How prepared is Vietnam for digital economy development, and what progress has been made so far?

Le Trung Hieu

In 2020, the Prime Minister approved a national digital transformation scheme under Decision No.749/QD-TTg. Its objectives are to develop digital government, the digital economy, and digital society, while fostering Vietnamese digital technology enterprises capable of competing and expanding into global markets.

The initiative prioritises the development of digital technology enterprises, shifting the IT sector away from assembly and outsourcing towards mastery of digital products and Industry 4.0 technologies. It also promotes digital content, creative industries, the sharing economy, e-commerce and smart manufacturing, while accelerating digital transformation within enterprises to strengthen competitiveness at both firm and economy-wide levels.

Given the increasingly important role of the digital economy in the local economy, the 2021 revised Law on Statistics introduced the indicator “share of digital economy value added in GDP” into the National Statistical Indicator System.

The content and publication cycle of this indicator are specified in Decree No.94/2022/ND-CP. Since 2023, the General Statistics Office, now the National Statistics Office, has compiled and published this indicator in accordance with regulations and will continue to do so in the forthcoming period.

What results have been achieved in the five years since implementing Decision No.749?

Compilation results for 2025 show that the digital economy continues to affirm its role as one of the key growth drivers of Vietnam’s economy, closely linked to the national digital transformation process.

The share of digital economy added value in GDP in 2025 is estimated at 14.02 per cent, equivalent to more than $72 billion, up 1.64 times compared to 2020.

The digital economy has expanded in both breadth and depth. Core digital economy sectors account for over 60 per cent of total digital economy value, while the level of digitalisation across industries and sectors has continued to expand, particularly in trade, finance, public administrative services and energy infrastructure.

On average during the 2021-2025 period, the share of digital economy added value in GDP reached approximately 13.2 per cent, with core digital economy sectors contributing 8.13 per cent and the digitalisation of other sectors contributing 5.05 per cent.

These results reflect the initial effectiveness of the National Digital Transformation Strategy, the leading role of digital government, as well as the concerted efforts of all levels, sectors, the business community and citizens in developing the digital economy and digital society.

The core digital economy is seen as the backbone of the wider digital economy. How is this sector developing in Vietnam?

The core digital economy includes sectors such as the manufacturing of electronic products, computers and optical products; software publishing; telecommunications; computer programming; IT consultancy and related activities; data processing, hosting and portal activities.

According to statistics, in 2025, core digital economy sectors contributed approximately 8.4 per cent of GDP, equivalent to $43.3 billion, accounting for more than 60 per cent of total digital economy value.

Digitalised sectors – those using core digital economy products as production and business inputs – accounted for around 5.6 per cent of GDP, equivalent to $28.8 billion.

Some digitalised sectors with high digital economy added value include wholesale and retail trade applying digital technologies (e-commerce), accounting for about 12 per cent of total digital economy added value.

Service sectors applying IT in production, business and management have shown rapid growth, contributing to an increase in the share of digital economy from the services sector in the GDP from 6.5 per cent in 2020 to a little over 7 per cent in 2025.

This demonstrates the clear efforts of the government, ministries, sectors and localities in encouraging IT development and accelerating the digitalisation of economic sectors.

At the local level, how is the digital economy shaping regional growth dynamics in Vietnam?

In 2025, the digital economy became a significant factor, creating marked differences in growth among localities.

Among 34 provinces and centrally governed cities, four recorded a digital economy value-added share in regional GDP exceeding 20 per cent, including Bac Ninh at around 46 per cent, Thai Nguyen at almost 30 per cent, Haiphong at over 22 per cent and Phu Tho at close to 23 per cent.

The country’s two economic growth poles, Hanoi and Ho Chi Minh City, also reported digital economy shares of over 17 per cent and 13 per cent of GDP, respectively.

Localities with a high digital economy share are typically major destinations for foreign direct investment in high-tech industrial manufacturing, resulting in a large proportion of core digital economy sectors in regional GDP.

The disparity in the digital economy’s contribution to regional GDP reflects differences in industrial development levels, digital infrastructure, investment attraction capacity, and the extent of digital technology application in socioeconomic development across localities.

Resolution No.57-NQ/TW targets the digital economy contributing at least 30 per cent of GDP by 2030. In your view, is this target achievable?

