Forecast Period | 2025-2029 |
Market Size (2023) | USD 21.11 Billion |
Market Size (2029) | USD 36.06 Billion |
CAGR (2024-2029) | 9.17% |
Fastest Growing Segment | Retail & E-commerce |
Largest Market | Southern Vietnam |
Market Overview
Vietnam ICT Market was valued at USD 21.11
Billion in 2023 and is expected to reach USD 36.06 Billion by 2029 with a
CAGR of 9.17% during the forecast period. The ICT (Information and Communication Technology) market comprises a diverse range of industries and businesses focused on the creation, distribution, and support of technologies that enable the transmission, processing, and storage of data. This sector includes several key areas: hardware, which encompasses physical devices such as computers, servers, smartphones, and networking equipment; software, covering operating systems, applications, and cloud-based solutions; telecommunications, which involves voice, video, and data communications including internet and mobile networks; and IT services, which provide support, consulting, system integration, and managed services. This market is essential for driving digital transformation across various industries, including healthcare, education, finance, and manufacturing. As digital platforms become more integral to everyday operations, there is a growing need for advanced connectivity solutions like 5G networks, cloud computing, cybersecurity measures, and data analytics. The rapid expansion of the ICT market is also fueled by innovations in artificial intelligence, the Internet of Things (IoT), and blockchain technology. As businesses and individuals increasingly adopt digital solutions to enhance efficiency, communication, and decision-making, the ICT market remains a vital component of the modern global economy. It is characterized by intense competition, rapid evolution, and a central role in technological progress worldwide.
Key Market Drivers
Government Support and Policies
One of the key drivers of the Vietnam ICT market is
the strong support and policies initiated by the Vietnamese government. Over
the past decade, the government has made significant efforts to promote digital
transformation and foster growth in the ICT sector as part of its overall
strategy to become a high-income, industrialized nation. The government’s
"National Digital Transformation Program by 2025, with a Vision to
2030" is one of the primary initiatives aimed at integrating digital
technologies across various industries, boosting the digital economy, and
creating a conducive environment for ICT development.
Government policies in Vietnam focus on developing a
skilled workforce, attracting foreign investment, and encouraging innovation in
areas such as cloud computing, artificial intelligence (AI), and blockchain. To
build a robust ICT infrastructure, the government has also been investing in
digital infrastructure, such as broadband networks, 5G technology, and data
centers. Initiatives like these have allowed Vietnam to position itself as a
competitive player in the regional and global ICT market.
The Vietnamese government has been actively working on
improving its regulatory framework to support startups and tech companies. The
establishment of several technology parks and innovation hubs throughout the
country has provided opportunities for entrepreneurs to access funding and
resources. Furthermore, tax incentives and other benefits are offered to both
domestic and foreign investors in the ICT sector, promoting capital inflows and
the growth of high-tech industries.
Growing Demand
for Digital Services
The increasing demand for digital services is another
major driver of Vietnam's ICT market. As the country’s economy continues to
modernize and digitalize, more businesses, governments, and consumers are
adopting ICT solutions for everyday operations. This demand is particularly
strong in areas such as e-commerce, financial technology (FinTech), and online
entertainment, all of which have witnessed significant growth over the past few
years.
The rise of e-commerce in Vietnam is one of the
clearest examples of this trend. With a growing middle class, increased
internet penetration, and the expansion of mobile services, online shopping has
become a norm for many Vietnamese consumers. Platforms like Shopee, Lazada, and
Tiki are experiencing exponential growth, creating a need for more advanced ICT
infrastructure to handle the demand. This is fueling investment in technologies
such as cloud computing, data analytics, and cybersecurity.
FinTech is also a rapidly growing sector in Vietnam.
Digital payments, online banking, and mobile wallets are gaining popularity,
especially as consumers seek more convenience and businesses embrace digital
financial solutions. The demand for secure, efficient, and reliable digital
payment systems is driving innovation and development within the ICT market,
encouraging the growth of tech startups and pushing traditional financial
institutions to upgrade their services.
Online entertainment, particularly streaming services,
gaming, and social media is yet another area contributing to the growing demand
for digital services. Vietnam’s young and tech-savvy population is increasingly
turning to digital platforms for leisure activities, necessitating more robust
and scalable ICT infrastructure.
Rapid Urbanization and a Young, Tech-Savvy Population
Vietnam’s rapid urbanization and its young, tech-savvy
population are crucial factors driving the growth of the ICT market. As more of
the population migrates to urban centers, the demand for modern digital
infrastructure, efficient communication networks, and advanced technologies
increases. Cities like Ho Chi Minh City and Hanoi are becoming digital hubs
where tech companies, startups, and entrepreneurs thrive.
