Since the announcement of the Make in Vietnam programme in 2020, Vietnam’s digital technology industry has taken significant developmental strides. The number of digital tech enterprises registered for establishment and operation has increased by nearly 30 per cent, rising from over 58,000 enterprises in 2020 to approximately 75,000 enterprises today.

Dr. Nguyen Thanh Tuyen, deputy general director Authority of ICT Industry and Communications, Ministry of Information and Communications

Revenue within the digital technology industry has also seen growth, increasing by nearly 15 per cent from $124 billion in 2020 to $142 billion in 2023. The proportion of Make in Vietnam products within the digital technology sector has risen from 21 per cent in 2020 to 29 per cent in 2023.

In the realm of software production for foreign markets, over 1,500 businesses currently generate revenue from international markets, with total revenue approaching $10 billion.

Guided by the Make in Vietnam policy and led by the Ministry of Information and Communications (MIC), tens of thousands of Vietnamese digital technology businesses have developed applications for various industries and sectors, facilitating their digital transformation and contributing to the country’s industrialisation and modernisation.

These achievements have significantly driven Vietnam’s digital economy and digital society forward in recent years. The total revenue of the digital platform economy sector is estimated at $40 billion, with a growth rate ranging from 20 to 25 per cent. The contribution of the digital economy’s added value to GDP has increased from 11.91 per cent in 2021 to 16.5 per cent in 2023.

Vietnam’s digital economy has been the fastest-growing in Southeast Asia for two consecutive years and is projected to continue its rapid growth from 2023 to 2025. According to the eighth Southeast Asia Digital Economy report by Google, Temasek, and Bain & Company, Vietnam’s digital economy grew by 19 per cent in 2023, marking the highest growth rate in Southeast Asia, which is three times the GDP growth rate.

Vietnam also leads in digital payment adoption in Southeast Asia, with a penetration rate of 50 per cent. From 2022 to 2023, Vietnam’s digital payment growth increased by 19 per cent, with a forecasted compound annual growth rate of 13 per cent from 2023 to 2025.

The number of users on Vietnamese digital platforms has grown by almost half compared to 2022, placing Vietnam among the top six countries globally with the highest number of monthly active users in the local market, trailing only behind China, India, the US, and Japan.

Amid globalisation and heightened competition in the international trade environment, Vietnamese businesses are encouraged to efficiently utilise resources, adopt digital technologies, innovate, and create digital applications to enhance labour productivity and drive digital transformation across economic sectors.

The MIC reintroduced the Make in Vietnam policy at a national forum on Vietnam’s digital technology enterprise development in 2023, focusing on creating digital applications to boost the digital economy as a driving force for economic growth and labour productivity.

The ministry proposed several policies to support and encourage network operators and digital tech businesses, including enhancing legal frameworks related to use case development, ensuring a transparent and competitive business environment, minimising administrative procedures for IT businesses, fostering a use case ecosystem, accelerating digital transformation in industries and sectors, and promoting the prioritised use of Make in Vietnam digital technology products in digital transformation efforts.

Looking ahead to 2030, Vietnam aims to develop into a key digital technology hub in the region and globally, with core technologies and products developed locally. The goal is to leverage the country’s workforce as a key asset in the digital technology industry and integrate Vietnamese digital technology products and services into crucial socioeconomic sectors.

The MIC plans to implement solutions to support businesses, including collaborating with relevant units from the Ministry of Foreign Affairs and the Ministry of Industry and Trade to establish channels and focal points for supporting businesses in foreign markets, particularly in the US, Europe, Japan, South Korea, and other strategic regions.

Additionally, efforts will focus on understanding the needs and capacities of Vietnamese businesses in international markets, building a database of such businesses abroad to foster a mutually supportive business ecosystem, and organising trade and investment promotion delegations in coordination with relevant agencies.

These initiatives underscore Vietnam’s commitment to advancing its digital economy and positioning itself as a competitive player in the global digital landscape.