Vietnam’s tech market holds tremendous potential: Indian official

Vietnam's tech market presents vast opportunities for growth, bolstered by supportive policies, a young workforce, and ongoing digitalization, said Vipra Pandey, consul general of India in Ho Chi Minh City.

Pandey made these remarks during the seminar "Investment cooperation potential between Vietnam and India" held on Thursday in HCMC.

He noted that programs like digital transformation, IT industry expansion, e-commerce growth, and AI are paving the way for Indian businesses to expand their cooperation and operations in Vietnam.

Amitabh Ray, chairman of ICC Technology from India, said that India is currently one of the global leaders in IT services. The Indian software market reached $14.5 billion in 2023, growing 6.1% annually. By 2030, this figure is projected to soar to $166.43 billion, fueled by robust infrastructure and a workforce of five million skilled professionals.

“Despite the positive outlook, there are still challenges to overcome in realizing the full potential of smart cities in India. These include mobilizing sufficient capital through public-private partnerships, designing urban planning with a human-centered approach, and ensuring system compatibility," said Ray.

"However, this also opens up opportunities for cooperation between India and Vietnam in developing smart cities through technology transfer, best practices, and replicating effective models,” he added.

Ray also pointed out that while India leads the global software market, Vietnam is emerging as a key player in the semiconductor industry, a critical component of smart city solutions. Thanks to its tech-focused industrial development policy, Vietnam is now the world's sixth largest semiconductor exporter, accounting for 13% of the global assembly, testing, and packaging market.

“This not only creates opportunities for collaboration in smart cities but also allows Indian IT companies to invest in and import semiconductor equipment from Vietnam. In short, the synergy between India’s IT strengths and Vietnam’s hardware capabilities can play a pivotal role in developing smart cities, driving economic growth, fostering innovation, and improving quality of life,” he emphasized.

Vo Van Hoan, Vice Chairman of the HCMC People’s Committee, highlighted that the city views information technology as a strategic sector. HCMC is focusing on developing digital infrastructure, promoting comprehensive digital transformation, and creating significant changes across various sectors, including education, healthcare, transportation, and public services. The goal is to advance e-government, a digital economy, and a digital society.

Information technology is crucial to the city’s socio-economic development. By 2024, digital tech companies are expected to make up 12.8% of the total, with over 33,000 enterprises providing telecom and IT services. Additionally, the number of digital platform companies is expected to reach 11.63%, with more than 30,000 businesses in the sector.

India has gained global recognition as an IT powerhouse, home to large tech firms and thousands of skilled professionals. The IT industry in India continues to rise, with expected revenues reaching $350 billion by 2025.

"The city looks forward to collaborating closely with Indian businesses, from major corporations to innovative startups, to promote high-tech projects, particularly in areas like AI, big data, cloud computing, and software solutions for various industries. The city government is committed to providing the best conditions for Indian businesses to invest, collaborate, and develop sustainably," said Hoan.

HCMC aims to increase the share of its digital economy to 25% of GRDP by 2025, supporting small and medium-sized enterprises in digital transformation and promoting e-commerce. The city currently has around 1 million IT engineers, providing a strong foundation for the development of high-tech industries like AI and semiconductors.