Vietnam’s digital technology enterprises are transitioning from assembly and outsourcing to innovation and core technology development, positioning themselves as key drivers of the nation’s digital economy.

As of November 31, 2024, Vietnam is home to 54,500 digital technology businesses, a 14.89% increase from the previous year. The ICT (Information and Communication Technology) sector employs nearly 1.26 million people, underlining its growing importance to the economy.

Impressive growth figures

According to the Ministry of Information and Communications (MIC), in 2024, Vietnam's digital technology enterprises generated approximately 3.88 quadrillion VND ($152 billion) in revenue, marking a 10.9% increase compared to 2023 ($137 billion).

Post-tax profits reached around 272 trillion VND ($10.67 billion), while these businesses contributed over 43 trillion VND ($1.69 billion) to the state budget. The ICT sector’s GDP contribution exceeded 786 trillion VND ($30.81 billion).

Vietnam’s hardware and electronics export turnover in 2024 was estimated at $133.2 billion, a 10.4% increase from 2023. Notably, the domestic value-added ratio in ICT revenue rose to 31.8%, up by 3.1% from the previous year.

Globally, Vietnam ranks:

2nd in smartphone exports,
5th in computer component exports,
6th in computer device exports,
8th in electronic devices and components exports,
7th in software outsourcing.
The Make in Vietnam initiative

Launched in 2019, the Make in Vietnam initiative promotes research, creativity, and production within the country. Its mission is to encourage Vietnamese businesses to develop, design, and master core technologies domestically.

The initiative has significantly advanced Vietnam’s digital economy over five years. The value-added ratio in the ICT industry has nearly doubled since its inception, emphasizing the transition from simple assembly and outsourcing to higher-value activities like innovation and design.

Vietnamese digital technology enterprises have become pioneers in research and development, producing digital products that play a vital role in accelerating the country’s digital transformation. This shift enhances the domestic value chain and creates greater economic benefits compared to assembly or outsourcing.

For 2025, the MIC aims to:

Increase ICT revenue to $169.3 billion, an 11.4% growth from 2024.
Achieve $148.5 billion in hardware and electronics exports, a 12.3% rise from 2024.
Expand the number of digital technology enterprises to 60,000, a 10% increase from 2024.

Vietnam’s ICT industry is set to thrive amid the Fourth Industrial Revolution, leveraging advanced technologies like 5G, IoT, AI, Big Data, Cloud, and Blockchain.

To support this growth, the MIC is drafting the Digital Technology Industry Law and related regulations to solidify the ICT sector’s role as a major economic contributor. These efforts will ensure an enabling environment for Vietnamese digital technology enterprises to innovate and flourish.

The ICT industry is expected to underpin the development of Vietnam’s digital government, digital economy, and digital society. With a focus on fostering domestic technology businesses, the sector is moving towards mastering core technologies, from integration and design to production and innovation, creating a sustainable foundation for national growth.

Trong Dat