Vietnam’s information and communications technology (ICT) sector has become a key driver of the country’s economic development and digital transformation. Supported by government policies, foreign investment, and a dynamic domestic market, the ICT industry encompasses telecommunications, software development, hardware manufacturing, and digital services. Major cities like Ho Chi Minh City, Hanoi, and Da Nang are emerging as technology hubs, attracting both local startups and global technology firms.
The sector has witnessed significant growth due to increasing internet penetration, rising smartphone adoption, and a growing demand for digital solutions. Vietnam has also become a leading destination for IT outsourcing, with its relatively skilled, cost-effective workforce and competitive infrastructure drawing multinational corporations. Major players in the industry include state-owned enterprises, private domestic firms, and foreign technology giants operating across various segments.
That said, challenges remain, such as the need to improve cybersecurity, enhance digital skills, and modernise ICT infrastructure in rural areas.
Vietnam’s ICT industry in numbers
Vietnam’s Information and Communication Technology (ICT) industry has experienced significant growth, becoming a key driver of the nation’s economic development. Key statistics highlighting the industry’s performance include:
Vietnam ICT market size
Vietnam’s information and communications technology market was valued at US$15.71 billion in 2023 and is projected to grow at a compounded annual growth rate of 15.68 percent, reaching US$32.54 billion by 2028. Over the five-year period from 2023 to 2028, the cumulative revenue generated by ICT providers in Vietnam is estimated at a significant US$139.08 billion, according to a report from Global Data.
Communication equipment manufacturing in Vietnam
The Industrial Production Index (IPI) for communication equipment manufacturing increased by 6.77 percent in November compared to October, according to Vietnam’s General Statistics Office.
Year-on-year, the industry recorded a substantial 14.15 percent increase in November 2024 compared to the same period in 2023. Over the first 11 months of 2024, cumulative growth stood at 8.63 percent, underlining the sector’s importance to Vietnam’s industrial output.
Vietnam information and communication FDI in November
In November, the information and communication sector in Vietnam registered 23 new projects with US$97.9 million in newly registered capital, according to Vietnam’s Ministry of Planning and Investment. This represents a 27.78 percent increase compared to October, which recorded 18 new projects and US$18.6 million in newly registered capital.
Year-to-date, the sector has attracted a total of 217 new projects and US$248 million in newly registered capital, highlighting consistent growth in this area.
Domestic ICT firms
Viettel Group
Viettel, a state-owned enterprise, is Vietnam’s largest telecommunications and technology company. It provides mobile, internet, and IT solutions while leading digital transformation efforts in sectors like healthcare, education, and e-government. Viettel is also expanding its presence in international markets.
FPT Corporation
FPT is Vietnam’s leading ICT company, offering services in software development, IT outsourcing, telecommunications, and digital transformation. It plays a key role in the global IT outsourcing industry, serving clients across multiple continents while driving domestic innovation.
VNPT (Vietnam Posts and Telecommunications Group)
VNPT is a state-owned corporation providing telecommunications and IT services, including mobile networks, broadband, and enterprise solutions. It is a key player in Vietnam’s digital infrastructure development, particularly in smart city and e-government initiatives.
VNG Corporation
VNG is a major domestic technology company specialising in digital content, gaming, cloud computing, and online platforms. It has developed popular applications such as Zalo (a messaging platform) and Zing MP3, contributing to Vietnam’s digital ecosystem.
CMC Corporation
CMC is a leading ICT firm providing technology solutions, systems integration, and software services. The company focuses on IT infrastructure, cybersecurity, and cloud-based solutions, supporting businesses and government agencies in their digital transformation efforts.
These domestic ICT firms play a pivotal role in driving Vietnam’s digital economy, leading innovations in telecommunications, software, and IT services while contributing to national and regional technology advancements.
Foreign ICT firms in Vietnam
Vietnam’s rapidly expanding Information and Communications Technology (ICT) sector has attracted significant investments from leading foreign technology companies, contributing to the country’s digital transformation and economic growth. Notable foreign ICT firms operating in Vietnam include:
Intel Corporation
Intel established its largest assembly and test facility in Ho Chi Minh City, investing approximately $1 billion. This facility plays a crucial role in Intel’s global supply chain, underscoring Vietnam’s importance in the semiconductor industry.
Samsung Electronics
Samsung has invested billions of dollars in Vietnam, making the country a central hub for its manufacturing operations. The company’s facilities in Bac Ninh and Thai Nguyen provinces produce a significant portion of Samsung’s smartphones and electronic devices for global markets.
Microsoft Corporation
Microsoft has a substantial presence in Vietnam, focusing on software development, cloud services, and digital transformation initiatives. The company collaborates with local businesses and government agencies to enhance digital skills and infrastructure.
