At VIR’s digital economy development conference held on November 25, policymakers, businesses, and experts discussed the solutions to unlock AI and 5G prospects to support the country’s digital economy development.

The event heard that 5G is bringing a clear competitive advantage to pioneering countries such as India and Malaysia, and expect this to happen to Vietnam as the government encourages network operators to speed up 5G deployment.

Seck Yee Chung, vice president of the Singapore Chamber of Commerce in Vietnam said 5G and AI together presents an extraordinary, time-sensitive opportunity for the region to leapfrog into a future shaped by intelligent connectivity, digital sovereignty, and inclusive growth.

“When integrated with AI, 5G becomes the infrastructure of innovation, enabling smart factories, precision agriculture, immersive education, AI-powered healthcare, and climate-resilient infrastructure,” Chung said.

5G is providing a competitive edge to countries like India and Malaysia, with governments creating the enablers. India has rolled out the fastest 5G networks, achieving 90 per cent 5G coverage in just 21 months. Today, India has 394 million 5G subscriptions and the highest data consumption globally, at 36 GB per month per active smartphone user. Government recognition of the need for digital infrastructure, effective spectrum allocation and management, and strong support for simplified deployment rules has enabled India to carry this out.

In Malaysia, the DNB network has become a global showcase for 5G. Based on the government’s commitment to leverage 5G to drive Malaysia’s leadership in the region, the country is enjoying more than 80 per cent coverage, one year ahead of schedule. As in the case of India, full 5G coverage is expected to create a GDP uplift of up to RM150 billion ($36.3 billion) by 2030 in Malaysia.

In Vietnam, since the first commercial 5G network was launched in October 2024, all major operators have provided the service, aiming to cover almost the entire population in the coming years.

Nguyen Phong Nha, deputy general director of the Authority of Telecommunications under the Ministry of Science and Technology, said that Vietnam’s telecommunications network currently has advanced technology equivalent to that of developed countries. Currently, the 5G network is widely covered and the fiber optic cable system reaches every village.

“Network operators are ready to cooperate with enterprises to deploy telecommunications application services on 5G networks through virtual network models. This is an opportunity for technology enterprises, and startups to deploy applications for all industries such as smart seaports, smart transportation, and online public services,” Nha said.

Hoang Van Ngoc, director of Strategy at Viettel, said that there are four major trends: AI use, the cloud, data mining and analysis, and innovation on digital platforms and data ecosystems. Ngoc noted that the government’s target is 30 per cent of GDP contribution from the digital economy, while the digital economic growth rate in Vietnam is already among the highest in the region, about 25-30 per cent per year.

“We have a dynamic and open government that promotes institutional change and a desire for transformation,” Ngoc said. “We have a large digital subscriber base and modern telecommunications infrastructure, and we have a high-quality workforce in the IT sector compared to the regional average.”

More importantly, Vietnam has transformed itself from a consumer of digital products to a producer of digital products, and can move towards exporting because of the advantages, Ngoc added.

However, Dong Manh Cuong, head of the Business School at British University Vietnam, said that as new technology platforms develop rapidly, the shortage of hybrid human resources becomes more evident. They must be able to operate blockchain-based financial models, optimise supply chains based on real-time data from 5G, or develop new fintech services.

“Vietnam’s biggest challenge today is not a lack of personnel, but a lack of the right people at the intersection of business and technology – people who are capable of turning technology into productivity, efficiency, and real economic value for businesses and the digital economy,” Cuong explained.