Decision No. 2289/QD-TTg 2020 the National Strategy on the Fourth Industrial Revolution through 2030

DECISION

Promulgating the National Strategy on the Fourth Industrial Revolution through 2030^[1]

THE PRIME MINISTER

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and Law on Organization of Local Administration;

Pursuant to the Political Bureau’s Resolution No. 52-NQ/TW of September 27, 2019, on a number of guidelines and policies for proactive participation in the Fourth Industrial Revolution;

At the proposal of the Minister of Planning and Investment,

DECIDES:

Article 1. To promulgate together with this Decision the National Strategy on the Fourth Industrial Revolution through 2030.

Article 2. This Decision takes effect on the date of its signing.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, enterprises, and related units and organizations shall implement this Decision.-

Prime Minister
NGUYEN XUAN PHUC

National Strategy on the Fourth Industrial Revolution through 2030

(Promulgated together with the Prime Minister’s Decision No. 2289/QD-TTg of December 31, 2020)

I. SITUATION AND CONTEXT

The Fourth Industrial Revolution is altering socio-economic activities, opening up opportunities while posing many challenges to various economies. Many countries in the world have developed and implemented different policies to proactively exploit benefits of new technologies, boosting economic development and raising competitiveness. The Fourth Industrial Revolution is potential to bring about great benefits for the economy such as lower costs and higher productivity; business models with very small marginal cost producing network effect; and opportunities for development of new products and services, etc.

The Fourth Industrial Revolution also reveals numerous challenges to the economy, specifically it is likely to (i) change the job structure and cause unemployment among unskilled workers, leading to pressure related to social injustice; (ii) create more information security risks because more and more socio-economic activities are carried out in the digital environment; (iii) pose economic and technological development challenges for late comers as new business models may create superior competitiveness and lead to production and business monopoly; (iv) give rise to challenges in institution- and law-making activities due to the appearance of new socio-economic relations on the digital platform, such as new types of assets, new business models, and cross-border business activities; and the incompatibility between institutions/laws and economic realities may provoke conflicts or obstruct development; and (v) pose the risk of being further lagged behind for countries which are late to change or untimely take advantage of benefits of this industrial revolution.

In Vietnam, contributions of science, technology and innovation remain limited as compared to many economies at similar development stage; and in overall, the economy is not yet really prepared to join in the Fourth Industrial Resolution. The economic growth has not been much based on knowledge, science and technology, while the knowledge economy index is lower than the world’s average. The institutional quality is also a challenge, currently ranked at the 89^th out of 141 economies regarding the Global Competitiveness Index 4.0 of the World Economic Forum (2019). In addition, cyber security and information safety are also a limitation, at very low ranking (90/100) as evaluated by the World Economic Forum in the Readiness for the Future of Production Report (2018).

Being aware of benefits of the Fourth Industrial Revolution, the Vietnamese Party and State have worked out orientations for the formulation of policies and programs for proactive participation in the Fourth Industrial Revolution, laying emphasis on scientific and technological application and development, innovation, and raising of the quality of human resources, such as Resolution No. 23-NQ/TW of March 22, 2018, of the Political Bureau, on orientations for formulation of national industrial development policies to 2030 with a vision toward 2045, stressing “the thorough exploitation of achievements of the Fourth Industrial Revolution”; and Resolution No. 52-NQ/TW of September 27, 2019, of the Political Bureau, on a number of guidelines and policies for proactive participation in the Fourth Industrial Revolution (below referred to as Resolution No. 52-NQ/TW), affirming: “Proactive and active participation in the Fourth Industrial Revolution is an objective inevitable requirement, and an extremely important, urgent and long-term task of strategic significance of the entire political system and the entire society…”. On that  basis, the Government issued Resolution No. 50/NQ-CP of April 17, 2020, promulgating the Government’s Action Program for realization of Resolution No. 52-NQ/TW of September 27, 2019, of the Political Bureau, on a number of guidelines and policies for proactive participation in the Fourth Industrial Revolution (below referred to as Resolution No. 50/NQ-CP); and Decision No. 749/QD-TTg of June 3, 2020, approving the National Digital Transformation Program through 2025, with a vision toward 2030 (below referred to as Decision No. 749/QD-TTg).

