VIETNAM’S FUTURE DIGITAL ECONOMY TOWARDS 2030 AND 2045 May 2019 CITATION Cameron A, Pham T H, Atherton J, Nguyen D H, Nguyen T P, Tran S T, Nguyen T N, Trinh H Y & Hajkowicz S (2019). Vietnam’s future digital economy – Towards 2030 and 2045. CSIRO, Brisbane. COPYRIGHT © Commonwealth Scientific and Industrial Research Organisation 2019. CSIRO grants Vietnam’s Ministry of Science and Technology perpetual and royalty-free licence to use these materials. To the extent permitted by law, all rights are reserved and no part of this publication covered by copyright may be reproduced or copied in any form or by any means except with the written permission of CSIRO. IMPORTANT DISCLAIMER CSIRO advises that the information contained in this publication comprises general statements based on scientific research. The reader is advised and needs to be aware that such information may be incomplete or unable to be used in any specific situation. No reliance or actions must therefore be made on that information without seeking prior expert professional, scientific and technical advice. To the extent permitted by law, CSIRO (including its employees and consultants) excludes all liability to any person for any consequences, including but not limited to all losses, damages, costs, expenses and any other compensation, arising directly or indirectly from using this publication (in part or in whole) and any information or material contained in it. CSIRO is committed to providing web accessible content wherever possible. If you are having difficulties with accessing this document please contact enquiries@csiro.au. ACKNOWLEDGEMENTS A Steering Committee guided the production of this report. Members include: Dr Nguyen Duc Hoang and Dr Bui The Duy from Vietnam’s Ministry of Science and Technology; Mr Nguyen The Trung from DTT Technology Group; Ms Nguyen Hoang Ha and Ms Duong Hong Loan from Australia’s Department of Foreign Affairs and Trade; and Dr Stefan Hajkowicz, Ms Liza Noonan and Mr James Dods from CSIRO. Several experts reviewed the report, including: • Dr Nguyen Hoang Ha, Dr Dang Quang Vinh, Dr Vo Tri Thanh, and Mr Nguyen Hoa Cuong from the Ministry of Planning and Investment • Ms Tran Thi Thu Huong, Mr Le Xuan Dinh, Mr Dam Bach Duong, Ms Nguyen Thi Ngoc Diep, Mr Nguyen Phu Hung, Mr Pham Hong Quat, Mr Nguyen Nam Hai, and Ms Phan Hoang Lan from the Ministry of Science and Technology • Dr Can Van Luc from the Bank for Investment and Development of Vietnam • Mr Nguyen Duc Hien from the Central Economic Commission • Ms Pham Chi Lan from the Prime Minister’s Research Council • Mr Tran Minh from the Ministry of Information and Communication • Mr Le Chi Dung from CMC Technology Group • Ms Pham Thi Thu Hang from the Vietnam Chamber of Commerce and Industry • Mr Dao Quang Vinh from the Ministry of Labour, Invalids and Social Affairs • Ms Asysa Akhlque from the World Bank • Dr Olga Memedovic from the United Nations Industrial Development Organization, and • Mr Jiri Dusik from the United Nations Development Programme Vietnam. Comments and input were also provided by Mr Phung Bao Thach, Dr Nguyen Quang Lich, Mr Hoang Xuan Thanh, Mr Trinh Dang Ha, and Mr Nguyen Tuan Anh from the Ministry of Science and Technology; and Mr Dave Dawson and Dr Alex Bratanova from CSIRO’s Data61. Workshops in Vietnam were organised with assistance from: Mr Huynh Kim Tuoc and Ms Dang Thi Luan from the Saigon Innovation Hub; Mr Tran Vu Nguyen, Mr Pham Duc Nam Trung, and Ms Ly Phuong Dung from the Danang Business Incubator; Mr Nguyen Thanh Ha and Ms Thi Vu Van Anh from the Vietnam Academy of Social Sciences; and Mr Nguyen Duc Thanh, Ms Vu Thi Thu Hang, Ms Pham Thi Tuyet Mai, and Ms Dang Thi Bich Thao from the Vietnam Institute of Economic and Policy Research. Training was provided to the research team in Vietnam by Dr George Quezada, Dr Stefan Hajkowicz, Dr Kelly Trinh, Mr Dinesh Devaraj, Mr Roy Chamberlain, Mr Dan Bailey and Ms Cathy Pitkin. This report has been supported by the Australian Department of Foreign Affairs and Trade through the Aus4Innovation program. VIETNAM’S FUTURE DIGITAL ECONOMY TOWARDS 2030 AND 2045 May 2019 FOREWORD Over the last four decades Vietnam has experienced rapid industrialisation, modernisation and international integration. In the new Vietnam, science, technology and innovation have a critical role to play in furthering Vietnam’s development: improving manufacturing capacity and competitiveness in product value chains, revolutionising business models, and attracting new sources of investment in the information and communications technology (ICT) sector. Cooperation between Vietnam and Australia has developed strongly over the 45 years since the formal establishment of diplomatic relations in 1973. The relationship today rests on three pillars of cooperation: security, economic and innovation. The Australia-Vietnam Innovation Partnership was launched at the APEC Summit in November 2017 in Da Nang. This partnership has been given life by Aus4Innovation, a AU$10 million program of cooperation between the Australian Department of Foreign Affairs and Trade and CSIRO and Vietnam’s Ministry of Science and Technology on science, technology and innovation. This report on Vietnam’s Future Digital Economy represents the first project undertaken under the Aus4Innovation program. CSIRO and the Ministry of Science and Technology have worked together to deliver this report. Several of the project’s early findings were discussed in the thematic workshop on Industry 4.0 megatrends – identification of impacts and incentives for Vietnam hosted by the Ministry of Science and Technology on 13 July 2018 under the Industry 4.0 Summit 2018 organised by the Central Economic Commission and Vietnam Government. The results were greatly appreciated by ministries, sectors and participants. At the launch of Aus4Innovation in January 2019, the project’s results were once again presented and acknowledged by international partners and communities such as the World Bank and Asian Development Bank. We greatly appreciate the collaborative efforts made by both the Ministry of Science and Technology and CSIRO in completing this report. We strongly believe the analysis, findings and recommendations contained in the report will have implications for the development of Vietnam’s economy and society over the next 25 years. On behalf of the Ministry of Science and Technology of Vietnam and the Department of Foreign Affairs and Trade of Australia, we pledge to continue promoting further cooperation in science, technology, research and innovation between our two countries. Minister of Ministry of Science and Technology Chu Ngoc Anh Department of Foreign Affairs and Trade Ambassador to Vietnam Craig Chittick CONTENTS Foreword........................................................................................................................................iiiGlossary........................................................................................................................................viiiAcronyms and Abbreviations........................................................................................................ix1Executive summary.......................................................................................................................... Part I Vietnam Today and the Digital Economy.............................................................................91 VIETNAM ECONOMIC OVERVIEW – A DEVELOPMENT SUCCESS STORY.................................101.1 Economic trends – From Doi Moi to Vietnam today...........................................................................................111.2 Vietnam in 2019 – A leading emerging