During the 2021-2025 period, the digital economy emerged as a key pillar of the National Digital Transformation Strategy. E-commerce, digital payments, online services, smart logistics and data-driven business models all recorded strong growth.

In particular, the development of digital government – through electronic identification, national population databases and online public services – has created an important foundation for reducing transaction costs, enhancing transparency and strengthening digital trust.

These factors have directly contributed to the expansion of the digital economy’s scale, demonstrating the mutually reinforcing relationship between digital transformation and economic growth.

The digital economy serves as a central driving force for rapid and sustainable growth by improving labour productivity, renewing growth models, expanding market space, and enhancing service quality and living standards for the population.

The results achieved in 2025 demonstrate the strong commitment and high determination of the government, ministries, sectors, localities, the business community and citizens in developing the digital economy and digital society, in line with the spirit of Resolution 57.

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Main drivers for Vietnam’s digital economy future As businesses look to Vietnam for innovation and investment opportunities, understanding the forces shaping this evolving landscape has become crucial. Yves Vanderstraeten, vice chairman of the European Chamber of Commerce in Vietnam’s Digital Sector Committee, discussed with VIR’s Minh Anh the motivations propelling the digital economy.

At a conference held on January 22, the Ministry of Health (MoH) gathered feedback on a draft decree regulating cosmetics management, as part of efforts to modernise oversight and align it with current market realities.

Speaking at the event, Deputy Minister of Health Nguyen Tri Thuc underscored that cosmetics are essential consumer products which, beyond enhancing appearance, directly affect public health, consumer rights, and quality of life.

Photo: MoH

“Current practices pose many challenges to state management of cosmetics, as well as to the compliance with legal regulations by organisations and individuals producing and trading cosmetics,” he said.

Circular No.06/2011/TT-BYT on cosmetic management, issued 14 years ago, is considered outdated. As a result, on December 4, the MoH submitted a draft decree on cosmetic management to the government, incorporating feedback from multiple agencies and organisations on regulatory scope, product notifications, post-inspection, business conditions, and the balance between state oversight and a favourable business environment.

The draft aims to ensure consumer safety, promote voluntary compliance among businesses, and reduce the regulatory burden on management agencies.

Deputy Minister of Health Nguyen Tri Thuc. Photo: MoH

“The improvement of institutional frameworks and legal regulations prioritises protecting the health of the people,” said Thuc.

At the conference, experts and representatives from ministries, agencies, local health departments, and business associations shared scientific evidence and practical experience to inform the draft decree. Key discussions covered global and domestic cosmetic management practices, the draft’s constitutionality and feasibility, product declarations, and the certification of cosmetic manufacturing facilities in line with Good Manufacturing Practice standards.

They also exchanged views on potential issues that could arise if the draft decree on cosmetic management is approved, and proposed measures to address them.

The deputy minister called for further refinement of the draft towards a more modern and transparent framework, with a clear shift from pre-inspection to post-inspection and stronger accountability. He also stressed the need to align with international commitments, particularly the ASEAN Harmonisation Agreement on Cosmetic Management, and to reflect industry practices and development needs in the new phase.

The conference provides an important basis for the Ministry of Health to continue a thorough review of the draft, ensuring it is consistent, coherent, feasible, and aligned with the prime minister’s direction on administrative procedure reform.

French cosmetics retailer Sephora enters Vietnam World-renowned cosmetics retailer Sephora has officially entered the Vietnamese market via an e-commerce channel, rather than through a traditional brick-and-mortar store.

Rohto-Mentholatum Vietnam takes over Naris Cosmetics Rohto-Mentholatum Vietnam has completed the purchase and sale agreement and change of ownership of Naris Cosmetics Vietnam.

Korean cosmetics capturing hearts Vietnam’s cosmetics segment is thriving as South Korean brands leverage the rising influence of its culture to meet the growing demand for high-quality beauty products.

DAV rolls out new plan to combat counterfeit drugs and cosmetics The Ministry of Health has ordered the recall of multiple cosmetics products after recent quality control failures, reaffirming its commitment to safeguarding public health.

Vietnam Airlines seeks aircraft through dry lease, photo Vietnam Airlines

Vietnam Airlines JSC is seeking to acquire aircraft under dry lease arrangements for its operation plan.