Implementing the tasks assigned in Resolution No. 52-NQ/TW, the Prime Minister promulgates the National Strategy on the Fourth Industrial Revolution through 2030 with the following specific viewpoints, objectives and tasks:

II. VIEWPOINTS, OBJECTIVES

1. Viewpoints

- To promptly grasp and efficiently make full use of opportunities brought about by the Fourth Industrial Revolution in order to heighten labor productivity, efficiency and competitiveness of the economy and enhance national defense and security potential through research, transfer and vigorous application of advanced achievements of the Fourth Industrial Revolution to various domains of the socio-economic life. At the same time, to take the initiative in prevention and response activities in order to restrict negative impacts, ensure national defense, security, safety and social justice as well as sustainable development.

- To implement the Fourth Industrial Revolution on the basis of: (i) taking reform and improvement of economic institutions and cyber security assurance as prerequisites; (ii) promoting research and development as well as vigorous application of technologies in enterprises and state management work and building a digital government as breakthroughs; and (iii) regarding education and training of high-quality labor force, and research and mastery of a number of priority technologies for proactive participation in the Fourth Industrial Revolution as core elements.

- To renew the management thinking toward open approach, facilitating and boosting innovation. To bring into full play resources for proactive participation in the Fourth Industrial Revolution.

2. Objectives

The National Strategy on the Fourth Industrial Revolution through 2030 (below referred to as the Strategy) aims to realize the objectives set forth in Resolution No. 52-NQ/TW, specifically as follows:

a/ General objectives

To proactively make the efficient use of opportunities of the Fourth Industrial Revolution; to basically master and widely apply new technologies in various socio-economic domains; to step by step innovate new technologies aiming to boost the process of renewing the growth model, restructuring the economy in association with the implementation of strategic breakthroughs and national modernization; to vigorously develop the digital economy; to effect fast and sustainable development based on science and technology, innovation and high-quality human resources; to raise the quality of life, welfare and health of the people; to firmly maintain national defense and security and protect the ecological environment; to raise the efficiency of international integration and closely associate the process of applying the Fourth Industrial Revolution with the work of cyber security protection.

b/ Specific targets

Targets through 2025:

- To maintain the Global Innovation Index (GII) ranking by the World Intellectual Property Organization (WIPO) among top 3 ASEAN countries;

- The global cybersecurity index ranking by the International Telecommunications Union (ITU) will be among top 40 countries;

- The e-government index ranking by the United Nations will be among top 4 ASEAN countries;

- The digital economy will account for about 20% of the GDP; the labor productivity will increase over 7%/year on average;

- The optical broadband infrastructure will cover over 80% of households and 100% of communes; to universalize 4G/5G mobile network services and smart phones; 80% of the population will access the Internet; 80% of level-4 online public services will be provided on various media of access, including mobile devices; the percentage of people having e-payment accounts will surpass 50%;

- There will be at least 3 smart cities in 3 key economic regions (Northern, Central and Southern) where 5G networks will be installed.

Targets to 2030:

- To maintain the GII ranking by the WIPO among top 40 countries in the world;

- The global cybersecurity index ranking by the ITU will be among top 30 countries;

- The e-government index ranking by the United Nations will be among top 50 countries;

- The digital economy will account for about 30% of the GDP; the labor productivity will increase over 7.5%/year on average;

- To universalize optical broadband Internet services and 5G mobile network services;

- To complete the building of a digital government;

- To form a number of chains of smart cities in the Northern, Central and Southern key economic regions; to incrementally link them with the networks of smart cities in the region and the world.

III. STRATEGIC ORIENTATIONS FOR PROACTIVE PARTICIPATION IN THE FOURTH INDUSTRIAL REVOLUTION

To fully materialize the instructing viewpoints, objectives, guidelines and policies set forth in Resolution No. 52-NQ/TW; the objectives, tasks and solutions set forth in Resolution No. 50/NQ-CP and Decision No. 749/QD-TTg; and the following central orientations:

1. To raise the institutional quality and policy-making capacity

a/ To build new institutions for new technologies and new business models and realities; to build a digital government and ensure cyber security

 - To build and improve institutions for sectors with new business models (such as e-commerce, sharing economy, financial technology, digital bank technology, etc.), aiming to ensure openness, innovation promotion and suitability with the risk level of each business line, trade and activity. To apply a regulatory sandbox to new business lines and trades in order to create a legal corridor for creative products and services.

