Vietnam’s Digital Transformation 2025: Strategies, AI, and Infrastructure Growth

Ekaterina Liasko

CEO at Global CIO

The Global CIO editorial team continues its series of articles on the conditions in which the IT business operates in different countries. We spoke with our partners about the development of the IT sector in their countries, specific challenges and opportunities they face, as well as the key success factors in each market. Today, we present one of the fastest-growing economies in Southeast Asia – Vietnam.

Ivan Gorkovenko, Regional Director for Southeast Asia at Softline Group, shares his insights about the region and provide more details about the IT sector in Vietnam.

What are the three most important facts about the country to know?

One of the fastest growing economies in the region. Vietnam is a country in Southeast Asia. The Vietnamese economy demonstrated growth of 7.09% in 2024, and reached $433.4 billion. This result was the highest among the economies of Southeast Asia. The Ministry of Planning and Investment of Vietnam presented two economic development scenarios for 2025 to the government. According to the optimistic forecast, GDP growth could reach 7.5%. The National Assembly of the Republic set the target range for economic growth for 2025 within 6.5-7%. At the same time, ministries and regional administrations were recommended to focus on a higher figure – 7-7.5%. This will be facilitated by the restoration of trade in the post-COVID period, the development of production and an increase in the inflow of foreign investment.

Prospects for the development of the digital economy. The digital economy now accounts for an estimated 18.3% of Vietnam’s GDP, with a growth rate exceeding 20% annually, three times faster than the overall GDP growth, making it the fastest-growing digital economy in Southeast Asia. Vietnam’s digital technology sector has experienced impressive growth in 2024, positioning itself as a key player in the global tech landscape. By the end of 2024, the country had 73,788 digital technology enterprises, marking a 10.1% increase compared to the previous year. The sector’s total revenue reached nearly $158 billion, reflecting a robust 10.2% year-on-year increase. This growth is driven by both domestic enterprises and the expanding role of international markets, particularly in hardware and electronics exports. As the sector continues to thrive, it plays a crucial role in shaping the country’s digital future. Vietnam is one of the fastest growing digital economies in the region with an annual growth rate of 28% and the prospect of becoming the second largest digital economy in Southeast Asia by 2025.

What is the volume and development forecast of the IT market for the next 5 years?

ICT industry. According to the Ministry of Information and Communications (MIC), Vietnam’s digital technology industry is projected to generate $155 billion in revenue by the end of 2024, contributing over VND54 trillion ($2.16 billion) to the national budget. Vietnamese enterprises alone account for approximately $26.4 billion in revenue. Looking forward, the Ministry of Information and Communications (MIC) has set ambitious targets for the ICT industry in 2025. The ministry projects that total revenue for the sector will reach $169.3 billion, an 11.4% increase from 2024. The by 2027 the IT market is expected to exceed VND400 trillion Vietnam dong (equivalent to USD 17 billion) as both the public and private sectors increase adoption of ICT solutions.

Capabilities of local tech enterprises. The sector currently supports over 27,600 ICT companies, employing around 1.26 million people. These include hardware companies producing electronics, telecommunications devices, and smart equipment, software firms, digital content producers, and IT service providers. By 2025, the number of digital technology companies is expected to rise further, with a target of 60,000 enterprises contributing to the sector’s overall growth. Introduced in 2019, the ‘Make in Vietnam’ strategy has become a driving force for enterprises to focus on research, innovation, and local production. Today, approximately 1,500 Vietnamese ICT companies generate revenue from international markets. In 2024, around 1,900 Vietnamese digital tech companies reported overseas revenue, contributing to a 54% increase in international earnings, reaching $11.5 billion. This impressive growth is driven by rising global demand for high-quality Vietnamese electronics and innovative tech solutions.

Vietnam’s progress is also visible in the increasing capabilities of local tech enterprises. The domestic value-added ratio in the ICT sector accounted for an estimated 31.8% of total industry revenue in 2024, a 3.1% increase from the previous year.

