Vietnam ICT Market Size (2024 - 2029)

Vietnam ICT Market Analysis

The Vietnam ICT Market was valued at USD 8.30 billion the previous year and is expected to grow at a CAGR of 8.31%, reaching USD 13.32 billion by the next five years. The Vietnam ICT market is primarily driven by the increasing government initiatives to boost digital transformation in the public sector, growing adoption of advanced hardware and software solutions in end-user industries, and growth in new product launches by major market vendors operating in the country.

• Vietnam's information and communication technology (ICT) market has grown steadily over the past few years. The country is considered one of Southeast Asia's most advanced ICT markets, with a strong digital infrastructure and a tech-savvy population.
• The Vietnamese government has taken several initiatives to foster new developments. According to the Economy Southeast Asia Report, Vietnam's digital economy is anticipated to reach USD 50 billion by 2025, creating new growth opportunities for the ICT market.
• The government approved the National Digital Transformation Program through 2025, with a vision to 2030, which will further support the growth of the ICT market. World Bank data shows that Vietnam's digital economy grows 10 percent annually and could exceed USD 200 billion by 2045. Additionally, to cultivate the country into an innovation and AI hub in ASEAN and the world, the government issued a national strategy on research and development applications for AI until 2030. Such government investments will help start-up companies offer ICT solutions in the market.
• The inadequate ICT infrastructure in certain regions of Vietnam is a significant restraint in the Vietnam ICT market. While major cities have seen significant improvements, rural areas still face connectivity issues, including limited broadband coverage and unreliable network infrastructure. Additionally, the shortage of skilled professionals in the ICT industry is significantly challenging the growth of the ICT market in Vietnam. The rapid pace of technological advancements requires a well-trained workforce to develop, implement, and support ICT solutions. Vietnam faces a gap between the demand for skilled ICT talents and the availability of qualified individuals, which can challenge the growth and innovation potential of the market.
• The COVID-19 pandemic drove people to opt for the work-from-home mode and increased their time spent watching videos and playing games, leading to increased Internet penetration and a demand for data competition. To address this, Jones Lang LaSalle (JLL) has received numerous requests to rent land or lease buildings to construct and develop Tier-3 or Tier-4 data centers in Vietnam, creating new growth opportunities for the ICT market.

Vietnam ICT Industry Segmentation

Information and communications technology (ICT) is an abbreviation for Information and communications technology (ICT) is an extensional term for information technology (IT) that stresses the role of unified communications and the integration of telecommunications (telephone lines and wireless signals) and computers, as well as necessary enterprise software, middleware, storage and audiovisual, that enable users to access, store, transmit, understand and manipulate information.

The Vietnam ICT market is segmented by type (Hardware (Network Switches, Routers and WLAN, Servers and Storage), Software, IT and Infrastructure Services (including cloud), Telecommunication Services), by Industry Vertical (BFSI, IT and Telecom, Government, Retail, and E-commerce, Manufacturing, Energy and Utilities). The market sizes and forecasts are provided in terms of value in USD for all the above segments.