market...................................................................................................142 CONCEPTUALISING THE DIGITAL ECONOMY............................................................................152.1 What is the digital economy?................................................................................................................................152.2 Other definitions related to the digital economy...............................................................................................183 THE PREMISE FOR DEVELOPING VIETNAM’S DIGITAL ECONOMY..........................................203.1 Benchmarking Vietnam in the international economy.......................................................................................203.2 Policies supporting the digital economy in Vietnam..........................................................................................203.3 A promising start for the digital economy...........................................................................................................25Part II Vietnam’s current status and potential for digital economy development.....................271 DIGITAL TRANSFORMATION TRENDS IN VIETNAM.................................................................281.1 Foundation for digitalisation................................................................................................................................281.2 ICT – the booming base of Vietnam’s digital economy......................................................................................281.3 Digital content on a roll.........................................................................................................................................311.4 Moving towards digital economy maturity with e-commerce...........................................................................321.5 Smart logistics........................................................................................................................................................321.6 Smart tourism.........................................................................................................................................................331.7 Smart health...........................................................................................................................................................331.8 Delivering e-government services........................................................................................................................341.9 Sharing and the platform economy......................................................................................................................341.10 Financial technology..............................................................................................................................................352 CASE STUDIES – AWARENESS AND READINESS FOR DIGITAL TRANSFORMATION OF MANUFACTURING AND AGRICULTURE SECTORS.........................................................................362.1 Manufacturing and agriculture survey methodology.........................................................................................372.2 Manufacturing and agriculture survey results.....................................................................................................392.3 Consumer views on digitalisation.........................................................................................................................442.4 Implications for digital development in Vietnam................................................................................................452.5 Challenges for the digital transformation............................................................................................................453 CONCLUSIONS – THE CURRENT LEVEL OF DIGITAL TRANSFORMATION IN VIETNAM......46 Part III Megatrends........................................................................................................................47EMERGING DIGITAL TECHNOLOGIES.............................................................................................49A SMALLER WORLD – INTERNATIONALISATION...........................................................................54INCREASING NEED FOR CYBERSECURITY AND PRIVACY...............................................................58MODERN DIGITAL INFRASTRUCTURE...........................................................................................62THE PUSH TO SMART CITIES.........................................................................................................66RISE OF DIGITAL SKILLS, SERVICES, GIGS AND THE ENTREPRENEUR............................................70CHANGING CONSUMER BEHAVIOURS – DIGITAL TRIBES, INFLUENCERS, HIGHER VALUE CONSUMPTION..............................................................................................................................74Part IV Scenarios 2045..................................................................................................................79SCENARIO 1 HERITAGE.................................................................................................................84SCENARIO 2 DIGITALLY TRANSFORMED....................................................................................90SCENARIO 3 DIGITAL EXPORTER.................................................................................................96SCENARIO 4 DIGITAL CONSUMER..............................................................................................102Part V Conclusions and a Roadmap for the way forward..........................................................107ACHIEVING DIGITAL TRANSFORMATION FOR ECONOMIC GROWTH IN VIETNAM 2019-2045...................................................................................................................108CREATING A ROADMAP FOR VIETNAM’S FUTURE DIGITAL ECONOMY.................................110ROADMAP FOR VIETNAM’S FUTURE DIGITAL ECONOMY........................................................117CONCLUSION...............................................................................................................................132Appendix A Companies operating in the digital economy in Vietnam.....................................134Appendix B Main regulations on Information Technology in Vietnam....................................135Appendix C Methodology for surveys and Digital Adoption Index..........................................138Appendix D Scenario Modelling Methodology..........................................................................142Appendix E Aus4Innovation........................................................................................................146References....................................................................................................................................147 FIGURES Figure 1 Methodology of the Vietnam’s Future Digital Economy Project.............................................................................3 Figure 2 Priority areas for development of Vietnam’s future digital economy....................................................................8Figure 3 Timeline of Vietnam’s achievements from the reunified era to Vietnam today..................................................11Figure 4 Vietnam GDP and exports (constant 2010 US$), 1990‑2018..................................................................................12Figure 5 Real GDP per capita relative to US$ at constant 2010 prices, 1967-2017.............................................................12Figure 6 Foreign-invested firms’ export value and proportion of total exports, 1995-2018............................................13Figure 7 Value added