Digital economy. Vietnam’s digital transformation is advancing rapidly, with the digital economy growing by over 20% annually, making it Southeast Asia’s fastest-growing. The government of Vietnam (GVN) has made developing its Digital Economy a top priority. In June 2020, Vietnam’s Prime Minister approved the National Digital Transformation Program. The initiative sets digital development goals for 2025, with a vision through 2030, focused on efforts including increased electronic payment accounts, expanded broadband fiber optic cable coverage for households and communes, and digital platforms for businesses in industrial parks and export processing zones. In 2024, the Vietnam National Committee on Digital Transformation identified four pillars for the development of the country’s Digital Economy – the IT industry, industrial digitization, digital administration, and digital data. The digitalization process is proceeding at a particularly rapid pace in the financial sector, agriculture, transport, energy, healthcare and education. Vietnam’s digital economy market is expected to reach approximately $45 billion by 2025, with projections to reach between $90 billion to $200 billion by 2030.

ICT solutions. The Government of Vietnam has identified ICT as a major industry and socio-economic growth driver and is urging government agencies at all levels to apply advanced ICT solutions towards the goals of improving operational efficiencies and providing better governance services. In particular, the Government of Vietnam has approved the National Digital Transformation Program through 2025, with vision to 2030, which will further support the growth of the ICT market. In the meantime, the private sector, especially key industry stakeholders, including aviation, banking, energy, healthcare, broadcasting, telecommunications, and urban infrastructure management are increasingly employing advanced ICT solutions to enhance operational efficiencies and support sustainable growth. Vietnam is expected to continue to import large quantities of ICT hardware, software, and services, as Vietnamese suppliers are still relatively new and may not be able to offer the same range of solutions and services as foreign suppliers. Key players in the hardware market include suppliers from Taiwan, China, the US, and Japan. Major players in the software market include suppliers from the US, Germany, China, Russia, Israel, and Vietnam.

What national strategic and digital initiatives have been adopted in the country?

Startup ecosystem. Vietnam is working toward becoming one of the top three Southeast Asian countries in digital technology research and development by 2030. There are more than a thousand territorial entities with a preferential regime for conducting production and economic activities in Vietnam. In June 2020, the municipal government of Ho Chi Minh submitted plans for development of the big process area which received the name Vietnam Silicon Valley ("Silicon Valley of Vietnam"). Three east districts of Ho Chi Minh – the park of high technologies, the university district of Chu Duke and the planned city and financial center – form "the innovation urban area". By 2030, Vietnam plans to create 100 thousand enterprises in the digital technology industry; achieve an increase in the value of the industry's exports by 20-30% per year (which will amount to 20% of GDP growth).

AI technologies. Vietnam’s National Digital Transformation Program identifies AI as an area of focus and the government of Vietnam issued the National Strategy on Research, Development and Application of AI in 2021. Vietnam has emerged as a regional AI leader, ranking 5th in ASEAN and 59th globally in AI readiness, according to Oxford Insights. According to a Singapore-based consulting firm, Vietnam’s AI market was valued at $ 470 million in 2022 and is projected to reach $1.52 billion by 2030, with an annual growth rate of 15.8%. The number of AI startups in Vietnam has surged from just 60 in 2021 to 278 in 2024, a 4.5-fold increase in three years. A survey revealed that 80% of Vietnamese businesses have used AI in the past year, surpassing the regional average of 69%. AI could contribute an estimated VN$ 1.89 trillion ($79.3 billion) to Vietnam’s economy by 2030, accounting for nearly 12% of its GDP. This potential underscore the importance of strategic investments in AI infrastructure, talent development, and accessibility across various industries.