Google LLC
Google is considering establishing a large data center near Ho Chi Minh City, which would be the first investment of its kind by a major U.S. tech company in Vietnam. This development underscores Vietnam’s burgeoning digital economy and the growing demand for digital services among its population.
These foreign ICT firms contribute significantly to Vietnam’s technological advancement, job creation, and integration into the global digital economy. Their investments reflect confidence in Vietnam’s potential as a leading technology hub in Southeast Asia.
Vietnam’s main ICT products/services
Vietnam’s ICT sector produces a range of products and services that drive its digital economy and cater to both domestic and international markets. The key offerings include:
Hardware and electronics
Vietnam is a significant producer of electronic hardware, including smartphones, computers, and consumer electronics. Companies like Samsung, Intel, and domestic firms contribute to manufacturing products such as semiconductors, electronic components, and devices for export and local consumption.
Software development and IT outsourcing
Vietnam has become a major global hub for software development and IT outsourcing. Services include custom software solutions, mobile and web applications, and enterprise-level systems. Companies like FPT Software and CMC Corporation serve clients in sectors such as banking, retail, and healthcare worldwide.
Telecommunications services
Vietnam’s telecommunications sector offers mobile services, broadband internet, and data connectivity. State-owned enterprises like Viettel and VNPT lead in providing 4G and expanding 5G networks, improving nationwide digital access.
Cloud computing and data services
The growth of digital transformation has driven demand for cloud computing and data centre services. Providers like Microsoft, Amazon Web Services (AWS), and Viettel Cloud offer scalable solutions for businesses, government agencies, and startups.
Digital content and platforms
Vietnam produces digital content and platforms, including messaging apps, online gaming, e-commerce, and entertainment services. Companies like VNG Corporation have developed popular applications like Zalo, Zing MP3, and online games for regional and global markets.
Cybersecurity solutions
With increasing digitisation, Vietnam has prioritised cybersecurity. Domestic firms like Bkav and international players offer cybersecurity services, including firewalls, antivirus software, and IT security consulting to safeguard businesses and government networks.
These ICT products and services reflect Vietnam’s growing capabilities in hardware production, software development, and digital infrastructure, positioning the country as a rising technology hub in the region.
ICT regulations in Vietnam
Vietnam’s ICT sector operates under a structured regulatory framework aimed at ensuring digital security, fostering innovation, and supporting economic growth. Key regulations include:
Law on Cybersecurity
The Law on Cybersecurity mandates that both domestic and foreign digital service providers store user data locally and comply with security requirements. It aims to protect national security, prevent cyber threats, and regulate online content management.
Law on Telecommunications
This law governs the telecommunications industry, covering licensing, service provision, and infrastructure development. It encourages investment in expanding broadband and mobile networks while ensuring fair competition among providers.
Law on Information Technology
The Law on Information Technology promotes the development, application, and management of IT systems. It sets standards for software development, e-governance initiatives, and IT service providers, supporting Vietnam’s digital transformation agenda.
Data Protection Regulations
Vietnam requires organisations handling personal data to adhere to strict privacy and protection rules. Businesses must obtain consent for data collection and processing, ensuring compliance with national security and privacy standards.
Decree on Digital Transformation
The Vietnamese government’s decree on digital transformation supports the National Digital Transformation Program, which targets improved e-governance, digital economy growth, and technology adoption across sectors by 2030.
Foreign investment policies
Foreign ICT investors must comply with regulations on licensing, partnerships, and local data storage requirements. Incentives, including tax breaks and investment allowances, are available for projects contributing to technology transfer and innovation.
These regulations aim to build a secure, competitive, and innovative ICT environment in Vietnam, balancing growth in digital services with the need for national security and data protection.
What’s next?
Vietnam’s ICT sector operates under a comprehensive regulatory framework designed to support digital transformation, ensure security, and attract investment. The Law on Cybersecurity mandates local data storage and regulates digital service providers to protect national security. The Law on Telecommunications and Law on Information Technology govern infrastructure development, licensing, and IT services, encouraging the expansion of broadband and technology adoption across sectors.
Data protection regulations require strict compliance with user privacy standards, while decrees on digital transformation promote the government’s agenda for e-governance and digital economy growth by 2030. Foreign investors are subject to licensing and data requirements but benefit from incentives for projects contributing to innovation and technology transfer. These regulations aim to foster a secure, competitive, and forward-looking ICT industry that balances national security with technological advancement.
That said, Vietnam’s ICT industry is currently very dynamic. With this in mind, foreign firms can best keep up to date with the latest developments by subscribing to the-shiv.