Brian Jeffrey
Overview of Vietnam’s Digital Technology Sector
By the close of 2024, Vietnam’s digital technology sector reported revenues totaling VND3.95 quadrillion (approximately $155 billion), contributing VND54 trillion to the national budget as stated by the Ministry of Information and Communications (MIC).
Within this figure, local companies generated a revenue of VND673 trillion (around $26.4 billion).
Industry Employment and Structure
By late November 2024, Vietnam was home to 27,600 technology companies spanning IT, electronics, and telecommunications, providing 1.26 million jobs. This equates to a ratio of 0.76 digital technology firms per 1,000 residents.
The sector consists of 4,500 businesses focused on hardware manufacturing, 12,500 in software development, 750 producing digital content, and 9,700 offering IT services.
Hardware firms employ the largest workforce with over 900,000 workers, followed by software companies with 224,000 employees. IT service firms provide jobs for 84,000, while digital content companies employ more than 3,700 people.
Initiatives for Growth
In 2019, Vietnam launched a community of digital technology firms with the ‘Make in Vietnam’ initiative, aimed at fostering research, design, and manufacturing locally.
This movement has significantly driven innovation and domestic product development over the last five years.
Growth in IT Revenue
According to MIC, by 2024, the overall revenue from the ICT sector in Vietnam reached VND1.16 quadrillion ($45.5 billion), with VND248 trillion generated solely from IT. Additionally, foreign-invested enterprises contributed VND486 trillion ($19 billion) to this total.
In 2024, the export value of IT and telecommunications hardware was expected to be around VND132 trillion, representing 32% of the nation’s total export value.
Impact of ‘Make in Vietnam’
Nguyen Khac Lich from the ICT Authority noted that the revenue share from Vietnam’s digital technology industry has surged since the launch of ‘Make in Vietnam’, increasing from 21.35% in 2019 to 31.8% today.
This strategy encourages companies to enhance creativity and innovation, not only fostering local growth but also positioning Vietnamese companies for success in global markets.
International Expansion and Success Stories
Approximately 1,500 digital tech firms in Vietnam generate revenue from international markets. The Foreign Investment Agency reported 207 projects in ICT overseas with a total investment of $2.82 billion, accounting for 13% of the nation’s total external investments.
Vietnamese companies are increasingly recognized for their high-tech and creative products, leading to significant advancements in the global arena. For instance, the revenue of 20 Vietnamese IT companies operating in Japan grew from $672 million in 2020 to VND1.345 billion by 2024, marking an annual growth of 22-28% and an increase of 8,000 workers.
Major Players Achieving Results
Noteworthy examples include FPT and Viettel, which exemplify the effectiveness of the ‘Make in Vietnam’ strategy. FPT, after surpassing $1 billion in software exports, is aiming for $5 billion in revenue by 2030. Viettel has reached $3 billion in revenue from overseas operations, establishing a strong presence in seven out of ten international markets and transferring $500 million back to Vietnam.
In a noteworthy achievement, Viettel showcased its innovative circuit boards and 5G chips at the Mobile World Congress, highlighting its unique position as the only global mobile operator capable of producing telecommunications equipment, placing Vietnam among the elite group of countries mastering 5G technology.
