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Asian Business Research Journal 
Vol. 10, No. 4, 26-30, 2025 
ISSN: 2576-6759 
DOI: 10.55220/25766759.361 
© 2025 by the authors; licensee Eastern Centre of Science and Education, USA 

 
 

 

 
Building National Digital Infrastructure to Promote Digital Economic 
Development of Localities in Vietnam 

 
Vo Mai Trang1    
Nguyen Hong Chinh2 
 

 
 
 

1Hanoi Medical University, Vietnam. 
2Academy Of Finance, Vietnam. 
Email: vmtrang1982@gmail.com  
Email: nguyenhongchinh@hvtc.edu.vn  
( Corresponding Author) 
 

 
Abstract 

Developing and constructing a synchronized and modern national digital infrastructure to 
support the digital economy is a prevalent development trend among many countries. Prioritizing 
the advancement of a robust digital infrastructure plays a crucial role in driving digital economic 
development at both the national and local levels. This paper analyzes the current state of 
Vietnam's national digital infrastructure development and its impact on promoting local digital 
economies. It proposes solutions to further enhance digital infrastructure development in the 
forthcoming period. 

 
Keywords: Building, Digital infrastructure, Economic, Localities, Promote. 

 
1. Introduction 

The digital economy is becoming an inevitable global trend, with traditional economies increasingly affected by 
the Fourth Industrial Revolution. Digital technologies and novel business models have fundamentally transformed 
the socio-economic landscape of many countries. Digitalization is no longer a distant future but a contemporary 
reality, permeating almost all sectors, from commerce and payment systems to transportation, education, and 
healthcare. According to research conducted by the Fletcher School's Center for Global Business at Tufts 
University (USA), Vietnam currently ranks 48th out of 60 countries in terms of the pace of digital economic 
transformation while standing 22nd globally in digital development speed. These figures indicate a significant shift 
in the business models of Vietnamese enterprises, marking a turning point that elevates Vietnam's socio-economic 
landscape to a new level. Furthermore, the Economy SEA 2022 report on Southeast Asia's digital economy 
(Google, Temasek, & Bain & Company, 2023) highlights that Vietnam's Internet economy, measured by Gross 
Merchandise Value (GMV), reached USD 23 billion in 2022, representing a growth of 28% compared to 2021. 
Vietnam's Internet economy ranks third in Southeast Asia, followed by Indonesia with USD 77 billion and 
Thailand with USD 35 billion (VNA, 2024). Nevertheless, Vietnam is projected to become the fastest-growing 
Internet economy in the region due to the rapid expansion of e-commerce. For digital economy development, 
however, the role of digital infrastructure remains critical. Experts emphasize that digital infrastructure plays a 
fundamental role, often called the "infrastructure of infrastructures." However, it is a reality that developing digital 
infrastructure requires active participation from multiple economic and social stakeholders. Infrastructure systems, 
particularly information technology, telecommunications, data networks, electricity, and energy infrastructure, 
play crucial roles and form the foundational basis for ensuring sustainable growth of the digital economy. Modern, 
high-quality, integrated, widely interconnected, and secure telecommunication, IT, and data infrastructure, 
together with stable and high-quality power and energy systems, constitute essential platforms for implementing 
digital economic technologies and services, thereby fostering the advancement of Vietnam's digital economy. The 
development of digital infrastructure, serving as a foundation for digital government, digital economy, and digital 
society, has been clearly outlined in the documents of the 13th National Party Congress, as well as in the National 
Digital Transformation Program towards 2025 with an orientation to 2030 approved by the Prime Minister. In 
constructing digital infrastructure, it is essential to consider the following: (i) Infrastructure must be developed 
proactively and ahead of demand rather than reactively. Historical experiences have repeatedly demonstrated that 
proactively developed infrastructure creates new development opportunities and generates new demands. Roads 
must exist before people can travel; similarly, (ii) digital infrastructure should not be confined merely to 
telecommunications and the internet. Instead, it represents a complex and comprehensive ecosystem encompassing 
connectivity, equipment, data, applications, and technological research and development. These elements mutually 
support each other to ensure synchronized development. Furthermore, (iii) revolutionary advancements inherently 
involve uncertainties, making it impossible to anticipate all possible developments or measure impacts in isolated 
or short-term contexts. Therefore, digital transformation necessitates adopting a new, flexible, and holistic 
perspective that considers long-term implications and broader spillover effects on development (Ministry of 

