Vietnam’s Digital Infrastructure Strategy 2025 is set to transform connectivity and digital inclusivity across the country, with goals like 99% high-speed internet access, 5G deployment nationwide, and advanced data centers for enhanced global connectivity. The Ministry of Information and Communications (MIC) has granted several licenses for 5G technology and aims to increase digital enterprises from 58,000 to 100,000 by 2025. This digital shift is part of a broader vision to create a “digital Vietnam,” encompassing a digital economy, government, and society.
The COVID-19 pandemic accelerated Vietnam’s digital adoption, with internet usage rising from 3.1 to 4.2 hours daily during lockdowns. According to a 2022 Google study, Vietnam’s digital economy grew by 27.8%, reaching US$23 billion, with projections to nearly double to US$50 billion by 2025. Legislative amendments in telecommunications and e-transactions, coupled with investments in data centers and undersea fiber optic cables, further reflect Vietnam’s commitment to a globally integrated digital economy.
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Vision for Digital Infrastructure Strategy by 2025
Vietnam’s vision for its digital infrastructure strategy by 2025 is nothing short of transformative. The National Digital Transformation Program, which was approved in 2020, lays the groundwork for this ambitious plan, focusing on enhancing digital government, economy, and society.
Expansion of High-Speed Internet Access
Central to Vietnam’s digital infrastructure strategy is the goal of achieving 99% high-speed internet coverage by 2025. This ambitious plan includes expanding connections to rural and remote areas, ensuring that every citizen has access to high-speed internet.
The strategy also aims for nationwide deployment of 5G networks, which will not only enhance connectivity but also support the broader digital economy. The plan envisions every citizen having at least one Internet of Things (IoT) connection by 2025, with an increase to four by 2030. This expansion aims to create an inclusive digital society, ensuring everyone benefits from digital transformation.
Development of Hyperscale Data Centers
To support the increasing demand for data management and cloud computing, Vietnam plans to attract significant investment in hyperscale data centers. These data centers will meet international standards and play a critical role in the country’s digital infrastructure.
Establishing these hyperscale data centers will support the growing digital economy and ensure efficient data management. This development is essential for fostering innovation and supporting various sectors that rely heavily on data infrastructure.
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Enhancing Global Connectivity
Vietnam’s strategy emphasizes global connectivity by deploying nationwide 5G networks and establishing international undersea fiber optic cables.
These initiatives are designed to improve internet infrastructure, focusing on both capacity and resilience, which are crucial for supporting global communications and ensuring robust internet connectivity.
Installation of Undersea Fiber Optic Cables
Vietnam’s plan to implement at least two new international undersea fiber optic cables by 2025 is a critical step in bolstering its internet connectivity. These cables, which extend over 340,000 kilometers, are crucial for improving global data transmission capabilities and ensuring robust internet connectivity.
Enhancing the digital infrastructure will support the entire internet network, offering faster and more reliable access for both domestic and international users.
Investment in International Transmission Systems
The rising demand for bandwidth has highlighted the critical need for enhanced international transmission systems. From 2020 to 2022, international bandwidth usage nearly doubled, prompting significant investments from content providers like Google and Meta in submarine cable infrastructure.
Vietnam’s strategy to invest in these systems is essential for maintaining high service quality and supporting the digital economy’s growth.
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Transitioning to Advanced Technologies
Vietnam’s Digital Transformation Agenda outlines a comprehensive roadmap for integrating advanced technologies into the economy and governance. The strategy focuses on harnessing innovative technologies to build a robust digital infrastructure, aiming for modernization by 2025. All governmental bodies are expected to utilize cloud computing by 2025, reflecting the push for a comprehensive national cybersecurity strategy.
Additionally, smart transportation initiatives are being implemented to improve urban mobility and reduce congestion.
Adoption of IPv6 Technology
The transition to internet protocol version IPv6 technology is a pivotal aspect of Vietnam’s strategy to enhance network scalability and security by 2025. By fully migrating to IPv6, Vietnam aims to improve internet scale and security for users, ensuring a more robust and secure internet infrastructure.
This transition will significantly boost the country’s digital infrastructure, supporting the telecommunications and internet infrastructure with advanced technologies.
Research and Development Centers
Establishing research and development centers is a key governmental initiative to stimulate technological innovation and support economic growth. These centers will advance AI, cloud computing, and other technologies, driving innovation and supporting the digital economy.
Establishing multiple R&D centers aims to foster innovation and technological advancement, essential for a thriving digital society.
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Building Sustainable Data Centers
Sustainability is a core principle in the development of Vietnam’s data centers. These centers are increasingly focusing on energy-efficient technologies and eco-friendly practices to minimize their environmental impact.
Implementation of International Green Standards
Data centers in Vietnam will implement international green standards to align with global best practices for environmental sustainability. Implementing these standards will reduce energy consumption and minimize carbon emissions through efficient designs and renewable energy use.
