Vietnam’s IT market maintained strong momentum in 2025, supported by proactive government policies, rising foreign investment, and accelerating digital transformation across both public and private sectors. Key developments included major commitments in AI, cloud infrastructure, and semiconductor-related activities, alongside expanded policy support for high-tech research and innovation. Together, these dynamics reinforce Vietnam’s emerging role as a strategic digital and technology hub in Southeast Asia.

Research on AI application solutions at CMC Technology Group

Source: Thanh Nien Newspaper

Overview of Vietnam’s IT Market Landscape

With the rapid development of new technologies under Industry 4.0, the information technology (IT) industry, or the ICT (Information and Communication Technology) industry, is increasingly understood as the digital technology industry. Total revenue of the industry is estimated at USD 198 billion, up 26% from 2024 and 16% above the annual target. Its contribution to GDP is estimated at approximately USD 41.4 billion, representing 8% to total GDP, while total profits are projected to exceed USD 14.3 billion[1]. This substantial contribution underscores the sector’s pivotal role in national economic development.

Contribution of the ICT Industry to Vietnam’s GDP

Unit: billion USD

Source: Ministry of Information and Communications (MIC)

The Vietnam ICT market is segmented by type into five core pillars of IT hardware, IT software, IT services, IT infrastructure, and communication services, reflecting the full value chain from physical digital infrastructure to enterprise applications and connectivity. IT hardware still dominates Vietnam’s ICT sector, accounting for about 90% of total output[2]. Exports reached USD 178 billion in 2025, rising by 35% from 2024 and achieving 112% of the annual target[3], thereby continuing to reinforce their position as one of the country’s key export pillars. This strong growth is driven largely by a recovery from the weak market conditions in 2023 when global economic weakness and supply-chain disruptions caused by the Russia – Ukraine conflict weighed heavily on the sector.

Business growth expectations of Vietnam’s technology companies in 2025

Unit: % companies

Source: Vietnam Report

Additionally, businesses remain optimistic about both IT and telecommunications over the next 12 months, although growth expectations vary. According to Vietnam Report, more than three-quarters of technology companies expect growth in IT, as it plays a key role in today’s digital transformation[4].

Market Characteristics

Currently, there are approximately 74,000 enterprises operating in the IT market in Vietnam, employing more than 1.2 million workers[5]. Looking ahead to 2030, the IT workforce is projected to expand to around 3 million people, supported by the rapid growth of Vietnam’s digital economy. However, the current supply from domestic training institutions covers only about 500,000 people, which means Vietnam is facing a shortage of approximately 200,000 skilled and qualified workers.

In the IT and software sector, hiring trends are also evident. The most in-demand roles are Web Developers (45%), Back-end Developers (37.4%), and AI Engineers (30%). IT companies continue to focus on developing their core products and services while investing in emerging technologies such as AI[6]. Average IT salaries range from $415-510/month for fresh graduates to $1,995-2,590/month for senior architects and directors, significantly lower than Singapore, South Korea, or developed markets, while maintaining quality standards.

Vietnamese IT firms continue to export software and IT services to traditional markets, with Japan remaining the largest market, followed by the United States and Asia-Pacific regions, while expanding into fast-growing markets, including South Korea, Hong Kong, and Taiwan. For solution providers, ASEAN markets such as Singapore and Indonesia are becoming increasingly attractive, alongside emerging opportunities in China and the Middle East[7].

For instance, Japan remains FPT’s core market, accounting for 39.8% of 2024 revenue, or more than USD 500 million, with year-on-year growth of 32.2%, supported by key projects in legacy system modernization, geopolitical risk management, ERP, automotive technologies, and AI[8].

Government Support Framework

The year 2025 marks a pivotal milestone for Vietnam’s ICT sector, not only due to a series of decisive and effective actions, but also because of the depth of policy reform and its long-term implications for the country’s development structure. This shift is clearly reflected in the merger of the Ministry of Information and Communications into the Ministry of Science and Technology, alongside the reallocation of responsibilities related to cybersecurity, journalism, and media governance.

