IT workers in a company. The Law on Digital Technology Industry is expected to set out legal framework for the development of the digital technology industry in Việt Nam. — Photo baotintuc.vn

Việt Nam will focus on improving the legal framework to promote the export of digital technologies, Lê Nam Trung, Deputy Director of the Authority of ICT Industry and Communications has said.

The ministry is speeding up the compilation of the Law on Digital Technology Industry, which aims to create a favourable environment for digital technology companies to make breakthroughs and expand their international reach.

According to the Global Innovation Index 2024 (GII) announced in late September by the World Intellectual Property Organisation (WIPO), Việt Nam ranks first globally in high-tech exports, high-tech imports and creative goods exports.

Overall, Việt Nam has moved up two places to rank 44th in the world in the GII in 2024, standing among the middle-income economies that have climbed the fastest in the GII ranking since 2013.

The ranking not only demonstrates Việt Nam’s remarkable development in the field of technology and innovation, but also clearly demonstrates the success of the 'Make in Vietnam' policy to promote digital technology enterprises abroad, increase export revenues and uphold the position of 'Make in Vietnam' digital technology products around the globe.

The Authority of ICT Industry and Communications statistics show that there are about 45,000 IT enterprises in Việt Nam, 11,200 of which are making software.

More than 1,500 Vietnamese digital technology companies are selling products or services abroad, altogether bringing in about US$7.5 billion in revenue in 2023.

While the domestic information technology market is facing difficulties, a policy of encouraging digital technology companies to find customers and clients abroad has opened up a new space for development, Trung said.

FPT, one of the firms that have successfully exploited international markets, hit the threshold of $1 billion in IT service revenues from foreign markets for the first time in 2023. In the first seven months of this year, FPT’s new orders in foreign markets were estimated to reach VNĐ21.5 trillion (nearly US$865 million), up 23.8 per cent over the same period last year. The group aims to reach $5 billion in revenues from foreign markets by 2030.

Other successful names include Rikkeisoft, TMA Solutions, NashTech, KMS Technology and CMC.

The global digital technology market has massive potential, providing plenty of opportunities for Việt Nam's digital technology companies.

An American technological research and consulting firm forecast that global spending in digital technology would reach around $5 trillion this year, representing a rise of 6.8 per cent compared to 2023, and will likely continue its upward trend along with the world’s economic rebound.

According to German market data company Statista, global spending will be mainly for IT and communication services, estimated at around $1.5 trillion each, as well as software valued at an estimated $1 trillion to accelerate the digital transformation, including AI, automation and cloud computing.

The 2023 Kearney Global Services Location Index showed that Việt Nam remains a strong Asian outsourcing destination for major technology companies, demonstrating that the country is a global digital hub and motivating it to continue upskilling its workforce.

Bùi Thanh Tùng from the Trade and Investment Department under the Authority of ICT Industry and Communications said that it is time for Việt Nam’s digital technology companies to expand abroad.

The fourth industrial revolution is bringing unprecedented opportunities, he said. In addition, the Vietnamese Government is also promoting a strategy to develop the semiconductor industry.

Chairman of FTP Trương Gia Bình said that nowadays, numerous customers and partners are proactively coming to Việt Nam and FPT for inquiries. Việt Nam is becoming a new destination for global businesses.

Việt Nam’s digital technology companies should cooperate with each other to form networks and support each other to expand in foreign markets, CEO of Phygital Labs Nguyễn Huy said.

It will also be necessary for support policies to create favourable conditions for Vietnamese enterprises to develop and expand abroad, he added.

According to Trung, the Law on Digital Technolog Industry will establish a legal framework to develop the digital technology industry, including policies to encourage their international expansion.

Focus will also be on developing and improving the digital technology industry workforce, he said.

Under to the Ministry of Information and Communication’s proposal, the Law on Digital Technology Industry aims to develop the digital technology industry into an important economic sector and make Việt Nam a favourable environment for digital technology companies.

The draft law is expected to be submitted to the National Assembly for consideration at its eighth meeting in October.

The digital technology industry is among the fastest growing industries in Việt Nam, with a revenue growth rate doubling the GDP growth rate and contributing up to around 6.5 per cent of GDP. The ministry also pointed out that Việt Nam is already a strong exporter of digital technologies.

The ministry founded a consulting group to support digital technology companies in expanding abroad in the fields of information and communications, along with organising numerous business matching opportunities.

The digital technology industry registered a revenue of $148 billion in 2022, up 8.7 per cent compared to 2021. — VNS