Vietnam’s Digital Infrastructure Strategy: Investment Opportunities for Foreign Stakeholders

Vietnam’s Digital Infrastructure Strategy, approved in October 2024, outlines a transformative approach to enhancing digital connectivity across the nation. This strategy targets four key infrastructure areas aimed at fostering rapid digital adoption and positioning Vietnam as a leader in the digital economy by 2030. With a focus on ambitious projects such as nationwide 5G deployment and the creation of smart, data-driven cities, the strategy offers numerous opportunities for foreign investors to engage with the country’s growing digital landscape.

Overview of Vietnam’s Digital Infrastructure Strategy

The strategy, set to be fully operational by 2025 with a vision extending to 2030, emphasizes four core pillars of development: telecommunications, data infrastructure, physical-digital infrastructure, and digital utility technology. One of the primary goals is to ensure that 99% of Vietnam’s population has access to 5G networks by 2030, with plans to roll out advanced fiber-optic cables, hyperscale data centers, and IoT connectivity nationwide. This drive toward digital transformation also includes the installation of six new international undersea fiber optic cables by 2030, aimed at bolstering Vietnam’s global digital connectivity.

Key Components of the Digital Infrastructure Strategy

1. Telecommunication and Internet Infrastructure
   The strategy prioritizes the expansion of 5G networks, aiming to provide high-speed connectivity to key areas such as urban centers, industrial parks, medical facilities, and educational institutions. Vietnam will also push for the integration of IPv6 and the development of next-gen technologies like Open RAN and 6G networks.

2. Data Infrastructure: Building Secure and Green Data Centers
   Vietnam plans to boost its data infrastructure by establishing hyperscale data centers that support AI and cloud computing. Investors are encouraged to contribute to the development of sustainable, internationally certified data centers and edge computing solutions, which will serve as the backbone for AI-driven applications across various sectors.

3. Physical-Digital Infrastructure: IoT Integration Across Key Sectors
   The integration of Internet of Things (IoT) technology will be key to creating smart ecosystems in critical sectors such as transportation, healthcare, energy, and agriculture. This infrastructure will enable efficient resource management, improve productivity, and pave the way for innovative solutions like digital twins, which will drive real-time decision-making and enhance operational capabilities.

4. Digital Utility Infrastructure and Digital Service Technology
   The strategy also focuses on building digital platforms for essential services such as identification, authentication, payment systems, and document certification. These platforms will streamline digital transactions, contributing to a more efficient and secure digital economy, with the adoption of technologies like AI, blockchain, and IoT at the core.

Investment Opportunities for Foreign Investors

Vietnam’s commitment to digital transformation presents a range of investment opportunities in the digital infrastructure sector. Key areas include:

• Telecom Infrastructure: Foreign investors can contribute to the rollout of 5G and IoT networks, particularly in underserved rural and remote areas.
• Data Centers: There is a growing demand for secure, green, and scalable data centers. Investors can capitalize on this need by developing hyperscale facilities and cloud computing solutions.
• Smart Solutions for Key Sectors: With the government’s push to integrate IoT in transportation, healthcare, and agriculture, there is ample room for foreign firms specializing in IoT, AI, and digital solutions.
• Digital Platforms and Services: The creation of digital service platforms offers opportunities for investment in areas like digital signatures, identity verification, and secure payment systems.

Conclusion

Vietnam’s Digital Infrastructure Strategy is a forward-looking plan that promises substantial opportunities for foreign investors, particularly in the areas of 5G, data centers, and IoT-enabled infrastructure. As the country positions itself to become a leader in the digital economy by 2030, investors can expect to benefit from early engagement in this growing sector. Given the government’s commitment to developing cutting-edge digital technologies and promoting smart industries, now is an ideal time for foreign stakeholders to explore potential collaborations and investment in Vietnam’s digital transformation.