviewing and amending regulations for innovative start-up investment towards facilitating capital contribution, share purchase, merger and acquisition of technology enterprises.

2. Developing infrastructure, building and exploiting database

- Developing high-speed internet, securing digital infrastructure to meet the connection and big data processing demands.

- Developing and completing the national database as specified in the Decision No. 714/QD-TTg dated May 22, 2015 and other necessary databases for management and business (such as database on driving, public investment projects,...).  

- Building and upgrading technical systems to raise the capacity to ensure the network safety and security.

- Building and upgrading the physical infrastructure, first of all, energy and transport infrastructure, to meet the requirements of applying priority technology to actively participate in the fourth industrial revolution. Encouraging the private investment to develop and operate public infrastructure.

3. Human resource development

- Expanding and improving the quality of undergraduate, postgraduate and vocational training programs, especially in industries serving the Fourth Industrial Revolution.

- Renovating and improving the quality of universal education towards increasing practical activities, especially in science, technology, engineering, and mathematics (STEM) education. Developing the internship programs in innovation support centres and start-ups.

- Strengthening connection for scientific research, training and production and business.

4. Building an e-Government towards digital Government

- Strongly applying digital technology into public management in all fields; investing in and applying information technology in public management (GovTech) and public services. Building a real-time socio-economic information system to serve the Government's direction and orders.

- Building a shared socio-economic information system within the Government; digitalizing, connecting and sharing management data among ministries, agencies and localities to improve the quality of public management activities, developing data resource for research and business.

5. Developing and enhancing the national innovation capacity

- Creating a national innovation system which puts business in the center and develops higher education institutions and research institutes as research subjects.

- Developing and proposing special and breakthrough mechanisms and policies for the construction and operation of innovation centres. Encouraging higher education institutions, domestic and foreign enterprises and organizations to set up innovation centres in Viet Nam.

6. Investing, researching and developing a number of prioritized technologies to actively participate in the Fourth Industrial Revolution such as robot technology, advanced materials, renewable energy, artificial intelligence, healthcare technology, internet of things, big data, block-chain...

7. Expanding international cooperation and integration in science and technology, especially in priority technologies in order to actively participate in the Fourth Industrial Revolution.

IV. SOLUTIONS AND ASSIGNMENTS

1. Ministry of Planning and Investment

- Monitor, evaluate and propose effective legal regulations on enterprises, investment and business in the Law on Small and Medium Enterprises (2017), Law on Enterprises (2020), Law on Investment (2020), Law on Investment under the Public-Private Partnership (PPP) framework (2020).

- Research and propose policies and solutions to promote activities of the National Innovation Centre in order to effectively support and develop the start-up ecosystem and innovation. To assume the prime responsibility for, and coordinate with concerned ministries and agencies in, evaluating and summing up experiences, and proposing to the Government investment solutions and expanding the network of innovation centres.

- Allocate the Small and Medium Enterprise Support Fund to increase the rate of supporting capital for enterprises applying priority technology to actively participate in the Fourth Industrial Revolution.

2. Ministry of Science and Technology

- Adjust the State budget allocation for science and technology managed by the Ministry towards concentrating resources on research, development and application of priority technologies to actively participate in the Fourth Industrial Revolution. Prioritize resources for implementing a number of national key research programs on the Fourth Industrial Revolution.

- Take the lead, and coordinate with concerned ministries and agencies in studying, formulating and promulgating a system of national standards and technical regulations for products and services based on international good practices in order to enter the fourth industrial revolution; cooperate with enterprises to ensure that such standards are in line with reality and create favourable conditions for enterprises to develop new products and services.

- Build a network of consultants on priority technologies to proactively participate in the Fourth Industrial Revolution to support enterprises in upgrading and transforming technologies.

- Review and propose amendments to intellectual property laws towards simplifying processes and procedures, in line with international practices.

3. Ministry of Information and Communications

- Review and complete legal framework in information and communication to ensure that digital infrastructure is up to date and ready for other industries to implement the Fourth Industrial Revolution.

- Develop a safe and modern digital infrastructure to meet the needs of industries in the digital transformation process, successfully implementing the Fourth Industrial Revolution.

- Focus on improving capacity to ensure the network information security, especially information security of telecommunications infrastructure, IoT equipment, and protection of personal information; promote the nationwide deployment of cyber-information security monitoring centres.

- Study and propose the open data policy to the Government; provide guidance for public management agencies to build data sharing solutions; develop a shared platform for integrating, connecting and exchanging national data for better usage and exploitation; facilitate the data commercialization.

- Carry out research, review, amend, supplement or propose amendments to standards, technical regulations, economic and technical norms on the application and development of core digital technologies of the Fourth Industrial Revolution.

- Carry out communication, raise awareness, introduce information of the Strategy, skills and responsibilities on ensuring the network safety and security among state agencies and organizations and the whole society.

