Foreign investments have been redirected from manufacturing and processing, real estate, and wholesale and retail sectors to IT, high technologies, electronic appliances, logistics and e-commerce, according to Vietnam Report.
The latest survey by Vietnam Report found that 73.7 percent of businesses in the field believe that the ICT market will maintain its growth rate in the last six months of the year, while 10.5 percent said the industry will see strong growth in the time to come.
There are five great opportunities for technology firms in the ‘new normal stage’.
First, Vietnam has entered the new normal stage with optimism after it successfully prevented the spread of the epidemic.
Vietnam’s business environment, safe and sustainable in growth, is expected to create a driving force for Vietnam’s ICT firms to popularize and introduce ‘made in Vietnam’ products to the global market.
|Vietnam’s business environment, safe and sustainable in growth, is expected to create a driving force for Vietnam’s ICT firms to popularize and introduce ‘made in Vietnam’ products to the global market.|
The Central Institute of Economic Management (CIEM) has predicted that Vietnam’s GDP growth rate would be 2.1-2.6 percent in 2020.
More than 63 percent of technology firms believe that the adaptability of Vietnam’s economy to the new normal conditions will be a great opportunity for them to develop.
Second, Vietnam is witnessing more of the world’s large technology groups relocating their production bases from China to Southeast Asia.
Vietnam has emerged in the US-China trade war as a destination in ASEAN with potential. Since Covid-19 broke out, foreign manufacturers have made investments in the fields of ICT and high technologies instead of manufacturing and processing, real estate and distribution.
More than 58 percent of technology firms believe that the relocation of global corporations is a great opportunity for them to improve production and upgrade products.
Third, Covid-19 has accelerated the digital transformation process in Vietnam.
During the epidemic, ICT products proved their usefulness in business operations and daily personal life.
Businesses in all industries have increasingly applied new models based on data and digital technology to optimize operations. The State Bank of Vietnam has submitted to the government a plan to launch Mobile Money on a trial basis to accelerate the national digital transformation program.
Fourth, the National Assembly has approved EVFTA.
The commitment not to impose taxes on electronic transactions between Vietnam and the EU will lead to an increase in the number of infrastructure projects serving the development of e-commerce, thus helping Vietnamese goods penetrate the EU market and vice versa.
The opening of the telecommunications market to EU enterprises will also help Vietnam’s ICT businesses improve their competitiveness in the home market.
Fifth, Vietnam has successfully tried 5G and the telecommunications market has heated up again.
The telecommunications market will witness a race among mobile network operators in researching and developing 5G products and services, especially when 5G is commercialized by the end of 2020.
Ho Chi Minh City announced a programme on digital transformation along with a data sharing and integration platform at a conference on July 22.
The COVID-19 pandemic was offering a once-in-a-century opportunity for Vietnam to boost digital transformation on a national scale, Minister of Information and Communications Nguyen Manh Hung said at the ministry’s conference on Monday.