In January, Vietnam’s information and communication sector recorded a total foreign direct investment (FDI) of negative US$83.87 million but ten new projects, according to data from Vietnam’s Ministry of Planning and Investment. This represents a decline of US$117.1 million in compared to December, which saw US$33.3 million in registered capital across 18 new projects.
The sector accounted for -1.93 percent of total FDI in January, down from 0.49 percent in December.
Vietnam’s information and communication sector has grown rapidly in recent years, driven by the country’s increasing digital transformation and a tech-savvy population. The sector encompasses telecommunications, IT services, software development, digital media, and broadcasting. With Vietnam’s strategic position in Southeast Asia, the sector is emerging as a key player in regional digital commerce, supported by expanding infrastructure and improved internet connectivity across the country.
Telecommunications, particularly mobile services and broadband internet, have seen remarkable growth, with major companies like Viettel, VNPT, and Mobifone leading the market. The adoption of 4G and the ongoing rollout of 5G networks are boosting connectivity, enhancing digital services, and supporting the growth of mobile applications, e-commerce, and online banking. The IT services and software development industries are also booming, with Vietnam becoming a popular outsourcing destination for software development, customer support, and digital solutions.
In addition to telecom and IT, digital media has become increasingly important, with online platforms for entertainment, news, and social media gaining rapid traction. Vietnam’s growing consumer market for digital content, gaming, and streaming services is attracting both local startups and global giants such as Netflix and Spotify. Despite this rapid growth, the sector faces challenges such as cybersecurity threats, the need for improved regulatory frameworks, and competition from other regional markets. However, with continued investment in infrastructure, education, and innovation, the information and communication sector is poised to remain a key driver of Vietnam’s economic development and digital future.