CNA: Vietnam’s evolution as a hub for tech innovation

Illustrative image (Photo: VNA)

Singapore – Vietnam is rapidly emerging as one of Southeast Asia’s most dynamic economies, driven by a young and educated workforce that is making its mark on the global tech and business landscape, reported regional broadcaster Channel NewsAsia (CNA).

It said despite global uncertainties and shifting trade dynamics, the country has maintained its stability and robust growth. In the first half of 2024, Vietnam’s economy grew by 6.42%, making it among the 20 fastest-growing in the world.

A strong focus on technology and innovation is helping position Vietnam as a rising force in the information and communications technology (ICT) and semiconductor industries.

CNA stressed that supported by over 70,000 tech firms, Vietnam’s ICT sector has seen significant growth, with revenues surging from 60.9 billion USD in 2016 to 154 billion USD in 2023.

Vietnam’s skilled tech professionals, coupled with its national digital transformation vision, have made the country an attractive hub for emerging talent, as well as research and development. Global tech giants such as Amazon, Samsung, Sumitomo Corporation, and Lego have established operations here to leverage the potential of advanced technologies.

The country’s strides in artificial intelligence readiness, ranking 39th globally last year, and its ambitions to become a major contributor to the global semiconductor value chain by 2045, highlight its growing technological momentum.

With free trade agreements covering 56 markets, Vietnam has become a prime destination for foreign direct investment, which rose to 36.1 billion USD last year, a 32% year-on-year increase. Additionally, Vietnam ranked seventh in the 2023 Global Service Location Index, which measures the attractiveness of offshoring destinations. Notably, it is one of the only five countries to attract over 10% of global greenfield investment since 2017.

With a median age of 33.1 years, Vietnam’s youthful population produces 57,000 IT graduates annually, making it a major source of IT talent worldwide. Over 1 million Vietnamese work in this sector, asserting the country’s growing influence in the industry, it added./.