Vietnam’s demographic profile is a major asset for the
ICT sector. Over 60% of the population is under the age of 35, and this young
population is particularly adept at adopting new technologies. With the rise of
affordable smartphones and internet access, young Vietnamese are increasingly
reliant on digital tools for communication, shopping, entertainment, and
education. This population segment is also more open to experimenting with new
technology trends like mobile apps, gaming platforms, and digital payments,
further fueling demand in the ICT market. Additionally, urbanization has led to
an increased concentration of tech companies and talent in cities, creating
innovation clusters. These urban centers serve as fertile grounds for startups
and established tech firms alike, benefiting from access to skilled workers,
better infrastructure, and business networks. As the demand for high-speed
internet, mobile connectivity, and digital services in urban areas continues to
grow, the ICT market expands in parallel.
In short, Vietnam’s urbanization, coupled with its
young and tech-driven population, forms a powerful driver behind the ICT
market, as these factors combine to create a highly dynamic and innovative
environment.
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Key Market Challenges
Lack of Skilled Workforce
One of the most significant
challenges facing Vietnam's ICT market is the shortage of a highly skilled
workforce. Although Vietnam boasts a young, tech-savvy population, the country
still struggles with a mismatch between the skills required by the rapidly
evolving ICT industry and the current capabilities of its workforce. This
skills gap is particularly evident in specialized areas like artificial
intelligence (AI), cybersecurity, cloud computing, data analytics, and software
development. The shortage of skilled professionals in these fields hampers the
country’s ability to innovate and meet the increasing demand for advanced
digital services.
The educational system in
Vietnam is another contributing factor to this challenge. While universities
and vocational schools are producing graduates with degrees in IT and computer
science, many of these programs lack a focus on practical, hands-on experience
that is critical for success in the fast-paced ICT sector. As a result,
companies often find that new graduates lack the technical expertise and
problem-solving skills needed to thrive in the industry. This forces many
businesses to spend considerable resources on additional training for their
employees, which can delay project timelines and increase costs.
Another factor contributing
to the skills gap is the competition for talent from global markets. As Vietnam
becomes more integrated into the global economy, skilled Vietnamese ICT
professionals are being attracted by higher-paying jobs abroad, particularly in
countries with more mature ICT sectors. This brain drain exacerbates the
already limited talent pool within the country, making it even harder for local
companies to find the expertise they need to remain competitive.
Addressing this challenge
requires collaboration between the government, educational institutions, and
the private sector. The government has recognized the need to improve the
quality of education and vocational training to align with industry needs. Initiatives
aimed at promoting STEM (Science, Technology, Engineering, and Mathematics)
education, along with partnerships between universities and tech companies, are
steps in the right direction. However, more comprehensive reforms are needed to
develop a highly skilled, adaptable workforce capable of supporting Vietnam's
growing ICT market.
Cybersecurity Threats and Data Privacy Concerns
As Vietnam's ICT market
continues to expand and digital adoption accelerates across sectors,
cybersecurity threats and data privacy concerns are becoming critical
challenges. With the increasing reliance on digital platforms, e-commerce,
mobile payments, and cloud-based services, both businesses and consumers are
more vulnerable to cyberattacks. This rise in digital activity has made Vietnam
a target for cybercriminals, leading to growing concerns over the security of
sensitive information and the protection of personal data.
One of the main challenges
is that Vietnam’s cybersecurity infrastructure and regulations are still in the
process of catching up with its rapid digital growth. Many businesses,
particularly small and medium-sized enterprises (SMEs), lack the resources to
invest in robust cybersecurity measures. This makes them particularly
vulnerable to cyber threats such as ransomware attacks, phishing schemes, and
data breaches. The lack of a comprehensive security culture within
organizations further exacerbates this issue, with many employees lacking the
awareness or training needed to identify and mitigate potential threats.
At the national level, while
the government has implemented laws such as the Law on Cybersecurity (enacted
in 2019), enforcement remains a challenge. Compliance with data protection
regulations is often inconsistent, and many businesses struggle to keep up with
the evolving legal landscape. Additionally, Vietnam's rapidly growing digital
economy creates an ever-expanding attack surface, making it difficult for
regulators to keep pace with the changing cybersecurity environment.
Another concern is the rise
in data privacy issues. With the proliferation of online services and the
increasing amount of personal data being collected by businesses, ensuring that
this data is adequately protected has become a critical issue. There are
ongoing concerns about how companies handle sensitive customer information,
with many users expressing distrust over how their data is collected, stored,
and used. High-profile data breaches and incidents of personal information
being leaked have heightened these concerns, leading to calls for stronger data
protection measures.
