Digital Economy Overview
National Focus
The Government of Vietnam (GOVN) has made developing its Digital Economy a top priority. In June 2020, Vietnam’s Prime Minister approved the National Digital Transformation Program. The initiative sets digital development goals for 2025, with a vision through 2030, focused on efforts including increased electronic payment accounts, expanded broadband fiber optic cable coverage for households and communes, and digital platforms for businesses in industrial parks and export processing zones.
In September 2021, GOVN established the Vietnam National Committee on Digital Transformation. This development served to rebrand the National Committee on Electronic Government and establish a cross-ministerial committee chaired by the Prime Minister, Deputy Prime Minister, and Minister of Information and Communications (now part of the Ministry of Science and Technology). In 2024, the Vietnam National Committee on Digital Transformation identified four pillars for the development of the country’s Digital Economy–the IT industry, industrial digitization, digital administration, and digital data.
As part of the broader National Digital Transformation Plan implementation, GOVN ministries have announced various measures focused on public sector digitization and private sector innovation and regulation. Government stakeholders developing and implementing Vietnam’s digital economy goals and regulations include, but are not limited to, the Ministry of Science and Technology and the Ministry of Public Security. As a result of a government reorganization effort in 2025, the Ministry of Information and Communications (MIC) has been merged into Vietnam’s Ministry of Science and Technology (MST), with MST absorbing many of the responsibilities of the former MIC.
In December 2024, the Politburo issued Resolution 57-NQ/TW establishing ambitious goals for Vietnam’s digital transformation, including being ranked among the top three nations in Southeast Asia for AI research and development by 2030 and attracting direct investments from at least three of the world’s leading technology corporations.
Projected Digital Economy Growth
Vietnam’s digital economy has exceeded projections and is experiencing rapid acceleration. According to Vietnam’s General Statistics Office, Vietnam’s digital economy accounted for approximately 18% of national gross domestic product (GDP) in 2024–a 20% increase from 2023. The government has set an ambitious target for the digital economy to account for 20.5% of GDP in 2025, with total revenue projected to reach $52 billion, representing a 30% jump from the estimated $40 billion in 2024. By 2030, the target is for the digital economy to contribute 25-30% to Vietnam’s GDP.
In the ASEAN region, Vietnam’s digital economy growth rate has outpaced that of other ASEAN member states in recent years, with a compounded annual growth rate (CAGR) of 19% in 2023, according to Bain & Company. Vietnam is expected to continue this trajectory with projections to reach between $90 billion to $200 billion by 2030.
Vietnam’s private sector stakeholders, especially in key sectors including aviation, banking, energy, healthcare, broadcasting, telecommunications, and urban infrastructure management, are increasingly deploying advanced ICT solutions to enhance operational efficiencies and support sustainable growth.
Fiber optic Internet now reaches 82.4% of households and mobile broadband speeds have improved significantly. According to the Ministry of Industry and Trade (MOIT), Vietnam’s e-commerce market recorded an estimated value of $32 billion in 2024. Cashless payments are witnessing high growth rates.
Vietnam is expected to continue importing large quantities of ICT hardware, software, and services, as Vietnamese suppliers cannot yet meet existing demand nor offer the same range of solutions and services offered by foreign suppliers. This trend is expected to continue, creating opportunities for U.S. suppliers.
Key players in the hardware market include suppliers from Taiwan, China, the United States, and Japan. Major players in the software market include suppliers from the United States, Germany, China, Russia, Israel, and Vietnam.
Market Challenges
While Vietnam’s digital economy continues to grow and offer commercial opportunities across sectors, there are several market challenges and barriers to digital trade affecting U.S. companies engaged in the market or considering market entry. U.S. companies should be aware of and monitor developments in the following areas:
a. Radio and Television Services: On January 1, 2023, Vietnam’s Ministry of Information and Communications’ (MIC) Authority of Broadcasting and Electronic Information (ABEI) enacted Decree No. 71/2022/ND-CP (Decree 71), which expanded Vietnam’s scope of regulation on Radio and Television Services to include internet-enabled subscription video services. Serving as an amendment and supplement to Decree No. 06/2016/ND-CP (Decree 06), Decree 71 imposes new licensing requirements for online, over-the-top (OTT) radio and television services, including films. Under this decree, foreign platforms are required to establish a local presence or joint venture. These new requirements pose a challenge for foreign platforms seeking to engage the Vietnamese market. For example, ABEI has requested that certain foreign platforms leave the market unless the foreign firms established a local office or submitted a licensing plan.
