Vietnam’s information and communications technology market holds tremendous potential for growth, driven by the country’s rapidly-expanding digital economy and rising technology adoption across industries.

Vietnam’s information and communications technology (ICT) industry has
been enjoying a period of remarkable growth and transformation in recent times,
making impressive strides forward on the back of strong government support, rapid
digitalization, and the dynamic participation of both domestic and international
enterprises. This development not only contributes significantly to the country’s
economic growth but also enhances its global competitiveness.

According to the Ministry of Information and Communications, Vietnam’s ICT
industry is estimated to have generated total revenue of $165.9 billion in 2024,
up 13.2 per cent against 2023, and is expected to come in at around $169.3 billion
this year, reflecting its robust growth momentum and rising contribution to Vietnam’s
digital economy.

Steady breakthroughs

From its early focus on providing basic telecommunications and software services,
Vietnam’s ICT industry has undergone a remarkable transformation, expanding into
higher value added areas such as hardware manufacturing, digital platform development,
AI, cloud computing, and comprehensive digital transformation solutions for businesses.
This strategic shift has not only strengthened the country’s technological capabilities
but also fostered a dynamic digital ecosystem that promotes innovation, enhances
competitiveness, and lays the foundation for Vietnam to integrate more deeply into
global value chains in the era of the digital economy.

Moreover, figures from Mordor Intelligence show that Vietnam’s ICT market size
is valued at $9.12 billion in 2025. Looking ahead, the market is projected to hit
$14.68 billion by 2030, for a compound annual growth rate (CAGR) of 9.92 per cent
during the 2025-2030 period. In addition, the country is currently home to more
than 27,600 ICT enterprises, including approximately 4,500 hardware companies employing
over 900,000 people, 12,500 software firms with 224,000 employees, and 9,700 IT
service providers employing about 84,000 workers. This not only demonstrates the
impressive scale of Vietnam’s ICT ecosystem but also highlights the industry’s crucial
role in driving innovation, job creation, and the country’s ongoing digital transformation.

The growing trend of large-scale investments by global tech corporations around
Vietnam, the establishment of research and development (RD) centers, and the
implementation of the national digital transformation strategy are also creating
new momentum for the industry. “In particular, with growing investment in emerging
technologies such as AI, big data, blockchain, and green technology, along with
business support policies on breakthroughs in science, technology, innovation, and
digital transformation, Vietnam’s ICT industry has a strong foundation to continue
its growth,” said Mr. An Ngoc Thao, Vice President of the Vietnam Software and IT
Services Association (VINASA).

Vietnam currently has some 79.8 million internet users, for a penetration rate
of 78.8 per cent of the population, indicating substantial space for further growth
compared to more advanced countries such as South Korea, which boasts a 97.4 per
cent rate, according to DataReportal. In addition, the adoption of digital technologies
by Vietnamese enterprises has been expanding rapidly, with as many as 74 per cent
of businesses having developed their own digitalization strategies; higher than
the Asia-Pacific average of 63 per cent and contributing significantly to the continued
growth and dynamism of its ICT industry.

Furthermore, the expansion of e-commerce, the rise of digital payments, the
growing popularity of remote work, and the increasing prevalence of cybersecurity
threats have all become key factors driving the growth of ICT. Meanwhile, the rapid
pace of digital transformation, the continued dominance of the hardware segment,
and the large-scale rollout of 5G networks are expected to further accelerate the
development of the Vietnamese ICT market, paving the way for a new phase of breakthrough
growth in the years ahead.

Growing
influence

Vietnamese enterprises are increasingly affirming their position on the regional
and global technology map. Through their capacity for innovation, flexible adaptability,
and strategic vision, many domestic companies have moved beyond providing basic
services to gradually mastering high-tech fields, contributing to enhancing the
reputation and brand of Vietnam’s ICT industry.

The sustainable growth of enterprises in the industry has also been built on
a foundation of possessing and applying advanced technologies as well as developing
a high-quality workforce of ICT experts and engineers. Among industry players, prominent
names such as FPT Software, TMA Solutions, CMC Technology, and VNG have demonstrated
remarkable growth and international competitiveness.

For example, FPT Software has become a strategic partner of several leading
global tech corporations such as Microsoft, Oracle, and SAP. Beyond that, the company
has expanded its operations across numerous international markets, from Japan and
the US to Southeast Asian countries, clearly reflecting the global ambitions and
outstanding competitiveness of Vietnamese enterprises.

Meanwhile, Vietnamese ICT companies are also undergoing a strong transition
from software outsourcing to developing high-tech products and solutions in areas
such as AI, big data, and blockchain. These strategic directions not only enhance
the added value of the economy but also position Vietnam as a reputable global hub
for IT services.

Accompanying this progress is strong support from the government. Vietnam has
introduced a number of specific policies and strategic orientations to promote ICT
as a new driver of economic growth. “Among them, Politburo Resolution No. 57 on
breakthroughs in science, technology, innovation, and national digital transformation
offers new opportunities through several tax and credit incentives for enterprises
investing in innovation; provides a mechanism for exemption of liability in new
technology testing, and facilitates business access to international markets through
specialized trade promotion programs,” Mr. Thao emphasized.

Thanks to this open and dynamic policy environment, Vietnam has become an increasingly-attractive
destination for global tech corporations seeking to expand their presence in Southeast
Asia, with giants such as Google, Facebook, and Amazon actively exploring partnership
and investment opportunities in Vietnam. In particular, the recent collaboration
between Vietnam and NVIDIA is expected to usher in a new phase of technological
advancement, fostering more in-depth and high-quality development of the country’s
technology sector. In parallel, the government continues to promote investment in
digital infrastructure, encourage comprehensive digital transformation, and create
favorable conditions for ICT companies both domestically and internationally.

However, Vietnam’s ICT industry still faces certain challenges. One of the
most significant is the shortage of high-quality human resources in cutting-edge
fields such as AI, big data, and blockchain, which require deep expertise and continuous
innovation. According to Professor Nguyen Thanh Thuy, President of the Vietnam Association
for Information Processing (VAIP), AI is gradually transforming all aspects of life,
compelling the ICT industry to undergo profound innovation not only to keep pace
with global trends but also to play a leading role in the sustainable application
of AI. “Therefore, the training of human resources in the ICT field must be reoriented
to serve the development of AI effectively and responsibly, contributing to building
a humane and sustainable society,” he added.

In order to ensure that Vietnam’s ICT industry leaves an even stronger mark
on the global technology landscape, experts also suggest that a comprehensive and
coordinated set of measures be implemented, from government policies to corporate
initiatives. Greater investment in RD should be prioritized through preferential
policies that encourage tech enterprises to innovate and develop new products and
technologies. Simultaneously, human resources training must be strengthened, particularly
through programs focused on AI, machine learning, big data, and blockchain, to cultivate
a generation of highly-skilled engineers meeting international standards.

Furthermore, accelerating digital transformation and the adoption of advanced
technologies across sectors such as agriculture, healthcare, education, and manufacturing
will help enhance the economy’s overall value creation. Investment should also be
directed toward developing modern ICT infrastructure, especially internet and telecommunications
systems, data centers, and cloud computing. In tandem, it is essential to build
a vibrant startup and innovation ecosystem, reinforce cybersecurity, develop “Made
in Vietnam” security solutions, and promote the application of emerging technologies.

VET-Phuong Nhi