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focus on services – areas requiring less specialized knowledge and less innovation
compared to manufacturing. Therefore, SMEs are less likely to engage in innovation to
pursue cost reduction goals compared to manufacturing companies; ii) SMEs often lack
information and capital; iii) SMEs face a shortage of skilled labor and difficulty accessing
training programs. To support SMEs, the government encourages digital transformation,
e-commerce and innovation within SMEs. There are many preferential policies and
financial support programs to enable SMEs to participate in the digital economy.
In South Korea, SMEs account for approximately 98% of all businesses and play a
central role in economic growth and innovation. South Korea provides comprehensive
support to SMEs. By 2025, South Korea will provide export support vouchers worth 61.1
billion won (approximately US$42.1 million) to around 1,300 SMEs. These vouchers allow
businesses access to over 7,200 export-related services such as consulting, marketing, and
logistics services. South Korea focuses on building an innovation ecosystem, perfecting
the legal framework, and enhancing the capacity of supporting organizations. SMEs are
encouraged to participate in research and development (R&D) programs, innovative
startups, and access preferential capital. SMEs are supported in connecting with
upstream businesses in South Korea and with Korean businesses operating abroad.
Vietnam needs to build an innovation ecosystem and encourage private enterprises to
participate strongly in digital transformation.
Secondly, invest in upgrading digital infrastructure.
South Korea is one of the leading countries in investing and in upgrading digital
infrastructure. It is rated by the OECD as having the best 5G infrastructure in the world in
2024. South Korea ranks first among 29 countries (including China and the EU) thanks to
its widespread coverage and rapid deployment. South Korea has developed a clear, long-
term and coordinated plan with collaboration between the public and private sectors.
Both the government and the private sector are working together to invest in upgrading
digital infrastructure and modern digital technologies to deploy smart, connected digital
applications. With its "Digital New Deal", South Korea is focusing its recovery package on
digital infrastructure, open data, artificial intelligence (AI) and online public services. The
government is developing 5G networks, data centers and cloud computing to support
businesses and citizens. It is also promoting online public services and data transparency,
helping to reduce costs and increase administrative efficiency.
The government is investing heavily in artificial intelligence and strategic
technologies, with plans to allocate 6.8 trillion won for research and development in 12
strategic technology sectors. This investment is expected to boost innovation and
economic growth. South Korea boasts a digital infrastructure with 69.2 million mobile
connections and 50.4 million internet users, demonstrating a high level of digital
participation among its population. To upgrade its digital infrastructure, Vietnam needs to
implement 5G service deployment plans to keep pace with global trends. 5G technology
will create a robust infrastructure for connectivity in line with the Internet of Things (IoT)
trend, opening up numerous business opportunities for Vietnamese enterprises,
especially small and medium-sized enterprises (SMEs).
Thirdly, focus on training digital and information technology human resources to
serve the digital economic transformation.
Besides focusing on upgrading digital infrastructure, human resources in
information technology (IT) also play a crucial role. South Korea has a very systematic
strategy for training IT human resources that is closely linked to the practical needs of the

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