Orientation of growth model based on innovation and digital economy in Thanh Hoa province

Assoc.Prof.Dr. Nguyen Ngoc Son, Vice Principal of School of Economics and Public Management,

National Economics University

Thanh Hoa province's economic growth in the period 2011-2020 and from 2021 to present has always been among the leading localities in the country. However, there have been signs of slowing down because Thanh Hoa province's growth model still relies mainly on breadth (based on capital and labor). This growth model makes growth efficiency and quality low. To maintain high, long-term growth in the context of the 4.0 industrial revolution, digital transformation and circular economy, the problem for Thanh Hoa province is to shift to a new growth model supported by innovation and digital transformation to create a breakthrough in productivity and sustainability.

Regarding the orientation of transforming the economic growth model of Thanh Hoa province in the period up to 2030, with a vision to 2050, Thanh Hoa province needs to transform the growth model towards increasing the efficiency of resource use, green development, environmental friendliness and moving to phase 3 of the development process.

High growth must go hand in hand with improving the quality of growth and the competitiveness of the economy. The old growth model still relies mainly on resource exploitation (mainly land), processing technology and increased investment capital, which has resulted in low growth quality and efficiency of the economy.

To transform the growth model to a new stage, Thanh Hoa province should focus on innovation: It is necessary to create an environment of equal competition, improve institutional quality, invest in infrastructure, especially digital infrastructure, improve the quality of human resources, promote innovation and creativity in enterprises.

Regarding Digital Economy: Thanh Hoa needs to promote core industries or ICT, especially electronics, computer, telecommunications manufacturing industries... Promote digital transformation and e-commerce in other fields and industries to increase the proportion of digital economy in industries and fields.

Thanh Hoa should also shift to an industrialization model that promotes dynamic comparative advantages and high-level competitive advantages.

At the same time, shifting to a green, sustainable and circular growth model: Digital transformation along with green transformation are urgent requirements in the current context, when the economy and society are facing many challenges regarding the environment and sustainable development. This transformation brings many important benefits: First of all, digital transformation helps businesses optimize production and business processes, reduce costs and increase competitiveness through automation, data analysis and effective information management.

At the same time, green transformation focuses on minimizing negative impacts on the environment by using renewable energy sources, applying clean technology and developing environmentally friendly products, helping to protect natural resources and reduce pollution. The combination of digital and green transformation creates a sustainable development model, balancing economic growth, environmental protection and improving the quality of life.

Furthermore, it helps to increase adaptability and resilience to climate change and other crises, through smart management systems and advanced technologies. In addition, this transformation opens up many new opportunities in developing new industries and services, creating jobs and promoting innovation.

Orientation to promote digital economy and digital society in Thanh Hoa province

Assoc.Prof.Dr. Tran Minh Tuan, Director of Department of Digital Economy - Digital Society, Ministry of Information and Communications.

Thanh Hoa currently ranks 3rd in the country in terms of population but its GDP ranks 29th out of 63 provinces and cities. In 2023, Thanh Hoa's GDP growth rate will reach 7.01%. The whole province currently has 615 digital technology enterprises, ranking 32nd in the country and 5th in the North Central region.

To promote the digital economy, Thanh Hoa needs to promote the development of e-commerce; develop the Information Technology Park; focus on developing the semiconductor and electronics industry; digitally transform industrial parks; promote the production of branded, high-value agricultural products associated with tourism, and promote the green economy.

At the same time, promote the conversion of goods trading activities to e-commerce platforms: Propose Thanh Hoa enterprises to increase wholesale activities (especially agricultural products) on cross-border platforms, digital platforms for wholesale activities (Viettel Post). Agricultural products must have traceable origins and must be associated with tourism. Agricultural and forestry production needs to move towards a green economy.

