Vietnam’s digital transformation is progressing at an unprecedented pace, with the country’s digital economy expanding over 20% annually, making it the fastest-growing in Southeast Asia.
This growth was a key focus at the 10th meeting of the National Committee on Digital Transformation, chaired by Prime Minister Phạm Minh Chính. Government officials reviewed the progress of the national digital strategy in 2024 and outlined priorities for 2025.
Advancements in Digital Infrastructure and E-Government
Vietnam has climbed 15 places since 2022 in the UN’s e-government rankings, now standing at 71st globally. For the first time, the country is classified among those with a “very high” e-government development index. This progress is driven by legislative breakthroughs, including amendments to the Telecommunications Law and the introduction of the National Data Strategy, which addresses longstanding data management challenges.
Infrastructure development has also been a priority. In 2024, Vietnam successfully auctioned additional 5G frequency bands and launched its largest undersea cable, with a capacity of 20Tbps, enhancing internet speeds and global connectivity. With 82.4% of households now having fiber-optic access, Vietnam has exceeded its 2025 target of 80%. Mobile broadband speeds have also improved, ranking 37th globally (86.96 Mbps) and 35th for fixed broadband (159.32 Mbps).
Digital Economy Growth and E-Commerce Boom
Vietnam’s digital economy now contributes 18.3% of GDP. E-commerce retail sales reached $25 billion in 2024, positioning Vietnam among the world’s top 10 fastest-growing e-commerce markets. Cashless payments have surged by over 50% annually, the highest rate in Southeast Asia.
At the committee meeting, PM Chính emphasized that digital transformation must align with administrative reform and improve public sector efficiency. He stressed the need for nationwide, comprehensive transformation across all sectors and levels, ensuring alignment with global trends and citizen demands.
Strategic Priorities for Digital Transformation
The government has outlined five key areas for acceleration:
- Comprehensive digital transformation – Integrating digital technologies into all economic sectors to drive double-digit growth.
- Industry digitization – Enhancing productivity and competitiveness in manufacturing, agriculture, and services.
- Digital infrastructure development – Expanding high-speed networks and connectivity.
- Workforce development – Equipping employees with digital skills for future job markets.
- E-government expansion – Streamlining administrative procedures and improving public service efficiency.
To raise public awareness, authorities will launch nationwide communication campaigns and strengthen oversight of civil servants’ digital transformation responsibilities.
By June 2025, all ministry and provincial leaders must conduct administrative operations and sign documents digitally. By the end of 2025, all local government officials must handle tasks digitally. The government also aims for 80% of public services to be fully online, with 40% of adults using them, and full integration of administrative procedures with personal identification numbers.
Digital Services Expansion and Challenges
Vietnam has integrated 4,475 administrative procedures into the National Public Service Portal, with citizens increasingly using the VNeID app for online transactions. Digital services are expanding across healthcare and education—90% of insured individuals now have electronic health records, and all students have digital learning profiles. Cashless payments are now standard across public healthcare and higher education institutions. The issuance of digital signatures increased by 58.61% in 2024, with 12.5 million users adopting electronic authentication. More than 55.25 million VNeID accounts have been activated, surpassing national targets.
However, challenges remain. The adoption of digital public services is still limited, and data sharing between agencies needs improvement. Cybersecurity threats, including online fraud and transnational cybercrime, are escalating. Despite Vietnam’s rise in global cybersecurity rankings from 25th to 17th place, cyber risks persist. Additionally, digital literacy gaps, particularly in rural and mountainous regions, and a shortage of IT talent remain obstacles.
Outlook for 2025: A Digital-First Economy
The government has set an ambitious 2025 agenda under the theme “Comprehensive Digital Transformation for Economic Growth.” The National Digital Transformation Committee aims to drive an 8-10% GDP growth rate through digital breakthroughs across industries. With decisive policies and continued investments in digital infrastructure, Vietnam is on track to cement its status as a regional leader in digital transformation and economic growth.
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Source: Vietnam Insider