Digital technologies and online connectivity will be a driving force of growth and transformation of the Vietnamese economy over the coming decades. The ITindustry alone is expected to contribute 8-10% of the country’s GDP by 2020. The Vietnam Government is playing an active role in accelerating the development of the digital economy through policies such as the E-commerce Master Plan and the IT Master Plan. These have recently been bolstered by whole-of-government directives on transformation towards Industry 4.0.
The private sector is also investing heavily in digital industries in Vietnam, particularly in manufacturing facilities. In 2010 the world’s largest manufacturing plant of Intel computers and processors opened in Ho Chi Minh City. This was followed in 2015 by over US$11 billion in investment by Samsung in two factories to produce smartphones, digital displays and consumer goods. In late 2017 Seoul Semiconductors announced it would build a facility in North Vietnam. IBM, Siemens, Sony, HP and Toshiba also have a significant presence in offices and facilities in Vietnam.
The presence of big technology companies has been supplemented in recent years by a thriving tech start-up scene, concentrated in the urban centers of Hanoi, Da Nang and Ho Chi Minh City. Young tech entrepreneurs are developing new apps, software, platforms and services for consumers and businesses.
The Vietnamese population has shown a voracious appetite for digital goods and products. There were more than 132 million mobile devices (including 32 million smartphone users) in Vietnam in 2017, and about 50 million Internet users – over half the population.
Change can come at a cost to many, however. Digital technologies associated with Industry 4.0, including AI, robotics, automation, drone technologies and big data analytics, may also disrupt existing markets and employment – particularly in agriculture and textiles and goods manufacturing. The composition of Vietnam’s industrial base makes the country particularly vulnerable to job losses due to automation over the next two decades.
Understanding the next wave of transformation will be vital for harnessing opportunities and managing risks related to the adoption and use of digital technologies in Vietnam’s industries.
Source: Vienam Today – Data61 - 2018
About TMA: TMA Solutions was established in 1997 to provide quality software outsourcing services to leading companies worldwide. We are one of the largest software outsourcing companies in Vietnam with 2,500 engineers.
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