Aircraft Type: Used A320/A321 Ceo/Neo equipped with P&W engines.

Tentative Delivery Schedule: 2026–2027.

Preferred Lease Term (priority will be given to shorter lease terms):

Option 1 (applicable to A320/A321 Ceo/Neo): Up to three years

Option 2 (applicable to A321 Ceo/Neo): Up to six–eight years

Principals or mandated agents capable of and interested in offering Vietnam Airlines the above-required aircraft are invited to contact:

Fleet Development Office, Vietnam Airlines

Email: lanhuynh@vietnamairlines.com; gioidamquang@vietnamairlines.com; myvnc@vietnamairlines.com

Interested parties should provide the following information regarding the aircraft concerned: aircraft type and available quantity; aircraft specifications; tentative delivery schedule; indicative lease term and other relevant terms.

The airline will contact eligible respondents with further details or instructions for a potential bidding process. The related RFP is due to be issued in January 2026.

At the end of the 2025 fiscal year, WinCommerce (WCM), the operator of the WinMart/WinMart+ chain, announced a report updating business performance, with growth indicators in revenue and points of sale exceeding planned targets.

2025 marked the strongest pace of new store openings since Masan Group took over the retail chain in 2019, signifying a shift in market share acquisition strategy, especially in rural areas.

According to the updated report in December, WCM posted a total net revenue of VND39 trillion ($1.48 billion) in 2025, up more than 18 per cent on-year. This result surpassed the revenue growth target of 8–12 per cent set at the beginning of the year.

The growth momentum remained stable until the last month of the year. In December alone, WCM recorded a revenue of VND3.56 trillion ($135.53 million), a 19 per cent increase on-year.

In 2025, the company not only scaled up operation, but also improved the operational efficiency of existing stores. Like-for-like revenue growth across the entire system climbed 9 per cent against 2024.

In terms of network scale, 2025 saw a surge in new store openings. WCM opened a total of 764 new stores, far exceeding its target range of 400–700 stores under both base and high-growth scenarios.

In December, the chain opened 161 new stores. This was the highest number of new store openings in a single month ever recorded. On average, a new store opened every 5 hours. As of the end of 2025, WCM operates 4,592 stores nationwide.

Data analysing the structure of new store openings reveals a shift in geography and store model. There are 602 WinMart+ Rural stores out of 764 stores opened in 2025, accounting for nearly 80 per cent of the total new store openings.

Geographically, northern and central Vietnam were the two key focus areas for WCM’s expansion strategy.

The north recorded 409 new stores, while central Vietnam added 341 stores. Together, the two regions make up for 98 per cent of all new store openings during the 2025 fiscal year.

This strategic shift is underpinned by the significant potential of rural markets. According to data from the National Statistics Office and reports from the fast-moving consumer goods industry, over 61 per cent of Vietnamese population lives in rural areas. The rural retail market is estimated to be worth approximately $50 billion. However, modern, professional retailers have yet to establish a strong footprint.

WCM’s rural store model is designed with low investment costs, a product portfolio focusing on essential goods, and competitive pricing to suit the income levels of residents.

In practice, average daily revenue per rural WinMart+ store has improved from VND12.9 million ($490) to VND15 million ($570), based on data recorded in early 2025.

Efficiency and profitability

A highlight of the 2025 report is the quality of new store openings. Rather than pursuing scale alone, WCM reported that more than 90 per cent of new stores in 2025 surpassed breakeven of earnings before interest, taxes, depreciation, and amortisation at store level. This shows that network expansion is accompanied by financial efficiency, avoiding eroding profits from new, unprofitable points of sale.

A key factor supporting expansion into remote areas is logistics capability. Supra’s internal logistics system (launched in 2022), with its dry and cold storage clusters, has helped WCM reduce transportation costs by approximately 11 per cent for both general and fresh produce.

Previously, 2024 marked a significant milestone when WCM achieved positive after-tax profit for the first time after restructuring, laying the financial groundwork for a large-scale expansion in 2025.

The rapid penetration of modern retail channels into rural areas is taking place as traditional channels, such as wet markets and small grocery shops, face growing challenges around food safety and customer experience.

Rural markets are witnessing the emergence of modern grocery stores operated by young shop owners. This group possesses a dynamic business mindset, applies technology, and has a deep understanding of local consumer habits.

