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01 Dec 2023

T Dao

01 Dec 2023

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Overcoming decades of development, Vietnam is emerging as one of the most vibrant digital economies in the world, well-known for massive coverage of digitalization throughout almost every aspect of daily life. With a rising trend of shifting in the supply chain, the nation’s IT Industry greatly benefits thanks to a diverse labor workforce, stable political economy, and positive impacts from various global free trade agreements. 

The increasing presence of global Vietnamese digital enterprises, ongoing international cooperative deals, and value contributions to tech forums prove how Vietnam is emerging as a prominent “beacon” on the global digital map. Let’s look at the driving forces behind Vietnam’s robust IT industry growth through the information below!

Benefiting from Global Cooperation!

Overview of Vietnam’s Trade Relations!

Currently, Vietnam has established diplomatic relations with over 190 countries and territories worldwide, with more than 30 countries being comprehensive strategic partners. Notably, Vietnam has also established diplomatic relations with major economies such as Japan (50 years), and South Korea (30 years), and recently upgraded its comprehensive strategic relationship with the United States.

In addition to bolstering diplomacy, Vietnam actively signs free trade agreements such as the CPTPP, EVFTA, participates in promotional activities, and contributes significantly to numerous leading global events and forums. These opportunities have helped Vietnam solidify its position on the international stage, projecting an image of a nation with a stable political-economic environment as an attractive investment destination.

The opportunities paved the way for many Vietnamese digital enterprises to participate in the global technology service supply chain. By 2022, Vietnam had over 1,400 digital enterprises with active products in international markets, with Japan accounting for the largest revenue share, showing consistently high annual growth rates. Additionally, Vietnamese enterprises also have a presence in developed markets such as South Korea, the United States, and Europe.

A Nation With High Digital Literacy

Vietnam is considered one of the nations with a high coverage of Internet access. 

Alongside the impetus provided by trade agreements, Vietnam’s economy has been greatly propelled by its digital coverage across most economic and societal activities.

With only 20% of the population access to the internet in 2007, this figure has surged to over 80% by 2023, in just over a decade. The mobile network coverage rate in Vietnam has also reached around 99.7% nationwide, considered significantly higher than in many high- and middle-income countries. The Vietnamese government has implemented a series of policies & regulations to drive digital transformation, setting a target for the digital economy to account for 30% of GDP by 2030.

Early exposure to digitization has equipped Vietnam with abundant technological resources and a highly skilled workforce. Vietnam boasts nearly 1,5 million ICT professionals, with over 500,000 individuals in technology engineering and software development roles. Over the years, Vietnam’s digital workforce has not only increased in quantity. Still, it has also shown diversity in expertise, demonstrating capabilities to implement advanced technologies such as AI, Machine Learning, and Augmented/Virtual Reality (AR/VR).

Seizing the Opportunity from Supply Chain Shifts!

The rising trends in shifting the global supply chain bring massive opportunities for many developing nations to breakthrough growth, including Vietnam.

The shift of supply chains to emerging markets has been a prominent trend in many developed countries in recent years. This movement occurs as nations aim to reduce reliance on traditional markets and diversify their supply sources, exploring potential from emerging markets. Southeast Asian countries, especially Vietnam, are benefiting from this wave. Notably, Vietnam leads the region in attracting foreign direct investment (FDI) with over $200 billion in a decade, followed by Singapore and Malaysia.

This is a crucial impetus for Vietnam to become a pivotal link in the global supply chain. In the field of information technology, the trend of shifts not only enables Vietnamese digital enterprises to leverage their core strengths but provides an opportunity to enhance capabilities and engage with developed digital economies. Many Vietnamese enterprises, including NTQ Solution, are effectively seizing these opportunities to affirm their global technology supply chain positions.

Tag: bfsi; Industry Highlights; Industry Insights; Technology Nation

Gain more insights from NTQ Solution.