Vietnam’s digital transformation is advancing rapidly, with the digital economy growing by over 20% annually, making it Southeast Asia’s fastest-growing. This growth was highlighted during the 10th meeting of the National Committee on Digital Transformation, chaired by Prime Minister Phạm Minh Chính, where government officials reviewed the national digital strategy for 2024 and outlined key priorities for 2025.
Vietnam has moved up to 71st in the UN’s global e-government rankings, climbing 15 spots since 2022. For the first time, the country is classified among nations with a “very high” e-government development index. Legislative breakthroughs, such as amendments to the Telecommunications Law and the introduction of the National Data Strategy, have helped unlock digital development, addressing long-standing issues in data management and the digital economy.
Infrastructure development is a major focus. In 2024, Vietnam auctioned additional 5G frequency bands and launched its sixth and largest undersea cable with a 20 Tbps capacity, improving Internet speeds and international connectivity.
Fibre optic Internet now reaches 82.4% of households, exceeding the 2025 target of 80%. Mobile broadband speeds have also improved, with Vietnam ranking 37th globally for mobile Internet (86.96 Mbps) and 35th for fixed broadband (159.32 Mbps).
The digital economy now accounts for 18.3% of GDP. E-commerce retail sales reached US$25 billion (VN$ 588 trillion) in 2024, ranking Vietnam among the world’s top 10 fastest-growing e-commerce markets. Cashless payments are also growing rapidly, increasing by over 50% annually, the highest in Southeast Asia.
Prime Minister Chính emphasised that digital transformation must be closely tied to administrative reform and improving the quality of government officials. He stressed that the transformation must be nationwide, comprehensive, and cross-sectoral, aligning with global trends and addressing the people’s needs. He also highlighted that science, technology, and innovation are key to fast and sustainable economic growth, and digital transformation should be people- and business-centred.
Prime Minister Chính outlined five key areas for acceleration: comprehensive digital transformation across economic sectors, digitisation of industries, digital infrastructure development, building a technologically capable workforce, and creating a digital government to improve administrative efficiency.
The government is focused on raising public awareness of digital transformation and strengthening oversight of civil servants in the transformation process. 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 at the commune, district, and provincial levels must handle tasks digitally.
The government aims to achieve 80% fully online public services by 2025, with 40% of adults using them and all administrative procedures linked to personal identification numbers. The digital public service portal has integrated 4,475 administrative procedures, and the VNeID app enables citizens to complete online transactions. The healthcare and education sectors are also adopting digital services. Over 90% of insured individuals now have electronic health records, and 100% of students have digital learning profiles. The use of digital signatures has risen by 58.61% in 2024, with 12.5 million users now holding electronic authentication. Over 55.25 million VNeID accounts have been activated.
Despite the progress, challenges remain. Digital public service adoption is still limited, and data sharing between agencies is not fully integrated. Cybersecurity threats, including online fraud and transnational cybercrime, continue to rise, though Vietnam’s cybersecurity ranking improved from 25th to 17th globally. Digital literacy remains uneven, particularly in rural areas, and the IT workforce is insufficient to meet industry demands.
Looking forward, the government aims for an 8% – 10% GDP growth rate in 2025 through comprehensive digital transformation. With continued investment in digital infrastructure and clear policies, Vietnam is set to strengthen its position as a regional leader in digital transformation.
Source: https://opengovasia.com/2025/02/11/vietnams-vision-for-a-tech-driven-economy-by-2025/