According to Kantar Worldpanel Vietnam, traditional grocery stores still account for a large share of rural retail sales –approximately 72 per cent in 2024 – but this share is gradually declining as mini-supermarkets and convenience stores gain traction.

Industry experts believe that in the 2024–2026 period, modern retail chains such as WinMart focus on capturing market share in rural areas before the market becomes saturated.

In 2026, the retailer aims to open 1,000-1,500 new outlets, averaging four new stores opened daily.

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This collaboration underscores a strong commitment from both organisations to foster digital transformation, enhance sustainable infrastructure, and meet the escalating demands of Vietnam’s digital economy in one of Southeast Asia’s most dynamic markets.

Nguyen Phu Thinh (right), general director of VSIP JV, and Pham Thai Lai, president and CEO of Siemens ASEAN and Vietnam, at the MoU signing ceremony

The non-binding MoU establishes a robust framework under which Siemens will leverage its global expertise and comprehensive technology portfolio to support VSIP in attracting, developing, and serving world-class data centre investors.

This initiative comes at a pivotal time as Vietnam’s digital landscape expands rapidly, driven by increased internet penetration, cloud adoption, and the proliferation of digital services across multiple sectors.

The partnership aims to position VSIP parks as prime destinations for next-generation data centre investments, offering a compelling ecosystem of advanced infrastructure and support.

As part of the agreement, Siemens and VSIP will explore opportunities for technical collaboration and knowledge exchange related to data centre development.

The cooperation is intended to support discussions on efficient, reliable, and sustainable data centre concepts and to align with broader sustainability objectives.

The foundation of this strategic alliance is built on a long-standing history of collaboration.

Siemens has maintained a strong industrial presence at VSIP Binh Duong since 2006, where its Siemens Busway Factory has been operating for nearly two decades.

This partnership reflects deep trust, successful cooperation, and a shared commitment to Vietnam’s industrial growth.

The sustained success of the Busway Factory within VSIP exemplifies Siemens’ dedication to local investment and demonstrates how its advanced manufacturing capabilities thrive in VSIP’s well-developed infrastructure and supportive business environment, making this data centre partnership a natural next step.

“We are incredibly excited to embark on this deepened strategic journey with VSIP, a partner with whom we share a rich history of successful collaboration and mutual trust. This partnership is a powerful testament to Siemens’ unwavering dedication to empower Vietnam’s digital future.

By integrating our comprehensive suite of advanced data centres, from reliable power infrastructure to intelligent building management systems, we are committed to enabling VSIP and its future investors to build highly efficient, resilient, and sustainable data centres,” said Pham Thai Lai, president and CEO of Siemens ASEAN and Vietnam.

“These facilities will not only meet the current demands but also be future-ready to support the evolving digital landscape of Vietnam, significantly contributing to the nation’s economic growth and technological advancement,” he noted.

Nguyen Phu Thinh, general director of VSIP JV, commented, “Our enduring partnership with Siemens has always been a cornerstone of our success as the leading industrial park and urban integrated townships developer. This strategic alliance for data centre development marks a pivotal step forward in our mission to attract high-tech investments and cultivate a thriving digital ecosystem across Vietnam.”

“The proven success and continuous operation of the Siemens Busway Factory within VSIP Binh Duong since 2006 stands as a meaningful testament to the strength and longevity of our collaborative spirit,” he added.

Harnessing technology for a sustainable future in Vietnam Siemens is driving Vietnam’s green growth through digital innovation. From advanced automation to digital twin technology, the company industries helps boost efficiency, cut emissions, and build resilience. Thai-Lai Pham, president & CEO of Siemens ASEAN & Vietnam, shared with VIR’s Olivia Bui how company global sustainability strategies are shaping Vietnam’s transformation.

VinSpeed ​​and Siemens strengthen cooperation for high-speed rail development VinSpeed ​​High-Speed ​​Railway Investment and Development JSC (a member of Vietnam’s leading conglomerate Vingroup) and Siemens Mobility signed a deal on December 17 in Hanoi, launching a broad cooperation for high-speed rail in Vietnam.

Siemens and NVIDIA expand partnership to build industrial AI operating system Tech majors Siemens and NVIDIA on January 6 announced a significant expansion of their strategic partnership to bring AI into the real world.