GovTech. Vietnam has moved up to 71st in the UN’s global e-government rankings, climbing 15 spots since 2022. For the first time, the country is classified among nations with a “very high” e-government development index. Legislative breakthroughs, such as amendments to the Telecommunications Law and the introduction of the National Data Strategy, have helped unlock digital development, addressing long-standing issues in data management and the digital economy. By June 2025, all ministry and provincial leaders must conduct administrative operations and sign documents digitally. By the end of 2025, all local government officials at the commune, district, and provincial levels must handle tasks digitally. The government aims to achieve 80% fully online public services by 2025, with 40% of adults using them and all administrative procedures linked to personal identification numbers.

EdTech. The development of Distance Learning and EdTech in Southeast Asia has driven fast growth in Vietnam. According to a recent report by Do Ventures, EdTech is the third most invested field in Vietnam in the past eight years in the technology sector. The total venture capital investment in Vietnam for EdTech is $103 million, just behind the payment field ($462 million) and retail ($416 million). According to Tracxn Technologies, there are more than 300 EdTech businesses in Vietnam, most of which are startups and B2C businesses. Vietnam has favorable conditions for the development of EdTech, such as a young population, a fast-growing economy, strong government support, increasing educational expenses, good internet coverage, and a high percentage of smartphone users.

Healthcare. Vietnam offers potential opportunities for providers of health devices and applications designed to monitor, track, and improve health and wellness. These products are a growing part of Vietnam’s digital health ecosystem. Best prospects for firms in health devices include smartwatches and fitness trackers, while prospects for health applications include fitness and wellness applications, sleep tracking applications, chronic disease management applications, telehealth and remote monitoring applications, and mental health and stress management applications.

Energy. The adoption of smart grid technologies generates large amounts of data that can be used for optimizing grid operations, predictive maintenance, and fault detection. Suppliers of real-time monitoring and control software, data analytics platforms, and AI-driven solutions will be well-position to meet these growing needs. In Vietnam, key end users include EVN, Vietnam’s largest state-owned power company, and EVN’s affiliated entities that manage power distribution and transmission. Other potential end users include renewable energy producers, industrial zones, and commercial enterprises.

Semiconductor industry. The Prime Minister’s Decision 1018/QD-TTg (September 2024) outlines a comprehensive strategy for Vietnam’s semiconductor industry, with goals set for 2030 and a vision extending to 2050. The strategy highlights Vietnam’s potential to become a global semiconductor hub through prioritized infrastructure, education, and investment policies. As part of the strategy adopted by the government, the construction of chip manufacturing plants should strengthen the country's position in this market, as well as achieve an annual income of $100 billion from semiconductor production. The government strategy involves several stages of implementation. The first stage, calculated until 2030, plans to build one plant and create 10 packaging and testing enterprises. In the second stage (2030-2040), Vietnam intends to build 2 more plants and increase the number of testing and packaging enterprises to 15. 

By 2050, it is planned to increase the number of semiconductor manufacturing plants to six, and the number of companies engaged in chip design will increase to 300.

Logistics. The Logistics Performance Index (LPI) reached 3.3 points in 2023, ranking 43rd out of 139 countries and territories, and fifth in ASEAN. Furthermore, the sector has experienced a high revenue growth rate of 14%-16% annually, contributing to a market size of approximately $40-$42 billion per year. These improvements in logistics services have helped to increase Vietnam’s trade value, underlining the sector’s significance in the nation’s economy. The logistics industry has been designated a priority area in Vietnam’s National Digital Transformation Program, which outlines strategic goals until 2025 and a long-term vision up to 2030. The adoption of advanced technologies, including automation and digital tools, is seen as essential in streamlining operations and improving efficiency.

Manufacturing. In response to the growing demand for digital transformation and the need for smart production, Vietnam’s Ministry of Industry and Trade (MOIT) has launched a series of strategic initiatives aimed at supporting domestic businesses as they adapt to the Fourth Industrial Revolution. Vietnamese industries are evolving rapidly with advanced technologies like AI, robotics, and IoT. A key goal of the Ministry’s initiatives is to support Vietnamese businesses in transitioning to digital transformation and smart production. In addition to these initiatives, the Ministry will issue a support program aimed at developing smart factories by 2030.

