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Vietnam aims for 100,000 digital technology companies by 2030

Image credit: Ministry of Information and Communications

100,000 digital technology companies by 2030.

This was a highlight of the document, which the Ministry of Information and Communications recently made public for comments.

Digital technology companies are expected to play an important role in making the country a developed and industrialised country with rapid, sustainable, and inclusive economic development as well as turning Vietnam into a high-income country by 2045.

The Vietnamese government estimated Vietnam would need at least 100,000 digital technology companies to develop a digital economy, smart urban areas, e-government, and promote the application of digital technology advancements in socio-economic fields as well as accelerate national digital transformation.

Under the draft strategy, Vietnam will focus on developing four types of digital technology companies, namely those developing core technologies, developing digital technology products, providing digital technology solutions, and digital-technology start-ups.

By 2025, Vietnam hopes to have 70,000 digital technology companies with a workforce of 1.2 million. Digital technology companies are expected to have revenue growth 1.5-2 times higher than the country’s GDP expansion rate and export growth at 10-20% per year.

Digital companies are expected to contribute 10% of GDP and to bring Vietnam into the top three countries in ASEAN and the top 70 in the world for technology and innovation ranking.

The draft strategy aims for the country to have a workforce of 1.5 million by 2030. Digital companies would contribute 20% of GDP, and Vietnam would be one of the top two countries in ASEAN and the top 50 in the world in technology and innovation ranking.

According to the Ministry of Information and Communications, about 43,000 enterprises currently operate in the information and technology sector together with 17,000 others doing business in distributing and providing IT products and solutions.

The ministry said hitting 100,000 digital technology companies would be challenging, given the country’s heavy dependence on core technology on foreign countries, the low added value of IT products and limited innovation capacity and competitiveness, together with increasing competition from international IT companies.

Vietnam’s competitive advantage of cheap labour was being undermined by breakthroughs in new technologies. It was critical to develop a national strategy for digital technology, stressed the ministry.

The ministry noted that the first solution would be improving the legal framework to create a favourable environment for digital technology companies.

The country will also focus on strengthening research and development capacity, developing a robust market for digital technology companies, building a data industry, and digital technology ecosystem. Developing human resources in digital technology was also important. The draft also said the government’s digital technology projects would aim to create a spillover effect.

Vietnam’s digital transformation draft states that e-government must become a pillar in the new socio-economic model in that it will closely connect with both the digital economy and society to customise services to the needs of each individual and business.

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