to Vietnam GDP (%) by economic sector, 1986‑2018.......................................................................13Figure 8 Increasing labour value-added of export products in Vietnam, 1995-2011........................................................14Figure 9 Vietnam inflation, consumer prices (annual %), 1996-2018..................................................................................14Figure 10 Broadest and narrowest definitions of the digital economy...............................................................................15Figure 11 Digital economy stakeholders...............................................................................................................................17Figure 12 Stages of industrial revolution...............................................................................................................................18Figure 13 Main regulators of the digital economy in Vietnam............................................................................................22Figure 14 Update on major regulations relating to the digital economy...........................................................................23Figure 15 Population using the Internet (%) by country, 2000-2017...................................................................................29Figure 16 Broadband take-up in Vietnam – number of connections, 2006-2017...............................................................29Figure 17 High technology exports across economies (current $US million) 1997-2017...................................................31Figure 18 Vietnam B2C e-commerce landscape....................................................................................................................32Figure 19 Internet broadband bandwidth per employee across agencies in Vietnam, 2012-2016...................................34Figure 20 Business usage of online public services in Vietnam (%)....................................................................................34Figure 21 Fintech segments in Vietnam (proportion of fintech companies operating in different areas)......................35Figure 22 Contributions of agriculture and manufacturing to Vietnam’s economy (2017)..............................................36Figure 23 Survey methodology on digital awareness, digital transformation readiness and digital consumption........38Figure 24 Information technology use across industries.....................................................................................................39Figure 25 Organisations that find Industry 4.0 important...................................................................................................39Figure 26 Reasons given as to why enterprises should adopt digital technologies...........................................................40Figure 27 Important technologies for the manufacturing and agriculture sectors...........................................................41Figure 28 Top challenges to digitalisation in Vietnamese agriculture and manufacturing firms.....................................41Figure 29 Enterprise plans for digital adoption in the next 12 months..............................................................................41Figure 30 Digital adoption levels across dimensions in Vietnam’s leading companies.....................................................42Figure 31 Profit expectations tend to be higher for firms with a higher Digital Adoption Index....................................43Figure 32 Services purchased over the Internet in the last 12 months...............................................................................44Figure 33 Use of the sharing economy in the last 12 months..............................................................................................44Figure 34 E-government service usage..................................................................................................................................44Figure 35 Level of satisfaction with e-government services (% of customers)...................................................................45Figure 36 Share of large companies (%) adopting emerging digital technologies in Vietnam and East Asia/the Pacific................................................................................................................................................................50Figure 37 Foreign direct investment in select ASEAN nations, net inflows (current US$), 2000-2017..............................55Figure 38 Secure Internet servers per 1 million people in select Asia Pacific countries....................................................59Figure 39 Economic benefit generated from spectrum based sectors, 2013-2015............................................................63Figure 40 Forecasted proportion (%) of population living in urban areas in select ASEAN countries, 2000-2050.........67 Figure 41 Importance of job skills as ranked by employers (% of firms ranking skill in top 5).........................................71Figure 42 Disposable income projections of the middle class in selected ASEAN countries, US$ per capita, 2016-2020.......................................................................................................................................................75Figure 43 Impact of digital technology adoption on GDP as described in the scenarios for Vietnam’s digital economy in 2045..........................................................................................................................................................83Figure 44 Impact of digital technology adoption on the labour market, as described in the scenarios for Vietnam’s digital economy in 2045..................................................................................................................................83Figure 45 Total impact of digital technology by % on labour markets across industries of Vietnam by 2030 and 2045 – Heritage Scenario.......................................................................................................................................85Figure 46 Total impact of digital technology on GDP across industries of Vietnam by 2030 and 2045 – Heritage Scenario....................................................................................................................................................................85Figure 47 Impact of digital technology by % on labour markets across industries of Vietnam by 2030 and 2045 – Digitally Transformed Scenario..............................................................................................................................................91Figure 48 Impact of digital technology on GDP across industries of Vietnam by 2030 and 2045 – Digitally Transformed Scenario..............................................................................................................................................91Figure 49 Impact of digital technology on by % on labour markets across industries of Vietnam by 2030 and 2045 – Digital Exporter Scenario...........................................................................................................................97Figure 50 Impact of digital technology on GDP across industries of Vietnam by 2030 and 2045 – Digital Exporter Scenario........................................................................................................................................................97Figure 51 Impact of digital technology by % on labour market across industries of Vietnam by 2030 and 2045 – Digital Consumer Scenario...................................................................................................................................................103Figure 