- To scrutinize and improve institutions toward encouraging domestic digital technology enterprises to invest in the application and mastery of priority technologies for proactive participation in the Fourth Industrial Revolution (such as tax incentives; flexible use of financial instruments as a lever for technological research, development and application, etc.).

- To improve legal institutions on prevention and combat of non-traditional crimes and hi-tech crimes.

b/ To vigorously apply solutions for improving the business environment in order to encourage enterprises to carry out innovation activities

- To strictly and fully implement directions of the Government and Prime Minister regarding improvement of the business environment and cost reduction for enterprises as mentioned in  Resolutions No. 19/NQ-CP (promulgated in 2014 through 2018) and Resolutions No. 02/NQ-CP (promulgated in 2019 and 2020) on improvement of the business environment; Resolution No. 35/NQ-CP of 2016 on support for enterprises; Directive No. 20/CT-TTg of 2017 on rectification of enterprise inspection and examination activities; and Resolution No.139/NQ-CP of 2018 on cost reduction for enterprises.

- To scrutinize and revise institutions on innovation startup investment toward facilitating activities of capital contribution, share purchase, and merger and acquisition of technology enterprises.

2. To develop connection infrastructures and develop and exploit databases

- To develop high-speed internet and safe digital infrastructure, meeting the demands on big data connection and processing.

- To develop and complete the national databases mentioned in Decision No. 714/QD-TTg of May 22, 2015, and other necessary databases in service of management and business activities (such as databases on car drivers and public investment projects, etc.).

- To build and upgrade technical systems with a view to raising the capacity to ensure cyber security.

- To build and upgrade physical infrastructure meeting the requirements of application of priority technologies for proactive participation in the Fourth Industrial Revolution, first of all energy and transport infrastructure facilities. To promote private investment in the development and operation of public infrastructure facilities.

3. To develop human resources

- To expand, and raise the quality of, graduate, postgraduate and vocational training programs, especially in majors serving the Fourth Industrial Resolution.

- To renew, and raise the quality of, general education toward increasing practice activities, particularly science, technology, engineering and mathematics (STEM). To formulate programs on practice in innovation support centers and innovation startups.

- To enhance connection of scientific research, training and production and business activities.

4. To build an e-government toward a digital government

- To vigorously apply digital technology to state management in all domains; to invest in, and develop information technology applications serving state management work (GovTech) and provision of public services. To build a real-time socio-economic information system serving the Government’s direction and administration work.

- To build a shared socio-economic information system of the Government; to digitalize, connect and share management data of ministries, agencies and localities with a view to raising the quality of state management activities and creating data sources for research and business activities.

5. To develop and heighten the national innovation capacity

- To develop the national innovation system toward regarding enterprises as a center and higher education institutions and research institutes as research subjects.

- To formulate and propose special and breakthrough mechanisms and policies for the building and operation of innovation centers. To encourage domestic and foreign higher education institutions, enterprises and organizations to set up innovation centers in Vietnam.

6. To invest in, research and develop a number of priority technologies for proactive participation in the Fourth Industrial Revolution such as robotics technology, advanced materials, renewable energy, artificial intelligence, medicine technologies, Internet of Things (IoT), big data, blockchain, etc.

7. To expand international cooperation and integration on science and technology, especially in the fields of priority technologies, for proactive participation in the Fourth Industrial Revolution.

IV. TASKS AND SOLUTIONS

1. The Ministry of Planning and Investment

- To monitor, assess and propose the implementation of the provisions on enterprises, investment and business in the 2017 Law on Support for Small- and Medium-Sized Enterprises, the 2020 Law on Enterprises, the 2020 Law on Investment, and the 2020 Law on Investment in the Form of Public-Private Partnership (PPP).

- To study and propose policies and solutions to boost the operation of the Vietnam National Innovation Center so as to effectively support and develop startup and innovation ecosystems. To assume the prime responsibility for, and coordinate with related ministries and agencies in, assessing and summing up experiences, and proposing to the Government solutions to invest in and expand the network of innovation centers.

