The government is pushing for further breakthroughs in digital transformation, aiming for an 8-10% economic growth target in 2025.

On February 6, Prime Minister Phạm Minh Chính chaired the 10th session of the National Committee on Digital Transformation at the Government Office. The meeting reviewed Vietnam’s digital transformation progress in 2024 and outlined key objectives for 2025.

According to a report from the Ministry of Information and Communications (MIC), Vietnam has achieved major strides in digital transformation. The country climbed 15 places in the United Nations e-Government Development Index (EGDI) in 2024, reaching 71st out of 193 nations. This marks the first time Vietnam has been classified among countries with a "very high" e-government development index.

Several long-standing policy barriers have been addressed, paving the way for accelerated digital economic growth. The revised Telecommunications Law, along with the Data Law and new government decrees, has resolved key obstacles such as data monopolization, allowing for greater sharing and utilization of digital resources. This shift has laid the foundation for a burgeoning data economy and the growth of AI-driven industries.

Additionally, new decrees on IT investment and digital governance have facilitated increased public and private sector collaboration, ensuring more efficient funding allocation for digital initiatives. Meanwhile, regulations on social media and cybersecurity have strengthened Vietnam’s ability to combat online fraud and cyber threats.

Expanding digital infrastructure and connectivity

Vietnam’s digital infrastructure continues to expand rapidly. The successful auction of mobile frequency spectrums has significantly improved mobile broadband quality.

The country has also begun shutting down outdated 2G networks, bringing the number of remaining 2G users to just 0.2%, compared to 2-5% in other countries.

Internet speeds have seen remarkable improvements. Vietnam now ranks 37th out of 110 nations in mobile broadband speed, with average download speeds reaching 86.96 Mbps - 14 places higher than in 2023. Fixed broadband speeds have also improved, reaching 159.32 Mbps and ranking 35th out of 154 countries.

In December 2024, Vietnam launched its sixth and largest undersea fiber optic cable system, with a capacity of 20Tbps, significantly boosting international internet connectivity.

The percentage of households with fiber-optic internet has now reached 82.4%, surpassing the 2025 national target of 80%.

Rapid growth of the digital economy

Vietnam’s digital economy grew at an estimated rate of 20% in 2024, contributing 18.3% to GDP - three times the country’s overall economic growth rate. This makes Vietnam the fastest-growing digital economy in Southeast Asia.

E-commerce continues to thrive, generating $25 billion in revenue in 2024, a 20% increase from the previous year. Vietnam is now among the top 10 fastest-growing e-commerce markets globally. Additionally, the adoption of cashless payments is accelerating, with transaction volumes increasing by over 50% annually - the highest growth rate in the region.

The government is also fostering local digital platforms. For the first time, domestic digital platforms surpassed 25% of total online traffic, an increase of 5.62% from 2023. This marks a shift in user behavior, with Vietnamese consumers increasingly favoring homegrown tech solutions over foreign platforms.

The adoption of digital identity verification has also seen significant progress. By the end of 2024, 55.25 million citizens had activated their VNeID digital identity accounts, surpassing the government’s initial goal of 40 million. The use of digital signatures increased by nearly 59%, with 12.5 million electronic certificates issued, covering 25% of the adult population.

Vietnam’s digital transformation is also making a strong impact on social services. Approximately 90% of insured individuals now have digital health records, and 100% of students nationwide have digital learning profiles. Furthermore, all public hospitals and higher education institutions have implemented cashless payment systems.

Challenges and the road ahead

Despite these achievements, Vietnam’s digital transformation still faces challenges. The adoption rate of fully online public services remains below expectations, and digital signature usage is still relatively low. Data integration between government agencies has not been fully optimized, leading to inefficiencies in service delivery.

Additionally, cybersecurity remains a critical concern. Vietnam has made strides in strengthening its cyber defenses, moving up eight places to rank 17th out of 194 countries in the Global Cybersecurity Index. However, increasing cybercrime, fraud, and cross-border technology-related offenses pose ongoing risks.

Another major challenge is the uneven distribution of digital literacy. While urban areas have quickly embraced digital services, rural and mountainous regions lag behind, limiting nationwide adoption. The shortage of IT professionals also remains a bottleneck, with demand for skilled workers in AI, cloud computing, and cybersecurity far outpacing supply.

Aiming for 8-10% GDP growth through digital innovation

The Vietnamese government has set ambitious digital transformation goals for 2025, with the theme: “Comprehensive Digital Transformation to Boost Economic Growth”. The key focus areas include:

Expanding the digital economy to contribute over 20% of GDP

Increasing the adoption of digital public services

Strengthening Vietnam’s position as a leading destination for AI and semiconductor investments

As part of this vision, the National Committee on Digital Transformation will coordinate efforts across industries to leverage digital technology as a driving force for economic expansion.

The ultimate goal is to sustain Vietnam’s rapid digital economic growth and achieve an overall GDP growth rate of 8-10% in 2025.

Trong Dat