4. Ministry of Education and Training

- Develop training programs, develop human resources, focusing on key training branches of the Fourth Industrial Revolution.

- Support scientific research, technology transfer and innovation for higher education institutions in order to develop priority technology products to actively participate in the Fourth Industrial Revolution.

5. Ministry of Labour - Invalids and Social Affairs

- Organize regular surveys and assessments on the workers' skills in line with the requirements of the Fourth Industrial Revolution and propose solutions and policies to improve the skills of the workforce.

- Adjust vocational training programs towards strengthening training in information technology skills, skills in applying information technology into professional activities; launch vocational training programs on priority technologies to actively participate in the Fourth Industrial Revolution.

- Develop re-training programs for workers to transition to jobs requiring new skills of the Fourth Industrial Revolution.

- Review and adjust regulations on the work permits for foreign workers with high qualifications to facilitate their work in priority technologies at innovation centres, hi-tech parks, information technology parks, and software parks of Viet Nam in line with international good practices to actively participate in the Fourth Industrial Revolution.

6. Ministry of Finance

- Take the lead and coordinate with the State Bank of Viet Nam to develop a pilot institutional framework for financial technology services (Fintech) in line with international good practices, creating favourable conditions for businesses to develop new financial digital services.

- Develop legal regulations to allow securities trading organizations to apply electronic customer identification solutions (eKYC).

- Lead and build up an institutional framework for financial technology services (Fintech) together with policies to encourage innovative start-up business activities and transactions.

- Coordinate with the State Bank of Viet Nam to strengthen supervision of capital sources, capital flow through forms of digital currencies and digital assets; Raise new capital such as issuing virtual currency and crypto assets, electronic money in financial markets.

7. State Bank of Viet Nam

- Take the lead, and coordinate with the Ministry of Finance and related ministries and agencies in implementing the national plan for digital payment infrastructure development towards integration, unity and common use. Complete the mechanisms and policies to promote non-cash payments. Research and develop a plan to manage and supervise cross-border online payments.

- Create favourable conditions for credit institutions to carry out digital transformation, apply priority technologies to actively participate in the Fourth Industrial Revolution; develop a digital banking model. Develop a controlled regulatory pilot framework for financial technology (Fintech) operations in the banking sector.

- Encourage credit institutions to connect and share data with state management agencies and service providers through the Open Application Programming Interface (Open API) to create new products and services and improve banking service quality.

- Introduce, amend or propose to related authorities new or amended legal regulations allowing credit institutions to apply electronic customer identification solutions (eKYC); carry out research and pilot activitities on big data (Big Data), artificial intelligence (AI), robot process automation (Robotic Process Automation) and Block-chain Technology in banking operations.

8. Ministry of Justice

- Conduct research and improve the legal framework on properties, contracts, property rights and other related issues of the Fourth Industrial Revolution.

- Put forward solutions to accelerate the application of technologies of the Fourth Industrial Revolution in forecasting, analysing policies, drafting, promulgating, organizing, monitoring law enforcement, ensuring timely, accurate information processing, policy measures in response to rapid socio-economic changes.

9. Ministry of Industry and Trade

- Develop related targets and carry out tasks to implement the Politburo's Resolution No. 23-NQ/TW dated March 22, 2018 on the orientation to formulate national industrial development policies towards the year 2030 with vision towards 2045, to take the full advantage of the achievements of the Fourth Industrial Revolution.

- Complete and submit the schemes and programs on developing high-tech human resources for Industry 4.0 for approval; Pilot the advanced practice training models.

- Undertake research and develop projects to promote Vietnamese businesses to participate in e-commerce systems in the world.

- Develop a national master program on e-commerce development for the 2021 – 2025 period.

10. Ministry of Agriculture and Rural Development

- Establish policies to encourage research into the application and development of digital technologies, digital transformation, smart management in agriculture; request technology enterprises to conduct research in smart agricultural solutions, manage agricultural supply chains, preserve and process agricultural products.

- Develop projects to promote the agricultural sector to participate in e-commerce; Priority is given to handicrafts and packaged food products.

11. Ministry of Natural Resources and Environment

- Develop and implement a digital resource master strategy on natural resources and environment towards the year 2030.

- Conduct research, develop and complete the legal framework to implement new models of controlling environmental pollution, adapting to climate change and sea level rise.

- Develop and complete mechanisms, policies to collect, create and comprehensively manage the digital source on the environment and natural resources, serving the goal of managing "development space” of the country.

12. Ministry of Foreign Affairs

- Coordinate with the Ministry of Science and Technology and related ministries and agencies in undertaking research and providing information on development trends, policies and experiences of countries participating in the Fourth Industrial Revolution.

- Coordinate with the Ministry of Science and Technology to refine mechanisms and policies to mobilize Vietnamese and international intellectuals and scientists abroad to promote innovation and development of science and technology.

