Energy and digital competency needed now for Vietnam’s future

Energy and digital competency needed now for Vietnam’s future

In light of the urgent issues of improving digital capabilities and energy supply, experts have suggested solutions to promote sustainable development in Vietnam.

As Vietnam strives to achieve its government-set goal of becoming a developed nation by 2045, it must address the escalating demands for two crucial components: a capable digital workforce and a reliable energy supply.

The demand for electricity in Vietnamese cities is constantly growing and in May 2023, several cities cut public lighting to reserve energy for households and manufacturing. While the country’s energy demand increases rapidly, it is counterbalanced by the government’s commitment to reach net-zero carbon emissions by 2050, thus demonstrating a critical need to develop sustainable power sources to ensure a continued development of Vietnam’s urban areas. 

Coupled with the challenge of energy scarcity is the significant lack of digitally competent human resources, which is, arguably, the most essential component of developing smart cities. Vietnam’s digital skills are low on a number of indices. Vietnam’s rating for digital skills under the 2022 Global Talent Competitiveness Index, Global Knowledge category was 82 out of 133. Vietnam’s Ministry of Labour, Invalids and Social Affairs cited that only 11% of the domestic labour force is highly skilled.

Following the success of the previous Smart and Sustainable Cities Forum in 2021, RMIT University Vietnam hosted top experts in this year’s event to offer solutions for Vietnam’s growing demand for a digitally competent workforce and the need for more sustainable energy production. 

(L-R) Dr Truong Minh Huy Vu, Professor Claire Macken, Mr Le Minh Tuan, and Associate Professor Nguyen Quang Trung. The online speakers comprised Associate Professor Vu Minh Khuong and RMIT Director of Centre for Urban Research Professor Jago Dodson. (L-R) Dr Truong Minh Huy Vu, Professor Claire Macken, Mr Le Minh Tuan, and Associate Professor Nguyen Quang Trung. The online speakers comprised Associate Professor Vu Minh Khuong and RMIT Director of Centre for Urban Research Professor Jago Dodson.

The third Smart and Sustainable Cities Forum was organised by RMIT University in partnership with the Ho Chi Minh City Department of Industry & Trade and the Ho Chi Minh City Institute of Development Studies. The speakers included a balanced blend of top-level officials from the HCMC government; esteemed professors from Australia, Singapore and Vietnam; and CEOs from top performing companies.

Dr Truong Minh Huy Vu, Deputy Director of the HCMC Institute for Development Studies briefly introduced green economy policies of the City. According to him, “green economy is a strategy for more sustainable development, which requires collective action”.

He pointed out: “We need societal resources from various forms, ranging from public-private partnerships to collaborative resource sharing as partially outlined in Resolution 98.”

“Particularly, international collaboration is highly essential, as these are novel issues where our experiences and resources will be synergised and developed more rapidly through global cooperation,” Dr Vu stated.

According to Dr Vu, Ho Chi Minh City needs societal resources from various forms to implement green economy. According to Dr Vu, Ho Chi Minh City needs societal resources from various forms to implement green economy.

Discussing renewable energy development in Vietnam, Associate Professor Vu Minh Khuong from the Lee Kuan Yew School of Public Policy at the National University of Singapore highlighted: “The achievement of successful renewable energy development in Vietnam hinges on a dynamic interplay and mutually reinforcing effects of effective national governance, forward-looking business choice, and well-designed mechanisms driving continuous advancement.”

Associate Professor Vu Minh Khuong from the Lee Kuan Yew School of Public Policy at the National University of Singapore Associate Professor Vu Minh Khuong from the Lee Kuan Yew School of Public Policy at the National University of Singapore

He added: “It's vital that Vietnam sustains its commitment to these factors, fostering an environment where technological innovation and sustainable practices flourish.”

Professor Claire Macken, RMIT Vietnam Pro Vice-Chancellor and General Director, said: “For the past 23 years, we have been a trusted partner of the Vietnamese government and have sought to have a positive impact in both the local communities where we teach as well as nationally across Vietnam.

“As a matter of fact, smart and sustainable cities is one of the four key areas of focus in our RMIT Vietnam strategy. We have always strived to create a positive impact in Vietnam.”

“Together, we have the potential to start a new chapter in the evolution of Vietnam’s cities – one that is fuelled by the energy of the sun and guided by the intelligence of a digitally competent workforce,” Professor Macken stated.

To hit Vietnam’s aspirational goals, the short-term future requires additional capacity building and digital training for the workforce to be suitably equipped in a rapidly evolving world.

Professor Robert McClelland, Dean of The Business School, RMIT Vietnam said: “Coupled with the need for upskilling the workforce is the need for more energy. The government has forecasted that electricity demand will increase at an average of 8.5% - 9% per year through 2025.

“Digital competence and renewable energy are, in fact, symbiotic in nature. Our workforce needs additional sustainable energy to become more digitally competent and build the connected and advanced cities of the future.”

“Conversely, as our workforce becomes better equipped with more cutting-edge knowledge, it will become easier for them to help develop the infrastructure for more sustainable energy production,” Professor McClelland emphasised.

The third Smart and Sustainable Cities Forum attracted more than 400 people to discuss solutions and exchange ideas. The third Smart and Sustainable Cities Forum attracted more than 400 people to discuss solutions and exchange ideas.

According to Associate Professor Nguyen Quang Trung, RMIT Vietnam Head of Management Department, there are no shortcuts to enhancing Vietnam’s digital workforce. Instead, a long-term plan needs to be implemented.

He suggested drawing six lessons learned from countries including Singapore, South Korea, Finland, and Estonia:

(1) Education: Prioritising digital skills integration, early exposure to coding, and computational thinking.

(2) Government initiatives: Driving digital competence through comprehensive plans, training, and e-learning.

(3) Digital literacy for all: Promoting digital literacy for all age groups, including older adults.

(4) Collaboration: Inclusive digital transformation via public-private collaboration and stakeholder engagement.

(5) Lifelong learning: Emphasising continuous learning, subsidising digital skill upgrades.

(6) Innovation: Embracing flexibility, design thinking, and innovation for digital society advancement.

Mr Le Minh Tuan, Deals Advisory Partner at PwC Vietnam, said: “In the uncertainty landscape, skills like agility, problem solving, and leadership can help Vietnamese people face challenges head-on.”​

He also suggested that “organisations should take steps to prepare their​ workforce for the digital world​. Five steps for organisation leaders to consider include (1) engage and inspire your people, (2) identify skills gaps and mismatches​, (3) develop and implement upskilling​, (4) make your culture a catalyst for change​, and (5) invest in building transformative leadership​ capability.”

The four-hour forum showcased five cutting-edge keynote presentations and a parallel-track series of talks, including a white paper launch that provides critical insights on “Enhancing digital competency” in Vietnam with the current state of digital competency as well as international best practices and key takeaways for developing smart and sustainable cities.

Story: June Pham

31 August 2023

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