Vietnam’s Digital Struggle – A Beacon of Innovation and Inclusive Growth
Vietnam is a fantastic case study in visionary leadership and never-ending growth in the digital era. Vietnam’s National Digital Transformation Program is a bold initiative that has been launched to take the country into a prosperous, efficient and competitive future. Vietnam is not only managing the digital revolution, but is also driving it in Asia, with outstanding efforts in infrastructure, governance, the economy and society.
The government has put digital transformation on the agenda of the nation. The program follows the trajectory of a digital government, economy and society up to 2030 and beyond and puts out a key focus on inclusivity: “leaving no one behind.” The results have been remarkable, drawing Vietnam as a model for other emerging economies around the world. This is reflected in international rankings – by September 2024, Vietnam’s E-Government Development Index rose 15 positions to rank 71st out of 193 countries in the UN’s E-Government Development Index. It was also ranked better in the Global Innovation Index and is the top-performing country in Southeast Asia in terms of digital economy growth.
Building World-Class Digital Infrastructure
A powerful digital infrastructure in Vietnam is growing at unprecedented rates to be the foundation of Vietnam’s success. More than 82% of homes have access to fibre optic broadband, beating the 2025 target. Mobile broadband speeds have improved dramatically, and Vietnam has made it among the top 20 countries for mobile broadband velocity in the world. Fixed broadband speeds have also skyrocketed and the country finds itself in an enviable position worldwide.
The rollout of 5G is a game-changer. Major urban areas and large parts of the population are already covered by thousands of 5G base stations with 99% coverage by 2030 planned. Successful spectrum auctions have brought in extra-bands, new international submarine cables, including high capacity cables, and seamless international connectivity. The first National Data Center opening in 2025 is another milestone and will constitute the “heart” of digital transformation, with advanced data processing for artificial intelligence and cloud services.
These are no longer just technological achievements, but are enabling tools for each person and enterprise. Urban-rural gaps are closing as urban and rural areas are connected; rural villages, remote areas being linked to urban regions; equitable growth. In the vision of digital infrastructure development up to 2025 – 2030: Vietnam will be a hyper-connected country, ready for the Fourth Industrial Revolution with universal access to digital services and high-speed connectivity.
A More Efficient and Citizen-Centric Digital Government
The Vietnam Digital Government Program has significantly transformed the delivery of public services, saving time, cutting costs, and increasing transparency. The processing of administrative procedures is now online, up from 20% of the total number of procedures—an increase of 2.5 times in a short period—across the country at the National Public Service Portal.
VNeID has revolutionized citizen engagement with the application. Over 55 million accounts have been activated, surpassing expectations, allowing users to easily access services such as vehicle registration, driver’s licenses and health insurance. Digital signatures for adults have been quickly expanding and millions of signatures are now in use, enabling paperless transactions. In education and health, electronic records are commonplace: 90% of insured citizens have electronic health books; there are digital systems and cashless payment at 100% of students and public hospitals.
This has improved the efficiency of the bureaucracy and reduced the risk of corruption, and enhanced citizens’ satisfaction with the system. Tax management and electronic-invoicing have created billions of extra revenues and made it easier for companies to comply. Vietnam’s development is a witness to a data-informed, proactive and people-centric government.
Growth of the Digital Economy
Vietnam is the top star in the digital economy, with a growth rate of more than 20% per year, three times the growth rate of the GDP and the fastest among all Southeast Asian countries. It is estimated to be 18.3% of GDP by 2024, and is expected to continue increasing to 20% and over.
The fintech and cashless payments industry is booming. Leading the region is the non-cash transactions growth which is above 50% per year. Digital payments have become ubiquitous with the volume of transactions from everyday transactions to government applications. The tech sector “is on fire” — revenue from digital technology businesses has reached impressive heights, and in recent years.
Innovation hubs and startups are thriving, especially in the areas of AI, semiconductors, and green technology. There is a trend of platforms “Make in Vietnam”, in which local apps and services have an increasing adoption rate, compared to foreign platforms, with over 25%. The success is the result of a homegrown product which instills national pride and economic sovereignty.
Empowering a Digital Society
Vietnam digital transformation is truly people-centric. Education has become digital – 100% of students have digital learning profiles. Electronic records and telemedicine make healthcare more easily accessible. Financial inclusion has taken a quantum leap with more than 87% of adults having bank accounts and digital wallets being widely used.
One key element of particular note is the use of AI. Vietnam has the highest share of users who interact with AI tools, acquire new skills and trust in the technology. This enthusiasm, particularly among the younger generation, puts Vietnam on the map as a regional AI powerhouse. Millions of people are being prepared for jobs of the future with initiatives in STEM education and skills training.
Smart cities are taking shape with the applications of 5G, IoT and data analysis for improved city management, traffic management and environmental sustainability. Digital platforms serve the cultural and tourism industry, contributing to the enhancement of Vietnam’s attractiveness and the protection of culture and traditions.
Challenges with Resilience and Vision
Despite the challenges, Vietnam has done an excellent job. Sustainable progress is provided by strong policy frameworks, public-private partnerships and a focus on cybersecurity, which ranks the country 17th worldwide. Investments in human capital and innovation ecosystems are closing skill gaps and attracting foreign direct investment from tech giants.
The Digital Transformation Law and regulations offer a good legal ground. National databases are growing in size and increasing capabilities, facilitating improved decision-making and service integration.
Future as a Digital Leader
Vietnam is on the verge of becoming an upper-middle income country in the future with a strong digital infrastructure. By 2030, targets are set to achieve near-universal access to high-speed Internet, proficient adoption of 5G/6G technology, and significant digital economy’s impact on GDP. This momentum will be sustained by exports, innovation and inclusive growth.
Vietnam’s tale is an inspiration for the world: a developing country overcoming traditional development phases thanks to digital tools. As long as technology is still welcomed and embraced by society and entrepreneurship is still nurtured and leadership is still committed, Vietnam is not only changing, but also helping in the advancement of technology in the world.
In conclusion, the digital transformation of Vietnam is a triumph of ambition, collaboration and innovation. It guarantees a better, more connected and prosperous future for all Vietnamese people. Confidently stepping into this new era, the country is the digital powerhouse of Southeast Asia and a global symbol of positive and inclusive technological progress. This colorful and future-oriented country has yet more to offer the best.
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