b. Artificial Intelligence and Digital Technology Industry: In 2025, Vietnam passed a Law on Digital Technology Industry on June 14, 2025, which took effect on January 1, 2026. In the fall 2025 National Assembly session, the Government of Vietnam also passed a number of new digital policy measures, including the Law on Artificial Intelligence (“AI Law”), which is set for full implementation by the end of 2026. These wide-ranging laws address AI regulation, digital assets, and emerging technologies.
The Law on Digital Technology Industry introduces several key provisions for AI: AI systems are classified according to risk levels based on their impact on health, rights and lawful interests of organizations and individuals, human safety, property safety, national critical information systems, and critical infrastructure. The law outlines specific prohibited AI practices, including social scoring systems, and stipulates that digital technology products created by AI must be labeled for identification to ensure outputs are marked in machine-readable format and can be detected as artificially created or manipulated.
The law establishes a regulatory sandbox mechanism allowing businesses to test innovative AI technologies under state-approved conditions for up to 2 years with possible extensions and provides special tax incentives and benefits for AI projects, including 150% deduction of R&D expenses and 5-year personal income tax exemptions for experts and scientists. The law also formally recognizes digital assets, including cryptocurrencies and virtual assets, and establishes a framework for their regulation. The AI Law aims to regulate AI outputs and usage behavior, introducing a three-tier risk classification system (low, medium, high) and banning “unacceptable risk” applications, such as malicious “deep fakes” and social manipulation. As the Government of Vietnam works to implement the AI Law and develop implementing measures, there remains a need for further clarity regarding the risk classification system and avoidance of overly burdensome measures for high-risk systems.
c. Data Governance and Restrictions: In August 2022, Vietnam’s Ministry of Public Security (MOPS) promulgated Decree No. 53/2022/ND-CP, which supplemented the 2018 Cybersecurity Law. The decree took effect on October 1, 2022, and was expected to make the cybersecurity framework more enforceable, though implementation details remained unclear.
As of 2025, Vietnam is undertaking a comprehensive overhaul of its cybersecurity and data protection legal framework. MOPS released an amended Cybersecurity Law that aims to consolidate and replace both the 2018 Cybersecurity Law and the 2015 Law on Network Information Security. The law was finalized by the National Assembly in late 2025, with implementation planned for early 2026.
The proposed changes significantly expand the scope of regulated entities beyond traditional tech companies to include a broader range of service providers in cyberspace, including financial institutions, digital platforms, and telecommunications services. Vietnam’s Cybersecurity Law and its implementing regulations provide authorities the ability to require certain companies providing digital services to Vietnamese users to store specified data locally and establish a local presence under certain circumstances..
Vietnam’s data protection landscape has undergone significant transformation with three major legal developments. The Law on Data, passed in November 2024 and effective from July 2025, establishes comprehensive data governance rules and recognizes data as property rights under civil law. This allows data owners to commercialize their data while requiring enhanced protection for important national data categories.
The Personal Data Protection Law, enacted in June 2025 and taking effect in January 2026, introduces sector-specific regulations for industries including AI, banking, healthcare, and insurance. The law expands territorial scope to cover processing of Vietnamese citizens’ personal data regardless of where the processing occurs and implements stricter consent and breach reporting requirements.
The existing Personal Data Protection Decree from July 2023 requires companies to follow data protection principles, including lawfulness, purpose limitation, and data minimization. However, the decree uses broad definitions that create uncertainty about which businesses are subject to regulation, particularly regarding sensitive personal data categories that include location data, gender, and financial information.