Smart City. Accelerated urbanization and correspondent economic growth are driving city governments in Vietnam to deploy smart technological solutions towards the goals of developing and managing their urban infrastructures efficiently and sustainably as well as providing digital government services to residents and businesses. Key Smart Cites Project Opportunities: Dong Anh District, Hanoi Smart City Project; HCMC Intelligent Transportation System Project, Intelligent Operations Center Project, Unified Emergency Communications Center Project, Security Operating Center Project; Da Nang Intelligent Transportation System Project, Intelligent Operations Center.

What local infrastructure features influence the choice of technologies and solutions in your country?

Telecommunication infrastructure. In the Network Readiness Index 2024, Vietnam ranks 45th with an overall score of 54.96. The Vietnam mobile market is already highly saturated, with penetration rate of around 128% and organic growth likely to be slow. According to Vietnam’s Ministry of Information and Communications, by the end of 2032, it is expected that Vietnam will have approximately 129.2mn subscribers. By the end of 2024, Vietnam’s digital economy made impressive strides, with more than 82.4% of households having access to fibre-optic internet, exceeding the 80% target set for 2025. The increased use of high-speed internet has been pivotal in enhancing the digital experience for citizens and businesses. Mobile broadband speeds have also improved, with Vietnam ranking 37th globally for mobile Internet (86.96 Mbps) and 35th for fixed broadband (159.32 Mbps). In 2024, Vietnam auctioned additional 5G frequency bands and launched its sixth and largest undersea cable with a 20 Tbps capacity, improving Internet speeds and international connectivity. By 2032, 89.2% of connections will be 5G-capable. In 2024, Vietnam’s Ministry of Information and Communications (MIC) prioritized the commercialization of 5G services throughout the country, with a long-term goal of achieving nationwide 5G coverage by 2030. Vietnam’s largest mobile networks, namely Viettel, VNPT, and Mobifone, are investing significantly to develop 5G infrastructure. MIC has also called on these local operators to test open radio access network (ORAN) technologies alongside efforts to deploy 5G networks.

Cloud infrastructure. Vietnam is experiencing a significant surge in data center investments as both local and international players compete to expand their infrastructure in response to the growing demand for AI capabilities. According to DataCenterMap, there are 23 data centers in Vietnam. They are located in 3 cities (12 in Ho Chi Minh City, 10 in Hanoi, 1 in Da Nang). In October 2023, the Vietnam Postal and Telecommunications Group VNPT announced the opening of the country's largest data center (DPC). It is located in the suburbs of Hanoi in the Khoalak high-tech park, formed with the aim of conducting research and development work, training IT specialists, creating various products and software. The data center has a useful area of approximately 23 thousand square meters. It is capable of accommodating up to 2 thousand server racks with equipment. Viettel plans to build 11 large-scale data centers with a combined capacity of over 350 MW, about 40% of Vietnam’s total. It is also partnering with an AI leader to develop infrastructure featuring 800 supercomputers and 6,000 GPU cards for AI. Viettel’s CEO of the Internet Data Centre, Hoang Van Ngoc, has stated that to meet the technological needs of Vietnam’s 100 million people – particularly in fields like generative AI and AI cloud computing – the country’s data center capacity needs to increase by 15 times. A major milestone in 2024 was the launch of Viettel Group’s state-of-the-art data center, which is the largest and most advanced of its kind in the country. International companies are also entering the Vietnamese data center market, contributing to the competition and investment in the sector. Various giant technology and e-commerce firms have announced billions of dollars in planned investments, further intensifying the race to build out AI-ready data center infrastructure.

What is the situation with local software developers? What business applications are in demand among customers?

