Nguyen Phu Thien
Deputy Director General, National Digital Transformation Authority Ministry of Information and Communications (Vietnam)

Nguyen Phu Thien explained that Vietnam is working hard to incorporate science and technology into the country’s development, especially digital technology. “We are tackling a variety of digital transformation (DX) projects, with the aim of building a digital government, digital economy, and digital society,” he stated.

Thien defined “digital government” as the use of digital technology to provide people with superior administrative services. Similarly, he explained “digital economy” as using digital technology to support the productive activities of companies. On the question of “digital society,” Thien said: “By offering digital services in healthcare, education, transportation, and other fields, we hope to improve the quality of life and establish environments that enable people to live safely and sustainably.”

To make DX successful, “governments, residents, and businesses all need to do their part,” Thien pointed out. “Since there will be more and more borderless social activities, other countries need to cooperate too. That’s why I feel very grateful for today’s forum and the opportunity it provides us.”

Thien reported that October 10 has been designated “National Digital Transformation Day” in Vietnam. “During October, the country is focusing on DX even more than usual. This forum is part of this initiative. It serves as a place where people from Vietnam, Japan, and other countries can share their DX experiences. It’s also a chance to propose partnerships and cooperation. We hope that this forum will grow and produce many fruitful outcomes.”

Vietnam is the country where big Japanese companies are most keen to expand their business

Takio Yamada
Japanese Ambassador to Vietnam

The next speaker, Japanese Ambassador Takio Yamada, said: “On this 50th anniversary of the establishment of diplomatic ties between Japan and Vietnam, relations between the two countries seem to be better in every way; politically, economically, and culturally.”

On the economic front, Yamada mentioned that Japan, and other countries, are now watching Vietnam closely in light of the recent uncertainty and instability of global supply chains. In a recent survey by the Japan External Trade Organization (JETRO), Vietnam ranked second only to the United States as the country where Japanese companies most wanted to expand their business. As Yamada noted, however, Vietnam ranked first among big companies. He added that many Japanese tech companies, such as KDDI, NEC, and Fujitsu, as well as consulting firm ABeam Consulting, and general trading company Sojitz, are already doing business in Vietnam.

Yamada reported that FPT Software, a major tech company in Vietnam, has built a university for training digital technology professionals. He also revealed that the company is leveraging its strength in human resources to expand its business internationally to Japan. It has even joined Keidanren (Japan Business Federation).

Yamada went on to describe the Vietnam-Japan University, which opened in 2016 under the Vietnam National University, Hanoi, as “a symbolic initiative of Vietnam-Japan friendship.” The new university currently offer four undergraduate programs and eight master’s programs, with two new undergraduate programs and a doctoral program set to be added in 2024.

The Bachelor Program in Computer Science and Engineering, now in its second year, has proven very popular. Yamada commented that the first graduates will be ready to hit the workforce in two years. “We look forward to seeing them actively engaged in digital transformation, and serving as a bridge between Japan and Vietnam,” he said.

Next, the ambassador outlined the “Japan-Vietnam Joint Initiative,” a framework for public-private partnerships aimed at improving the environment for investment in Vietnam. Expressing his outlook on this initiative, launched precisely 20 years ago, Yamada said: “We are reviewing our efforts in accordance with the demands and social challenges of a new era, to actively incorporate digital technology, a field in which both Japan and Vietnam have great potential.”

Noting that 2023 marks the 50th year of ASEAN-Japan friendship and cooperation, Yamada concluded: “ASEAN (Association of Southeast Asian Nations) is now a partner in innovation for Japan, with Vietnam increasingly viewed as ASEAN’s digital hub. That is why Japan is putting more importance than ever on collaboration with Vietnam.”

Our goal should be a “data-driven society”」

Yasuhiko Taniwaki
Executive Vice President Internet Initiative Japan Inc.

Yasuhiko Taniwaki of IIJ described digital transformation (DX) as “leaving behind traditional business models and developing new businesses.” When working on DX, it is therefore essential to use digital technology to change business models and generate business innovations, rather than to view it merely as a way of cutting costs.

As an example of utilizing DX to change business models, Taniwaki explained that a business previously focused mostly on product sales can make use of data collected through sales interactions to stay in contact with customers and provide them with ongoing, personalized services.

He also presented a vision of the kind of “data-driven society” that the promotion of DX should aim for. A data-driven society is characterized by a rich circulation of data between the real world and cyberspace.

More specifically, a diversity of data about the real world can be acquired through IoT (Internet of Things) and stored in cyberspace. These data can then be analyzed using AI to identify real-world problems and create new solutions for them. Finally, after implementing the developed solutions, data can be collected again through IoT for analysis, to determine if the problem has really been solved.

As another example of an initiative that embodies a data-driven society, Taniwaki outlined a case involving Honda. The company has been collecting vehicle data on driving paths every three seconds to determine the specific locations on the road where emergency braking often takes place. The analysis of the data has led to a 70% reduction in the number of accidents caused by emergency braking.

He also presented a case study involving IIJ. The company offers systems for automating the management of water levels and temperatures in rice fields to farmers. Data from sensors in rice fields are uploaded to the cloud and used for opening and closing water valves in the fields. Taniwaki noted: “These systems are intended to support Japan’s aging rice farmers, but we expect them to be useful to farmers in ASEAN countries too.”

Summing up, Taniwaki stated that “IIJ is helping to shape a data-driven society that makes extensive use of data to solve problems. We want to pursue greater collaboration between Japan and ASEAN in this field as well.”