These regulatory changes reflect Vietnam’s efforts to strengthen cybersecurity and data protection while supporting digital economic development. The convergence of multiple laws and regulations creates a complex compliance environment that businesses should monitor closely as implementation details emerge. Companies operating in Vietnam should assess whether they qualify as regulated entities under the expanded definitions and prepare for enhanced data protection obligations that will take effect in the near term.
d. Internet-Based Content Services: Article 5 of Vietnam’s Ministry of Information and Communications’ (MIC) Decree No. 72/2013/ND-CP (Decree 72) on the management, provision, and use of Internet services and online information prohibits the use of Internet services for purposes including opposing the Socialist Republic of Vietnam and threatening national security, social order, or safety. In March 2018, MIC issued a draft decree–Decree No. 27/2018/ND-CP (Decree 27)–amending and supplementing articles contained within Decree 72. Decree 27 consolidates existing content, server localization, and data retention requirements for social networks and information websites. In November 2024, the government issued Decree No. 147/2024/ND-CP, updating regulations on Internet services and online information management. The Authority of Broadcasting and Electronic Information (ABEI), now under the Ministry of Science and Technology (MST), has since proposed measures that would impose potentially burdensome requirements on a wide range of suppliers of Internet services and content providers. Digital service providers should continue to monitor these regulations related to content censorship measures and data restrictions.
e. Electronic Transactions: On June 22, 2023, the government of Vietnam passed the Law on Electronic Transactions (Law No. 20/2023/QH15). This e-transactions law serves as an update to Vietnam’s 2005 law on electronic transactions, with the goal of ensuring the law is suited to the present digital economy. However, while the law provides definitions for terms related to electronic transactions, some elements of the law remain vague, especially with regard to compliance obligations for digital platforms. The law also creates new restrictions for cross-border electronic signatures, such as requiring identification verification for e-signature certificates and requiring foreign e-signature authentication service providers to have a local presence in Vietnam.
f. Telecommunications: In November 2023, the Government of Vietnam promulgated Law No. 24/2023/QH15 to update and replace the 2009 Telecommunications Law. The “New Telecommunications Law” is broader in scope than the 2009 Telecommunications Law, as it now includes over-the-top (OTT) services, data centers, and cloud computing services. The law took effect on July 1, 2024, with provisions for data centers, cloud computing, and OTT services becoming effective on January 1, 2025. On December 24, 2024, the government issued Decree No. 163/2024/ND-CP, providing detailed guidelines for implementing the Telecommunications Law. This decree became effective immediately, with specific provisions for data centers, cloud computing, and OTT services coming into force on January 1, 2025.
Key changes now in effect include: 100% foreign-owned enterprises can now operate in Vietnam’s telecommunications sector, including data centers, cloud computing, and OTT services; foreign providers can offer services to Vietnamese users through notification procedures rather than requiring commercial agreements with local partners; data center service providers based in Vietnam must register with the Ministry of Science and Technology (MST); and offshore providers must notify authorities, ensure network safety, protect user data, and maintain service quality standards. Services identified and defined in the law include data centers; services related to data centers such as information processing, storage, and retrieval; cloud computing and cloud computing services; and internet telecommunication businesses, including OTT services. The New Telecommunications Law also includes details regarding licensing, registration, and wholesale telecommunications.
Digital Trade Opportunities
With its rapidly growing Digital Economy, Vietnam offers promising commercial opportunities for U.S. digital technology companies. The best prospect areas for U.S. digital solutions suppliers include the following:
- 5G Telecommunications and Open RAN: In 2024, Vietnam’s Ministry of Information and Communications (now part of the Ministry of Science and Technology) prioritized the commercialization of 5G services throughout the country, with a long-term goal of achieving nationwide 5G coverage by 2030. Vietnam’s largest mobile networks, namely Viettel, VNPT, and Mobifone, are investing significantly to develop 5G infrastructure. For example, Viettel has reportedly invested approximately $1.2 billion in developing its 5G network nationwide. These local operators have been tasked with testing open radio access network (ORAN) technologies alongside efforts to deploy 5G networks. Low Earth Orbit satellite licensing and pilot services are beginning, with commercial rollout expected by 2026. International connectivity is expanding with plans for a nationally owned submarine optical cable to Singapore, with agreements expected by early 2026.