AI technologies. Google's January LLM report using the Vietnamese ML comprehension benchmark said that at least 45 AI models in Vietnamese had been developed by local and international companies by the end of 2024. The leading models include Meta's Llama-3-70B, Zalo AI's KiLM-13b-v24.7.1, and OpenAI's GPT-4. All of them outperform Google's Gemma and Gemini in Vietnamese comprehension.

Telecom. At the recent IT World Awards 2023, Vietnam's leading ICT corporation Viettel won the most awards, ahead of such IT giants as the US and India. The percentage of gold awards received increased by 10% compared with the previous year. The second place went to BairesDev from the United States with 11 gold awards. In the field of digital infrastructure, Viettel Cloud won the gold award in the IT Campaign of the Year category – Best Product/Service Launch. In the field of digital solutions, the following Viettel products were recognized: the XR Anatomy Platform technology application platform enables the provision of anatomy lessons based on 3D models in educational institutions and hospitals; the unified multi-channel customer service solution Viettel CX Cloud; Viettel Managed Blockchain Platform for enterprises, enabling the creation and management of blockchain networks; Viettel Data Mining Platform for in-depth data analysis.

What cybersecurity and data protection regulations affect IT companies in your country?

Cybersecurity market. The Government of Vietnam considers cybersecurity a critical part in realizing the country’s strategic goals for Digital Transformation. On August 10, 2022, the Prime Minister signed Decision 964/QĐ-TTg approving the Strategy for National Cyber Safety, Security, Active Responses to Challenges from Cyberspace until 2025 and Vision to 2030. Cybersecurity threats, including online fraud and transnational cybercrime, continue to rise, though Vietnam’s cybersecurity ranking improved from 25th to 17th globally. According to Statista, the cybersecurity solutions market in Vietnam is projected to grow from $220.8 million in 2025 to $358.1 million in 2029. In contrast, the cybersecurity services market in the UAE is projected to grow from $114.7 million in 2025 to $152.9 million in 2029. Digital adoption in the public and private sectors is generating demand for cybersecurity hardware, software, and services for applications in the financial services, energy, healthcare, transportation, utilities, and public sectors. 

Furthermore, the government of Vietnam considers cybersecurity a critical component of its digital transformation efforts. Commercial opportunities exist in the areas of advanced threat detection and response; cloud security; data protection and privacy compliance; critical infrastructure; and consulting services.

Data security. In August 2022, Vietnam’s Ministry of Public Security (MPS) promulgated Decree No. 53/2022/ND-CP (Decree 53), which supplemented the Law on Cybersecurity of Vietnam issued in June 2018. Decree 53 subjects foreign and domestic enterprises that provide services on telecommunications networks, the Internet, and the value-added service (VAS) in cyberspace in Vietnam to data retention requirements. Accordingly, foreign firms providing cross-border services falling under a list of ten categories enumerated in the decree are required to store the data of service users in Vietnam, if requested by MPS. The decree notes that MPS can formally request that a foreign firm retain data in scenarios where MPS deems the firm’s services have been used to violate Vietnam’s cybersecurity law or the firm has failed to adequately cooperate with MPS to investigate or address violations.

Personal data protection. On July 1, 2023, Vietnam’s Ministry of Public Security (MPS) issued the Personal Data Protection (PDP) Decree (Decree No. 13/2023/ND-CP). The decree requires companies to abide by data protection principles including lawfulness, purpose limitation, data minimization, and confidentiality. Furthermore, the decree relies on a broad definition of sensitive personal data, to include items such as personal location data, gender, and financial data. The decree also includes registration requirements to process personal data and transfer data across borders, in addition to mandating that companies retain original data. These Personal Data Protection Decree requirements may pose a burdensome compliance and administrative challenge for foreign firms operating in the market. The Data Law is expected to come into effect on January 1, 2026, with no transition period.