mailto:vmtrang1982@gmail.com
mailto:nguyenhongchinh@hvtc.edu.vn
https://doi.org/10.55220/25766759.361


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Information and Communications, 2023). To effectively achieve national and local digital economic development 
objectives, Vietnam must accelerate the establishment of its digital infrastructure in the coming period. 

 

2. Current Situation of Digital Infrastructure Development in Vietnam in the 
Recent Period 

Documents of the 13th National Party Congress have identified "robustly developing digital infrastructure and 
establishing synchronized national, regional, and local data infrastructure that is seamlessly interconnected and 
unified, forming a solid foundation for digital economic and social development" as a priority direction in 
infrastructure development to foster Vietnam’s digital economy. This effort aims to achieve the target set by the 

Prime Minister in Decision No. 749/QĐ-TTg dated June 3, 2020, approving the "National Digital Transformation 
Program towards 2025 with orientation to 2030," specifically to have the digital economy contribute 20% of Gross 
Domestic Product (GDP) by 2025 and approximately 30% by 2030. 
 

 
Figure 1. 
Forecast of telecommunications infrastructure development to 2030. 
Source: Ministry of Information and Communications (2022). 

 
Regarding the digital infrastructure of several centrally governed cities, Da Nang consistently held the top 

position during the 2018–2020 period. However, according to the Digital Transformation Index (DTI) rankings 
2022, recently published by the Ministry of Information and Communications, Ho Chi Minh City has advanced to 
the top position regarding digital infrastructure and digital institutional frameworks. 
 

Table 1. Digital infrastructure of centrally governed cities. 

 
City 

Indicator Rank 

Technical 
infrastructure 

Human 
infrastructure 

Application 
index 

ICT 
index 

2018 
Rank 

2019 Rank 2020 Rank 

Da Nang 0.79 0.99 1 0.92 1 1 1 
Can Tho 0.57 1 0.48 0.68 4 10 14 
Ho Chi Minh City 0.69 0.84 0.23 0.58 5 7 2 
Hanoi 0.59 0.72 0.4 0.56 6 8 3 
Hai Phong 0.34 0.52 0.18 0.34 45 43 29 

Source: Ministry of Information and Communications (MIC) and calculations by the authors. 

 
Many localities across Vietnam have issued plans for digital infrastructure development with the following 

objectives: (i) to establish broadband, ultra-broadband, universal, secure, sustainable, and open digital 
infrastructure (including broadband telecommunications infrastructure, data center and cloud computing 
infrastructure, digital technology infrastructure, and digital platforms serving infrastructural roles). This 
infrastructure aims to meet communication requirements for the leadership, direction, and management activities 
of Party committees and governmental authorities at all levels; to satisfy the communication and entertainment 
needs of the public; and to be ready to address connectivity, data processing, and network security demands; (ii) to 
develop digital infrastructure that supports the advancement of digital government, digital economy, and digital 
society at the provincial level. This includes improving the quality of 4G networks, gradually deploying 5G 
networks, and universalizing broadband Internet, particularly in mountainous, remote, isolated, and socio-
economically disadvantaged regions. Additionally, there is a clear shift from essential telecommunications services 
towards information technology and communication services promoting digital infrastructure development. Binh 
Duong is among the localities that have promulgated a digital infrastructure development plan for 2025. 

