Vietnam Information and Communications Industry Ascends Global Value Chain with Technological Sovereignty and Strategic Expansion

The information and communications (ICT) sector in Vietnam is undergoing a transformative era, shifting from an assembly-oriented model to a paradigm of technological self-reliance and global competitiveness. In 2024, the industry is projected to reach $10 billion in international revenue, a significant milestone that underscores the success of the "Make in Vietnam" strategy. As one of only five nations globally capable of producing 5G infrastructure, Vietnam is no longer merely a participant in the digital economy but a strategic architect of its own technological future. This shift is deeply rooted in a legacy of innovation and bold policy-making, now being upheld by a new generation of leaders and engineers who are successfully blending tradition with modern, AI-driven management.

The Foundation of Technological Sovereignty

The recent advancements in the ICT sector—most notably the deployment of "Made in Vietnam" 5G base stations—are not isolated incidents but the culmination of decades of strategic planning. During a recent meeting with veteran industry officials, the Ministry of Information and Communications (MIC) highlighted the successful transition of 5G technology from research labs to commercial rollout. These 5G stations, developed by Viettel based on the Open RAN standard, stand as a testament to the country’s engineering prowess.

The successful implementation of these units in major hubs like Hanoi, Ha Nam, and Ninh Thuan, with plans for expansion into Ho Chi Minh City and Da Nang by the end of 2024, reflects a robust national infrastructure strategy. Furthermore, Viettel’s recent international contracts to export this equipment signify that Vietnamese technology is now ready for global adoption. Vietnam now joins the elite group of nations—Taiwan, Finland, South Korea, and China—that possess the capability to manufacture indigenous 5G hardware.

A Chronology of Innovation: From Post-Reform to Digital Powerhouse

To understand the current trajectory, one must look back nearly 40 years to the pivotal reforms of the late 1980s. Faced with limited resources and technological isolation, the leadership of the then-General Department of Posts and Telecommunications—led by figures such as Dang Van Than—made the bold decision to bypass intermediate technologies.

By opting for digital technology over analog systems and securing self-financing mechanisms without relying on state budget injections, the sector achieved a remarkable turnaround. This "daring to think, daring to do" philosophy broke the cycle of stagnation. Today’s leaders within the MIC are actively cultivating this same spirit, framing the current digital transformation as the next logical chapter in the industry’s historical mission. The "10 Golden Words" of the industry—"Loyalty, Courage, Innovation, Creativity, and Compassion"—serve as the moral and professional compass guiding the current workforce as they navigate the complexities of artificial intelligence, cybersecurity, and digital sovereignty.

Data-Driven Growth and International Expansion

The economic impact of this strategic shift is increasingly evident in the national fiscal data. As of July 2024, the number of digital technology enterprises operating in Vietnam reached approximately 51,038, an increase of nearly 6,000 firms compared to August 2023. Of these, 1,500 companies have successfully generated revenue from international markets.

The financial trajectory is particularly striking: in 2023, the industry recorded $7.5 billion in international revenue. With the projected $10 billion target for 2024, the sector is demonstrating a year-on-year growth rate of approximately 30%. Minister of Information and Communications Nguyen Manh Hung has frequently noted that this international revenue stream is now significantly higher than the expenditures previously required for importing foreign telecommunications equipment. This reversal—moving from being a net importer of technology to a net exporter—is the core objective of the Ministry’s 2035 vision, which aims to make the ICT industry a cornerstone of the national economy, eventually surpassing agricultural exports in total value.

Policy Frameworks and Structural Support

The government’s commitment to this transformation is supported by a comprehensive legal and administrative framework. The Ministry has established the Department of Information and Communications Technology Industry to serve as a specialized body for industrial policy. Furthermore, the development of the Law on Digital Technology Industry and the National Semiconductor Development Strategy to 2030, with a vision toward 2050, provides the regulatory certainty required for long-term private sector investment.

These policies are designed to encourage firms to move beyond domestic problem-solving and toward the creation of global products. Since 2019, the "Make in Vietnam" forum has served as an annual catalyst for this movement, challenging local enterprises to develop solutions for Vietnam’s unique challenges and then scale those solutions for the global market. The Ministry has also committed to "Digital Technology Procurement" policies, where the government acts as the first customer for innovative local startups, providing the necessary proof-of-concept and revenue stability for these firms to eventually compete on the international stage.

Strategic Implications and Future Outlook

The broader implications of this development are twofold: first, it enhances national security by reducing reliance on foreign-sourced critical infrastructure; second, it positions Vietnam as a pivotal hub in the global technology supply chain. By mastering the production of 5G, semiconductor, and AI software, Vietnam is effectively hedging against the supply chain disruptions that have plagued the global tech industry in recent years.

However, the path forward is not without challenges. Maintaining a 30% growth rate requires a continuous pipeline of highly skilled engineers, researchers, and tech-savvy administrators. The Ministry’s emphasis on "Digital Transformation of the Press" and "AI-driven Public Administration" suggests that the government is fully aware that the ICT industry must lead by example. By digitizing its own internal processes and management systems, the MIC is creating a testing ground for the very solutions that it encourages the private sector to build.

Insights from Industry Veterans

During the recent meeting, retired officials expressed deep confidence in the current generation of leaders. Former Minister of Posts and Telecommunications Do Trung Ta remarked on the progress he witnessed, noting that the transition from a sector heavily reliant on foreign equipment to one that sets its own technological standards is a monumental achievement. He emphasized that the current leadership’s adherence to the industry’s foundational values, while simultaneously embracing the volatility of the digital age, is precisely what is needed to ensure Vietnam’s long-term prosperity.

Conclusion

The evolution of Vietnam’s ICT sector represents more than just a series of successful product launches; it represents a fundamental change in the country’s industrial identity. Through a combination of historical heritage, robust government policy, and an aggressive, export-oriented growth strategy, Vietnam is positioning itself to be a significant contributor to the global digital landscape. With the goal of becoming a developed nation by the middle of the century, the focus on digital sovereignty and industrial intelligence remains the primary engine for this ambition. As the sector moves toward 2035, the transition from "Made in Vietnam" to "Created in Vietnam" will likely define the country’s role in the 21st-century global economy, cementing its status as a vital node in the international technological network.