Vietnam ICT Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Vietnam ICT Market Trends and Insights

Smart-City Infrastructure Programs

Government approval of 48 municipal digitalization roadmaps has created a USD 2 billion pipeline for connectivity, sensor networks, and cybersecurity platforms. Ho Chi Minh City’s flood-management upgrade and Da Nang’s sustainable-city plan both require real-time data analytics, strengthening demand for edge computing and IoT gateways. ^{[1]U.S. International Trade Administration, “Vietnam – Information and Communication Technologies,” trade.gov} Mandatory allocation of at least 10% of public-sector IT budgets to cybersecurity further expands the addressable market for threat-detection vendors. The national VNeID digital-identity roll-out already serves millions of citizens and is scaling authentication services for e-government portals. These projects generate multiplier effects for telecom carriers, cloud providers, and systems integrators while positioning Vietnam as a testbed for regional smart-city solutions.

Digital Transformation Across Industry 4.0 Value Chains

Manufacturing plants adopting AI-driven predictive-maintenance systems report production-efficiency gains of 30-50%. Textile exporters such as Vinatex have boosted consolidated revenue by 6.1% after deploying IoT-enabled supply-chain analytics. Samsung’s USD 920 million expansion underscores rising capital inflows devoted to machine-learning-based quality control and automated logistics. Decree 109, which lowered registration taxes for locally produced vehicles, has accelerated automotive digitalization through robotics and connected-factory platforms. Blockchain-powered provenance tracking and AI-enhanced demand forecasting are helping Vietnamese manufacturers capture higher-margin global orders while shortening time-to-market.

Surging Cloud- and AI-Linked Capex

Sixty-eight percent of enterprises now invest in cloud and AI to optimize logistics and customer engagement, triggering sharp growth in hybrid-cloud deployments. Microsoft has added local data-center capacity, and Google is evaluating a greenfield cloud region, signaling long-term confidence in the Vietnam ICT market. The national cloud-computing program’s data-sovereignty rules favor enterprise-grade platforms with built-in compliance controls. NVIDIA’s planned AI R&D hub will bolster semiconductor-design capabilities and enrich the talent ecosystem for machine-learning engineers. Banks lead the shift, migrating core workloads and layering AI customer-service bots to defend share against fintech entrants.

“Make-in-Vietnam” Digital-Economy Roadmap

The strategy seeks a 20% GDP contribution from digital activities by 2025 and 30% by 2030, supported by 80,000 registered digital enterprises and R&D tax credits that reduce the cost of innovation. ^{[2]FPT Corporation, “Annual Report 2024: Growth Strategy,” fpt.com.vn} Foreign investors are projected to channel USD 25 billion into Vietnamese tech ventures by 2025 on the back of streamlined licensing and preferential tax regimes. Semiconductor self-sufficiency plans include training 50,000 engineers by 2030, closing critical skills gaps while reducing reliance on imported chips. Regulatory sandboxes in fintech and blockchain offer controlled test beds for new products, balancing innovation with financial-stability safeguards. Strengthened IP protection further encourages multinationals to locate design centers and transfer advanced know-how to local partners.

High Up-Front Network and Data-Center Build Costs

The capital intensity of 5G spectrum, fiber backhaul, and Tier III data-center construction strains operator balance sheets, especially outside the two largest metros. Secondary cities often lack the demand density to hit utilization thresholds, extending payback periods for investors. Currency fluctuation risk and rising interest rates elevate funding costs, while land-use approvals add administrative delays. Although public-private-partnership models are emerging, financing gaps persist for small regional carriers and neutral-host tower companies. These constraints could defer rural broadband timelines and limit edge-computing coverage that many Industry 4.0 use cases require.

Shortage of Specialized ICT Talent

Demand for advanced engineers continues to outrun supply, particularly in cybersecurity, AI, and semiconductor design. Rising salary premiums - monthly pay for experienced AI developers exceeds USD 2,000 - squeeze SME budgets and encourage job-hopping among specialists. Although the government is expanding scholarships and joint curricula with global universities, the lead time to cultivate deep expertise remains long. Companies increasingly build in-house academies and form university partnerships, yet the near-term gap threatens project-delivery schedules for large cloud-migration and analytics engagements. Persistent scarcity could slow the Vietnam ICT market’s move up the value chain in design-intensive segments.