Internet services. Article 5 of Vietnam’s Ministry of Information and Communications’ (MIC) Decree No. 72/2013/ND-CP (Decree 72) on the management, provision, and use of Internet services and online information prohibits the use of Internet services for purposes including opposing the Socialist Republic of Vietnam and threatening national security, social order, or safety. The proposals contain content censorship measures and data localization requirements that are likely to be duplicative with similar measures contained in the government of Vietnams’ Cybersecurity Decree and Personal Data Protection Decree. These proposed updates pose a challenge to foreign internet-based content service providers, as these rules may create a burdensome registration and licensing regime, including for the electronic gaming and social media industries. Decree 27 would also broaden the scope of the regulation to include data centers and cloud services.

Online fraud prevention. Online fraud continued to flourish in 2024, causing smartphone users a total financial loss of more than $744 million, with fake investment offers being the most popular scam, the National Cyber Security Association has warned. In 2024, one in every 220 smartphone users in Vietnam fell victim to cyber fraud. The total financial loss was estimated at VND18.9 trillion ($744.3 million).

Cross-border electronic transactions. On June 22, 2023, the government of Vietnam passed the Law on Electronic Transactions (Law No. 20/2023/QH15). This e-transactions law serves as an update to Vietnam’s 2005 law on electronic transactions, with the goal of ensuring the law is suited to the present digital economy.

The law also creates new restrictions for cross-border electronic signatures, such as requiring identification verification for e-signature certificates and requiring foreign e-signature authentication service providers to have a local presence in Vietnam.

Telecommunication services. In November 2023, the government of Vietnam promulgated Law No. 24/2023/QH15 to update and replace the 2009 Telecommunications Law. The “New Telecommunications Law” is broader in scope than the 2009 Telecommunications Law, as it now includes over-the-top (OTT) services, data centers, and cloud computing services. Foreign firms operating in these areas will need to monitor how this expanded scope will be applied in practice, as it now includes stricter data protection rules and aims to regulate “non-traditional” services, including service providers without a local presence in Vietnam. Services identified and defined in the law include data centers; services related to data centers such as information processing, storage, and retrieval; cloud computing and cloud computing services; and internet telecommunication businesses, including OTT services. The New Telecommunications Law also includes details regarding licensing, registration, and wholesale telecommunications.

AI threats prevention. On July 2, 2024, Vietnam’s Ministry of Information and Communications (MIC) released for public comment a draft Law on Digital Technology Industry (DTI). The draft DTI Law aims to regulate technology subsectors, including AI, cloud computing, big data, IoT, blockchain, and virtual and augmented reality. The draft Law outlines prohibited AI practices, such as social scoring, and stipulates that AI systems are classified according to the level of risk based on their impact on health, the rights and lawful interests of organizations and individuals, human safety or property, the safety of national critical information systems, and critical infrastructure. In addition, under this draft law, digital technology products created by AI must be labeled for identification to ensure that the output of the AI systems is marked in a machine-readable format and can be detected as artificially created or manipulated.

Which sectors are the most digitalized in your country? What local specificities or challenges most often arise when adapting technologies in these sectors?

FinTech. Vietnam’s banking sector has achieved remarkable milestones in its digital transformation journey, with digital transactions now making up 97%-98% of all transactions at many commercial banks. The sector has consistently posted double-digit annual growth in transaction volume and value, underscoring the country’s shift toward a cashless economy. Over 90% of transactions at many banks are now digital, showcasing the rapid adoption of online and mobile banking. Furthermore, over 80% of Vietnamese adults hold payment accounts. The country’s financial switching and clearing system processes over 20 million transactions daily. The Asia Pacific region has seen a surge in contactless payments, with Vietnam leading the way. In Vietnam, mobile wallets are the preferred payment method for 80% of consumers surveyed, while 68% use tap-to-pay. Up to 39% of Vietnamese consumers trust their smartphones to make large transactions, demonstrating their confidence in the security and convenience of mobile payments through mobile solutions. Cashless payments are also growing rapidly, increasing by over 50% annually, the highest in Southeast Asia.

