Sixty percent of enterprises have shifted their focus from outsourcing to developing entire solutions and products.

The digital technology industry, with Make in Vietnam being the focus, is considered by the Ministry of Information and Communications (MIC) as the key industry and the driving force that accelerates industrialization and modernization. 

The digital technology enterprises consider the domestic market as the cradle to reach out to the global market.

MIC reported that revenue from the ICT industry in 2022 is estimated to reach $148 billion, a growth rate of 8.7 percent compared with 2021. 

The ICT industry contributes more than $34 billion to the country’s GDP.

The export turnover of hardware and electronics in 2022 exceeded the $100 billion threshold ($136 billion, up by 11.6 percent over the year before). 

This is one of the key industries of the country. Vietnam has a trade surplus of $26 billion in the industry.

The year witnessed the considerable growth rate of Vietnamese value in revenue of the ICT industry (27 percent). Vietnam also saw a sharp increase in the number of digital technology firms registering operations (70,000 enterprises, up by 9.6 percent).

This is the first time that revenue from solutions and software services of a Vietnamese digital technology firm overseas was more than $1 billion, and the total revenue in foreign markets of software firms and IT services reached over $2.2 billion. 

Vietnam has also seen a R&D investment wave, when large technology groups shift from investing in outsourcing products to investing in R&D.

MIC’s report pointed out some difficulties in the field: database on products, and IT services and technology remain insufficient, while there is no attractive mechanism for enterprises to update them periodically.

The encouragement to invest, lease and purchase domestically made products also remains ineffective. 

Meanwhile, incentives in corporate income tax applied to software production are difficult to apply under current regulations.

At a conference reviewing the implementation of tasks in 2022 and tasks of 2023, MIC Deputy Minister Pham Duc Long said in 2022 the ministry ordered domestic digital technology firms to implement the supply-demand connection between digital technology firms and agencies of ministries, branches and localities.

In 2023, MIC will continue to build the Law on Digital Technology Industry; a plan on developing Vietnam's semiconductor industry by 2030; and promote commercialization of 5G Make in Vietnam equipment. 

MIC strives to increase the ratio of Make in Vietnam to total revenue to 33 percent; and increase software export revenue to $2.8 billion.

Van Anh