To achieve the target of the digital economy contributing 30% of GDP by 2030, experts recommended that Vietnam must deliver breakthroughs across institutions, infrastructure and human resources, which are currently bottlenecks in accelerating growth for the years ahead.

Data from the Ministry of Science and Technology (MoST) show that Vietnam remains the fastest-growing digital economy in Southeast Asia for three consecutive years, with an average annual growth rate of around 20%—triple the GDP expansion. The digital economy is emerging as a crucial growth engine, with e-commerce expected to exceed 30 billion USD by the end of 2025.

Assoc. Prof. Dr Nguyen Thuong Lang of the National Economics University said the digital economy accounts for about 17–18% of Vietnam’s GDP in 2024 and is hoped to reach around 50% by 2045.

The digital economy helps boost aggregate demand and supply, enhance productivity, and enable new business models. It provides an important stepping stone for shifting the growth model based on natural resources and low-cost labour towards one driven by knowledge, technology and innovation. It also promotes entrepreneurship and reduces barriers to market entry, thus helping improve financial inclusion and eliminating inequality, he noted.

Science – technology and innovation are now viewed as one of the key pillars for growth, competitiveness and global integration. The Politburo’s Resolution No. 57-NQ/TW, dated December 22, 2024, identifies making breakthroughs in science – technology, innovation, and digital transformation as the core driver of fast, sustainable, and comprehensive development. Under the national digital economy and digital society development strategy, the digital economy is expected to contribute 20% of GDP by 2025 and 30% by 2030.

The Government aims for GDP growth of at least 10% a year. Minister of Science and Technology Nguyen Manh Hung said science – technology, innovation, and digital transformation could contribute more than 5% (innovation 2–3%, digital transformation 1–2%, and science – technology 1%). However, R&D spending in Vietnam remains modest at just 0.5% of GDP—one-third of the global average.

Institutional frameworks and policies on science – technology, innovation, and digital transformation remain the “bottleneck of all bottlenecks”, he pointed out, noting that high-quality human resources are still insufficient, scientific infrastructure is outdated, and cyber safety faces significant risks.

Laying foundation for digital economy to take off

Nguyen Phu Tien, Vice Director of the MoST’s Department of Economy and Digital Society, said Vietnam must refine its legal and policy frameworks to facilitate science – technology and innovation, including a sandbox mechanism for new technologies and business models.

He emphasised the need for forward-looking institutions and a transparent legal environment to foster innovation; rapid development of safe, modern and comprehensie digital infrastructure; and public digital platforms such as digital ID, digital payments and e-signatures. Vietnam should also develop domestic digital platforms, perfect the data market, advance data asset policies, pilot data exchanges, and expand open data.

Tim Evans, CEO of HSBC Vietnam, said that as traditional growth drivers reach their limits,science, technology, and innovation become the key foundation to ensure the digital economy makes up 30% of GDP by 2030. This requires improving the investment climate, developing infrastructure and digital talent, and building a sustainable startup ecosystem. He underscored the need for comprehensive legal frameworks on data protection, intellectual property, and fundraising transparency, along with tax incentives or credit guarantee funds for early-stage startups.

Similarly, Dr Bui Xuan Minh of RMIT University Vietnam highlighted the Government’s role in developing incentives and technical infrastructure to attract investment to digital infrastructure and nurture tech talent, especially in AI, big data, and system engineering. He suggested focusing on sectors with high value added such as fintech, healthtech, edtech and digital logistics.

From the business perspective, Pham Minh Quang, CEO of Dolphin, said the private sector faces major challenges in the digital era. He urged stronger legal frameworks on data, cybersecurity, and digital commerce; increased support for SMEs through advisory programmes, training, financial incentives and shared digital platforms; and accelerated deployment of national digital infrastructure including 5G/6G, cloud services, digital ID, and open data.

To Hoai Nam, Secretary-General of the Vietnam Association of Small and Medium Enterprises, highlighted SMEs’ limited access to funding for innovation, high technology application, and sustainable models. He proposed expanding the state credit guarantee fund under a model in which the State serves as “the guarantor of last resort”. This, he said, will encourage banks to lend more confidently while maintaining financial discipline./.VNA