Over the past year, the National Assembly has enacted a comprehensive package of ten major laws covering science and technology, digital industries, high technology, digital transformation, artificial intelligence, and related regulatory frameworks. This represents an unprecedented legislative milestone, demonstrating a strong commitment to removing institutional bottlenecks and transforming the regulatory system from a constraint into a key driver of science, technology, innovation, and digital transformation.

Additional legislation strengthened the regulatory framework. The Law on the Digital Technology Industry, approved in June 2025, provides a regulatory framework for advancing the digital technology and semiconductor sectors, including preferential tax treatment and investment incentives. Eligible projects may enjoy a preferential corporate income tax (CIT) rate of 10% for up to 15 years, compared with the standard rate, along with a full CIT exemption for the first 4 years and a 50% tax reduction for the subsequent 9 years.

Table 1. Summary of Vietnam’s current regulation frameworks on Digital industry

Source: FPT Initial Report 2025 [8]

Investment trends

2025 witnessed unprecedented investment activity across multiple IT market segments. Artificial intelligence emerged as a primary investment focus, with transformative partnerships reshaping Vietnam’s technology landscape.

NVIDIA’s partnership with FPT Corporation, a Vietnamese IT services company, has led to a $200 million investment in an AI factory, expected to be fully operational by 2025 and the first quarter of 2026[9]. This landmark investment establishes Vietnam as a strategic AI development hub within NVIDIA’s global network. The facility focuses on developing AI and cloud solutions utilizing cutting-edge NVIDIA technologies.

Beyond FPT, NVIDIA established broader institutional relationships. The company partnered with Vietnam’s Ministry of Planning and Investment to establish AI research and data centers, demonstrating confidence in Vietnam’s technology ecosystem potential.

In addition, major global cloud providers significantly expanded their Vietnamese operations during this period. Microsoft has added local data-center capacity, and Google is evaluating a greenfield cloud region, signaling long-term confidence in the Vietnam ICT market. These investments respond to data sovereignty regulations and surging enterprise demand for compliant cloud infrastructure.

Data Center Market Expansion

Vietnam’s data center sector experienced robust growth in response to regulatory changes and market demand. Vietnam’s data center market revenue is projected to reach approximately $2.2 billion in 2025, with the market forecast to grow at an annual rate of approximately 3.7% from 2025 to 2029[10].

Regulatory reforms catalyzed this expansion. In July 2024, the Vietnamese government introduced a law under which foreign investors can now fully own data centers in the country[11]. This policy shift eliminated a significant barrier to entry for international operators.

Viettel’s hyperscale ambitions exemplify domestic investment scale. Viettel started building its Tan Phu Trung 140-MW hyperscale data center with a design capacity of 10,000 racks in Ho Chi Minh City in April 2025, with expected full completion by 2030[12].

5G Network Commercialization

Telecommunications infrastructure modernization accelerated during Q3 2025, with multiple carriers launching commercial 5G services. MobiFone launched its 5G mobile services in Vietnam in March 2025, becoming the country’s third provider to do so.

Viettel distinguished itself through technological innovation. Viettel has launched the world’s first commercial Open RAN (O-RAN) 5G network in collaboration with the American semiconductor and software company Qualcomm, with plans to expand deployment beyond 300 sites by the first quarter of 2025. This open architecture approach positions Vietnam at the forefront of next-generation telecommunications technology.

Industry-specific IT solutions

Vietnam’s software outsourcing sector is increasingly industry-specific, delivering tailored solutions across key sectors. In fintech, around 95% of local banks are actively deploying technologies such as mobile payments, digital identity verification, and AI-driven risk management. In manufacturing, Vietnamese firms are integrating IoT-based smart factory solutions to support production modernization, while in e-commerce, the sector is shifting toward OMO (Online-Merge-Offline) models powered by AI, big data, and cloud analytics.

Investment Opportunities

Vietnam’s IT market presents compelling opportunities across multiple segments for foreign investors seeking exposure to Southeast Asia’s fastest-growing technology markets.