- To direct the Small and Medium Enterprise Support Fund to increase the rate of funds in support of enterprises applying priority technologies for proactive participation in the Fourth Industrial Revolution.

2. The Ministry of Science and Technology

- To adjust the allocation of state budget funds for scientific and technological activities under its management through concentrating resources on research, development and application of priority technologies for proactive participation in the Fourth Industrial Revolution; to prioritize resources for implementation of a number of national key research programs on the Fourth Industrial Revolution.

- To assume the prime responsibility for, and coordinate with related ministries and sectors in, studying, formulating and promulgating systems of national standards and technical regulations on products and services in conformity with good international practices serving the participation in the Fourth Industrial Revolution; to cooperate with enterprises in order to ensure the conformity of standards and technical regulations with realities and create favorable conditions for enterprises to develop new products and services.

- To build up the network of experts providing consultancy on priority technologies for proactive participation in the Fourth Industrial Revolution in order to support enterprises in technology upgrading and transformation.

- To review, and propose the amendment of, regulations on intellectual property toward simplifying processes and procedures in conformity with international practices.

3. The Ministry of Information and Communications

- To review and improve the system of legal documents in the field of information and communications in order to ensure that digital infrastructure takes a step in advance and is ready for other sectors to participate in the Fourth Industrial Revolution.

- To develop a safe and modern digital infrastructure, satisfying the demands of sectors in the process of digital transformation, successfully realizing the Fourth Industrial Revolution.

- To concentrate efforts on capacity building to ensure cyber information security, particularly security of telecommunications infrastructure facilities, IoT equipment and personal information; to step up the building of cyber security centers nationwide.

- To study and propose the Government to promulgate policies on open data; to guide state management agencies to formulate data-sharing solutions; to develop national data integration, connection and sharing platforms for shared exploitation and use; to facilitate data commercialization.

- To study, scrutinize, amend and supplement, or propose the amendment and supplementation of, standards, technical regulations and techno-economic norms on application and development of core digital technologies of the Fourth Industrial Revolution.

- To propagandize, raise the awareness and responsibility, and disseminate knowledge and skills on assurance of cyber information security for state agencies and organizations and the entire society.

4. The Ministry of Education and Training

- To develop programs on human resource training and development, attaching importance to major training disciplines of the Fourth Industrial Revolution.

- To support scientific research, technology transfer and innovation for higher education institutions in order to turn out priority technology products for proactive participation in the Fourth Industrial Revolution.

5. The Ministry of Labor, Invalids and Social Affairs

- To periodically survey and evaluate workers’ skills in relation to the requirements of the Fourth Industrial Revolution and propose solutions and policies to improve skills of the labor force.

- To adjust vocational training programs toward intensifying the training of information technology skills and information technology application skills for development of professional skills; to open programs on specialized training in priority technologies for proactive participation in the Fourth Industrial Revolution.

- To formulate retraining programs for workers for them to shift to jobs requiring new skills of the Fourth Industrial Revolution.

- To review and adjust regulations on work permits for highly qualified foreign workers entering Vietnam to work in sectors applying priority technologies for proactive participation in the Fourth Industrial Revolution in innovation centers, hi-tech parks, information technology parks or software parks of Vietnam toward creating favorable conditions for such workers and ensuring conformity of such regulations with good international practices.

6. The Ministry of Finance

- To assume the prime responsibility for, and coordinate with the State Bank in, forming a regulatory sandbox for financial technology (Fintech) services according to good international practices, creating favorable conditions for enterprises to develop new digital financial services.

- To formulate legal provisions permitting securities-trading organizations to apply e-Know Your Customer (eKYC) solutions.

- To assume the prime responsibility for forming the institutional framework for Fintech services in association with policies promoting innovation startups’ activities and transactions.

- To coordinate with the State Bank in intensifying the supervision of funding sources and transfer of capital via forms of digital currency or digital asset; and new forms of capital raising such as issuance of virtual currency and crypto assets and electronic currency on the financial market.