52 Impact of digital technology on GDP across industries of Vietnam by 2030 and 2045 – Digital Consumer Scenario...................................................................................................................................................103Figure 53 Using scenarios to assess strategies....................................................................................................................108Figure 54 Global Gender Index – South East Asian Countries, 2018.................................................................................123Figure 55 The competitive squeeze on economic strategy................................................................................................132Figure 56 Different strategies for different stages of development..................................................................................133Figure 57 Enterprise survey participants by type of enterprise.........................................................................................138Figure 58 Customer survey participant demographics......................................................................................................139 TABLES Table 1 Benchmarking Vietnam’s digital economy with comparable ASEAN nations.......................................................21Table 2 ICT industry revenue in Vietnam by sector, US$ billions.........................................................................................30Table 3 Number of ICT industry enterprises in Vietnam by sector......................................................................................30Table 4 Number of ICT industry employees in Vietnam by sector.......................................................................................30Table 5 Emerging digital technologies and their applications.............................................................................................50 EXECUTIVE SUMMARY Trends of the macro and digital economy Methodology Horizon scan, literature review, issue identification. Vietnam’s future digital economy – First report (2018) Scenario development – Vietnam’s future digital economy in 2045 Methodology Workshops, interviews and primary data analysis to create plausible scenarios for Vietnam’s economy in 2045 based on varying rates of digital transformation. Industry case studies: Agriculture and manufacturing Methodology Baseline surveys with industry leaders and businesses will provide data to create a digital awareness and digital readiness index for components of Vietnam’s Agriculture and Manufacturing sectors (April – June 2018). Conclusions and policy implications Methodology Discussion of final results. Workshops to list policy implications and possible future actions. Vietnam’s future digital economy – Final report (2019) SCENARIO 3 DIGITAL EXPORTERSCENARIO 2 DIGITALLY TRANSFORMEDSCENARIO 4 DIGITAL CONSUMERSCENARIO 1 HERITAGE CURRENT JOBS AT RISK OF TRANSFORMATION OR DISRUPTION 18.4% IMPACT ON ANNUAL GROWTH 0.38% ACCUMULATED ADDITIONAL GDP US$60.9 billion over 27 years CURRENT JOBS AT RISK OF TRANSFORMATION OR DISRUPTION 38.1% IMPACT ON ANNUAL GROWTH 1.1% ACCUMULATED ADDITIONAL GDP US$168.6 billion over 27 years CURRENT JOBS AT RISK OF TRANSFORMATION OR DISRUPTION 19.1% IMPACT ON ANNUAL GROWTH 0.45% ACCUMULATED ADDITIONAL GDP US$66.9 billion over 27 years CURRENT JOBS AT RISK OF TRANSFORMATION OR DISRUPTION 28.9% IMPACT ON ANNUAL GROWTH 0.63% ACCUMULATED ADDITIONAL GDP US$102.8 billion over 27 years ICT and Energy Infrastructure Cybersecurity Digital Skills Modernise Government Industry 4.0 and National Innovation Regulation and taxation reform Figure 2 Priority areas for development of Vietnam’s future digital economy Source: Data61 analysis Source: UN World Population Prospects, World Bank Development Indicators, IMF World Economic Outlook database. VIETNAM TODAY: ECONOMY AT A GLANCE The country reunified and founded The Socialist Republic of Vietnam on 2 July 1976. Vietnam became the 150th member of the World Trade Organization (WTO) on 11 January 2007. Since 1993, the sum of exports and imports in relation to GDP has more than doubled. Reforms have transformed Vietnam from one of the world’s poorest countries 25 years ago to a lower middle‑income country (MIC). Economic reforms and opening ‘Doi Moi’ literally means ‘renovation’ or ‘reconstruction’ and aims to increase economic growth and development by liberalising the economy. Vietnam’s economy has become one of the most open in the world, with new Free Trade Agreements promising growth for the future. Figure 3 Timeline of Vietnam’s achievements from the reunified era to Vietnam today Adapted from: Green ID Vietnam22 Figure 4 Vietnam GDP and exports (constant 2010 US$), 1990‑2018 - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  BillionsGDPExports Figure 5 Real GDP per capita relative to US$ at constant 2010 prices, 1967-2017 - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au ..... US (constant  prices) JapanHong Kong SAR, ChinaKorea, Rep.MalaysiaThailandIndonesiaPhilippinesVietnam Figure 6 Foreign-invested firms’ export value and proportion of total exports, 1995-2018 - graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  % of total exportsExport value (US millions) FDI Firms' export value% of total export Figure 7 Value added to Vietnam GDP (%) by economic sector, 1986‑2018 - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  % Agriculture, forestry and sheryIndustry and ConstructionServices Figure 8 Increasing labour value-added of export products in Vietnam, 1995-2011 Source: World Integrated Trade Solution35 Figure 9 Vietnam inflation, consumer prices (annual %), 1996-2018 Source: World Bank26 Figure 9 Vietnam inflation, consumer prices (annual %), 1996-2018 - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au - Annual % Figure 8 Increasing labour value-added of export products in Vietnam, 1995-2011 - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au ,,,,, Direct labour value-added of exports (US million) Total labour value-added of exports (US million) Business Business people and investors • Invest in R&D and digital technologies • Adopt digital products and services in business operations • Use new business models to provide personalised and integrated products and services Innovators Universities, innovation centres, start-ups, individuals • Create new innovations for the digital economy • Train and manage talent • Foster collaboration through innovation hubs Policy makers and policy influencers Government, unions, associations, NGOs • Promote and regulate the digital economy • Provide integrated online public services • Collect data • Provide open data for community use • Boost cybersecurity and risk management • Develop supporting infrastructure Individuals • Customers / end‑users of products and services • Content owners / creators • Active participants through p2p network • Employees / labour supply Figure 12 Stages of industrial revolution First Industrial Revolution • Machine production • Steam and water power Second Industrial Revolution • Assembly lines • Mass production • Electrical power Digital Revolution • Digital computer machinery • Internet • Automation Industry 4.0 • Internet of Things • Big data analytics • The cloud • Artificial Intelligence • Cyber-physical systems • 3D printing • Augmented reality Figure 13 Main regulators of the digital economy in Vietnam Source: Data61 analysis Figure 14 Update on major regulations relating to the digital economy Note: A more detailed list of digital regulations can be found in Appendix B. Source: Data61 analysis Main Decrees and Decisions Decision 