Future Vietnamese Digital Economy (Part 3)

3. ICT – the booming base of Vietnam’s digital economy

Information and communications technology (ICT) is one of the fastest-growing industry sectors in Vietnam. In 2016 total revenues from the ICT industry were US$67.7 billion, nearly ten times the figure in 2010 (US$7.6 billion). The hardware industry is the largest subsector of Vietnam’s ICT industry, contributing around 85% of total revenue.

ICT equipment accounted for around 25% of total exports from Vietnam in 2016, up from less than 10% as recently as five years ago. It is now the country’s largest export sector, with telephone and broadcasting equipment particularly important. Leading Vietnam-located manufacturers such as Samsung, Intel, Dell and LG are expanding their businesses and increasing investments in the country. Vietnam assembles electrical and electronic products, and increasingly exports sophisticated computing devices: half of Samsung’s high-end S8 and S8 Plus phones and more than 80% of Intel’s personal computer central processing units are produced in Vietnam. Over the last decade, Vietnam has surpassed most regional neighbours in terms of high-tech exports as a percentage of total manufactured exports.

Local companies in the ICT sector are experiencing remarkable growth, with share prices increasing more than three-fold since 2012.

The software industry is also growing steadily and starting to attract global attention as a significant regional hub. Local businesses account for the majority of the market, supplying low-cost software products.

In 2016, a total of 7,433 businesses in Vietnam created digital software for sectors such as finance, telecoms, smart agriculture and government. IT outsourcing services generated around US$3 billion. Vietnam become the Japan’s second-largest software outsourcing destination.

Source: Vienam Today – Data61 - 2018

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