Minister Nguyen Manh Hung said all three – startups and small and large tech firms – are vital to the development of the industry.

Startups focus on new solutions that are unique and practical, while small tech firms use existing technologies to address local issues such as shrimp or vegetable farming, he told VnExpress on the sidelines of the National Forum on Developing Vietnam Technology Companies Thursday.

Large firms such as tech giant FPT, online gaming firm VNG, real estate conglomerate Vingroup, and telecom giant Viettel are experienced companies which have the financial wherewithal to develop technologies to help Vietnam compete in the global market, he said.

While small firms have good ideas and enthusiasm, they lack deep pockets unlike the bigger players, he pointed out.

The country is seeking to promote its tech industry with the slogan ‘Make in Vietnam’, taking inspiration from the campaigns of other countries such as "Made in China 2025", "Make in India" and "Made in Japan".

There are 50,000 information and communications technology (ICT) businesses in the country now, and the government wants to double this by 2030 and take Vietnam into the list of top 30 countries in the sector.

But much work is needed to achieve these targets, Hung admitted.

"ICT firms need to innovate and perform traditional tasks in new, more effective ways. The ultimate goal of this process is to increase productivity, avoid the middle-income trap and create made-in-Vietnam technology."

Last year software fetched revenues of $4.3 billion and IT services fetched $5.7 billion, according to official figures.

The industry, including also the hardware segment, employed more than a million workers last year.