To address these challenges,
Vietnam needs to invest heavily in strengthening its cybersecurity
infrastructure and fostering a culture of digital security awareness. Companies
must prioritize cybersecurity as a fundamental component of their operations, and
the government should work on enhancing enforcement and ensuring businesses
comply with regulations. Only by addressing these issues can Vietnam’s ICT
market continue to grow while maintaining trust and security in the digital
economy.
Key Market Trends
Rise of
E-commerce and Digital Payments
One of the most prominent trends shaping the Vietnam
ICT market is the rapid rise of e-commerce and digital payments. With
increasing internet penetration, affordable smartphones, and a growing middle
class, online shopping has gained significant traction across the country.
Vietnam’s e-commerce sector has seen exponential growth over the past few
years, becoming one of the fastest-growing markets in Southeast Asia. Platforms
such as Shopee, Lazada, and Tiki dominate the landscape, offering a wide range
of products, from fashion and electronics to groceries and household items.
As e-commerce flourishes, the demand for efficient and
secure digital payment solutions has also surged. The Vietnamese government has
set a goal to move toward a cashless economy, and digital payment methods such
as mobile wallets, QR code payments, and online banking are becoming
increasingly popular. FinTech solutions like MoMo, ZaloPay, and VNPay have
gained significant market share, providing consumers with convenient, secure,
and accessible payment options.
This trend is being further accelerated by changing
consumer behavior, particularly in the wake of the COVID-19 pandemic, which has
pushed many to adopt contactless payment solutions and rely more on online
shopping. As more businesses move online, both the e-commerce and digital
payment sectors are expected to continue growing, making them key drivers of
the overall ICT market in Vietnam. Furthermore, this growth is creating
opportunities for the development of new technologies and infrastructure. Cloud
computing, cybersecurity solutions, and logistics technologies are in high
demand as companies strive to improve their digital capabilities and meet
consumer expectations. As Vietnam continues to modernize and move toward
digitalization, e-commerce and digital payments will remain at the forefront of
the country's ICT market trends.
Expansion of 5G and Next-Generation Connectivity
The expansion of 5G and next-generation connectivity
is another key trend driving the growth of Vietnam’s ICT market. As one of the
most transformative technologies, 5G has the potential to revolutionize
industries by enabling faster internet speeds, lower latency, and more reliable
connectivity. In Vietnam, the government and major telecom operators have been
actively investing in the deployment of 5G networks as part of the country’s
digital transformation agenda.
Telecom companies such as Viettel, VNPT, and MobiFone
have already launched 5G pilot programs in major cities like Hanoi and Ho Chi
Minh City, with full-scale commercial rollout expected in the coming years. The
introduction of 5G is not only about enhancing mobile internet speeds for
consumers but also about enabling the development of new technologies such as
the Internet of Things (IoT), smart cities, and autonomous vehicles.
5G’s high-speed connectivity is expected to drive
innovation in areas such as healthcare, education, and manufacturing by
enabling the use of technologies like remote monitoring, telemedicine, and
industrial automation. For instance, in smart cities, 5G can facilitate
real-time data collection and analysis, improving urban management, traffic
control, and energy efficiency. Moreover, 5G will accelerate the growth of
other digital services such as cloud computing, virtual and augmented reality
(VR/AR), and artificial intelligence (AI). These technologies rely on
ultra-fast, low-latency networks, and 5G provides the necessary infrastructure
to support their widespread adoption.
As Vietnam continues to deploy 5G networks, businesses
and consumers alike will benefit from enhanced connectivity and new digital
experiences. This trend will significantly impact the ICT market, driving
further investment and innovation in technology and telecommunications.
Segmental Insights
Type Insights
The Telecommunication Services held the largest market share
in 2023. Telecommunication services dominated the Vietnam ICT market due to several key factors that have shaped the
country’s digital landscape. One of the primary drivers is the rapid growth of
mobile and internet connectivity. With a population of over 98 million people,
Vietnam has one of the highest mobile penetration rates in Southeast Asia, with
most citizens using mobile devices as their primary means of accessing the
internet. This widespread adoption has fueled the demand for telecom services,
particularly mobile data and broadband services.
