Vietnam Ranks High In Digital Development
Dec 28, 2020

Vietnam has been ranked fifth in the world for digital evolution momentum by the 2020 Digital Intelligence Index, a ranking conducted by Massachusetts-based Fletcher School and Mastercard which surveyed digitisation of 90 economies using 160 key indicators of digital development across four key drivers.

The key drivers were supply conditions such as infrastructure, logistic performance, as well as demand conditions including consumer ability and willingness to use of mobile digital money, further the institutional environment such as bureaucracy and investor protection, as well as innovation and change, which relates to startup capacity and value creation in the digital industry.

As it turned out, Vietnam scored 62.37 points in digital evolution momentum, ranking behind China (85.51 points), Azerbaijan (65.28), Indonesia (64.03) and India (62.95).

However, an overall score of 46.79 points saw Vietnam 60th out of 90 global markets, resulting in it being labeled in the “Break Out” zone in the fast digital momentum scorecard.

According to the report, economies in the “Break Out” zone have “lower scores in their present states of digitisation but are evolving rapidly,” and also have “significant headroom for growth, which make them highly attractive to innovators and investors.”

Held back by institutional weaknesses

Markets in this zone have positive attitudes towards technology but are “held back often by relatively weak infrastructure and poor institutional quality.”

The report lauded Vietnam, along with Kenya and India, for efforts in increasing mobile Internet access. Vietnam is now approaching near universal 4G access.

Vietnam plans to bring its current 24 million 2G subscribers, or 18.5 per cent of total, to under five per cent by 2022 so that it can stop this service and push the development of higher-technology cellular networks.

The country’s ministry of information and communications said it is currently looking to approve 5G services by mid-2021.

Vietnam plans to provide 5G coverage nationwide by 2030, offering all citizens broadband Internet connection at low cost, according to the ministry.

Singapore topped the digital intelligence index with 98.82 points, followed by the US, Hong Kong, Finland and Denmark. The bottom five economies were Laos, Bolivia, Cameroon, Nigeria and Ethiopia.