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Vietnam’s Digital Infrastructure Strategy: Opportunities for Foreign Investors
Vietnam’s Digital Infrastructure Strategy, approved in October 2024, outlines the transformation of four key infrastructure areas. It aims to significantly enhance digital connectivity for all citizens and industries. The strategy identifies priority areas for investment, providing clear guidance for investors looking to engage with Vietnam’s growing digital economy.
On October 9, 2024, Vietnam’s Permanent Deputy Prime Minister Nguyen Hoa Binh signed the Prime Ministerial Decision No.1132/QD-TTg, officially enacting the Digital Infrastructure Strategy by 2025, with a Vision to 2030. The approval of this strategy, just seven months after the Information and Communication Infrastructure Master Plan for 2021-2030 (with a Vision to 2050) took effect, highlights the government’s strong commitment to advancing the nation’s digital infrastructure.
Overview of Vietnam’s Digital Infrastructure Strategy
The strategy primarily focuses on the nationwide deployment of 5G networks across all localities, high-tech zones, R&D centers, industrial parks, stations, ports, and international airports by 2025, with the goal of achieving 99 percent population coverage by 2030.
It also sets ambitious targets for digital connectivity and data management. By 2025, Vietnam aims to operate at least two new international undersea fiber optic cables and establish data centers adhering to international green standards, including those for AI data. By 2030, the government plans to expand this with six new international undersea fiber optic cables and the creation of hyperscale data centers and digital hubs.
Additionally, every citizen is expected to have one Internet of Things (IoT) connection by 2025, increasing to four connections per person by 2030. The adoption rate of digital signatures among adults is projected to rise from 50 percent in 2025 to 70 percent by 2030.
Vietnam’s development of physical-digital infrastructure is intended to drive progress in key sectors such as smart transportation, healthcare, education, manufacturing, agriculture, and tourism, thereby enhancing the country’s global competitiveness.
All these initiatives align with the government’s ultimate objective of positioning Vietnam among the top 50 countries globally and 3rd in ASEAN in terms of e-government and digital economy by 2030.
Key mission highlights
To achieve its targets, the Digital Infrastructure Strategy promulgates the following four key development missions:
- Telecommunication and Internet infrastructure
- Data infrastructure
- Physical-digital infrastructures
- Digital utility infrastructure and digital service technology
Telecommunication and Internet infrastructure: 5G network as a priority for Vietnam
Vietnam’s strategy for advancing telecommunications and internet infrastructure centers on the rollout of 5G networks, with a focus on expanding coverage and enhancing service quality in key areas, including:
- Public administrative zones
- Historical and cultural landmarks, scenic spots, and major tourist areas
- Medical facilities
- Colleges and universities
- Traffic hubs
- Road, rail, and waterway systems
- Commercial centers
- Large residential complexes
- Densely populated urban areas
- Hotels and commercial buildings
- Rural towns and strategic areas
The deployment of 5G will pave the way for the introduction of next-gen technologies in digital infrastructure, such as 6G networks, Open Radio Access Networks (Open RAN), and advanced data modeling. A vital component of this initiative is the full implementation of Internet Protocol Version 6 (IPv6) across the entire national internet network.
Data infrastructure: Building data centers and cloud computing
The strategy plans to upgrade the national data infrastructure by building data centers and adopting cloud computing technology. It directs governmental efforts to attract investments in data infrastructure, including:
- Data centers and cloud computing infrastructure that are green, secure, sustainable, and meet international standards
- Hyperscale data centers
- Data centers supporting AI applications
- Edge data centers
- National data center and national multi-purpose data center
- Regional multi-purpose data centers
Physical-digital infrastructure: IoT integration
The strategy seeks to build a national physical-digital infrastructure by integrating sensor technology and digital applications across key sectors such as transportation, energy, and water. This transformation will make these sectors crucial components of a broader digital ecosystem, enhancing operational efficiency, productivity, and resource utilization, while enabling faster system deployment.
Interoperability between IoT devices will be achieved through middleware, with 4G/5G networks, cloud computing, and AI driving industrial advancements. This infrastructure will enable the adoption of smart solutions in transportation, healthcare, education, agriculture, and tourism, thereby strengthening economic competitiveness.
Additionally, the creation of digital twins—virtual replicas of real-world objects—will enable real-time simulation and monitoring, powered by data from sensors and IoT devices. This will enhance transparency, foster innovation, and improve efficiency across multiple sectors, including healthcare, public services, industrial production, and logistics, significantly boosting operational capabilities.
Digital utility infrastructure and digital service technology
The strategy emphasizes the development of digital utility infrastructure and digital service technology, with a focus on creating platforms for services in key areas such as:
- Identification
- Authentication
- Payment and invoice
- Data integration and sharing
- Document authentication
- Signatures and signature certification
These new digital utilities and service platforms must align with the actual needs of the Vietnamese digital economy and society, enhancing the ability of individuals and businesses to efficiently perform core digital transactions.
The strategy also prioritizes the adoption of AI, blockchain, and IoT technologies to enhance and automate economic and social activities, driving smarter and more efficient systems in this sector.
A comprehensive set of solutions for Vietnam’s digital infrastructure upgrade
According to Vietnam’s Digital Infrastructure Strategy by 2025, with a Vision to 2030, competent ministries, ministerial-level offices, and other relevant institutions and agencies will coordinate to implement the key missions through practical actions. These solutions include:
- Enforcing institutional improvements.
- Prioritizing the development of digital infrastructure.
- Properly mobilizing funds, human force, and other resources.
- Ensuring safety, security, and user rights.
- Investing in research and development activities.
- Building rigorous standards and regulations.
- Synchronizing measurement and supervision regimes.
- Encouraging domestic and international cooperation.
- Building Awareness and capacity among stakeholders.
Foreign investment outlook
Vietnam’s Digital Infrastructure Strategy is set to transform the country’s digital landscape by advancing four key infrastructure pillars and integrating cutting-edge technologies such as 5G, AI, blockchain, IoT, and cloud computing. The strategy outlines ambitious goals, including the development of undersea fiber optic cables, data centers, IoT connections, and widespread adoption of digital signatures to enhance cross-sector connectivity.
By promoting smart solutions across administration, transportation, healthcare, education, agriculture, tourism, production, and other socioeconomic activities, the strategy creates significant opportunities for growth. Investors are encouraged to stay informed about updates to policies, regulations, and incentives in their areas of interest to maximize the potential of their investments.
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