418/2012/ QĐ-TTg on approving the science and technology development plan 2011-2020 with emphasis on digital technologies Decision 418/2012/ QĐ-TTg on approving the science and technology development plan 2011-2020 with emphasis on digital technologies Decision No.1072/2018/ QĐ-TTg, on establishing the national e-government committee Decree No. 154/2013/ND-CP, on concentrated information technology park Decree No. 26/2007/ND-CP, detailing the E-transaction Law Decree No. 71/2007/NĐ- CP, detailing the Law on Information Technology Directive No. 16/CT-TTg strengthening the ability to access Industry 4.0 Decree No. 35/2007/NĐ- CP and No. 27/2007/NĐ-CP on e-banking and e-finance Decree No. 52/2013/ND-CP on e-commerce Decree No. 97/2008/NĐ- CP on internet services and electronic information on the internet Decision No.1563/2017/ QĐ-TTg, on approving the overall plan for e-commerce development 2016-2020 Resolution No. 17/NQ-CP, on a number of key tasks and solutions to develop e-government during 2019- 2020, with orientations towards 2025 Resolution No.1/2019/ NQ-CP, on implementing the socio- economic plan and budget estimates for 2019, to issue the National strategy on implementing Industry 4.0; Resolution on improving capacity to approach Industry 4.0 toward 2025; and Solution to develop national human resources to meet the requirements of Industry 4.0 Resolution No.2/2019/ NQ-CP, on improving the business environment and national competitiveness in 2019 toward 2021; to develop the scheme for the National Innovation Center; to develop solutions to master key Industry 4.0 technologies especially AI; and to deploy the scheme “Developing the Digitalised Knowledge System” and promote e-payment Main Laws Law on Telecommunication 2009 Law on Information Technology 2006 Law on Radio Frequency 2009 Law on Cybersecurity 2018 Law on E-transaction 2005 Law on High Technology 2008 Law on Intellectual Property 2005 Law on Technology Transfer 2018 Law on Cybersecurity 2018 Main Strategies, Master Plans, Initiatives Vietnam post, telecommunications and information technology strategy until 2010 and orientations toward 2020 Master plan on Vietnam’s electronics industry up to 2010, with a vision toward 2020 National planning on development of IT security through 2020 The target program on IT development through 2020, with a vision toward 2025 The program on development of broadband telecommunications infrastructure through 2020 Scheme to support the national innovative startup ecosystem through 2025 Vietnam strategy on ICT development till 2010 and orientations toward 2020 VIETNAM’S ICT SECTOR AT A GLANCE Figure 16 Broadband take-up in Vietnam – number of connections, 2006-2017 Source: World Bank26 Figure 15 Population using the Internet (%) by country, 2000-2017 Source: World Bank26 Source: Ministry of Information and Communications, stockbiz.vn Figure 15 Population using the Internet (%) by country, 2000-2017 - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  % IndonesiaIndiaPakistanVietnam Figure 16 Broadband take-up in Vietnam – number of connections, 2006-2017 - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  MillionsFixed broadband subscriptionsFixed telephone subscriptionsMobile cellular subscriptions Table 2 ICT industry revenue in Vietnam by sector, US$ billions 2015 2016 2017 2018 Hardware 53 58.8 81.6 88 Software 2.6 3 3.8 4.3 Digital content 0.6 0.7 0.8 0.9 Services 4.5 5 5.4 5.7 Total 60.7 67.7 91.6 98.9 Source: Ministry of Information and Communication Table 3 Number of ICT industry enterprises in Vietnam by sector 2015 2016 2017 2018 (FIRST 6 MONTHS) Hardware 2,980 3,404 4,001 4,300 Software 6,143 7,433 8,883 9,500 Digital content 2,339 2,700 3,202 3,500 Services 10,196 10,965 12,338 12,700 Total 21,658 24,501 28,424 30,000 Source: Ministry of Information and Communication Table 4 Number of ICT industry employees in Vietnam by sector 2015 2016 2017 2018 (FIRST 6 MONTHS) Hardware 533,003 568,288 677,222 720,000 Software 81,373 97,387 112,004 - Digital content 44,320 46,647 43,538 45,000 Services 62,888 68,605 64,574 70,000 Total 721,584 780,926 897,338 955,000 Source: Ministry of Information and Communication Figure 17 High technology exports across economies (current $US million) 1997-2017 Source: World Bank26 Figure 17 High technology exports across economies (current $US million) 1997-2017 - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au US millionThailandIndonesiaIndiaVietnamBrazil 2015 2016 2017 Estimated number of Internet users involving in e-commerce (million people) 30.3 32.7 33.6 Estimated e-commerce expenditure per person ($US) 160 170 186 Proportion of BTC e-commerce in total good and service retail (%) 2.8% 3.0% 3.6% Figure 18 Vietnam B2C e-commerce landscape Source: Ministry of Industry and Trade97 Figure 18 Vietnam B2C e-commerce landscape - column and line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au .... % US billionRevenueGrowth Figure 20 Business usage of online public services in Vietnam (%) Source: Ministry of Industry and Trade111 Figure 19 Internet broadband bandwidth per employee across agencies in Vietnam, 2012-2016 Source: Ministry of Information and Communication and Vietnam Association for Information Processing82 Figure 19 Internet broadband bandwidth per employee across agencies in Vietnam, 2012-2016 - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au ,,,,,,,, kbpsGovernment agenciesCommercial banksMajor economic groups Figure 20 Business usage of online public services in Vietnam (%) - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au % % % % % % % % % % %  Figure 21 Fintech segments in Vietnam (proportion of fintech companies operating in different areas) Source: State Bank of Vietnam117 Figure 21 Fintech segments in Vietnam (proportion of fintech companies operating in different areas) - pie graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au PaymentData analyticsData managementPOS managementLoanRemittancePersonal nancemanagementBlockchainCrowd funding Figure 22 Contributions of agriculture and manufacturing to Vietnam’s economy (2017) Source: General Statistics Office23 Figure 22 Contributions of agriculture and manufacturing to Vietnam’s economy (2017) - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au .... Proportion of labour (%) Proportion of GDP (%) AgricultureManufacturing a Refer to Appendix C for details on DAI calculation Figure 23 Survey methodology on digital awareness, digital transformation readiness and digital consumption Source: Ministry of Science and Technology analysis b We use the United Nations definition (as per the Handbook of Household Surveys, 1984), where ‘agriculture households’ are households with at least one member operating a holding (farming household) or when the household head or main income earner is economically active in agriculture. Figure 25 Organisations that find Industry 4.0 important Source: Ministry of Science and Technology analysis Figure 24 Information technology use across industries Source: Ministry of Science and Technology analysis Figure 24 Information technology use across industries - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au PER CENT % AgriculturehouseholdsAgriculture rmsOther manufacturingsectorsFoodprocessingMechanicalChemistryConstructionMaterial/ NanotechnologyElectronics and computers Figure 25 Organisations that find Industry 4.0 important - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  PER CENT % AgriculturehouseholdsAgriculture rmsOther manufacturingsectorsFoodprocessingMechanicalChemistryConstructionMaterial/ NanotechnologyElectronics and computers Figure 26 Reasons given as to why enterprises should adopt digital technologies Source: Ministry of Science and Technology analysis