- Wi-Fi 6E and Wi-Fi 7 Software and Devices: In May 2025, the Government of Vietnam (GOVN) opened the lower 500 MHz of the 6 GHz spectrum band, creating opportunities for Wi-Fi 6E and Wi-Fi 7 devices. However, GOVN has yet to determine how to allocate the upper 700 MHz of the 6GHz spectrum band. This ongoing development of Vietnam’s digital economy may create medium-term opportunities for providers of Wi-Fi 6E and Wi-Fi 7 devices and software solutions. Vietnam’s digital economy is expected to witness increased demand for faster speeds, lower latency, and greater reliability to best support bandwidth-intensive applications in sectors including manufacturing, healthcare, and education. If the GOVN opens the full 1200 MHz of the 6GHz band for license-exempt technologies, such as Wi-Fi, there could be considerable commercial opportunities for U.S. providers of devices, software, and services compatible with 6 GHz Wi-Fi. This could include routers, IoT devices, network management software, and cybersecurity solutions.
- Digital Payment Solutions: Vietnam’s digital payment industry is witnessing robust growth. The government of Vietnam has actively promoted the use of digital payments via the establishment and operation of the National Payment Corporation of Vietnam (NAPAS), which facilitates inter-bank payments. Vietnam’s private sector has also played an important role in developing the local digital payment ecosystem, particularly with respect to e-wallet services. Vietnam’s market-leading e-wallet service providers include MoMo and ZaloPay. The government aims to have 50% of the adult population using digital signatures by 2025. Vietnam’s growing digital payment market presents significant commercial opportunities for U.S. digital payment solutions, including in E-Know Your Customer (E-KYC) and Anti-Money Laundering (AML) services, particularly with the new regulatory framework for digital assets under the Digital Technology Industry Law.
- Cybersecurity Solutions: Digital adoption in the public and private sectors is generating demand for U.S. cybersecurity hardware, software, and services for applications in the financial services, energy, healthcare, transportation, utilities, and public sectors. Furthermore, the government of Vietnam considers cybersecurity a critical component of its digital transformation efforts. Commercial opportunities exist in the areas of advanced threat detection and response; cloud security; data protection and privacy compliance; critical infrastructure; and consulting services. With the implementation of new data protection laws and AI regulations, demand for compliance-focused cybersecurity solutions is expected to increase significantly in 2025–2026.
- Artificial Intelligence Solutions: With the passage of the Digital Technology Industry Law and AI Law, Vietnam is actively promoting AI development and investment, offering substantial opportunities for U.S. technology firms. Tax incentives, R&D expense deductions, and regulatory sandbox opportunities are available for AI developers. Vietnam aims to rank among the top three nations in Southeast Asia for AI R&D by 2030. Major technology corporations are beginning to establish AI R&D centers in Vietnam, indicating strong government support.
- Digital Assets and Blockchain Solutions: The Digital Technology Industry Law formally recognizes digital assets, including cryptocurrencies and virtual assets, creating new market opportunities. This provides the first comprehensive legal framework for digital asset operations in Vietnam, with regulatory sandbox programs for testing blockchain technologies under controlled conditions, tax incentives for digital asset startups, and anti-money laundering compliance requirements, creating demand for specialized services.
- Health Wearables and Applications: Vietnam offers potential opportunities for U.S. providers of health devices and applications designed to monitor, track, and improve health and wellness. These products are a growing part of Vietnam’s digital health ecosystem. Best prospects for U.S. firms in health devices include smartwatches and fitness trackers, while prospects for health applications include fitness and wellness applications, sleep tracking applications, chronic disease management applications, telehealth and remote monitoring applications, and mental health and stress management applications.
- Digital Solutions for Smart Grid Data Management: The adoption of smart grid technologies generates large amounts of data that can be used for optimizing grid operations, predictive maintenance, and fault detection. U.S. suppliers of real-time monitoring and control software, data analytics platforms, and AI-driven solutions will be well-positioned to meet these growing needs. In Vietnam, key end users include Electricity Vietnam (EVN), Vietnam’s largest state-owned power company, and EVN’s affiliated entities that manage power distribution and transmission. Other potential end users include renewable energy producers, industrial zones, and commercial enterprises.
- Digital Solutions for Environmental Monitoring: Driven by increasing environmental challenges, regulatory requirements, and private sector sustainability efforts, Vietnam offers strong market potential for U.S. digital solutions for environmental monitoring, including air quality monitoring, water quality monitoring, soil and agricultural monitoring, and ecosystem monitoring.
Digital Economy-related trade events
- Enterprise Digital Transformation Summit Vietnam 2025 – Ho Chi Minh City (March 2025)
- Vietnam International Digital Week – Hanoi (Autumn 2025)