Data sovereignty requirements create natural advantages for locally deployed infrastructure. The Personal Data Protection Law, effective January 2026, mandates local data storage for certain categories, ensuring sustained demand for in-country data center capacity. Cloud service adoption by SMEs, accelerated by government programs offering bundled connectivity and software, represents a high-growth segment with significant penetration runway.

Vietnam’s AI ambitions span commercial applications and fundamental research. The economic impact could be transformative, with AI potentially contributing an estimated VN$ 1.89 trillion ($79.3 billion) to Vietnam’s economy by 2030, accounting for nearly 12% of its GDP[13]. Opportunities exist across AI consulting, implementation services, specialized industry applications, and AI talent development.

Vietnam’s IT outsourcing sector continues robust expansion. Vietnam’s IT Outsourcing revenue was $0.7 billion in 2024 and is projected to nearly double to $1.28 billion by 2028, maintaining a robust compound annual growth rate of 17%[14]. Cost advantages persist despite wage growth, with Vietnam maintaining competitive positioning relative to India and the Philippines while offering proximity to key Asian markets.

The nationwide 5G rollout creates substantial equipment and services demand. Open RAN architecture adoption presents opportunities for vendors outside traditional telecommunications oligopolies. Edge computing infrastructure supporting 5G applications represents an emerging opportunity as smart city initiatives expand.

Conclusion

Vietnam’s IT market in 2025 demonstrates remarkable dynamism, characterized by substantial foreign investment, aggressive government support, and accelerating digital transformation across economic sectors. The convergence of 5G deployment, cloud adoption, AI development, and semiconductor industry emergence creates a multifaceted opportunity landscape.

For foreign investors, Vietnam represents a high-growth market with improving regulatory frameworks and demonstrated government commitment to technology sector development. Success requires careful attention to talent development, regulatory compliance, and local partnership strategies while maintaining patience through market entry and scaling phases. Companies with long-term perspectives and a willingness to invest in local capabilities can establish strong competitive positions in one of Asia’s most promising technology markets.

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[1] https://vneconomy.vn/doanh-thu-nganh-cong-nghiep-cong-nghe-so-nam-2025-uoc-dong-gop-hon-1-trieu-ty-dong-vao-gdp.htm

[2] https://www.abs.vn/wp-content/uploads/2025/01/Nganh-CNTT_20250109.pdf

[3] https://vneconomy.vn/doanh-thu-nganh-cong-nghiep-cong-nghe-so-nam-2025-uoc-dong-gop-hon-1-trieu-ty-dong-vao-gdp.htm

[4] https://vietnamreport.net.vn/Top-10-Cong-ty-Cong-nghe-uy-tin-nam-2025-11199-1067.html

[5] https://vneconomy.vn/nganh-cong-nghe-thong-tin-viet-nam-dang-thieu-hut-200-000-nhan-luc-so-voi-nhu-cau.htm

[6] https://thanhnien.vn/buc-tranh-thi-truong-lao-dong-it-viet-trong-nam-2026-185251231154942235.htm

[7] https://nhandan.vn/phan-mem-viet-vuon-cao-trong-chuoi-gia-tri-toan-cau-post899259.html

[8] https://shs.com.vn/ (FPT Corporation’s Initial Report)

[9] https://en.vneconomy.vn/fpt-invests-200-million-in-nvidia-partnership-to-drive-vietnams-ai-transformation.htm

[10] https://www.trade.gov/market-intelligence/vietnam-data-centers

[11] https://en.vneconomy.vn/positioning-vietnam-as-a-magnet-for-global-data-center-investment.htm

[12] https://viettel.com.vn/en/news-events/news/viettel-breaks-ground-on-vietnams-first-hyperscale-data-center/

[13] https://en.vneconomy.vn/more-and-more-ai-products-to-be-developed-in-vietnam.htm

[14] https://dirox.com/post/vietnam-it-outsourcing-2025-market-reports-trends