Development of Edge Data Centers
Edge data centers play a crucial role in Vietnam’s digital infrastructure by processing data closer to where it is generated, significantly lowering latency and enhancing processing speed for real-time applications. Reducing the physical distance data travels, these centers enhance processing speed and provide quicker access, improving user experiences.
Promoting Cybersecurity
Promoting cybersecurity is a vital component of Vietnam’s digital infrastructure strategy. The goal is to maintain or improve its position on the global cybersecurity index by 2025, ensuring comprehensive cybersecurity coverage across digital government, economy, and society.
A robust ecosystem for cyber information security products is crucial to meet domestic needs and enhance global competitiveness. This focus on cybersecurity will help safeguard national digital infrastructure and support economic growth.
Establishment of National Cybersecurity Framework
The national cybersecurity framework aims to enhance the management of cybersecurity by completing legal regulations and safeguarding national digital infrastructure. This framework will fortify information systems within state agencies and enhance public awareness of cyber threats.
A comprehensive national cybersecurity framework aims to protect critical digital infrastructure and ensure a secure digital society.
Positioning as a Regional Cybersecurity Hub
Vietnam has set its sights on becoming a leading cybersecurity hub in the region by 2030, recognizing the critical role of cyber defense in the digital economy. Effective cybersecurity measures enhance national security, fostering economic growth and stability.
Substantial investments and continuous innovations in cybersecurity aim to secure Vietnam’s status as a regional hub by 2030.
Supporting Digital Hubs and Innovation
The strategy includes establishing multiple digital hubs and AI data centers to enhance innovation. These hubs will create an environment conducive to technological advancements and support local startups in leveraging artificial intelligence for product development.
Additionally, Vietnam aspires to be a leading cybersecurity hub in Southeast Asia, with a market expected to grow significantly by 2030.
Establishment of IT Parks
The establishment of IT parks in Vietnam aims to provide high-value IT services and stimulate technological advancements. Currently, there are seven operational IT parks supporting over 700 companies and employing more than 30,000 individuals in the software industry.
Plans include building 19 additional IT parks by 2025 to bolster the IT sector and foster innovation.
Development of Smart Transportation Systems
The Ministry of Transport is planning to expand Intelligent Transport Systems (ITS) on highways to improve traffic management and enhance connectivity among people, vehicles, and infrastructure.
By 2025, a national ITS framework will be established, aligning with international standards and enhancing the operational capacities of Vietnam’s transport sector. This initiative aims to improve urban mobility and reduce congestion, contributing to a more efficient and sustainable transport network.
Read Related: Vietnam’s Industrial Zones: A Key Player in Global Manufacturing
Government Initiatives and Support
The Vietnamese government is committed to enhancing digital infrastructure through a comprehensive strategy aimed at boosting connectivity and supporting various sectors. Prime Minister Phạm Minh Chính emphasized digital transformation, urging ministries to develop plans for improving online public services and digital infrastructure.
Deputy Prime Minister Nguyen Hoa Binh signed the decision enacting the Digital Infrastructure Strategy, highlighting the role of leadership in promoting digital advancement. These efforts underscore the government’s dedication to driving digital transformation and fostering innovation.
Forming AI Data Centers
The establishment of AI data centers is a crucial aspect of Vietnam’s strategy to leverage artificial intelligence for economic growth and societal advancement. These centers, like the Viettel Hoa Lac Data Center, are designed to support AI development with a capacity that is double the average, featuring 60,000 servers.
AI data centers play a pivotal role in processing vast amounts of data, fostering innovations in various sectors, and significantly boosting economic performance.
Key Takeaways
- Vietnam’s Digital Infrastructure Strategy aims for 99% high-speed internet coverage and the establishment of 5G networks by 2025, promoting inclusivity in the digital economy.
- The strategy includes substantial investment in hyperscale data centers and international undersea fiber optic cables to enhance global connectivity and data management capabilities.
- A national cybersecurity framework is being implemented to safeguard digital infrastructure, aiming to position Vietnam as a regional cybersecurity hub by 2030.
How InCorp Vietnam can Help?
By leveraging digital platforms and integrating digital utility infrastructure, Vietnam is well on its way to becoming a leading digital economy. This strategy not only promises economic growth and competitiveness but also aims to create a more inclusive and secure digital society.
If you are planning to establish business in Vietnam or need more information about the IT infrastructure, our consultants are here to assist you. We provide expert support for market entry and comprehensive accounting services to help your business succeed.
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What is the primary goal of Vietnam's Digital Infrastructure Strategy for 2025?
The primary goal of Vietnam's Digital Infrastructure Strategy for 2025 is to create a robust digital economy by improving data management and connectivity via strategic infrastructure advancements.
How does the strategy plan to expand high-speed internet access?
The strategy plans to expand high-speed internet access by achieving 99% coverage by 2025, focusing on rural and remote areas while deploying 5G networks across the nation. This initiative is critical for enhancing connectivity and bridging the digital divide.
What role do hyperscale data centers play in the strategy?
Hyperscale data centers are essential for cloud computing and address the growing need for data management, thereby underscoring their importance in strengthening the digital infrastructure.
