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Vietnam’s Digital Infrastructure Evolution

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The Ministry of Information and Communications (MIC) is currently designing a strategy for Vietnam’s international fibre-optic cable development that will soon released. This initiative aims to guarantee the secure and sustainable advancement of Vietnam’s digital infrastructure, according to Pham Duc Long, the Deputy Minister of MIC.

He pointed out that the existing lack of infrastructure presents an opportunity for Vietnam, as there is considerable room to develop it in new innovative and effective ways. He was speaking at the country’s Internet Day 2023 event with the theme “New Spaces, New Opportunities,” in Hanoi.

Organised annually by the Vietnam Internet Association (VIA) and sponsored by the MIC, it aims to enhance Internet development in Vietnam, foster collaboration, and facilitate the sharing of opportunities within the Internet economy.

In July 2023, MIC outlined five emerging domains that are projected to reach a scale equivalent to telecommunications by 2025 and are anticipated to surpass telecommunications by 2030. These domains include cloud computing, digital platforms, e-commerce, the Make in Vietnam Industry, and cyber security.

He said that the world is now entering a new generation of internet use following the explosion of new technologies such as the Internet of Things (IoT), cloud computing, artificial intelligence (AI), blockchain, 5G/6G, with high-density connection, low latency, and ultra-wide bandwidth.

Long noted that Vietnam stands out as a country with a notably high percentage of internet users. As of January, the country recorded a total of 77.93 million Internet users, constituting approximately 79.1% of the national population, as per recent statistics. These users engage in weekly online shopping, surpassing the global average at over 60% (compared to 57.6%).

The internet economy in Vietnam reached a substantial US$23 billion in 2022, and projections anticipate its growth to US $49 billion by 2025. In the realm of online retail, Vietnam garnered US$ 14 billion in revenue last year, with expectations pointing towards a surge to US$ 32 billion by 2025.

Long emphasised that the opportunities presented by the internet are contributing substantially to Vietnam’s development. This has attracted several investors from developed nations, including the United States, Germany, China, Japan, the Republic of Korea, and Singapore.

An industry expert said that despite the prevailing trend of job cuts resulting from economic recession, many major technology corporations worldwide are continuing to invest capital in Vietnam This is an opportunity for Vietnamese information technology businesses to open a new growth space and collaborate with influential technology entities.

During the Internet Day 2023 event, speakers delved into topics concerning the sustainable future of Vietnam’s Internet ecosystem. They explored emerging technologies like AI virtual assistants, the integration of generative AI applications in business activities, the significance of cloud computing, and the evolution of electronic payment services. On the sidelines of the event, an exhibition was organised to showcase the latest technologies from both domestic and international information technology and telecommunications infrastructure enterprises.

The country’s digital economy is projected to expand significantly to reach approximately US$ 45 billion by 2025. This forecast includes an annual growth rate of 20% between 2023 and 2025, mainly driven by expectations of strong economic growth. As OpenGov Asia reported, Vietnam’s digital economy is not only fueling economic growth but also generating fresh employment prospects and improving the quality of life for its residents.


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