Figure 26 Reasons given as to why enterprises should adopt digital technologies - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au PER CENT % Environmentalbene tRisk managementEquipment eciencyimprovementManagementenhancementInput savingOutput increaseAgriculture householdsAgriculture rmsManufacturing rms Figure 27 Important technologies for the agriculture and manufacturing sectors Source: Ministry of Science and Technology analysis Top technologies for agriculture in Vietnam Top technologies for manufacturing in Vietnam (Selection of the top 2 technologies) Figure 28 Top challenges to digitalisation in Vietnamese agriculture and manufacturing firms Source: Ministry of Science and Technology analysis Figure 29 Enterprise plans for digital adoption in the next 12 months Source: Ministry of Science and Technology analysis Figure 29 Enterprise plans for digital adoption in the next 12 months - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au Agriculture householdsAgriculture rmsManufacturing rmsPER CENT % No planIntend to investBasic investment planPlan withoutresource allocationPlan withresource allocation Figure 28 Top challenges to digitalisation in Vietnamese agriculture and manufacturing firms - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  Lack of informationFinance shortageTechnology identicationIncompatible equipmentNot usefulAgriculture householdsAgriculture rmsManufacturing rmsPER CENT % Figure 27 Important technologies for the manufacturing and agriculture sectors - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  AgriculturehouseholdsAgriculture rmsAutonomous equipmentReal-time data analyticsSensors  AverageConstructionElectronics andcomputersMechanicalChemistryMaterial/Nano techFood processingOtherBig dataSimulation D printingRobotics and automationProcess monitoring and controlPER CENT (%)PER CENT ‚%ƒ c Refer to Appendix C for details on DAI calculation Digital Adoption Index in Manufacturing Digital Adoption Index in Agriculture Figure 30 Digital adoption levels across dimensions in Vietnam’s leading companies Note: Adoption level: Level 1 – Outsider; Level 2 – Beginner; Level 3 – Intermediate; Level 4 – Experienced; Level 5 – Pioneer/Expert. Source: Ministry of Science and Technology analysis Figure 30 Digital adoption levels across dimensions in Vietnam’s leading companies - diagram. For a full description of this figure please contact: lucy.cameron@data61.csiro.au ...... StrategyFinanceInfrastructureHumanresourcesSmartproductionForward andbackward linkagesStrategyFinanceInfrastructureHumanresourcesSmartproductionForward andbackward linkages ...... Figure 31 Profit expectations tend to be higher for firms with a higher Digital Adoption Index Source: Ministry of Science and Technology analysis Figure 31 Profit expectations tend to be higher for firms with a higher Digital Adoption Index - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au DIGITAL ADOPTION INDEX DAI EXPECTED PROFIT FOR THE NEXT YEARDAIFitted values Figure 32 Services purchased over the Internet in the last 12 months Source: Ministry of Science and Technology analysis Figure 33 Use of the sharing economy in the last 12 months Source: Ministry of Science and Technology analysis Figure 34 E-government service usage Source: Ministry of Science and Technology analysis Figure 32 Services purchased over the Internet in the last 12 months - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  Do not usee-commerceDigital contentsOther productsElectronicsEntertainmentFood andbeverageFashion andcosmeticsPER CENT % Figure 33 Use of the sharing economy in the last 12 months - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au PER CENT %PER CENT % OtherservicesAccommodationOceDo not useTransport  InformationsearchingFormdownloadOnline publicservicesDo not use Figure 34 E-government service usage - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au PER CENT %PER CENT % OtherservicesAccommodationOceDo not useTransport  InformationsearchingFormdownloadOnline publicservicesDo not use Figure 35 Level of satisfaction with e-government services (% of customers) Source: Ministry of Science and Technology analysis Figure 35 Level of satisfaction with e-government services (% of customers) - pie graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au % % % % % Do not satisfyRarely satisfyNeutralSatisfyCompletely satisfy Increasing need for cybersecurity and privacy Modern digital infrastructure The push to smart cities Rise of digital skills, services, gigs and the entrepreneur Changing consumer behaviours – digital tribes, influencers, higher value consumption Emerging digital technologies A smaller world – internationalisation RELEVANT MICRO TRENDS Wider adoption of Internet of Things More use cases for big data Local ICT companies entering the AI market Increasing interest in blockchain development 3D printing is likely to revolutionise manufacturing and supply chain logistics Virtual Reality and Augmented Reality on the rise Cloud computing increasingly embedded in ICT systems What does this mean for the broader digital economy? MEGATREND Emerging digital technologies Figure 36 Share of large companies (%) adopting emerging digital technologies in Vietnam and East Asia/the Pacific - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  VietnamEast Asia and the PacicUser and entity big data analyticsInternet of thingsMachinelearningAugmentedand virtualrealityDistributedledger(blockchain) D printingAutonomoustransportStationaryrobotsPER CENT % d Data61 analysis. See Appendix D for methodology, and Part IV for more detailed results. RELEVANT MICRO TRENDS Increasing financial flows From aid recipient to aid partner Mobilising workforce Rising tourism destination Cultural globalisation What does this mean for the broader digital economy? MEGATREND Internationalisation – a smaller world Figure 37 Foreign direct investment in select ASEAN nations, net inflows (current US$), 2000-2017- line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au - IndonesiaVietnamPhilippinesMalaysiaThailandBILLIONS RELEVANT MICRO TRENDS Data – on the rise and flowing across borders Evolving nature of cyber attacks Privacy, identity, data breaches – increased vulnerability in a connected world Advancing cybersecurity Building the local cybersecurity industry What does this mean for the broader digital economy? MEGATREND Inreasing need for cybersecurity and privacy Figure 38 Secure Internet servers per 1 million people in select Asia Pacific countries - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  JapanMalaysiaVietnamIndonesiaThailandChina RELEVANT MICRO TRENDS Higher energy demand filled by coal The increase of renewable energy Mobile networks – 5G changing the game What does this mean for the broader digital economy? MEGATREND Modern digital infrastructure Figure 39 Economic benefit generated from spectrum based sectors, 2013-2015 - column and line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  MobileSatelliteRadio and TVCivil aviationSpectrum Spectrum  ECONOMIC BENEFIT US$ MILLIONSPECTRUM (MHz) RELEVANT MICRO TRENDS Urbanisation Ageing population Straining transport infrastructure Climate change Increasing pollution Growth of mobiles, apps, IoT and the gig economy What does this mean for the broader digital economy? MEGATREND The push to smart cities Figure 40 Forecasted proportion (%) of population living in urban areas in select ASEAN countries, 2000-2050 - line graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au          IndonesiaThailandPhilippinesVietnamMyanmarCambodiaPERCENTAGE % RELEVANT MICRO TRENDS Improving education, but slower progress in higher education Increases in self-learning More platform-based systems Rise of services Growth of start-ups What does this mean for the broader digital economy? MEGATREND Rise of digital skills, services, gigs and the entrepreneur Figure 41 Importance of job skills as ranked by employers (% of firms ranking skill in top 5) - bar graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  LiteracyForeign language skillsTime management skillsNumeracyTeam work skillsLeadership skillsCommunication skillsAbility to work independentlyCreative and critical thinkingJob-speci‚c technical skillsProblem solvingBlue-collarPink-collarWhite-collar RELEVANT MICRO TRENDS Rising Asian middle classes Higher value consumption Rise of digital tribes Influencers as drivers of consumption What does this mean for the broader digital economy? MEGATREND Changing consumer behaviours – digital tribes, influencers, higher value consumption Figure 42 Disposable income projections of the middle class in selected ASEAN countries, US$ per capita, 2016-2020 - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au ........ VietnamPhilippinesIndonesiaMalaysiaDisposable income per capita (US )  A Vietnamese local and a tourist sharing drinks – a friendly gesture in Northwest Vietnamese culture. SCENARIO 3 DIGITAL EXPORTERSCENARIO 2 DIGITALLY TRANSFORMEDSCENARIO 4 DIGITAL CONSUMERSCENARIO 1 HERITAGE SCENARIO 3 DIGITAL EXPORTER SCENARIO 2 DIGITALLY TRANSFORMED SCENARIO 4 DIGITAL CONSUMER SCENARIO 1 HERITAGE Representing the impact of the Emerging Digital Technologies megatrend Representing the impact of the Internationalisation megatrend $US 60.9 B 0.38% $US 168.6 B 1.10% $US 66.9 B 0.45% $US 102.8 B 0.63% 18.4% 38.1% 19.1% 28.9% CURRENT JOBS AT RISK OF TRANSFORMATION OR DISRUPTION ACCUMULATED ADDITIONAL GDP IMPACT ON ANNUAL GROWTH 18.4% 0.38% US$60.9 billion over 27 years Figure 46 Total impact of digital technology on GDP across industries of Vietnam by 2030 and 2045 – Heritage Scenario - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  AgricultureMiningManufacturingUtilityConstructionWholesale, retailAccommodation and foodTransportationICTFinanceReal estateProfessional activitiesAdministrative activitiesPublic administrationEducationHealthcareArts and recreationOther activitiesHousehold activities  US billionAdditional GDP due to digital technology over total projected GDP : US . million : US . million Figure 45 Total impact of digital technology by % on labour markets across industries of Vietnam by 2030 and 2045 – Heritage Scenario - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au % % % % % % AgricultureMiningManufacturingElectricity and gasWater supplyConstructionWholesale, retailTransportationAccommodationICTFinanceReal estateProfessional activitiesAdministrative activitiesPublic administrationEducationHealthcareArts and recreationOther activitiesInternaltional org activitiesActivities support householdsTotal economyJobs at Risk  CURRENT JOBS AT RISK OF TRANSFORMATION OR DISRUPTION 38.1% IMPACT ON ANNUAL GROWTH 1.1% ACCUMULATED ADDITIONAL GDP US$168.6 billion over 27 years Figure 47 Impact of digital technology by % on labour markets across industries of Vietnam by 2030 and 2045 – Digitally Transformed Scenario - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au % % % % % % % % % % AgricultureMiningManufacturingElectricity and gas  Water supplyConstructionWholesale, retailTransportationAccommodationICTFinanceReal estateProfessional activitiesAdministrative activitiesPublic administrationEducationHealthcareArts and recreationOther activitiesInternaltional org activitiesActivities support householdsTotal economyJobs at Risk Figure 47 Impact of digital technology by % on labour markets across industries of Vietnam by 2030 and 2045 – Digitally Transformed Scenario - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  AgricultureMiningManufacturingUtilityConstructionWholesale, retailAccommodation and foodTransportationICTFinanceReal estateProfessional activitiesAdministrative activitiesPublic administrationEducationHealthcareArts and recreationOther activitiesHousehold activities US billionAdditional GDP due to digital technology over total projected GDP : US . million : US . million Critical risks for the Digitally Transformed Scenario: Cyber attacks: with universal authentication and essential and smart-city systems now part of the growing IoT, and a far greater proportion of the economy reliant on online networks, Vietnam is more vulnerable to disabling cyber attacks. This includes national security breaches and attacks from foreign state-sponsored organisations, as well as commercial attacks and hacks to release personal and financial data. Cyber attacks have the potential to quickly bring down national systems and the impact on the entire economy. Distrust in electronic networks due to state and other surveillance, cybercrime and lack of legal and other recourse to financial losses, impacts on property, or invasions of privacy and personal freedoms and safety. Crime networks and tax-avoidance schemes flourish with the development of encryption technologies and cryptocurrencies that can quickly and anonymously move value from person-to-person, offshore, or fund illegal activities. Vietnam loses its uniqueness with a loss of cultural diversity in practices, social structures, languages, history and beliefs. Not everyone reaps the benefits of modernisation of the Vietnam economy, as investment is focused on urban areas, or even greenfield developments. There is a risk of growing inequality, particularly between urban and rural areas. Automation causes mass unemployment in certain areas, and a need for rapid transformation – particularly in factory towns. New markets for digital products and services, or alternative sectors such as tourism, do not grow fast enough, and parts of the Vietnamese labour market are excluded from employment opportunities due to low skills, lack of local jobs or lack of ICT equipment and connections. Over extension of loans and borrowings to modernise industry too rapidly increases public debt to unsustainable levels. CURRENT JOBS AT RISK OF TRANSFORMATION OR DISRUPTION 19.1% IMPACT ON ANNUAL GROWTH 0.45% ACCUMULATED ADDITIONAL GDP US$66.9 billion over 27 years Figure 49 Impact of digital technology on by % on labour markets across industries of Vietnam by 2030 and 2045 – Digital Exporter Scenario - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au % % % % % % % % AgricultureMiningManufacturingElectricity and gasWater supplyConstructionWholesale, retailTransportationAccommodationICTFinanceReal estateProfessional activities  Administrative activitiesPublic administrationEducationHealthcareArts and recreationOther activitiesInternaltional org activitiesActivities support householdsTotal economyJobs at Risk Figure 50 Impact of digital technology on GDP across industries of Vietnam by 2030 and 2045 – Digital Exporter Scenario - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au : US . billion : US  .  