Human resource development – the key factor for successful digital transformation

Vietnam's digital economy is growing rapidly and is expected to reach 20% of GDP by 2025. One of the key factors for this expectation to become a reality is to prepare high-quality human resources for digital transformation.

The importance of digital human resources

Under the influence of the Covid-19 pandemic, digital transformation has become a necessity and an inevitable solution for businesses to maintain and develop. However, for the digital transformation process to be successful, businesses need to pay attention to maximizing resources, especially human resources. Digital human resources are considered a key factor in implementing and realizing the digital transformation plan and determining the existence of the digital economy. Businesses with modern technology and abundant capital but without quality human resources will face many challenges in the digital transformation process. Transforming thinking, raising awareness and equipping workers with the necessary skills to master machines and digital technology requires long-term and continuous efforts from businesses.

Human resources – the “key” to successful digital transformation.

The problem of digital human resources today

The demand for digital transformation is still high, but the current human resources have not yet met the requirements in terms of quantity and quality, especially digital human resources. In the structure of human resources, the proportion of digital human resources accounts for only 1% of the total labor force in the Vietnamese economy. This is a relatively low ratio compared to some countries such as the US (4%), South Korea (2.5%), India (1.8%).

Lack of human resources is one of the main reasons hindering successful digital transformation.

According to the assessment of the departments and branches, information technology is one of the industries that contributes significantly to the human resources for digital transformation. It is estimated that the human resources only meet about 25% in quantity and 30% in quality. Meanwhile, it is predicted that by 2030, our country will need up to 1.5 million human resources in information technology. According to the Vietnam information technology human resources market report in 2021 by TopDev, in the past 5 years, the demand for information technology human resources in Vietnam has continuously increased. In 2021, Vietnam needs 450,000 information technology human resources. However, the total number of programmers in Vietnam is currently 430,000, which means that 20,000 programmer positions will not be filled in the near future.

This shortage stems from the gap between the qualifications of human resources and the requirements of businesses. Currently, only about 16,500 students (accounting for nearly 30%) out of a total of 55,000 students majoring in information technology meet the requirements set by businesses.

The quantity and quality of digital human resources are still limited, not meeting the requirements of digital transformation.

The solution to the human resource problem

To address the issue of digital human resources, on January 28, 2022, the Prime Minister issued Decision No. 146/QD-TTg approving the Project "Raising awareness, popularizing skills and developing human resources for national digital transformation by 2025, with a vision to 2030". Accordingly, human resource development is considered a key factor to effectively and sustainably implement digital transformation, helping to successfully implement the goals of the National Digital Transformation Program by 2025, with a vision to 2030.

Specifically, the project will develop massive open online learning platforms (MOOCs), allowing people to access them for free to self-study digital skills; organize training programs on digital transformation and digital skills for officials, civil servants, public employees and workers, etc. In addition, the project also clearly states the need to develop, promulgate and organize a pilot implementation of the "Digital Higher Education" model at a number of suitable universities. At the same time, units should increase propaganda and guidance on the use of digital services, encourage and create conditions for all people to study and research anytime, anywhere.

To successfully transform digitally, along with institutions and technology, one of the important solutions is to build and improve the quality of human resources.

Currently, the Mekong Delta (MD) is still facing difficulties in the digital transformation process due to a shortage of human resources, especially information technology human resources. The region's human resources in this field only account for 5% out of about 430,000 human resources in the information technology sector nationwide. This is also the reason why the digital economy of the MD is underdeveloped. 

The Mekong Delta is lacking digital transformation human resources, especially information technology human resources.

In order to contribute to improving the quality of human resources to serve the development process of the region, FundGo Creative Startup Investment Fund has been promoting coordination with agencies and units to organize training programs to raise awareness and increase coverage of digital transformation knowledge in Can Tho city in particular and the Mekong Delta in general. In the coming time, FundGo will continue to support and accompany colleges and universities in the region to foster and train high-quality digital transformation human resources.