13. Ministry of Construction

- Study and apply satellite technology and priority technologies to actively participate in the Fourth Industrial Revolution, build a digital database to serve the management of construction planning, urban planning and architecture. Guide local governments to build digital databases of technical and social infrastructure projects in urban management.

- Effectively implement the "Smart sustainable urban development strategy in Viet Nam in the 2018 – 2025 period, with a vision towards the year 2030".

14. Ministry of Public Security

- Take the lead in effective implementation of the National Cyber ​​Security Strategy.

- Launch and operate the National Data Centre. Raise awareness of organizations, businesses and people on personal data protection and data management.

- Work closely with international organizations to monitor trans-national cybercrimes. Form network security alliances.

- Conduct research and propose mechanisms and policies to develop the network security industry; to launch national security command centres for regions. To take the lead, and coordinate with ministries and construction agencies in submitting to the Prime Minister the "Building Viet Nam's cyber-security industry" strategy and the project on building national security command centres for regions in two phases of the 2020 - 2025 and 2025 – 2030 periods.

15. Ministry of Transport

Apply priority technologies to proactively participate in the Fourth Industrial Revolution in project formulation and construction quality management; in the management, exploitation and maintenance of the transport infrastructure systems and in the traffic operation and organization.

16. Ministry of Health

- Lead the development of smart health care and disease prevention systems, including: development of universal electronic health records, application of artificial intelligence and smart technologies in disease prevention, environment, food safety, nutrition and HIV/AIDS prevention, pharmaceutical research and production.

- Request medical examination and treatment establishments to implement intelligent medical examination and treatment systems, including: replacing medical papers by medical records, applying artificial intelligence to support clinical decision-making in such professional technologies as radiology, cardiology, respiration, osteoarthritis, cancer, obstetrics and paediatrics.

- Build a smart healthcare management platform, including: deploying digital administration, launching level 4 online public services, establishing a healthcare ecosystem with advanced technologies. Request 100% of medical examination and treatment establishments to completely transfer to electronic medical records, and promote informational exchange among medical examination and treatment establishments.

- Proactively approach, transfer and apply priority technologies to actively participate in the Fourth Industrial Revolution, especially in the field of biotechnology.

17. Ministry of Home Affairs

Provide instructions and training for civil servants and public employees with knowledge, qualifications, capabilities and experience to meet the requirements of the Fourth Industrial Revolution.

18. Commission for the Management of State Capital at Enterprises

- Encourage and support enterprises directly under the Commission to develop investment plans for priority technology transfer to actively participate in the Fourth Industrial Revolution in accordance with specific sectors and fields.

- Encourage and support enterprises with technological and financial capacities to develop priority technology transfer, provide training and consulting services for small and medium enterprises to proactively participate in the Fourth Industrial Revolution; develop linkages with each other and with private technology enterprises to form specialized and interdisciplinary cooperation networks.

19. The Viet Nam Chamber of Commerce and Industry, and local and central business associations

Introduce the information and knowledge of the Strategy to the business community. Support businesses to access information about the Fourth Industrial Revolution as well as supporting policies and programs to proactively implement the digital transformation and participate in the Fourth Industrial Revolution.

20. People's Committees of provinces and national cities

- Master and spead the content and essence of the Strategy to local units and businesses.

- Develop priority programs to support businesses in training and getting consultations on technology transfer to actively participate in the Fourth Industrial Revolution.

V. IMPLEMENTATION AND OPERATION

1. Coordinate, monitor and evaluate the implementation and performance:

a) The Ministry of Planning and Investment is the focal point to monitor and evaluate the implementation and performance in carrying out the Strategy. Submit to the Prime Minister by December 20 the annual reports on the implementation of the Strategy by ministries, agencies and local governments.

b) The Ministry of Information and Communications shall take the lead, and coordinate with ministries and agencies in studying, proposing resolutions to consolidate, supplement and adjust functions and tasks of the National E-Government Committee to undertake additional tasks and functions of advising, monitoring and coordinating the implementation of the relevant assignments of the National Strategy on the Fourth Industrial Revolution.

c) The Ministry of Science and Technology shall take the lead, and coordinate with other ministries and agencies in studying and proposing resolutions to consolidate, supplement and adjust functions and tasks of the National Science and Technology Policy Council to ensure necessary additional functions and tasks on advising, monitoring and coordinating the implementation of relevant assignments of the National Strategy on the Fourth Industrial Revolution.

2. Ministries, Government-attached agencies and provincial People's Committees:

- Prioritize budgets for activities to implement the Strategy, focusing on investment in science and technology, supporting technology transfer and development in enterprises; ensure the targets set for research and development spending in the Strategy.

- Implement the Strategy within its authority, integrating assignments into plans and schemes in the sectors and fields under its authority; send annual report (by December 10) on the implementation of the Strategy to the Ministry of Planning and Investment and the Government Office to generate the comprehensive report to the Government and the Prime Minister./.

Translated by Kim Phuc