Government. The digital public service portal has integrated 4,475 administrative procedures, and the VNeID app enables citizens to complete online transactions. Over 90% of insured individuals now have electronic health records, and 100% of students have digital learning profiles. The use of digital signatures has risen by 58.61% in 2024, with 12.5 million users now holding electronic authentication. Over 55.25 million VNeID accounts have been activated. In 2024, Vietnam experienced notable progress in several areas, including the rapid deployment of the national population database. This system connects data across 18 ministries and 63 localities, facilitating over 1.3 billion queries and 537 million data synchronization actions by September 2024.

E-Commerce. The growth of e-commerce in Vietnam is largely driven by the increasing popularity of retail platforms which have revolutionized online shopping in the country. E-commerce retail sales reached $25 billion (VN$ 588 trillion) in 2024, ranking Vietnam among the world’s top 10 fastest-growing e-commerce markets. It is expected to grow at a compound annual growth rate of 19% by 2030, reaching $63 billion and surpassing Thailand. E-commerce accounts for 60% of Vietnam’s digital economy, with the rest consisting mainly of ride-hailing and delivery services, as well as online media.

Telecom. Viettel Military Industry and Telecoms Group (Viettel) launched its commercial 5G services in October 2024, deploying 65,000 base stations nationwide. This extensive network coverage spans industrial parks, tourist destinations, seaports, airports, hospitals, and universities. As of now, approximately 4 million subscribers – 70% of those in areas covered by the service – have embraced 5G, with average monthly data consumption per subscriber reaching 21GB, a 70% increase from the initial rollout. In November 2024, Viettel announced the commercial launch of its Open RAN (O-RAN) 5G Network equipped with self-developed key equipment. It is the world's first O-RAN 5G network using 5G RAN platforms from Qualcomm Technologies.

Tourism. As one of the fastest-growing digital economies in ASEAN, Vietnam has embraced digital transformation initiatives championed by the government and key stakeholders in the tourism industry. Technologies such as the IoT, AI, VR/AR, and big data are revolutionizing the sector. A recent report on Vietnamese travel habits highlights the widespread use of tools like digital maps, e-wallets, and online travel agencies (OTAs). These tools have become essential for modern travelers, offering seamless navigation, cashless transactions, and convenient booking options. While more advanced technologies such as e-tickets, virtual assistants, and smart hotel services are still in the early stages of adoption, their growing presence is transforming travel into a more interactive and personalized experience.

Semiconductor manufacturing. There are currently 174 foreign-invested projects in Vietnam’s semiconductor sector, with a total registered capital of nearly $11.6 billion. The Ministry of Planning and Investment (MPI) has engaged with some of the world’s leading tech giants, including Qualcomm, Google, Meta, LAM Research, Qorvo, and AlChip. These companies have detailed plans to relocate their supply chains to Vietnam, set up research centers, and expand their investments here.

What examples of successful projects in the field of digital transformation or implementation of new technologies in your region can serve as a reference point for IT managers in other countries?

FinTech. Vietnam’s digital payment industry is witnessing robust growth. The government of Vietnam has actively promoted the use of digital payments via the establishment and operation of the National Payment Corporation of Vietnam (NAPAS), which facilitates inter-bank payments. Vietnam’s private sector has also played an important role in developing the local digital payment ecosystem, particularly with respect to e-wallet services. 

Vietnam’s market-leading e-wallet service providers include MoMo and ZaloPay. Vietnam’s growing digital payment market presents significant commercial opportunities for U.S. digital payment solutions, including in E-Know Your Customer (E-KYC) and Anti-Money Laundry (AML) services.

