HCM City (VNA) – Digital transformation is not only a trend but alsoessential for businesses to thrive as the fourth industrial revolution (4IR) hasboomed globally, heard at a conference held in Ho Chi Minh City on October 20.

The conferencetitled “Vietnam Economic Forecasts in the Context of Digital Economy and NewTrends – Adaptation and Business Process Transformation” was organised by PTIEducation and Training.

The 4IR todayis no longer a phenomenon in a few countries or areas but having direct impacton economic development on a global scale, said former Director of the VietnamInstitute of Economics Tran Dinh Thien.

The furtherVietnam integrates into the global economy, the greater effect the globaldigital economy will have on Vietnamese enterprises. Therefore, in order tosurvive and thrive, domestic firms have no other choice but to quickly join the digital transformation or digitalise thebusiness and management, Thien said.

However,Vietnam is lacking manpower, necessary finance and infrastructure, and moreimportanly, transparent institution for the digital transformation, he noted.

To shift froma physical to a digital economy, apart from essential technological foundation,the country must also change its institutional mindset because the 4IR isactually an institutional revolution, the expert explained.

Vietnam needsto promote a transparent public institution, develop an effective government,and ensure intellectual property rights and cyber security. It must also developdigital human resources and build a digital technology industry, smartagriculture, smart tourism, and an ecosystem for innovation andentrepreneurship, he recommended.

Echoing Thien’sview, former Minister of Trade Truong Dinh Tuyen said as an economy of whichover 90 percent of the firmsare of small and medium sizes, Vietnam is more vulnerable to new waves if itdoes not stay active.

He stressedthat it is important to improve the competitiveness of domestic businesses andthe entire economy and digital transformation is one effective solution.

To do so, theState needs to promote institutional reforms to create a transparent and stablepolicy environment that allows the domestic firms to develop long-term businessstrategies, he added./.