Vietnam suffered and struggled to recover from perhaps one of the most devastating civil conflicts in contemporary history. Today, however, its economic success has propelled it to the forefront of the digital revolution in Asia.
With the bold dream of becoming a giant digital economy, the country has many challenges to overcome. One such challenge is the need to engage companies specialising in digital creation – that is, mobile application, website development services, and other IT innovations in order to advance e-commerce and online activities among companies and the public alike.
It is perhaps only a matter of time before Vietnam joins the ranks of technologically-advanced countries in the world. Its aim of evolving into a strong digital economy is almost self-evident as the country’s digital economy now accounts for 8.2% of its GDP (US$163 billion) which is only projected to further accelerate to 29% based on compound annual growth rate according to a report by Dezan Shira and Associates (2020) research firm.
The same report projects that Vietnam’s e-commerce market is likely to reach $15B by 2025 from only $2.8B in 2018, right at the heels of its massive success in increasing access to the internet and attracting business ventures into the country.
At the heart of this digital transformation wave is an ever-expanding digital creation industry made up of mobile application, web development, software development, and other technology innovation service firms.
Under its modernization plans, Vietnam plans to raise the value of its digital economy to 20% of its GDP by 2025, which is rather ambitious, considering that the country still has a small e-commerce footprint in the global scene today, despite enormous success from where they started.
In addition, the country needs to prime itself for a bigger digital revolution by having a stable political climate, sound economic policies, and sustained growth performance. Moreover, Vietnam must strategically position itself to have access to the Chinese market, ASEAN, and other critical commercial networks.
However, digital transactions remain unbalanced primarily because a number of institutions, including the government, have yet to fully go digital.
By revitalising digital transformation and related industries such as IT outsourcing, Vietnam can better expedite its digital modernisation plans.
As society shifts towards maximising online experiences, institutions, organizations and countries must, if they have not done so yet, substantially invest and support the digital design and development industry more. While Vietnam’s digital creation industry has seen a modest rise, further promoting patronage might be necessary as the benefits may be exponential.
For instance, attracting foreign investors looking to outsource mobile app development, one of the most competitive digital creation services today in Vietnam, will mean better employment opportunities for more people or tax revenues for the government. These services can also enable companies to strategically and aggressively operate and manage online transactions and activities, and therefore improve the country’s e-commerce market.
Similarly, user-centred digital creations address specific user problems and cater directly to their needs and preferences. This can help foster trust and patronage, and encourage the use of tech-based innovations necessary to expand the local digital landscape.
The once torn and devastated country of Vietnam is now rising quickly as a smart digital centre in Asia. While modest accomplishments have so far made this dream very possible, digital creation services and other tech-based industries are sustaining the country’s momentum. If you are a business owner in Vietnam or an investor looking to establish a business presence there, partnering with a reliable digital agency can help you achieve your goals.
Contracting the services of a web design and development company such as Frontline, a Singapore digital solutions agency with an established presence in Vietnam, can help your business or organisation with your digital creation needs and more. For more information on our services or to make an enquiry, visit https://www.frontline.com.sg/.