THE INTERNATIONAL AND DOMESTIC CONTEXT AFFECTING THE DEVELOPMENT OF THE DIGITAL ECONOMY: OPPORTUNITIES AND CHALLENGES FOR VIETNAM

Abstract

The research analyzes the international and domestic contexts influencing the development of Vietnam's digital economy, highlighting opportunities and challenges during the digital transformation era. Globally, advanced technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and Big Data have shaped major economies like the United States, China, and Europe, fostering innovation and investment in digital infrastructure. The Vietnamese government has introduced a national digital transformation strategy to enhance labor productivity and drive economic growth. The impacts of the Fourth Industrial Revolution present opportunities for Vietnam to learn from international experiences and foster collaboration while also posing challenges in terms of policy, human resources, and infrastructure. The research synthesizes definitions and identifies three main components of the digital economy: (1) ICT-based digital economy, (2) Internet platformbased digital economy, and (3) sectoral digital economy. It also proposes solutions to refine the legal framework, strengthen human resource training, and develop digital infrastructure to support economic growth in the context of globalization.