The Vietnamese government has also played a pivotal
role in promoting the development of telecommunications infrastructure. Major
investments in expanding 4G networks, and the ongoing deployment of 5G
technology, have enhanced connectivity across urban and rural areas. Leading
telecom operators like Viettel, VNPT, and MobiFone have been at the forefront
of this expansion, investing heavily in infrastructure to meet the growing
demand for high-speed internet and mobile services. The early adoption of 5G in
major cities like Hanoi and Ho Chi Minh City positions Vietnam as a leader in
next-generation connectivity in the region. The telecommunication
sector has benefited from Vietnam’s increasing urbanization and digital
transformation initiatives. As businesses and consumers shift toward digital
services, the need for reliable, fast, and affordable telecommunication
services continues to grow. Telecom services also support the development of
other key ICT sectors, including e-commerce, cloud computing, and IoT, making
them a foundational component of Vietnam’s digital economy.
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Regional Insights
Southern Vietnam held the largest market
share in 2023. Ho Chi Minh
City, the largest city in Vietnam, serves as the economic powerhouse of the
country. It is home to numerous multinational corporations, technology firms,
and startups, creating a vibrant business ecosystem. The city’s robust
infrastructure, including modern office spaces, advanced transportation
networks, and high-speed internet connectivity, provides an ideal environment
for ICT businesses to thrive.
Southern Vietnam attracts substantial foreign direct
investment (FDI), particularly in the ICT sector. International tech giants
like Intel, Samsung, and LG have established significant operations in the
region, drawn by its favorable business climate, skilled workforce, and
strategic location. This influx of investment not only boosts the local ICT
industry but also spurs innovation and technological advancement.
The region benefits from a large pool of skilled
professionals and graduates from leading universities and technical
institutions. Ho Chi Minh City, with its concentration of educational and
training institutions, produces a steady stream of IT and engineering talent,
essential for supporting and advancing the ICT sector.
The local government has implemented various
initiatives to support the growth of the ICT industry in Southern Vietnam. This
includes the development of technology parks and innovation hubs, such as
Saigon Hi-Tech Park, which provide resources, networking opportunities, and
incentives for tech companies. The region’s infrastructure
investments, including improvements in broadband and 5G networks, further
bolster its position as the ICT hub of the country.
Recent Developments
- In February 2024, during the MWC Barcelona 2024, Huawei hosted the Huawei Industrial Digital and Intelligent Transformation Summit with the theme Leading Digital and Intelligent Infrastructure, Accelerating Industrial Intelligence. The summit brought together global customers, partners, and industry leaders to discuss and share innovations and practices in digital and intelligent transformation for industries and small- and medium-sized enterprises (SMEs). Additionally, Huawei unveiled ten new industrial digital and intelligent transformation solutions, along with a range of new flagship products, designed to address the needs of customers at various stages of their industrial transformation journey.
- In April 2024, SB Technology Corporation announced a strategic investment in NTQ Solution JSC, a prominent provider of offshore development and ICT solutions based in Vietnam. This investment aims to enhance SB Technology's access to a pool of skilled engineers and technological expertise. By partnering with NTQ Solution JSC, SB Technology seeks to strengthen its development capabilities and expand its technological offerings, leveraging the talent and innovation that the Vietnamese ICT sector has to offer. This move reflects SB Technology's commitment to advancing its technological solutions and staying competitive in the global market.
Key Market Players
- Microsoft Corporation
- Apple Inc.
- Amazon Web Services, Inc.
- Alphabet Inc.
- IBM Corporation
- Intel Corporation
- Cisco Systems, Inc.
- Oracle Corporation
- SAP SE
- Hewlett Packard Enterprise Company
|
By Type
|
By Size of Enterprise
|
By Industry
|
By Region
|
- Hardware
- Software
- IT Services
- Telecommunication
Services
|
- Small & Medium
Enterprises
- Large Enterprises
|
- BFSI
- IT & Telecom
- Government
- Retail &
E-commerce
- Manufacturing
- Energy &
Utilities
- Others
|
- Southern Vietnam
- Northern Vietnam
- Central Vietnam
|
Report Scope:
In this report, the Vietnam ICT
Market has been segmented into the following categories, in addition to
the industry trends which have also been detailed below:
·
Vietnam
ICT Market, By Type:
o
Hardware
o
Software
o
IT
Services
o
Telecommunication
Services
·
Vietnam
ICT Market, By Size of Enterprise:
o
Small
& Medium Enterprises
o
Large
Enterprises
·
Vietnam
ICT Market, By Industry:
o
BFSI
o
IT
& Telecom
o
Government
o
Retail
& E-commerce
o
Manufacturing
o
Energy
& Utilities
o Others
·
Vietnam
ICT Market, By Region:
o Southern Vietnam
o Northern Vietnam
o Central Vietnam
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Vietnam
ICT Market.
Available Customizations:
Vietnam ICT Market report with the given market
data, TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Vietnam ICT Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]