Analyst Chu Duc Toan of VNDirect Securities Joint Stock Co says revenue growth rate of digital transformation is expected to be 18% higher in Vietnam this year compared to 2022.
HANOI: Technology and telecommunications businesses are enjoying the benefits of a growing digital economy.
The attractions to the fields of telecommunications technology, and mergers and acquisitions (M&As) are on the rise.
According to analyst Chu Duc Toan of VNDirect Securities Joint Stock Co, the revenue growth rate of digital transformation is expected to be 18% higher in Vietnam this year compared to 2022.
He added that it has the potential to be double that of traditional IT services, indicating what great market potential there is.
Like the rest of the world, the Vietnamese economy is also undergoing digital transformation.
According to the National Digital Transformation Programme to 2025, with a longer-term vision to 2030, Vietnam’s digital economy will account for 20% of gross domestic product by 2025.
Vietnam has launched the “Make in Vietnam 4.0” programme to prepare for the Fourth Industrial Revolution.
This programme will facilitate the development of new industries and encourage new policies, thinking and technologies in line with Industry 4.0 and the ambitions of the digital economy.
In the context of strong digital transformation, the government, key organisations and businesses in Vietnam have actively received and participated with the trend of the Fourth Industrial Revolution.
The government is promoting the development of the digital economy through a series of mechanisms and policies. These were recently reinforced by the Prime Minister’s directive to enhance the accessibility to the Fourth Industrial Revolution.
According to the e-Conomy South-East Asia 2021 report by Google, Temasek and Bain, Vietnam’s digital economy is forecast to reach a value of US$52bil (RM221bil) by 2025, with a compound growth rate of 24%, ranking it third in South-East Asia.
Vietnam is also pioneering 5G technology. Its 5G network opened a new era for a series of technologies in Vietnam, which is among the countries with the fastest Internet growth globally.
According to Internet World Stats, its Internet subscribers have increased 343 times from 2000 to 2021.
Fixed broadband Internet in Vietnam has a coverage rate at about 21 subscribers to 100 people, which is relatively low compared to the South-East Asian average of 38 subscribers to100 people. — Viet Nam News/ANN
