The reality of digital transformation and its impact on the labor market
Thanks to digital transformation, businesses have the opportunity to improve automation performance to reduce errors, increase productivity, and optimize costs. Businesses can also easily access global customers to expand their markets and grow sustainably thanks to digital platforms. Therefore, the trend of mandatory digital transformation is a vital factor in the modern economy. However, statistics show that due to the lack of digital skills, 54% of workers need to be trained in 2025 while the education and training system has not met the demand. In addition, unskilled and middle-aged workers have difficulty adapting to AI, big data, and automation.
Digital transformation opens up huge opportunities but requires careful preparation to overcome challenges in skills, technology, and inequality.
What is the solution?
For individuals, the requirement is to develop personal skills to learn digital skills: advanced Excel, data analysis, Power BI, CRM software (Udemy, Coursera, Google Digital Garage). Upgrade Digital & Media expertise to analyze advertising data (Google Analytics, Facebook Ads Manager), optimize campaigns based on ROI, ROAS, build a portfolio of successful records. Individuals also need to have a suitable career orientation to change according to market needs, in which trends focus on AI, marketing automation, digital content creation (growing 15%/year in Vietnam), data analysis... Enhance adaptability to join the expert community. Learn through seminars, Digital Marketing events in Ho Chi Minh City, connect with LinkedIn, continuously learn a new skill every quarter, follow trends through blogs, webinars.
For businesses, the solution is to train and develop human resources to invest in digital skills (programming, data management, working with AI), and cooperate with educational institutions to improve human resource quality. Apply flexible technology to gradually integrate into processes such as human resource management and logistics. Use AI and big data to analyze customers, manage supply chains, and optimize operations. Create a hybrid working environment that supports employees to work flexibly between online and offline. Promote a culture of innovation to encourage creativity and apply technology to work.
What should the government do?
The government needs to have a policy to invest in education and training to implement reskill/upskill programs, especially for unskilled workers like Singapore with the SkillsFuture program. Propose to establish a digital skills center, coordinate with businesses to train.
Support businesses in digital transformation by applying tax incentives and providing loans to small and medium-sized enterprises to apply technology. Evidence shows that the Make in Vietnam program has promoted thousands of technology startups.
Build a social safety net that extends unemployment insurance and supports job transitions. ILO research shows that effective safety nets can reduce economic insecurity due to unemployment by up to 25%.
Although Vietnam has about 3,800 startups (2023), it still needs strong promotion policies.
Pressure to transform traditional workers. Older workers have difficulty adapting to and learning new technology. According to (OECD, 2023), 40% of workers over 50 have difficulty with technology; 56% are not familiar with using digital tools such as management software; 48% lack skills to use online platforms (Zoom, Slack). Only 18% of older workers participate in digital skills training, lower than the group under 40 (35%, WEF).
