General Secretary and President Su Lin delivered an important speech on Vietnam’s digital transformation

On the occasion of the 79th anniversary of the National Day of the Socialist Republic of Vietnam (September 2, 1945 – September 2, 2024), General Secretary and President Su Lin delivered a famous article titled: “Digital Transformation – A Crucial Driving Force for Developing Productivity, Improving Production Relations, and Propelling the Nation into a New Era.” The full article is as follows:

Important Speech by General Secretary and President Su Lin at the 79th Anniversary of Vietnam’s National Day

Digital Transformation – A Crucial Driving Force for Developing Productivity, Improving Production Relations, and Propelling the Nation into a New Era

1.From the moment the Communist Party of Vietnam gained power, it deeply recognized the importance of developing productivity and gradually improving and perfecting production relations. This process has gone through several stages, reflecting the ongoing movement and development of the Vietnamese revolution.

The August 1945 Revolution opened a new chapter in the history of Vietnam’s national development, against the backdrop of a nation just gaining independence and entering a long period of resistance. From a backward agricultural base, after thousands of years of feudalism and centuries of colonial rule, the Party implemented the “land to the tiller” policy, distributing land to farmers and eliminating private ownership of production means to improve production relations and create the conditions for building a socialist mode of production.

From 1954 to 1975, the Vietnamese revolution simultaneously carried out two strategic tasks: the socialist revolution in the North and the national democratic revolution of the people in the South. In the North, the focus was on building socialist infrastructure and technology, consolidating and perfecting a new form of production relations based on public ownership, centralized planning, and distribution according to labor, which led to rapid development of productivity.

In 1975, Vietnam achieved complete unification, marking a new chapter in the cause of socialist construction. At the Fourth National Party Congress in 1976, the Party formulated policies that emphasized the transition from small-scale production directly to socialism, bypassing the capitalist stage, with the firm establishment of proletarian dictatorship and the collective leadership of the working people. The Party determined to carry out three revolutions simultaneously—on production relations, science and technology, and cultural thought—with the scientific and technological revolution as the key and industrialization as the central task.

From 1979 to the Sixth National Congress in 1986, Vietnam experienced a serious crisis, partly due to the lack of synchronization between productivity and production relations. Productivity was constrained not only by backward production relations but also by certain production relations that were too stringent compared to the level of productivity. Recognizing this, the Sixth Party Congress committed to a comprehensive renewal, with economic reform at its core, focusing on economic restructuring, diversification of economic sectors, reforming the economic management system, abolishing the planned economy, and gradually transitioning to a socialist-oriented market economy.

The breakthrough in the reform of agricultural production relations came with the Politburo’s Resolution No. 10, issued on April 5, 1988, which recognized farmer households as independent economic units and granted them long-term land use rights. Just one year after implementing this resolution, Vietnam transitioned from a country suffering from long-term food shortages to producing 21.5 million tons of rice, exporting 1.2 million tons for the first time. The proper adjustment of production relations injected new momentum into productivity development, helping the country overcome the crisis and enter a period of comprehensive renewal and global integration.

2. Entering the 21st Century, Vietnam’s Socio-Economic Achievements.From 2021 to 2025, the average annual growth rate of Gross Domestic Product (GDP) will reach 5.7-5.9%, ranking among the top in the region and the world. The size of the economy is expected to increase by 0.45 times, reaching $500 billion by 2025. Per capita income will rise significantly from $3,400 to approximately $4,650 by 2025, transforming Vietnam into an upper-middle-income country. Inflation is under control, policies operate flexibly and effectively, and Vietnam’s international standing and reputation are steadily improving. Economic growth is sustained, and the people’s living standards have improved markedly.

By 2025, the labor force is expected to reach 53.2 million, with a significant shift in labor structure; the proportion of workers in agriculture will drop to 25.8%. The quality of human resources is improving, with 70% of the labor force having received training. High-quality human resources in key areas such as semiconductors, artificial intelligence (AI), and information technology are being prioritized, initially forming a workforce equipped with digital thinking and digital skills.

Artificial intelligence (AI), the Internet of Things (IoT), big data, and cloud computing are gradually becoming essential tools in many industries and fields. Infrastructure, especially digital infrastructure, is being heavily invested in and developed. Nationwide telecommunications and broadband internet networks lay the foundation for the development of the digital economy and digital society.

However, new challenges arise. The processes of globalization and international integration demand a heightened economic competitiveness. The Fourth Industrial Revolution is unfolding rapidly, and the development of digital economy tools is profoundly transforming productivity, leading to new conflicts with existing production relations. This not only creates the prerequisites and driving forces for the emergence of new production methods but also necessitates fundamental changes in organizational and social management structures. While new productive forces are forming and growing rapidly, there remains a gap between the quality of human resources and the demands of the new development stage. Training and developing high-tech talent remain significant challenges. There are still shortcomings in production relations, unable to keep pace with the development of productivity.

3.The Demand for Comprehensive Innovation and Restructuring of Production Relations.In the face of such challenges, we are called upon to undertake a robust and comprehensive transformation, reshaping production relations to create new driving forces for development. This is a digital transformation revolution, in line with scientific and technological advancements, promoting the restructuring of production relations. Digital transformation is not merely the application of digital technology in socio-economic activities but the establishment of a new, advanced, and modern production mode—a “digital production mode,” where productivity is characterized by the harmonious integration of human beings with artificial intelligence, and data becomes a resource and a key production factor.

The transformation of production relations will have a profound impact on the superstructure, shaping new forms of social governance and creating new tools for national management, fundamentally altering the way the state interacts with its citizens and social classes. The digital transformation process must be comprehensive and synchronized, taking into account the dialectical relationship between infrastructure and superstructure, aiming to build a socialist-oriented market economy. This will enhance the strength of modern productive forces while ensuring the essence of the socialist system, in line with Vietnam’s specific context in the new era. Party cadres, agencies, institutions, enterprises, and the people must fully understand, align their responsibilities, and be resolute in comprehensively advancing digital transformation. At the same time, the following key tasks must be implemented:

Improving Institutions and Legal Systems.Strengthening the socialist-oriented market economy, continually innovating to adapt to the trends of the times, focusing on creating a legal framework for the digital economy, and laying the foundation for Vietnam to seize the opportunities of the Fourth Industrial Revolution.

Mobilizing All Societal Resources.Accelerating modernization by mobilizing resources from the people, businesses, and all economic sectors, and transforming these potentials into productive materials.Reforming and Building a Streamlined and Effective State ApparatusReducing unnecessary middle layers, organizing institutions with multi-sector and multi-field arrangements, and promoting decentralization to enhance operational efficiency.

Combining Digital Transformation with Security and Protection.Strengthening the building of a digital society and fully digitizing state management activities, providing high-quality online public services.

Vietnam is at a critical stage of digital transformation. If you want to learn more about Vietnam’s economic trends or explore related business cooperation opportunities, please contact Jaycy. Let us pay attention to Vietnam’s economic development and seize the unlimited business opportunities in Southeast Asia’s emerging markets!

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