Due to Vietnam’s rapid economic development in recent decades, several industries, particularly the information technology sector, have made outstanding advancements. Vietnam is rated second globally in the production of mobile phones and their components, and tenth globally in the production of electronic components, according to the General Statistics Office.
These two elements also contributed significantly to Vietnam’s IT sector becoming the country with the highest trade surplus throughout the country’s overall economic expansion.
Review of the IT sector in Vietnam
In Vietnam, the IT sector has advanced significantly and grown quickly during the past 20 years. Because it was vastly inferior to agriculture, trade, etc., the information technology sector was regarded as a tiny economic sector in 2000, contributing only around 0.5% of the nation’s GDP. However, information technology has developed rapidly during the past 20 years, becoming increasingly powerful.
The most promising markets for custom and off-the-shelf software in Vietnam are the banking, finance, telecommunications, and aviation sectors.
Enterprise risk management, customer relationship management, human resource management, cloud computing, digital content, and fintech are just a few examples of IT services that show promise.
Revenue in this industry climbed 400 times since 2000, or an average of 37% over 19 years. The labor force in the information technology sector has multiplied 20 times and now makes up 1.88% of all employees in Vietnam.
Vietnam has established itself as one of the region’s leading information technology nations thanks to its swift and significant leap forward in growth. It is ranked first among the six ASEAN nations with the fastest economic growth in the software services sector.
By 2030, the country should be a top digital tourist destination and economic powerhouse in Southeast Asia, according to the Ministry of Information and Communications (MIC). With this in mind, Vietnam has set a target of having 1.5 million digital workers and at least 100,000 digital technology businesses by the year 2030.
Vietnam – IT talent pool
Recently, Vietnam has become one of Southeast Asia’s most alluring investment locations for multinational technology companies looking to expand into a variety of industries.
The digital economy in this country has a lot of promise. To attract investment, the government offers a variety of unique advantages, such as a preferential tax rate of 10% for 15 years.
This nation has about 90 million citizens, making it the 13th most populous nation in the world. There are 25% of people under the age of fifteen in the population. This country has had a golden population structure since 2009, meaning there is no more than one dependent person for every two or more workers.
Vietnam’s golden population structure is anticipated to continue until 2035, with over 66% of the working-age population and more than 1.5 million people entering the labor force each year.
With 400,000 IT engineers and over 50,000 IT graduates per year, this nation’s IT market is presently extremely abundant.
43.8% of engineers in this nation worked for businesses that outsourced their technology development, according to a 2020 survey. Vietnamese software developers are highly skilled in a variety of programming languages and are always on top of emerging technologies and trends, such as blockchain, AI, ML, and data science. Additionally, Vietnamese IT workers are fluent in English. This nation is a great site for outsourcing because of all these advantages.
Vietnamese IT industries that are expanding
Below are some of the IT industries doing remarkably well in this country.
Artificial Intelligence (AI)
The artificial intelligence market in this nation has enormous potential. Despite being in its early stages, AI in the nation has adapted to global trends in its usage in e-commerce, human resources, education, agriculture, healthcare, human resources, and more. AI has improved e-government, helped persons with disabilities, and reduced traffic congestion.
The government has issued a resolution encouraging FDI by increasing the proportion of firms in Vietnam’s sophisticated technology sector to 50% by 2025. This might promote the development of AI.
E-Commerce
The Vietnam E-Commerce Association has conducted research that suggests that by 2025, Vietnam’s e-commerce market might be ranked third in the region.
The two biggest cities for e-commerce in Vietnam are Ho Chi Minh City and Hanoi. The origin of 70% of all national sales is from these urban centers. Additionally, there is a huge opportunity to expand into rural areas because the majority of people live there and have access to decent internet connectivity.
Fintech
By 2024, researchers at the financial holding company Robocash Group predict that Vietnam’s FinTech market would be worth 18 billion USD.
The perfect environment for the fintech sector to thrive is one with a young population, a growing middle class, and more internet users. More than 100 companies and brands provide a range of services, such as wealth management, blockchain technology, and electronic payments.
Digital payments, peer-to-peer lending, and blockchain and cryptocurrencies are the market’s three most well-known and quickly growing subsectors.
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