Telecom. According to a report by Viettel AI, leading companies in Vietnam, such as FPT, Viettel, and VinAI, have made significant strides in AI adoption. These corporations have developed localized LLMs tailored to the Vietnamese context. Viettel AI’s VDA model, launched in 2023, processes local dialects with high accuracy, enhancing customer service and content generation. In customer service, AI-powered chatbots and virtual assistants are providing instant, personalized responses, significantly improving user satisfaction. Companies like FPT and Viettel are at the forefront of this innovation. Moreover, AI-powered recommendation engines and predictive modelling enable companies to target the right audiences more effectively, driving higher conversion rates. Intelligent automation is also streamlining recruitment processes and performance evaluations, while RPA and AI accounting assistants are enhancing accuracy and compliance in financial operations.

HealthTech. In November 2023, Ho Chi Minh Health Department digitalized the city's medical institutions in order to improve the quality of patient examination and reduce the risks of medical errors. On the basis of the TrueConf Server VCS platform, an autonomous network of video communications was launched, which made it possible to unite the medical staff of more than 100 leading hospitals and employees of the city's cancer center, as well as representatives of the Ho Chi Minh Health Department.

What is the situation with highly qualified IT specialists, and what steps are being taken to develop local personnel in the context of global competition?

ICT labor. The workforce within the ICT sector is also on the rise. By 2024, the industry is expected to employ approximately 1.54 million individuals, marking a 2% increase from the previous year. This reflects the growing demand for skilled professionals in technology-related fields, as businesses and organizations seek to harness the power of digital tools and infrastructure. By 2030, Vietnam plans to train 1.5 million highly qualified specialists.

Engineers. The government plans to train 50,000 to 100,000 highly skilled workers between 2025 and 2030 as the country prepares for a new wave of investment to sweep its semiconductor industry. The plan is part of a broader effort to develop a skilled workforce in tandem with encouraging research and development, technology application, innovation and entrepreneurship. Vietnam has selected five universities to train talent in the semiconductor industry. The five institutions are VNU Hanoi, VNUHCM, Hanoi University of Science and Technology, FPT University and Da Nang University of Science and Technology.

AI talents. The initiative, aiming to train 5,000 AI engineers by 2030, supports Vietnam’s strategy to integrate AI across various sectors. The NIC, which is working alongside both domestic and international partners, has been tasked with creating a comprehensive AI training, research, and application center. This initiative is designed to support AI startups, enhance AI research, and provide specialized AI training to meet international standards. By 2030, the NIC aims to train 7,000 AI experts and support the establishment of around 500 AI startups across the country. These efforts align with Vietnam’s growing recognition of AI as a critical driver for innovation and economic growth.

Cybersecurity talents. On August 16, 2023, the Office of Information Security (DIS), part of the Ministry of Information and Communications of Vietnam, warned of an acute shortage of specialists in the field of cyber defense. According to the published figures, as of mid-August 2023, only about 3,600 information security specialists work in Vietnam, which does not meet real needs. The country needs 10 times more such employees to increase the level of protection of information infrastructure and prevent leaks of confidential information.

What is the situation with the competitive environment?

The country's digital technology market is competitive. Many countries entering Vietnam act systematically, offering comprehensive solutions that have already been successfully implemented in their capitals. According to Statista, the cybersecurity solutions market in Vietnam is quite competitive, with 72% of the market accounted for by 10 key vendors with a market share of over 1%. The cybersecurity services market in the UAE is low-competition, with the majority of the market (81%) accounted for by vendors with a market share of less than 1%.

I would like to thank Softline for such a thoughtful and detailed overview of IT development in Vietnam. It was really interesting to learn about the progress of IT in this country from industry experts.

In conclusion, I'd like to draw your attention to one of the projects that participated in the “Project of the Year” competition held by the professional IT community Global CIO — a project focused on video conferencing and telemedicine solutions in healthcare institutions in Ho Chi Minh City — Video conferencing and telemedicine for healthcare institutions in Ho Chi Minh.

If you have your own experience working in Vietnam, we would be happy to share it either on our social media platforms or on our website. Feel free to write to us at feedback@globalcio.com.