Vietnam’s Digital Tech Industry Pivots Toward Innovation and Global Mastery Under the Make in Vietnam Strategy

The digital landscape in Vietnam is undergoing a profound structural transformation. Moving away from a historical reliance on low-value assembly and contract manufacturing, the nation’s technology sector has pivoted toward a model of self-reliance, intellectual property creation, and comprehensive design. This shift, anchored by the "Make in Vietnam" initiative, is no longer merely a strategic aspiration but a measurable economic reality that is redefining the country’s role in the global value chain.

As of the close of 2024, the Ministry of Information and Communications (MIC) reported that the total number of digital technology enterprises operating in Vietnam reached 73,788, representing a robust 10.12% increase compared to the same period in 2023. This growth in business volume has catalyzed a massive expansion in the workforce, with the Information and Communications Technology (ICT) sector now employing approximately 1.26 million people. These figures underscore the transition from an economy driven by labor-intensive manufacturing to one increasingly powered by high-tech engineering and software development.

A Financial Milestone for the Digital Economy

The economic performance of the sector in 2024 offers a clear indicator of the maturity of Vietnam’s technological ecosystem. Total revenue for digital technology firms hit approximately $158 billion, a 10.2% increase year-over-year. Beyond domestic growth, the industry has demonstrated significant competitive strength on the international stage. Currently, roughly 1,900 Vietnamese digital firms are actively generating revenue from overseas markets—a remarkable 58% increase compared to 2018. The total revenue from these international operations reached $11.5 billion in 2024, marking a 54% surge over the previous year.

The fiscal contributions of these companies are equally significant. In 2024, the digital sector contributed over 43,000 billion VND to the state budget, with total profit after tax estimated at 272,000 billion VND. The sector’s contribution to the national GDP via ICT activities exceeded 786,000 billion VND, cementing its status as a cornerstone of Vietnam’s macroeconomic stability.

The Genesis and Evolution of Make in Vietnam

The "Make in Vietnam" strategy was officially inaugurated in 2019, fundamentally changing the government’s approach to tech development. The slogan—"Research in Vietnam, Create in Vietnam, and Make in Vietnam"—served as a clarion call to domestic firms to move up the value chain. Before this pivot, the Vietnamese technology sector was largely defined by the assembly of hardware for multinational corporations, often capturing only a fraction of the total product value.

Since the program’s inception, the ratio of the "Vietnam value" compared to the total revenue of the ICT industry has surged by nearly 1.5 times. This metric measures how much of the final product’s value is derived from local research, development, design, and integration, rather than just the final assembly labor. This trend suggests that the country is successfully shifting from a low-margin assembly hub to a higher-margin hub of innovation and intellectual property.

Global Standing and Industrial Specialization

Vietnam’s current position in the global industrial hierarchy is notable. The nation has ascended to the top tiers in several key categories:

• Smartphone Exports: Vietnam is currently the world’s second-largest exporter of smartphones.
• Computer Components: The country ranks fifth in global computer component exports and sixth in computer equipment exports.
• Electronic Hardware: Vietnam holds the eighth position globally for general electronic equipment and components.
• Software Services: The nation ranks seventh globally in software outsourcing and integration.

These rankings reflect the country’s strategic decision to prioritize infrastructure development, including 5G rollouts, data centers, and the cultivation of local talent. By fostering an environment where indigenous companies can thrive alongside foreign direct investment (FDI), the government has successfully created a hybrid model that promotes technology transfer and local ownership of critical systems.

Strategic Roadmap: 2025 and Beyond

Looking ahead to 2025, the Ministry of Information and Communications has set ambitious targets to sustain this momentum. The goal is to grow the total ICT sector revenue to $169.3 billion, an 11.4% increase from 2024. Simultaneously, export targets for hardware and electronics are set at $148.5 billion.

To achieve these benchmarks, the ministry is focusing on the quantitative expansion of the enterprise ecosystem. The objective is to reach 60,000 digital technology companies by the end of 2025, representing a 10% growth rate. However, the qualitative shift is arguably more important than the quantity. Government planners are currently drafting the "Law on Digital Technology Industry" to provide a more sophisticated legal framework that addresses the specific needs of R&D-heavy firms, startups, and tech-driven SMEs.

Technological Drivers of Change

The rapid advancement of the sector is being propelled by the global adoption of Industry 4.0 technologies. The emergence of Artificial Intelligence (AI), the Internet of Things (IoT), Big Data, Cloud Computing, and Blockchain has allowed Vietnamese companies to leapfrog traditional development phases. By integrating these technologies into national infrastructure—such as the development of "Digital Government," "Digital Economy," and "Digital Society"—the government is acting as the primary customer for many local tech firms.

This internal demand creates a "sandbox" effect, where local companies can test and refine their solutions at scale before competing in the global market. The experience gained in digitizing public services, finance, and logistics provides these firms with a competitive edge, as they can demonstrate proven, large-scale deployment capabilities to international clients.

Analysis: Implications for National Development

The transition to a high-tech manufacturing and software-centric economy has profound implications for Vietnam’s future. First, it addresses the "middle-income trap" by increasing productivity and value-add per worker. Second, it enhances national security by reducing dependence on foreign software and hardware components for critical national infrastructure. Third, it builds a resilient workforce skilled in high-demand fields, which is essential for competing in a world defined by the digital economy.

The success of the "Make in Vietnam" strategy is not merely reflected in export statistics, but in the growing confidence of local firms to tackle complex problems. Whether it is in smart home devices, secure cloud infrastructure, or enterprise resource planning (ERP) software, Vietnamese companies are increasingly the preferred choice for domestic enterprises and are beginning to gain market share in the Southeast Asian region and beyond.

Conclusion: A Path Toward Digital Sovereignty

The path forward, however, is not without challenges. The global technology market is fiercely competitive, and the rapid pace of change requires constant investment in education and regulatory agility. The upcoming "Law on Digital Technology Industry" will be a critical turning point, intended to harmonize institutional support with the realities of modern innovation.

As Vietnam moves into 2025, the synergy between government policy, private sector innovation, and a growing pool of skilled digital professionals suggests that the country is well-positioned to maintain its trajectory. The transformation from an assembly line to an innovation hub is arguably the most significant economic evolution in Vietnam’s modern history. By continuing to prioritize the "Make in Vietnam" ethos, the nation is not only building a digital economy but is also crafting a future where it is a primary architect of the technologies that will shape the 21st century.