Directive 16/CT-TTg on the strengthening of the ability to access the Fourth Industrial Revolution

THE PRIME MINISTER

Directive No. 16/CT-TTgdated May 04, 2017 of the Prime Minister on the strengthening ofthe ability to access the Fourth Industrial Revolution

The Fourth Industrial Revolution, building on the fusion of digital, physical and biological technologies, internet of things and artificial intelligence, is fundamentally changing global production. The Fourth Industrial Revolution is characterized by digitization and utilization of information technology. The Revolution is taking place at different speeds in countries all over the word, but having a strong impact on all aspects of socio-economic life, which leads to a change in production methods and workforces.

As Vietnam is undergoing the process of industrialization, modernization and international integration, the Fourth Industrial Revolution opens up opportunities for improving technology, production and competitiveness in the supply chain; causes a great change in the provision of services; offers innovative startups plenty of opportunities; considerably reduces the cost of transaction and transport; creates opportunities for attractive investment in digital technology and Internet, and serves as a great opportunity for industrial production with advanced science and technology.

However, if Vietnam failed to catch up with the world and the region’s development, it would face challenges and negative effects such as obsolete technologies, decreasing production; abundant skilled and low-skilled labor that causes disruption to the traditional labor market, thereby affecting national socio-economic development; threat to information security, copyright infringement and lack of qualified human resources. On the other hand, there possibly is a tendency to transfer obsolete technologies from developed countries to developing and underdeveloped ones.

Revolutionary changes in science and technology result in dramatic changes in the structure, economic model, state and social management system, and operational modes of enterprises. The Fourth Industrial Revolution also presents demands in certain fields, such as: innovation in information technology; promotion of analytical science and big data management and processing for creation of new knowledge and assistance in decision making and creation of competitive advantages. Innovation in management and production models, business model optimization, formation of supply chain and intelligent logistics in the global value chains and new tariff models. A new and better intellectual property management system in the digital age. Better network security.

In order to seize the opportunities, take practical measures to fully exploit advantages and minimize negative effects of the Fourth Industry Revolution on Vietnam, the Prime Minister requests Ministries, heads ofministerial agencies,Governmental agencies,central governmentagencies and Presidents of the People’s Committees of provinces and central-affiliated cities, from now until 2020, to focus on directing and organizing effective implementation of the following measures and tasks:

I. MEASURES

1. Focuseon promoting development,makinga real breakthrough in infrastructure, application and human resourcesfor information technologyand communication technology.Develop digital infrastructure and ensure network security to enable people and enterprises to easily and fairly grasp the opportunities for digital content development.

2.Continue to strengthen the implementation of the Government’s Decrees No.19-2017/NQ-CPdated February 06, 2017, No.35/NQ-CPdated May 16, 2016 and No.36a/NQ-CPdated October 14, 2015 in order to improve the competitive business environment, thereby promoting the development of enterprises and enabling them to quickly absorb and develop new production technologies. The ministriesshould expeditiously build e-government; continue to review and abolish the business conditions that are no longer appropriate; make amendments to the regulations on specialized management of exports and imports towards the simplification and modernization of administrative procedures.

3.Review strategies and action plans, propose and formulate targeted plans and tasks so that they are implemented in accordance with the development trend of the Fourth Industry Revolution. Formulate strategies for digital transformation, smart administration, prioritize digital technology industry, smart agriculture, tourism and urban areas. Review and selectnationalkey products andstrategic competitive products, applynew production technologies andintegratenew technologiesto focus oninvestmentanddevelopment.

4.Focus on promoting national innovative startup ecosystemtowards formulation ofspecific and appropriate policies so as to develop innovative startups such as: introducefinancialregimesto promotethescientific research and technological developmentby enterprises according to the enterprise-centeredprinciples;develop assistance policies on investment,scientific research and technological innovation;introducepolicies to developinnovativestartups; connect theoverseas and domesticscientific and technological communities.

5.Change policies, contents and methods of education and vocational training in order to generate human resources which are able to follow new technological production trends, including the focus on promotion of training in science, technology, engineering and mathematics (STEM), foreign languages, information technology in universal; promote autonomy in higher education and vocational training; pilot regulations on vocational training and higher education applied to some specific fields. Turn population challenges and golden population into an advantage in international integration and international division of labor.

6.Raise the awareness of leaders of regulatory authorities, local governments, enterprises and society about the Fourth Industrial Revolution. Enhance international integration and communications to make them well aware of the nature, characteristics, opportunities and challenges of the Fourth Industrial Revolution to have an appropriate and effective approach and solution.

II. TASKS

1.The Ministry of Information and Communications

a) Focus on developing information technology infrastructure, introduce incentive policies on encouraging enterprises to invest in, develop and trade new technologies. Promote application of information and communications technology to satisfy the requirements for information and communications technology nationwide, ensure safety, uniformity and inter-sectoral and inter-regional connectivity. Particularly, telecommunicationsenterprisesshall focus onperfectingthe 4G networkand provide a stable 4G network nationwide by 2018;introduce policies on access,research and development ofa 5G network tosatisfythe requirements for an internet of things as soon as practicable.

b) Focus on developing some targeted fields and products in terms of information and communications technology industry that play a key role in the Fourth Industry Revolution; prioritize the development of human resources for information technology, especially information security.

c) Direct press and communications agencies to guide public opinions, make organizations and people well aware of the Fourth Industry Revolution.

