Vietnam ICT Market Size (2024 - 2029)

Vietnam ICT Market Analysis

The Vietnam ICT Market size is estimated at USD 8.30 billion in 2024, and is expected to reach USD 13.32 billion by 2029, growing at a CAGR of 9.92% during the forecast period (2024-2029).

• The Vietnamese ICT market is primarily driven by increasing government initiatives to boost digital transformation in the public sector, growing adoption of advanced hardware and software solutions in end-user industries, and new product launches by major market vendors operating in the country. Vietnam's information and communication technology (ICT) market has grown steadily over the past few years. The country is considered one of Southeast Asia's most advanced ICT markets, with a strong digital infrastructure and a tech-savvy population.
• The government approved the National Digital Transformation Program through 2025, with a vision to 2030, which will further support the growth of the ICT market. According to data from the World Bank, Vietnam's digital economy is expected to grow 10% annually, exceeding USD 200 billion by 2045. Additionally, to transform the country into a global innovation and AI hub, the government issued a national strategy for research and development applications for AI until 2030. Such government investments will help start-up companies offer ICT solutions in the market.
• The government and large corporations have invested heavily in core technology areas, such as artificial intelligence (AI) and cloud computing. The Vietnam International Bank (VIB) signed a three-year strategic partnership with Microsoft Azure to deploy multi-cloud on the Microsoft Azure premise, which would further increase the growth of the cloud computing market, fueling the market’s growth.
• The inadequate ICT infrastructure in certain regions of Vietnam is a significant restraint to market growth. While major cities have seen significant improvements, rural areas still face connectivity issues, including limited broadband coverage and unreliable network infrastructure. Additionally, the shortage of skilled professionals is significantly challenging market growth. The rapid pace of technological advancements requires a well-trained workforce to develop, implement, and support ICT solutions. Vietnam faces a gap between the demand for skilled ICT talents and the availability of qualified individuals, which can challenge the growth and innovation potential of the market.
• The COVID-19 pandemic drove people to opt for the work-from-home mode and increased the time spent watching videos and playing games, leading to increased Internet penetration and a demand for data competition. To address this, Jones Lang LaSalle (JLL) received numerous requests to rent land or lease buildings to construct and develop Tier-3 or Tier-4 data centers in Vietnam, creating new growth opportunities for the ICT market.

Vietnam ICT Industry Segmentation

Information and communication technology (ICT) is an extensional term for information technology (IT) that stresses the role of unified communications and the integration of telecommunications (telephone lines and wireless signals) and computers, as well as necessary enterprise software, middleware, storage, and audiovisual, enabling users to access, store, transmit, understand, and manipulate information.

The Vietnamese ICT market is segmented by type (hardware [network switches, routers and WLAN, servers and storage, and other hardware], software, IT services, and telecommunication services) and industry vertical (BFSI, IT and telecom, government, retail, and e-commerce, manufacturing, energy and utilities, and other industry verticals). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.