7. The State Bank

- To assume the prime responsibility for, and coordinate with the Ministry of Finance and related ministries and sectors in, implementing the master plan on development of the national digital payment infrastructure which will be synchronous, unified and shared. To complete mechanisms and policies to promote non-cash payment. To study and formulate a plan on management and supervision of cross-border online payment forms.

- To create favorable conditions for credit institutions to effect digital transformation and apply priority technologies for proactive participation in the Fourth Industrial Revolution; to develop the digital bank model. To formulate a regulatory sandbox for Fintech activities in the banking sector.

- To promote credit institutions’ data connection and sharing with state management agencies and service providers via Open Application Programming Interface (Open API) in order to turn out new products and services and raise the quality of banking services.

- To promulgate or amend according to its competence or propose competent agencies to promulgate or amend legal provisions permitting credit institutions to apply eKYC solutions; to research and experiment big data, artificial intelligence, robotic process automation and blockchain technology in banking activities.

8. The Ministry of Justice

- To study, and propose the completion of, a legal framework on asset, contract, ownership and other matters related to the Fourth Industrial Revolution.

- To study solutions to step up the application of technologies of the Fourth Industrial Revolution to policy prediction and analysis, drafting and promulgation of laws, and organization and supervision of law enforcement, ensuring mechanisms for information feedback, and prompt and accurate policy response, catching up with the fast changes in the socio-economic life.

9. The Ministry of Industry and Trade

- To organize the implementation of relevant objectives and tasks in furtherance of the Political Bureau’s Resolution No. 23-NQ/TW of March 22, 2018, on orientations for formulation of national industrial development policies through 2030, with a vision toward 2045, in order to thoroughly tap the achievements of the Fourth Industrial Revolution.

- To finalize and submit for approval schemes and programs on development of hi-tech human resources serving the Fourth Industrial Revolution; to pilot advanced practice training models.

- To study and formulate a scheme on boosting Vietnamese enterprises to participate in e-commerce systems in the world.

- To formulate the master plan on national e-commerce development for the 2021-2025 period.

10. The Ministry of Agriculture and Rural Development

- To finalize incentive policies on digital technology research, application and development, digital transformation, and smart governance in agricultural production; to place orders for technology enterprises to research solutions on smart agriculture, governance of farm produce supply chains, and agricultural product preservation and processing.

- To formulate a scheme on promoting the agriculture sector to participate in e-commerce; to prioritize fine-art handicraft articles and packaged foods.

11. The Ministry of Natural Resources and Environment

- To formulate and implement the overall strategy on digital resources on natural resources and environment through 2030.

- To study, formulate and finalize the legal framework for application of new models on environmental pollution control and climate change and sea level rise adaptation.

- To formulate and finalize mechanisms and policies and organize the implementation thereof in order to collect, create and comprehensively manage digital resources on natural resources and environment for attaining the objective of managing the “development space” of the country.

12. The Ministry of Foreign Affairs

- To coordinate with the Ministry of Science and Technology and related ministries and ministerial-level agencies in studying and informing development trends, policies and experiences of other countries in the participation in the Fourth Industrial Revolution.

- To coordinate with the Ministry of Science and Technology in finalizing mechanisms and policies on mobilizing overseas Vietnamese and international intellectuals and scientists for promotion of innovation and scientific and technological development.

13. The Ministry of Construction

- To study the application of satellite technologies and priority technologies for proactive participation in the Fourth Industrial Revolution; to build digital databases serving management of construction master plans, and master plans on urban areas and architecture. To guide localities in developing digital databases connecting technical infrastructure and social infrastructure facilities in urban management.

- To effectively implement the Scheme on sustainable development of Vietnamese smart cities in the 2018-2025 period, with orientations toward 2030.

14. The Ministry of Public Security

- To effectively realize the National Cyber Security Strategy.

- To build and operate the National Data Center. To raise the awareness of organizations, enterprises and the people about personal data protection and data administration.

- To closely collaborate with international organizations in supervising transnational cyber crimes. To form cyber security alliances.

- To study and propose mechanisms and policies on establishment of a cyber security industry; to form national security commanding centers of regions and areas. To assume the prime responsibility for, and coordinate with ministries and sectors in, formulating and submitting to the Prime Minister a scheme on building Vietnam’s cyber security industry and a scheme on building national security commanding centers of regions and areas in the 2020-2025 and 2025-2030 periods.

