Vietnam’s Digital Leap: Tech Enterprises Drive Economic Growth as ICT Sector Hits $158 Billion in 2024

The digital economy of Vietnam has officially entered a transformative era of accelerated growth, anchored by the rapid expansion and increasing maturation of domestic technology enterprises. According to the latest comprehensive data released by the Ministry of Information and Communications (MIC), Vietnam’s Information and Communications Technology (ICT) and digital technology sector achieved remarkable milestones throughout 2024. As the country transitions steadily from a traditional low-cost manufacturing hub into a regional powerhouse of digital innovation, homegrown technology companies are proving to be indispensable catalysts for national socio-economic development.

The numbers reflecting the sector’s performance underscore a robust economic pillar. By the close of 2024, the nationwide count of active digital technology enterprises reached 73,788, representing a solid growth rate of 10.12% compared to the same period in 2023. Collectively, these enterprises generated total revenues approaching $158 billion, marking a 10.2% year-on-year increase. Furthermore, the industry currently employs nearly 1.26 million workers, establishing itself as a premier destination for high-skilled technical talent and a major contributor to domestic job creation.

Expanding Global Footprint and Export Dominance

Beyond domestic achievements, Vietnamese technology enterprises are making profound inroads into international markets. Statistics indicate that approximately 1,900 Vietnamese tech firms successfully generated revenue from overseas markets in 2024—a remarkable 58% surge compared to baseline figures from 2018. Total overseas revenue for these enterprises climbed to $11.5 billion, reflecting a massive 54% growth trajectory over 2023 performance.

This international expansion is mirrored by Vietnam’s strong competitive positioning across global supply chains for hardware and electronics. In 2024, the export turnover for hardware and electronics reached $133.2 billion, up 10.4% from the previous year. Vietnam now proudly holds high global rankings across five critical technology hardware and software outsourcing categories:

• Second globally in smartphone exports.
• Fifth globally in computer component exports.
• Sixth globally in computer equipment exports.
• Eighth globally in electronic equipment and component exports.
• Seventh globally in software outsourcing services.

These figures illustrate a vital shift in the country’s trade dynamics, reinforcing the country’s strategic evolution within global technology manufacturing and service delivery networks.

Financial Contributions and the "Make in Vietnam" Strategic Imperative

The economic impact of Vietnam’s digital sector extends far beyond aggregate revenues and export volumes, delivering tangible fiscal benefits to the national treasury. In 2024, after-tax profits for domestic technology companies reached approximately 272,000 billion VND. Concurrently, these enterprises contributed over 43,000 billion VND to the state budget, while the total value-added contribution of the ICT industry to the national Gross Domestic Product (GDP) surpassed 786,000 billion VND.

A cornerstone of this structural transformation is the "Make in Vietnam" strategy, officially introduced by the Ministry of Information and Communications in 2019. Designed around the core pillars of researching in Vietnam, creating in Vietnam, and manufacturing in Vietnam, the initiative sought to break the nation’s historical reliance on low-value assembly work.

Over the past five years, the strategic pivot has yielded undeniable dividends. The "Make in Vietnam" value ratio—calculated as the proportion of domestic value generated relative to total ICT revenue—reached 31.8% in 2024, reflecting a 3.1% increase from 2023 and an impressive 1.5-fold expansion since the strategy’s inception. This metric serves as clear empirical proof that domestic enterprises are progressively shifting away from simple assembly and contract manufacturing toward high-value research, advanced design, deep technological integration, and core IP ownership.

Chronology of Digital Policy and Regulatory Evolution

The phenomenal rise of Vietnam’s technology sector did not occur by chance; it is the result of a meticulously planned policy roadmap executed over the past decade.

• 2019: The Ministry of Information and Communications launches the "Make in Vietnam" campaign, officially shifting national policy from passive technology consumption and assembly to active innovation and proprietary creation.
• 2020–2022: Regulatory frameworks are gradually streamlined to encourage startup ecosystems, attract venture capital, and incentivize digital transformation across both public and private sectors. Domestic tech firms begin scaling up cloud computing, e-commerce infrastructure, and fintech platforms.
• 2023: The digital economy demonstrates resilience amid global economic headwinds, posting double-digit growth and expanding export channels into emerging markets across Asia, Europe, and North America.
• 2024: The total number of digital enterprises surpasses 73,000, and ICT revenues approach $158 billion. The government intensifies preparations for foundational legislative upgrades to secure long-term sector growth.
• 2025 (Projected): MIC targets an ambitious revenue milestone of $169.3 billion, backed by legislative reforms, expanded 5G deployment, and heightened emphasis on artificial intelligence and semiconductor integration.

Ambitious Targets for 2025 and the Fourth Industrial Revolution

Looking ahead, the Ministry of Information and Communications has established aggressive yet achievable targets for the year 2025. The overarching goal is to propel total ICT sector revenue to $169.3 billion, representing an 11.4% increase over 2024 figures. Meanwhile, hardware and electronics export turnover is projected to reach $148.5 billion, a 12.3% year-on-year expansion. To sustain this momentum, the ministry anticipates that the total number of active digital technology enterprises operating within the country will hit the 60,000 mark by the end of 2025, continuing a steady wave of entrepreneurial expansion.

These projections are underpinned by the sweeping disruptions of the Fourth Industrial Revolution. Emerging technologies such as 5G networks, the Internet of Things (IoT), Artificial Intelligence (AI), Big Data, Cloud Computing, and Blockchain are fundamentally altering the operational DNA of the global IT industry.

To address existing regulatory bottlenecks and ensure that legal frameworks keep pace with rapid technological innovation, the Vietnamese government is actively drafting the comprehensive Law on Digital Technology Industry alongside supplementary guiding documents. This legislative milestone is designed to codify the digital sector into a primary driver of the national economy, establishing a predictable, innovation-friendly legal environment that nurtures domestic startups and safeguards intellectual property.

Broader Implications for National Development

The strategic transition from assembly workshops to sophisticated research and development hubs carries profound implications for Vietnam’s macroeconomic stability. By capturing higher value-added segments of the technology value chain, Vietnam is mitigating the middle-income trap and building a resilient, knowledge-based economy.

Industry analysts note that as domestic enterprises master core technologies, they are increasingly capable of solving complex national challenges. From powering digital government initiatives and streamlining administrative procedures to modernizing healthcare, education, and smart urban infrastructure, the ICT sector acts as the digital nervous system of the country.

Ultimately, the steady realization of the "Make in Vietnam" vision positions the nation not merely as a passive participant in global supply chains, but as an active architect of its own digital destiny. With robust institutional support, a growing pool of engineering talent, and an expanding international footprint, Vietnam’s technology enterprises are well-positioned to steer the nation toward a prosperous, digitally empowered future.