Segment Analysis

By Type: Services Drive Technology Modernization

IT Hardware maintained a 23.5% share of the Vietnam ICT market in 2024 as operators upgraded base-station and data-center equipment to support nationwide 5G backbones. However, the Vietnam ICT market size for hardware is expected to expand more slowly than that for services as infrastructure build-outs mature. In contrast, IT Services is on track for a 12.3% CAGR through 2030, propelled by consulting, systems integration, and managed-security projects that require specialized know-how. Hybrid cloud, ERP modernization, and AI implementation demand continuous professional-services support, creating sticky revenue streams for vendors and integrators.

Cloud-services adoption is escalating as enterprises pursue pay-as-you-go scalability; this, in turn, lifts demand for connectivity and cybersecurity offerings bundled by telecom carriers. Software revenue is also climbing as firms migrate from perpetual licenses to subscription-based SaaS, lowering up-front costs. Communication services benefit from growing mobile-data consumption and enterprise 5G use cases. Managed-services contracts, especially for cybersecurity monitoring, allow SMEs to outsource complex functions and keep headcount lean while meeting regulatory mandates.

Note: Segment shares of all individual segments available upon report purchase

By End-User Enterprise Size: SME Digitalization Accelerates

Large Enterprises still command 65.7% of the Vietnam ICT market size owing to multi-year ERP, analytics, and compliance investments that require substantial capital. Yet Small and Medium Enterprises are racing ahead at an 11.9% CAGR thanks to cloud-based accounting, e-commerce, and CRM applications that eliminate hardware purchases and simplify upgrades. Government programs such as VNPT’s OneSME portal bundle connectivity, software, and training, lowering adoption barriers.

Large Enterprises prioritize integrated risk-management and data-protection systems to comply with the 2025 Data Law, stimulating demand for advanced security analytics and audit trails. Manufacturers and banks lead spend on AI-enhanced quality control and fraud detection. Meanwhile, SMEs leverage SaaS to compete on customer experience without matching large-enterprise budgets. As subscription models mature, the Vietnam ICT market will likely see a convergence in digital capability between company sizes, intensifying competition across industries.

By End-User Industry: Healthcare Leads Digital Innovation

Healthcare and Life Sciences is forecast to post a 12.1% CAGR as all public hospitals adopt electronic health records and virtual-hospital platforms expand remote-care coverage. ^{[3]E-Commerce and AI Drive Digital Economy Growth, opengovasia.com} Smart-hospital pilots integrate IoT sensors, automated dispensing, and AI-assisted diagnostics, driving demand for low-latency networks and high-performance computing. The Vietnam ICT market share for healthcare-related solutions is therefore set to climb steadily through 2030.

BFSI retained the largest vertical spend at 17.9% in 2024, enabled by biometric authentication, blockchain-based settlement, and AI fraud analytics. Banks are modernizing mobile platforms and migrating core systems to cloud environments to compete with agile fintech challengers. Regulatory sandboxes permit controlled trials of new digital-asset products while safeguarding systemic stability. Other high-growth segments include Manufacturing and Industry 4.0, which deploys predictive-maintenance analytics, and Retail E-commerce and Logistics, where automated fulfillment and last-mile optimization software address booming online sales.

Geography Analysis

Ho Chi Minh City and Hanoi together generated roughly 60% of the Vietnam ICT market in 2024, buoyed by dense clusters of multinational firms, banks, and tech startups that demand sophisticated connectivity and cloud services. The southern commercial hub leads e-commerce adoption, with online retail sales surpassing USD 25 billion in 2024, creating sizable requirements for payment gateways, warehouse-management systems, and customer-analytics platforms. 

Da Nang is emerging as a secondary tech nucleus, aided by smart-city pilot programs that showcase integrated flood-monitoring, traffic-optimization, and e-government solutions. Forty-eight municipal digital-transformation projects are spreading demand to secondary and tertiary cities, prompting telecom carriers to extend fiber backbones and edge-computing nodes. Provincial administrations are standardizing citizen-service portals, creating repeatable opportunities for systems integrators to deploy secure cloud architectures across jurisdictions.

Northern provinces benefit from proximity to China and established electronics supply chains, making them prime locations for semiconductor design centers and Industry 4.0 factories. Logistics technology adoption is rising as automated customs and cargo-tracking platforms support cross-border trade. Meanwhile, the Mekong Delta applies IoT crop-monitoring and smart-irrigation platforms to bolster agricultural productivity, demonstrating the Vietnam ICT market’s reach beyond urban areas.