Vietnam's Technology Industry: A Beacon of Innovation Amidst Uncertainty
Vietnam's technology industry is a dynamic and rapidly evolving sector, showing resilience amidst macroeconomic uncertainties and global turmoil. The country's strategic location, industrialization, stable growth, and connectivity have made it an attractive destination for both local and foreign investments.
The technology trends in Vietnam for 2023-2025 are expected to be dominated by Cloud computing, IoT, AI, and Blockchain, as predicted by FPT Digital. These technologies are anticipated to optimize production, enhance quality, and simplify management across various sectors. The country's ICT market, valued at USD 7.7 billion in 2021, is projected to grow 8% annually from 2022-2026, with an emphasis on ICT adoption for efficiency and governance.
Vietnam's government is actively promoting digital transformation, with the launch of the "Make in Vietnam Digital Technology Product" Awards 2023, an initiative to recognize outstanding digital technology products developed and manufactured in the country. The country is also making strides in AI technology, ranking 6th among ASEAN countries and 55th globally in the Government AI Readiness Index 2022.
Despite the promising growth, the technology industry in Vietnam faces challenges. The country's heavy reliance on exports and weak internal demand, coupled with credit issues and an ongoing corruption crackdown, pose threats to sustained growth. However, Vietnam's tech industry is showing resilience and adaptability, with Hanoi transforming into a modern district and the country offering tax incentives to boost its digital economy.
Vietnam's technology industry is at an exciting crossroads. The country's commitment to digital transformation, coupled with its strategic location and skilled workforce, make it a promising hub for technological innovation. Despite the challenges, the future of Vietnam's technology industry looks bright, with the potential to become a global force in the tech industry.
Vietnam has indeed emerged as a global destination for technology and digital companies. For example:
- Viettel: As one of the top prestigious technology companies in Vietnam, Viettel has made significant contributions to the IT-telecom and service/software sectors. The company has played a crucial role in the growth of Vietnam's IT industry, which generated US$148 billion with an 8.7% YoY growth in 2022.
- FPT: Another leading technology company in Vietnam, FPT has been instrumental in driving the country's digital transformation. The company's report highlights key technologies like Cloud Computing, IoT, AI, Blockchain, and more, to be widely used in production activities from 2023 to 2025.
- Netflix: The American streaming giant is exploring opportunities in Vietnam's growing market. The company is examining compliance with a new regulation for streaming services and may open its first office in the country.
- Boeing: The American multinational corporation is also part of the business mission to Vietnam, aiming to enhance partnerships and Vietnam's aviation and defense capabilities.
- VNPT: Vietnam Posts and Telecommunications Group (VNPT) is another top technology company in Vietnam, contributing significantly to the software and IT services industry. The company has been recognized for its pioneering efforts in digital platform research and development.
Article by: Phuc Hoang Nguyen