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November 11, 2024

Vietnam’s Digital Hub Aspirations Will Open Opportunities for Investors

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The Vietnamese government has demonstrated a strong commitment to building a digital government, digital economy, and digital society through its recently issued national strategy on digital infrastructure. Under Decision No. 1132/QD-TTg dated October 19, 2024, on “Digital Infrastructure Strategy to 2025 with Orientation to 2030,” the government will create supportive conditions for both domestic and international businesses to invest in digital infrastructure with cybersecurity as a priority. Recognized as vital to the economy, this digital infrastructure will consist of four main components: (i) telecommunications and internet infrastructure, (ii) data infrastructure, (iii) physical-digital infrastructure, and (iv) digital utility infrastructure, including digital technology as a service.

Key goals for 2025 include universal fiber optic access for households, 100% 5G coverage across all provinces and cities, deployment of at least two new international undersea fiber optic cables, establishment of AI data centers, development of green-standard data centers, and platforms for IoT, AI, big data, blockchain, and cybersecurity. By 2030, goals include fiber access with speeds of at least 1 Gbps, 5G coverage for 99% of the population, readiness for 6G trials, six additional international undersea fiber optic cables, development of a hyperscale data center, and positioning Vietnam as a digital hub.

To achieve these goals, the government has outlined some core tasks, creating significant opportunities for both foreign and domestic investors:

  • Developing telecommunications and internet infrastructure for widespread fiber optic and 5G access, while preparing for emerging technologies like 6G, Open RAN, satellite, and IpV6. Telecommunication enterprises will jointly invest in and share the use of international fiber optic cable routes to ensure efficient capacity utilization and optimize investment capital.
  • Attracting foreign and domestic investment to establish hyperscale data centers and cloud computing services that meet global standards.
  • Creating physical-digital infrastructure by integrating technology across key sectors such as transportation, energy, healthcare, education, agriculture, construction, logistics, and tourism.
  • Establishing digital utility infrastructure and digital technology as services, including digital ID, digital payments, electronic signatures, and digital technology platforms as services (e.g., AI, blockchain, and IoT as services).

Decision 1132 provides an ambitious vision for Vietnam’s transformation into a digitally advanced, economically competitive, and socially inclusive nation, with the aim of helping the country reach upper-middle-income status by 2030 and high-income status by 2045.

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