billion  AgricultureMiningManufacturingUtilityConstructionWholesale, retailAccommodation and foodTransportationICTFinanceReal estateProfessional activitiesAdministrative activitiesPublic administrationEducationHealthcareArts and recreationOther activitiesHousehold activitiesUS billionsAdditional GDP Total digital contribution to the economy CURRENT JOBS AT RISK OF TRANSFORMATION OR DISRUPTION 28.9% IMPACT ON ANNUAL GROWTH ACCUMULATED ADDITIONAL GDP US$102.8 billion over 27 years 0.63% Figure 51 Impact of digital technology by % on labour market across industries of Vietnam by 2030 and 2045 – Digital Consumer Scenario - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au % % % % % % % % AgricultureMiningManufacturingElectricity and gasWater supplyConstructionWholesale, retailTransportationAccommodationICTFinanceReal estateProfessional activitiesAdministrative activitiesPublic administrationEducationHealthcareArts and recreationOther activitiesInternaltional org activitiesActivities support householdsTotal economyJobs at Risk  Figure 52 Impact of digital technology on GDP across industries of Vietnam by 2030 and 2045 – Digital Consumer Scenario - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au  AgricultureMiningManufacturingUtilityConstructionWholesale, retailAccommodation and foodTransportationICTFinanceReal estateProfessional activitiesAdministrative activitiesPublic administrationEducationHealthcareArts and recreationOther activitiesHousehold activities US billionAdditional GDP due to digital technology over total projected GDP : US . billion : US . billion Evaluate Existing Strategy against Scenarios LOW INCOME – SUBSISTENCE FARMING AND URBAN RETAIL • Commodity driven economy, high proportion of the population employed in subsistence farming or small urban retail • Low levels of infrastructure and national savings MIDDLE INCOME – LOW COST LABOUR + MANUFACTURING • Low-cost labour market for manufacturing and other low-skilled labour intensive industry • Still a large proportion of the population engaged in agriculture but slowly reforming • Increasing capital accumulation and enabling infrastructure • Increasing urbanisation UPPER-MIDDLE INCOME – TECHNOLOGY-DRIVEN PRODUCTIVITY FROM TECH ADOPTION • Switching to technology- driven industries with employment increasing in skilled and service sectors • Adoption of best-practice technologies and systems • Higher levels of capital accumulation and large investments in productivity-enhancing technology across industry and government • Lower proportions of the population engaged in agriculture HIGH INCOME– TECHNOLOGY PRODUCER AND INDUSTRY-LEADER • Development of new Intellectual Property and the production of knowledge-intensive specialist products and/ or services for export • Automated industry with high levels of labour productivity • Increase global market share in a number of specialised technology products • Liberal social environments with freedom of expression and the development of cultural industries • Greater orientation to exports • Introduction of national savings schemes • Improvements in governance and rule of law • Greater manufacturing sector employment • Investment in early basic education across the population • Equitable and inclusive economic growth • Improvements in infrastructure and public social services • Investment in higher level education across the population • Development of local innovation systems and IP protections • Greater services sector employment • Sound and unified governance, with macroeconomic controls to stabilise the economy and inflation levels • Private-public sector alignment with strategic industries and/or services • Good returns to the state through taxation • Increased investment through national savings, tax concessions and ease of doing business • A shift from technology adopter to technology producer • Development of start-up and scale-up ecosystems and national innovation institutions and networks • Attraction of venture capital and highly skilled workers • National innovation missions and targets • Automated industry and use of external labour markets for low-cost labour DEFINITIONS: Subsistence farming = farming mainly to feed own household Commodity driven economy = an economy where the market values items equally, regardless of factors such as origin, who produced the item, brand, etc. ICT and Energy Infrastructure • Secure energy for digital infrastructure • Improve backbone fibre infrastructure • 5G trials and deployment • Pilot and deploy new Smart City technologies Cybersecurity • Improve network security with secure servers • Contribute to regional and international frameworks for data security and cybercrime • Build skills in cybersecurity Digital Skills • Set national goals for digital development • Improve digital literacy across the entire population • Build specialist skills in areas of need • Invest in technology transfer to Vietnam • Build the start-up ecosystem and attract venture capital • Develop contingencies for workers replaced by automation and the digitalisation of jobs • Improve rights and recourse for citizens Modernise Government • Invest in new e-government and digitally delivered services including using AI, blockchain, robotics and sensor networks • Release government data on Open Data platforms and improve licence conditions • Innovate procurement processes with challenges, hackathons, sandpits and trials for public innovation Industry 4.0 and National Innovation • Set national goals for innovation • Consolidate the National Innovation System through platforms and secure connecting infrastructure • Develop foresight capacity within Vietnam to plan 10-20 years into the future • Develop industry boards and build industry partnerships to better align education and research to industry needs • Promote and encourage technology transfer Regulation and Taxation Reform • Establish a panel to prioritise areas of regulatory reform to progress the digital economy • Ensure consistency and fairness in the taxation and enforcement of taxes in the digital economy • Experiment with taxes to fund digital transition – such as retraining credits • Reforming constitution to focus on pathways to democracy and freedom of expression Figure 54 Global Gender Index – South East Asian Countries, 2018 Source: Global Gender Gap Report343 Note: Higher value = greater equality Figure 54 Global Gender Index – South East Asian Countries, 2018 - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au ...... Timor LesteKorea Rep. JapanIndiaFijiChinaSri LankaMalaysiaCambodiaBruneiDarussalamMyanmarIndonesiaViet NamSouth East AsiaAverageThailandSingaporeMongoliaBangladeshAustraliaLao PDRPhilippinesNew Zealand Figure 55 The competitive squeeze on economic strategy LOW INCOME COUNTRIES Market development strategy Export focus, investment attraction, enabling education and infrastructure, foreign FDI, development of manufacturing Labour-market led growth MIDDLE INCOME COUNTRIES Investment-led strategy Technology adoption, transfer and imitation across industry Total factor productivity-based growth HIGH INCOME COUNTRIES Innovation-led strategy Technology development, R&D and wealth from IP generation and products and services at the technological frontier Knowledge-based growth Figure 56 Different strategies for different stages of development Figure 57 Enterprise survey participants by type of enterprise - pie graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au % % % % % % % Responses across manufacturing subsectors ContructionElectronic and ICTMechanicalChemicalMaterials/Nano technologyAgricultural processingOthers % % Responses in agriculture sector Agriculture rmAgriculture household Figure 58 Customer survey participant demographics - column graph. For a full description of this figure please contact: lucy.cameron@data61.csiro.au %%% % % % % % % % % HighschoolVocationaltrainingCollegeBachelorHigherdegreeEducation levels %% % % % %%%% % % % % % % < VND milVND -.milVND .-.milVND .-milVND -milVND -milVND -milVND -mil>milIncome levels * The proportion of skilled labour is calculated by the percentage of labour force holding bachelor degree or higher over the total number of labour in each industry. CONTACT US t 1300 363 400 +61 3 9545 2176 e csiroenquiries@csiro.au w www.data61.csiro.au CSIRO IS YOUR NATIONAL SCIENCE AGENCY AND AUSTRALIA’S INNOVATION CATALYST. We solve the greatest challenges through innovative science and technology. FOR FURTHER INFORMATION Dr Lucy Cameron Senior Research Consultant t +61 7 3833 5517 e lucy.cameron@data61.csiro.au