Vietnam as the rising name in global tech scene: what contributes?
ℹ️ News provided by: SotaTek
SotaTek’s team driving innovation and growth in Vietnam’s tech sector
VIETNAM- 31 Mar 2025 – Vietnam has rapidly emerged as a rising force in the global tech scene, driven by its youthful, tech-savvy population and strong government support for digital transformation. With a goal of having the digital economy contribute 30% of GDP by 2030, the country is on track to become a global tech leader.
Vietnam Tech Sector on Track to Contribute 20% of GDP by 2030
Vietnam’s tech sector has seen rapid growth over the past decade, contributing 15% to the country’s GDP in 2024. The sector’s revenue reached US$158 billion in 2024, with projections suggesting it could contribute 20% of GDP by 2030, driven by advances in AI, blockchain, and fintech, according to the Ministry of Information and Communications of Vietnam.
With an annual growth forecast of 17% for IT software and services from 2023 to 2026, the IT software market, particularly Software-as-a-Service (SaaS), is expected to grow from $1.7 billion in 2023 to $3 billion by 2026. Global companies are increasingly turning to Vietnam for high-quality, cost-effective tech solutions, with companies like SotaTek delivering innovative IT services to meet this demand.
As one of Southeast Asia’s fastest-growing markets, Vietnam has become a hotspot for investment, especially in IT outsourcing and BPO services.
Key Drivers Behind the Growth of Vietnam’s Tech Sector
A key factor behind Vietnam’s tech sector growth is its young, dynamic workforce, with over 50 million people under 35 and 40,000 IT graduates annually, offering a large pool of skilled professionals in AI, blockchain, and software development.
The government has supported this growth with policies like the “Make in Vietnam” initiative, which fosters innovation, attracts foreign investment, and supports local startups. Business-friendly conditions, including tax incentives and 100% foreign ownership for outsourcing companies, have further enabled tech development.
Additionally, Vietnam’s strategic location near key markets such as Japan, China, and Singapore, along with its improved infrastructure and growing English-speaking workforce, has made it a prime destination for nearshore outsourcing. As a result, IT outsourcing is forecast to grow by 19% annually between 2023 and 2026.
Key Contributors to the Growth of Vietnam’s Tech Industry
Vietnam’s tech sector is shaped by the combination of local startups and large tech companies, each playing a significant role in driving the industry forward. One of the key players in Vietnam’s tech ecosystem is SotaTek, founded in 2015 in Hanoi with the mission to deliver state-of-the-art technology solutions and elevate Vietnamese tech on the global stage.
Over the past decade, SotaTek has grown from a local startup to a global IT services and consulting company, expanding to 25 countries with offices in the US, Australia, Singapore, Japan, and Korea. The company serves over 350 clients across industries like finance, healthcare, education, and e-commerce. Through strong partnerships with global brands such as Algorand, Klaytn, Doosan, Viettel, and TomoChain, SotaTek has remained at the forefront of technological innovation, expanding its services to include blockchain, AI, IoT, cloud solutions, and more.
Reflecting on the company’s 10-year journey, Mr. Harry Vu, Senior Vice President of SotaTek, shares: “From day one, our mission has been to elevate Vietnamese technology globally. Over the past decade, we’ve continuously innovated and expanded to meet the needs of the global market. Looking ahead, we remain committed to pushing the boundaries of technology and contributing to the growth of Vietnam’s tech ecosystem.”
On the multinational front, global giants like Samsung, Intel, Nvidia, and Microsoft have established a significant presence in Vietnam, setting up R&D centers and innovation labs. Additionally, Vietnam’s tech ecosystem is supported by a network of accelerators, incubators, and venture capital firms that foster innovation and entrepreneurship, creating a thriving environment for tech startups.
Balancing Growth and Challenges
As Vietnam’s tech ecosystem continues to evolve, the country faces both challenges and opportunities. While the sector thrives, scaling up infrastructure, fostering specialized talent, and navigating global competition remain key hurdles. However, the Vietnamese market is at the cusp of the next phase of growth, and players in the industry will need to evaluate their solutions, operating models, and capital to ensure they are positioned to capture the wave. With strong government support, a growing talent pool, and an increasing demand for digital transformation, the future looks promising as local companies continue to drive innovative solutions, contributing to a more connected and digital world.
About SotaTek:
SotaTek, a subsidiary of Sota Holdings, is a leading IT services and consulting company headquartered in Hanoi, Vietnam. Specializing in delivering innovative and sustainable technology solutions, SotaTek focuses on Software Development, Blockchain, AI & Machine Learning, ERP & CRM, Web/App/Game Development, and Managed Services. We offer cost-effective, scalable solutions tailored to meet the unique needs of our clients across diverse industries.
For more information, please contact:
Website: https://www.sotatek.com
Email: contact@sotatek.com