Driving the Southeast Asian digital economy and cementing Vietnam as a global tech innovation hub

Driving the Southeast Asian digital economy and cementing Vietnam as a global tech innovation hub

Do Van Khac, Senior Executive Vice President, Asia & Australasia markets, FPT Software, says Vietnam is well-positioned to become a dominant player on the global tech stage.

In an increasingly interconnected world, business leaders and CIOs are reassessing their technology ecosystems to remain agile in a dynamic marketplace. Traditional reliance on established tech hubs gradually gives way to more diversified approaches as organisations seek out new regions that offer competitive advantages in innovation, scalability, and digital infrastructure.

Today, countries and regions establish their own Silicon Valley-style hubs, manufacturing plants, services centres, and development factories. This evolving landscape fosters fresh business transformation opportunities, with emerging markets like Southeast Asia stepping into the spotlight as viable partners in driving global growth.

Vietnam: A Nation on the Rise in Technology and Innovation

As one of the world’s fastest-growing economies, Vietnam is positioned to become a major player in high-impact sectors such as digital transformation, software-defined vehicles (SDVs), AI and semiconductors. Vietnam’s strategic emphasis on digitalization is highlighted by its achievement as ASEAN’s fastest-growing digital economy in 2023, accounting for 16.5% of its GDP. With a national strategy aimed at advancing the digital economy and society, it is projected that Vietnam’s digital economy will account for 20% of its GDP by 2025 and 30% by 2030.

Vietnam’s government also identified AI and semiconductors as a critical national industry, aiming to attract both foreign investment and local startups to foster innovation in AI research and implementation. The semiconductor sector alone is projected to grow by 6.7% annually, supported by global deals and investments in design, packaging, and production. These efforts are further strengthened by Vietnam’s young, tech-savvy workforce and the country’s commitment to AI education – boasting over 530,000 software engineers and over 57,000 new software graduates from universities and colleges.

Additionally, Vietnam’s automotive sector is making significant strides, particularly in the development of electric vehicles (EVs) and software-defined vehicles (SDVs), not only highlighting the country’s readiness to embrace smart mobility but also aligns with its sustainability goals of reducing carbon emissions through electric and hybrid vehicles.

The nation’s push toward AI and automotive innovation is further accelerated by global partnerships and domestic advancements in technology. In 2023, NVIDIA expanded its collaboration with Vietnamese firms to build AI infrastructure and talent, while Intel continues to operate its largest assembly and testing plant in Vietnam and more global firms are following suit.

FPT—The catalyst behind Vietnam’s digital leap

At the heart of Vietnam’s technological ascent is FPT Corporation, the country’s largest IT service provider. With a diverse workforce of 80,000 individuals and a global footprint across 30 countries, FPT plays a crucial role in positioning Vietnam as a key technology destination. The company, a trusted partner for nearly 100 Fortune Global 500 companies, is also the first Vietnam-headquartered company to surpass one billion US$ in revenue from global IT services.

FPT’s strategic direction is underpinned by AI, focusing on integrating artificial intelligence to propel sustainability goals, including green energy management, smart city development, and reducing carbon footprints across industries​. This is also reflected in its investment in developing comprehensive software-defined automotive services.

Notably, in partnership with NVIDIA, the tech firm is investing in a $200 million AI factory designed to serve as a hub for AI research, development, and cloud-based services​. The initiative is part of FPT’s broader goal to position Vietnam as a global leader in AI innovation and accelerate the country’s role in the digital transformation of Asia.

In parallel, capitalising on US investment and the “friend-shoring” strategy of large corporations like Microsoft, NVIDIA, and Marvell – moving their operations to friendlier nations – FPT is deepening its role in chip manufacturing and design, which is vital to Vietnam’s technological progress and in the global supply chain.

Building the workforce of the future

As the world increasingly recognises Vietnam’s value as a new global destination, talent development will be a vital dimension of how Vietnam achieves its next milestone.

FPT is already at the forefront of this effort. Initiatives such as Global Internship, AI Residency, and specialised faculties in Automotive Software Engineering (ASE) and Semiconductor Circuit faculties at FPT University are part of the company’s endeavour to foster the next generation of tech talent.

Coupled with its tech-proficient and multilingual workforce, the tech firm is set to ensure seamless collaboration and deep local connections for clients across diverse markets, including global powerhouses like Japan, South Korea, Germany and Nordic region.

With a vision to contribute one million IT professionals to the global tech pipeline by 2035, FPT’s global workforce, paired with a steady influx of young, highly skilled talents from various locations, is going to cement FPT and Vietnam’s position as a global tech innovation hub.

Vietnam’s rapid emergence in the global economy is only just beginning. With its robust economic growth, a growing workforce, and companies like FPT spearheading the digital transformation, Vietnam is well-positioned to become a dominant player on the global tech stage.

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