Hanoi (VNA) – Technology is the mainfactor to develop Vietnam’s economy, help it escape from the middle-incometrap, and transition into a developed nation, Prime Minister Nguyen Xuan Phucaffirmed at a forum in Hanoi on May 9.

The first-ever national forum on developingtechnology companies gathered about 1,000 delegates, including officials of theGovernment, ministries, sectors, and localities, along with hundreds of expertsand tech firms from Vietnam and other countries.

In his speech, PM Phuc noted that Vietnamexpects by 2045, it will become a prosperous industrialised nation with morethan half of its population middle-class.

To escape from the middle-income trap, the firststep to be taken is to master technology with innovation and the production ofhigh-quality goods, he said, adding that in the irreversible trend of theFourth Industrial Revolution (Industry 4.0), tech businesses of Vietnam arecritically important to national development.

Vietnam will be able to keep up with developedcountries if it can grasp Industry 4.0 opportunities, he said.

At present, digital trade generates about 3.5billion USD for Vietnam’s economy, equivalent to 1.7 percent of the total GDP,and the figure is forecast to reach 42 billion USD in 2030. There are nearly50,000 companies working in the information and communications technologysector of Vietnam, earning some 100 billion USD in revenue.

The Government leader noted that during Industry4.0, economies will shift from a growth model based on cheap labour, land, andnatural resources, to one driven by technology and innovation. Many labour-intensivesectors will lose their competitive edge and have to reduce their scale of production.

He called for breakthroughs from mindsets toactions, adding that outdated modes of business must be replaced with thosebased on technology and innovation.

The Government encourages big businesses thathave been successful in foreign markets to return to Vietnam to lead thedevelopment of tech companies, PM Phuc said, evoking patriotism in Vietnameseenterprises to join hands in developing a strong and prosperous nation.

In his speech, the PM also noted a nationaldigital transformation strategy will be issued in 2019 to facilitate digitaleconomy and society, thus promoting the market for tech firms.

At the forum, participants discussed the role ofVietnamese tech firms in helping the country escape from the middle-incometrap, policies and solutions to develop tech companies, and solutions toconnect these businesses. –VNA