15. The Ministry of Transport

To apply priority technologies for proactive participation in the Fourth Industrial Revolution to project formulation and construction quality management; management of the exploitation and maintenance of transport infrastructure systems and traffic operation and organization.

16. The Ministry of Health

- To assume the prime responsibility for building smart healthcare and disease prevention systems, including electronic health records for the entire people, application of artificial intelligence and smart technologies to disease prevention, environmental protection, food safety, nutrition, HIV/AIDS prevention and control, and pharmaceutical research and production.

- To direct medical examination and treatment establishments to apply smart healthcare systems, including electronic medical records in replacement of paper medical records, application of artificial intelligence in support of clinical decision making, in such high specialties as diagnostic imaging, cardiovascular medicine, respiration, rheumatology, cancer, obstetrics, and pediatrics.

- To build the smart health governance system, including implementation of the digital administration system, provision of level-4 online public services, and establishment of health ecosystems with the application of advanced technologies. To direct all medical examination and treatment establishments to complete the application of electronic health records and interconnectivity.

- To proactively approach and transfer application of achievements of priority technologies for proactive participation in the Fourth Industrial Revolution, especially in biotechnology.

17. The Ministry of Home Affairs

To provide the contingent of cadres, civil servants and public employees with guidance on and training in knowledge, qualifications, capacity and experiences to meet the requirements of the Fourth Industrial Revolution.

18. The Committee for Management of State Capital at Enterprises

- To encourage and assist its attached enterprises in formulating investment plans on transformation to priority technologies for proactive participation in the Fourth Industrial Revolution in conformity with branches or domains.

- To encourage and support technologically and financially capable enterprises to develop services on consultancy, training and transfer of priority technologies for proactive participation in the Fourth Industrial Revolution for small- and medium-sized enterprises; and for them to collaborate with one another and with technology sole-proprietorships in order to form networks for specialized and interdisciplinary cooperation.

19. The Vietnam Chamber of Commerce and Industry and central and local business associations

To propagandize and disseminate the Strategy’s contents to the business community. To assist enterprises in accessing information on the Fourth Industrial Revolution as well as policies and programs in support of enterprises’ digital transformation and participation in the Fourth Industrial Revolution.

20. Provincial-level People’s Committees

- To thoroughly grasp and disseminate the spirit and contents of the Strategy to units and enterprises in their respective localities.

- To formulate programs to assist enterprises in providing training and consultancy on transfer of priority technologies for proactive participation in the Fourth Industrial Revolution.

V. ORGANIZATION OF IMPLEMENTATION

1. To coordinate, monitor and assess implementation situation and results:

a/ The Ministry of Planning and Investment shall act as the focal-point agency in monitoring and assessing the situation and results of implementation of the Strategy; and before December 20 every year, send sum-up reports to the Prime Minister on results of implementation of the Strategy by ministries, sectors and localities.

b/ The Ministry of Information and Communications shall assume the prime responsibility for, and coordinate with ministries and sectors in, studying, proposing the consolidation of, supplementing and adjusting the functions and tasks of the National Committee on E-Government for it to additionally assume functions and tasks of advising, monitoring and coordinating the implementation of relevant contents of the Strategy.

c/ The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with ministries and sectors in, studying proposing the consolidation of, supplementing and adjusting functions and tasks of the National Council for Science and Technology Policy for it to additionally assume the functions and tasks of advising on, monitoring, coordinating the implementation of relevant contents of the Strategy.

2. Ministries, government-attached agencies and provincial-level People’s Committees:

- To prioritize the allocation of budget funds for activities serving implementation of the Strategy, attaching importance to investment in science and technology and assisting technology transfer and development in enterprises; to ensure the objective of spending on research and development set forth in the Strategy.

- To implement the Strategy within the ambit of their competence, concretizing the Strategy by incorporating task performance contents in plans and schemes in sectors and domains under their management; before December 10 every year, to send reports on implementation results to the Ministry of Planning and Investment and Government Office for summarization and reporting to the Government and Prime Minister.-