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Vietnam’s IT sector becomes economic spearhead

Vietnam’s software and information technology (IT) services industry has made great progress over the past two decades.

Strong development

Given the negative impact of the COVID-19 pandemic on most sectors, causing production stagnation, supply chain disruptions and increased transportation costs, the IT sector remained a bright spot of the economy.

The prospects and opportunities of the IT sector are reflected in business results. For example, the total revenue of the 174 products, services and solutions of the 113 companies receiving the Sao Khue Awards this year reached VND16 trillion (US$696 million).

According to the award’s sponsor, the Vietnam Software and IT Services Association (VINASA), the Vietnamese software and IT services industry has made great strides to become one of the country’s spearhead economic sectors. The industry has attracted nearly 300,000 employees, with last year’s revenues reaching over US$13 billion, solving IT problems of domestic organizations and enterprises. The country is among the top 10 most attractive countries for software outsourcing.

Most IT businesses have gone on to study the application of artificial intelligence (AI), big data and cloud computing. In particular, with valuable experience from long years of working with foreign partners, they have created high-quality products and services for the domestic market.

Growth opportunities

“We have the right to be proud of this community and of their contributions to the country,” said Minister of Information and Communications Nguyen Manh Hung, adding that Vietnam is one of the few countries in the world achieving such outstanding development.

On March 31, the prime minister approved the national strategy for developing the digital economy and digital society by 2025, with an orientation to 2030. Accordingly, the proportion of the digital economy aims to reach 20 percent of the country’s GDP by 2025, while the proportion of the digital economy in each industry or field targets at least 10 percent. In addition, the proportion of e-commerce in total retail sales aims to exceed 10 percent.

To implement the strategy, the Ministry of Information and Communications has approved a program promoting the development and use of national digital platforms serving digital transformation. The program aims to build an accommodative digital ecosystem, bring together the best digital firms in Vietnam to invest in developing national digital platforms and form a network of digital platform developers as well as an extensive network of digital transformation supporters from local to central levels, and facilitate the formation of popular and competitive digital platforms domestically and internationally.

Vietnam now has 64,000 digital technology firms, an increase of 5,600 enterprises compared to 2020, which have created about 1,000 ICT products and services.

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