Perspectives 2021: The rebirth of the buffalo
As the year-of-the-mouse scurries back into its hole, no one is too keen on leaving cheese out to entice a 2020 do-over! Instead we turn our attention to the year of the buffalo. Famed for being the hardest working animal of the Zodiac, it’s the perfect post-Tet metaphor for all the heavy lifting that the year ahead will involve.
To look forward we sometimes need to look back, and the past two decades of Vietnam tech have seen the nation in a generation skipping leap into the future. At the turn of the century, this was a dial-up connection nation for whom a flip-phone was a luxury. Vietnam in 2019 was a very different beast instead – a year that loaded us all with the promise of a 5G, the future of Industry 4.0.
But lurking between 2019 and 2021 was 2020, and that was a year that left all that we thought we knew about the nation and the globe in tatters. It was a year that saw tech permeate our lives in ways it never had before, and at the same time, accelerated our pace of digital transformation – personally, professionally, culturally and socially. So, what does technology have in store for Vietnam in 2021 and ahead?
Vietnam reacted quickly to the unprecedented global disruptions throughout 2020, placing the nation in good stead for the coming year. It had also been picking up manufacturing contracts at a solid clip. A leading mobile phone manufacturer has already announced its intentions to build a new plant in northern Vietnam.
For tech, this broadly means many people had to pivot to new ways of living and working enabled by technology.
The birth of domestic 5G may end up providing the backbone that business travel once did. Coupled with an attractive investment climate, we could witness a business-boon for Vietnam in sectors that manufacture literally everything, from tech to tables to t-shirts.
This dovetails with Vietnam’s newfound acceptance of working remotely. The nation’s nascent entrepreneurial culture has embraced this trend willingly – they were open to work from home, anyhow – and new generations of notebooks and ever-smarter smartphones and wearables will help Vietnam embrace this wave even more quickly.
Meanwhile, larger enterprises, which had been reticent to allow their teams this level of flexibility have also found it to be less disruptive than anticipated. This includes multinationals who have managed to Zoom their way out of business trips relatively effectively. We see property developers already embracing this, with outside-the-center developments offering lower rents than city centers and increasing numbers of co-working spaces attracting larger enterprises. This hybrid workplace will continue to gain steam in 2021, and certainly beyond.
This opens the door to an increased BYOD culture among staff. The nation is virtually all BYOD in terms of mobile devices, but not with their laptops and workstations. Thus, we can expect a heavy increase in enterprise (and even home) IT security measures. Almost no one’s home Wi-Fi is as secure as their office’s, and this is particularly true for larger organizations. Trapped then between a file-sharing world and corporate blocks of many file-sharing sites, organizations in Vietnam will need to find the line between a secure ecosystem and a flexible workplace via hybrid cloud solutions that adapt to the needs of a hybrid workforce, allowing multiple private, public and edge cloud services. This in turn calls for an improved management of distributed technology infrastructure with real-time edge analysis of data.
We can expect evolving social changes with technology enabling a new age of human transformation. Vietnam had been drifting toward being a streaming-and-online-gaming nation for years. But once again, 2020 and faster bandwidth further enable this, and advances in hardware made it easier for your virtual teammates to become your closest teammates. Some of Vietnam’s cinemas still hung signs saying ‘back when we are back’, while Netflix continues to add Vietnamese content and Vietnamese subtitles, and there is no reason to believe this will change in the foreseeable future. Once we got used to streaming movies, our laptops, phones, tablets, TVs and microwaving our own popcorn, it may be hard to lure Vietnam back off its sofas.
Shopping has already gone this way with 2020 being the year that Vietnam decided it was safe to buy online – a 42% YOY growth was clocked in the first six months of 2020 alone! We do not expect to see that abate in 2021. Reticence to use cards for payment had long been the impediment to this. But today, online retailers, in partnership with various logistics suppliers, have offered multimodal payment options, including COD that may well prove to be the death-knell for a lot of bricks and mortar businesses here. Many branded stores are devolving to trial showrooms for customers who then buy their items cheaper online. The payment example highlights one area, locally, where the trust between Vietnamese and technology has been slow coming. 2020 helped to alleviate that somewhat. And we can expect 2021 will see increase trust between people, devices, networks and data.
This merging of hybrid, interconnected users portends an era in which technology enables a new age of human transformation. With people turning to tech for living and working calls for a hybrid, dynamic environment driven by intelligent PCs that combine AI, cloud and improved connectivity, improving the ways Vietnamese people interact with their devices.
2019 Vietnam was firmly focused on issues surrounding sustainability with air pollution and plastics-in-waterways being the two most commonly discussed. They remain vitally important, however have become somewhat less urgent last year. However, issues around e-waste and responsible packaging are likely to come to the fore once more starting 2021.
This year is the time for Vietnam to focus squarely on bouncing back. Vietnam recorded positive growth in 2020 and is predicted to continue the positive trend with economy expansion predicted to reach up to 10.9% in 2021.
2021’s buffalo no doubt finds itself with a heavier cart to pull in Vietnam. Yet, with a robust health management in 2020, and vaccination program mapped out this year, it certainly can expect its load lightening through the months ahead and coming into next year. And the broadening adoption of tech in our workplaces and social lives that 2020 precipitated guarantees a 5G-lead economic booster-shot further ahead beyond 2021.
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Tran Vu, General Director and Country Manager, Dell Technologies Vietnam
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