Potentials For Vietnam’s IT Industry In The Billion Investment Wave

In the context of global supply chain challenges, emerging economies like Vietnam are gradually becoming promising destinations for many countries worldwide. The influx of international enterprises into Vietnam has grown stronger than ever before, accompanied by substantial investment portfolios in high-value industries.

The billion-dollar waves will also catalyze the IT sector in Vietnam to leap forward, potentially becoming a new link in the global technology supply chain. The convergence of advantages in technology infrastructure, geographical location, and open policies are the critical elements to help Vietnam accelerate this goal. 

Curious about what will be awaited in Vietnam’s IT Industry ahead? Let’s explore some of the key highlights below! 

FDI Inflows become more towards high & emerging technology! 

Vietnam is forecasted to continue shining brightly in the global economic landscape. Statistics from the Vietnam Foreign Investment Agency (Ministry of Planning and Investment) show that in January 2024, Vietnam attracted over USD 2.3 billion in FDI, a 40.2% increase compared to last year.

With the issuance of Resolution 50 in 2019, FDI inflows into Vietnam have been selective, prioritizing projects in the development of new and high-tech applications. Currently, manufacturers such as Amkor, Foxconn, and Hana Micron have invested billions in semiconductor manufacturing, mobile devices, and electronic components.

These positive signals also indicate that Vietnam’s open policies for international businesses, coupled with a focus on infrastructure development and strengthening digital capabilities, are yielding positive results. This will also open up significant opportunities for Vietnamese IT companies to introduce service solutions and expand more smoothly into global markets.

Potential from the multi-billion-dollar semiconductor industry!

“Semiconductor” has been one of the most highlighted keywords among the new investment waves into Vietnam in recent years. This industry is highly valued for its significant value-added role in researching and manufacturing new technology applications such as IoT, artificial intelligence, and autonomous vehicles.

Amidst chip supply shortages and the relocation trend to Southeast Asia, Vietnam converges many essential factors for semiconductor industry development. These include a stable political system, advantageous geographical location, developed infrastructure, and abundant resources. These factors contribute to attracting a large number of interested enterprises and decisions to invest in developing semiconductor supply chains in this nation.

Intel has increased its total investment to USD 1.5 billion in semiconductor development in Vietnam, positioning Vietnam as a crucial part of its global production network. Alongside Intel, other giants such as Samsung, Hanmi Semiconductor, and Infineon Technologies AG have also announced multi-billion-dollar investments in projects to build semiconductor development centers and manufacturing plants in Vietnam.

A golden opportunity for Vietnam’s IT Industry to rise in the global market! 

With the entrance of tech giants, Vietnam is expected to attract a diverse array of large and small enterprises, thereby making the market more vibrant and competitive than ever before. This contributes to fostering diverse business communities and enhancing Vietnam’s competitive capacity, elevating the application of technological solutions and services to meet international quality standards.

This momentum also contributes to transforming Vietnam into a country abundant in high-quality resources, capable of swiftly adapting to global technological trends. Vietnam already possesses inherent advantages, including over 1.5 million ICT professionals contributing 14.3% to the GDP. Moreover, the government has initiated several projects aimed at further enhancing the quantity and quality of future resources, including the goal of training over 50,000 experts in the semiconductor industry by 2045.

With assured resources, Vietnamese IT companies are poised to significantly bolster their capabilities. A promising sign is the increasing number of Vietnamese digital enterprises successfully mastering complex techniques and assuming roles as high-level digitalization consultants for global corporations and large enterprises. International cooperation in the technology sector in Vietnam is becoming more widespread in terms of quantity, quality, and scale. Some Vietnamese IT companies are proactively increasing their presence in international markets through investment deals and M&A activities right in their native country.

The rise of emerging markets like Vietnam is viewed as a positive sign, offering practical solutions to the challenges facing technology supply chains. It serves as a crucial lever for developing countries, contributing to optimistic prospects for the global economy in the future!