2.TheMinistry of Science and Technology

a)Focus on promoting national innovative startup ecosystem so as to develop innovative startups. Take charge and cooperate with ministries and local governments in effectively implementing the Scheme “Assistance policies on national innovative startup ecosystem to 2025” that is approved by the Prime Minister in the Decision No.844/QD-TTgdated May 18, 2016.

b) Focus on developing and promoting the application, research and transfer of key technologies of the Fourth Industry Revolution. Establish and submit the “Digital Literacy Knowledge” scheme to the Prime Minister for approval in the second quarter of 2017.

c) Take charge and cooperate with relevant ministries and local governments in connecting scientific and technological programs and tasks to strengthen the ability to access the fourth industrial revolutionwith an emphasis on effectively running the national science and technology programs on Mathematics, Physics and Basic Science and the programs on technological innovation, hi-tech development, and researching into advanced and innovative technologies to boost the quality of products, intellectual property, biological industry, etc.

d)Take charge and cooperate with theMinistry of Information and Communicationsin promptly providing information toguidethepublicto bewell aware of the Fourth Industry Revolution.

3.The Ministry of Science and Technology; the Ministry of Industry and Trade; the Ministry of Agriculture and Rural Development; the Ministry of Transport; the Ministry of Construction; the Ministry of Culture, Sports and Tourism

Review and formulate their own targeted plans and tasks so that such plans and tasks are implemented in accordance with the development trend of the Fourth Industry Revolution. Take charge and cooperate with theMinistry of Science and Technologyin selecting and proposing their own key and competitive products and inform the Prime Minister thereof in the fourth quarter of 2017.

4.TheMinistry of Education and Training

Promote the teaching of science, technology, engineering and mathematics (STEM) in the universal education curriculum; run the pilot STEM teaching program in some high schools in the 2017 - 2018 academic year. Develop the ability to research and teach in higher education institutions; strengthen the education about basic skills and knowledge, creative thinking and adaptability to the requirements of the Fourth Industrial Revolution.

5. The Ministry of Labor, War Invalids and Social Affairs

a) Revise education and vocational training in vocational training schools towards the development of human resources, change of career with appropriate skills in order to master technological advances of the Fourth Industry Revolution.

b) Research into and propose policies and remedial measures for minimizing the negative effects the revolution may have on the labor market and social security; report such to the Prime Minister in December, 2017.

6.TheMinistry of Finance

Focus on formulating tax and finance policies to encourage enterprises to invest in technological innovation and research and development, and to invest and trade in information technology and other advanced technologies. Continue to review and implement the Government’s Resolution No. 41/NQ-CP dated May 26, 2016 on tax incentives for development and application of information technology in Vietnam.

7. The Vietnam Academy of Science and Technologyand The Vietnam Academy of Social Sciences

Research into and assess the development trend of the Fourth Industrial Revolution and report such to the Prime Minister so that the Prime Minister can give instructions to ministries and local governments to formulate tasks, strategies and master plans for local industry distribution and development.

The Vietnam Academy of Science and Technologyshall notice the development trends of science and technology; take charge and organize research into spearheaded technology, access to advanced and modern technologies of the Fourth Industry Revolution; including researches on information technology, physics, biology, artificial intelligence, materials, etc.

8.The People’s Committees of provinces and central-affiliated cities

Review andformulate the master plan for regional and local development; propose andformulate targeted plans and tasks so thattheyare implemented in accordance with the development trend of the Fourth Industry Revolution; review products, and selectkey productsto focus on investment and development. Promote the performance of some specific tasks assigned by the Prime Minister, such as: pilot development of smart city model, investment in construction and development of hi-tech agriculture (Bac Ninh province); pilot dissemination of scientific and technological knowledge to people through mobile phones (Bac Giang province); implementation of the hi-tech agriculture model, development of local key products towards high quality and productivity (Ha Nam province).

9.The National Council for Sustainable Development and CompetitivenessImprovement: integrate the contents of implementation of the Fourth Industry Revolution into the provision of consultancy for the Government and the Prime Minister.

10. The National Committee for Information Technology Application: propose the planfor improving the organization ofthe National Committee for Information Technology and report it to the Prime Minister.Assign the Committee to provide consultancy on policy and strategy, participate in formulating policies for promotion of development and application of information technology to facilitate the implementation of the Fourth Industry Revolution in Vietnam.

Ministers, heads ofministerial agencies, heads ofGovernmental agencies, Presidents of People’s Committees of provinces and central-affiliated cities shall implement this Directive and submit annual reports on results and progress of activities and proposals to the Ministry of Science and Technology before 15 December.

The Prime Minister

Nguyen Xuan Phuc