Regarding solutions to promote the digital economy: Ministries, branches and localities need to develop a digital economic development plan with a focus, key points, leading and breakthrough nature; ministries and branches provide detailed instructions for localities to use shared digital platforms, not using separate information technology applications to have data; determine which platforms are done by the central government/localities; integrate infrastructure platforms in the implementation of digital applications; pilot and find successful formulas for replication; build digital transformation support centers in localities; cooperate with Vietnamese digital technology enterprises to build digital platforms and digital applications to solve and remove bottlenecks, thereby promoting the digital economy.

Regarding digital society, it is necessary to disseminate knowledge, improve digital skills and information access capacity for rural people; popularize and diversify convenient digital services using digital signatures; apply the use of digital signatures in online public services; apply the use of digital signatures in activities serving people and businesses such as: electronic school records, electronic health records, electronic labor contracts...

Building green digital infrastructure towards sustainable development

Mr. Le Ba Tan - Head of Technical Department of Viettel Military Industry and Telecommunications Group

In 2024, Viettel has just completed the construction of the Group's Sustainable Development Report. This is Viettel's commitment to the responsibility of sustainability in its development activities, aiming to create value for customers, partners and the community. Currently, Viettel has proactively met the requirements of sustainable development in the new period. Viettel's products meet high standards of sustainability, helping to increase business opportunities and cooperation, especially with large corporations in the world.

Viettel is facing a number of challenges when deploying the 5G network such as: Power consumption is doubled when deploying 5G (5G station capacity is about 3,500W, equivalent to the average capacity of a current telecommunications station (including 2G + 3G + 4G)). Viettel has proactively requested 5G equipment suppliers to thoroughly apply power saving features, aiming to save 80% of power consumption during off-peak hours. At the same time, building an optimal self-operating network (SON) applying AI and Big Data algorithms to optimize the use of network resources (automatically turning on/off stations, automatically turning on/off resources according to user needs). Switching to a cooling solution using Free Air Cooling (FAC) for 10,000 stations, helping to reduce 75% of the station's cooling electricity costs. Actively apply solar energy to ensure power for stations, combine green transformation with cost efficiency: Install solar panels for stations without electricity, islands; high-priced power stations/poor power stations.

Viettel is implementing a number of solutions to develop green energy equipment such as: Research and production of Vanadium Redox Flow Batteries (VRFB) using abundant, easily renewable raw materials such as vanadium, sulfuric acid and water. Vanadium is a 98% recyclable metal, which helps reduce the environmental impact of mining and processing ores. Sulfuric acid and water can also be reused many times during the battery's operating cycle. Large-scale energy storage applications, such as renewable energy storage, smart grids and electric vehicles.

Research and manufacture mini wind turbines (capacity 1-5kW) Small-scale, distributed applications at telecommunication stations (consumption 3-5kW/station), contributing to reducing 30-50% of electricity consumption, thereby reducing CO2 emissions (~7 tons of CO2/station/year). Actively ensuring energy for broadcasting stations, optimizing electricity costs. Applications to ensure essential needs for households, small farms, island border areas, drilling rigs, ships operating at sea (consumption 0.5-5kW)...

To build green digital infrastructure towards sustainable development, Viettel proposed to Thanh Hoa province some contents: Support telecommunications enterprises to upgrade 5G infrastructure: Prioritize investment in upgrading 5G telecommunications infrastructure and building Green Data Centers, creating a solid foundation for comprehensive digital transformation.

Building an effective digital government: Proposing the province to promote the improvement of the quality of online public services, while applying artificial intelligence (AI) and big data in management, towards building a smart and effectively operating city.

Developing a dynamic digital economy: Proposing the province to implement programs to support businesses in digital transformation, promote e-commerce development and encourage cashless payments, creating momentum for economic growth.

Building a comprehensive digital society: Proposing the province to focus on improving digital capacity for people, developing digital healthcare and digital education, ensuring that all people benefit from the digital transformation process.

Implementing sustainable green transformation: Proposing the province to apply digital technology to agriculture, smart energy management and green transport development, towards the goal of building a green, clean and sustainably developed Thanh Hoa.