1. Introduction
The digital economy is booming in Vietnam. In 2016, PC Magazine described the country as South-East Asia's Silicon Valley. Emerging sectors and fast-growing sunrise industries in Vietnam include finance technology (fintech), telecommunications, electronics and computer manufacturing, and ICT services.
In 2016 Vietnam was home to an estimated 24,501 businesses spanning IT hardware, software and digital content. There are specialist training centers and technology parks for IT programmers and engineers in eight locations, including the major cities of Hanoi, Ho Chi Minh City and Danang.
The Vietnam government has prioritized IT sector development with the IT Master Plan, giving tax incentives and building education infrastructure to support new ICT firms looking to develop or invest.
The country has a thriving community of software developers and start-ups, developing digital products and services for use within Vietnam as well as undertaking software development offshored and outsourced from advanced economies.
2. Digital adoption
2.1 Vietnam's appetite for digital is increasing
The adoption of high-speed Internet services, smart devices and mobile phones in Vietnam has been comparatively high since 2003. In 2017, more than half of the country had Internet access, compared to around 15% a decade ago. Rural areas still lag behind metropolitan areas, although the provision of satellite and wireless services is now boosting take-up rates in even the most remote provinces.
The adoption of broadband Internet services is also increasing in the business sector. The share of manufacturing and service firms using the Internet for business activities rose to 71% in 2007 and 86% in 2011. Around 500,000 Vietnamese business accounts had been created on Alibaba.com by 2016. Over the last three years, the number of accounts increased by an average of 100,000 per year.
Vietnam has the highest number of registered domains in ASEAN: there are around 422,000 active '.vn' domain names, from a total of nearly 1 million domains registered in ASEAN nations. Vietnam also has around 16 million allocated IPv4 addresses.
2.2 Wireless rather than fixed broadband
Vietnam's Internet use is dominated by mobile phones. From 2005 to 2016, the number of mobile subscriptions increased nine-fold. By 2017, Vietnam had 136 million mobile subscriptions. This is 144% of the total population, with many Vietnamese have more than one mobile subscription. More than half the mobile phones used in Vietnam are smartphones able to access the Internet.
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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