Cloud Computing Infrastructure: Currently, Vietnam has three main groups of cloud infrastructure providers: 
foreign enterprises (e.g., Google, Microsoft), large-scale domestic enterprises with comprehensive investments 
(Viettel, VNPT, CMC, FPT), and smaller enterprises providing specialized applications or services. According to 
reports by ResearchMarket and TechSCI, Vietnam's cloud computing market was valued at approximately USD 
200 million (VND 4,600 billion) by the end of 2020. However, Vietnamese enterprises hold only about 20% of the 
domestic cloud computing market share (equivalent to over VND 900 billion). The remaining 80% is dominated by 
foreign providers such as Google, AWS, and Microsoft Azure (Ministry of Information and Communications, 
2023). 



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Information and Communication Technology (ICT) Infrastructure: ICT infrastructure is a decisive factor 
influencing the ability to transform and extend digital service applications into traditional economic activities. 
According to a report by the Commonwealth Scientific and Industrial Research Organisation (CSIRO, 2019), 
Vietnam possesses advantages in several ICT infrastructure areas, particularly regarding 5G networks, internet 
penetration, and smartphone adoption. The 5G network is considered a new-generation technology that ushers in 
unprecedented connectivity and technological advancement. Offering significantly greater capacity and speed, 5G 
fosters unattainable innovation with the previous 4G LTE standards. Vietnam was among the first countries to 
conduct 5G trials beginning in 2020. The country's three major telecommunications providers—Viettel, 
Vinaphone, and Mobifone—have implemented 5G networks in Hanoi, Ho Chi Minh City, and several provinces 
and cities. Alongside high-speed internet, affordable internet costs are favorable for developing digital platforms, 
especially in lower-middle-income countries such as Vietnam (Ministry of Information and Communications, 2022). 
 

3. Development of Key National Internet Infrastructure 
Vietnam Internet Network Information Center (VNNIC) has implemented Anycast and IPv6 technologies for 

the national Domain Name System (DNS). Regarding the national Internet exchange point, in the early 2000s, 
Vietnam’s Internet infrastructure was still in the early stages of development, with high access costs and network 
quality insufficient to meet user demands. A primary reason for this was the high cost of international connection 
channels, compounded by domestic internet enterprises’ inability to directly interconnect. Therefore, in 2003, the 
Ministry of Posts and Telecommunications—now known as the Ministry of Information and Communications—
established the Vietnam National Internet Exchange (VNIX), assigning its direct management and operation to 
VNNIC, following the principles of neutrality and non-profitability. 

Over nearly 20 years of establishment and development, VNIX has significantly contributed to Vietnam's 
Internet growth, connecting various enterprises, reducing costs, and optimizing service quality and national 
internet infrastructure security. VNIX membership has expanded to include organizations holding IP/ASN 
allocations managed and assigned by VNNIC, and it supports bilateral and multilateral peering policies. As of 
2019, VNIX had 21 member organizations, including key entities such as the Vietnam Internet Network 
Information Center, FPT Telecom Joint Stock Company, CMC Telecom Infrastructure Joint Stock Company, 
MobiFone Telecommunications Corporation, and Saigon Tourist Cable Television Company. VNIX provides 
fundamental benefits including streamlined connectivity, cost savings for members, improved network service 
quality, and enhanced safety through backup and incident response measures. 

Vietnam has accumulated nearly two decades of Internet infrastructure development, resulting in relatively 
modern infrastructure compared to ASEAN and international standards, adequately supporting electronic 
transactions on the internet. Particularly noteworthy is the growing investment in wireless and satellite-based 
connectivity systems in recent years, a trend expected to continue, aligning with overall socio-economic 
development demands, especially those related to Vietnam's digital economy (Ministry of Information and 
Communications, 2023). 

Thus, establishing digital infrastructure and innovating digital applications to develop the digital economy—
creating new drivers for economic growth and labor productivity—is critically important. The degree, pace, and 
effectiveness of digital government, digital economy, and digital society development significantly depend on 
digital infrastructure advancement. Recently, the government, ministries, sectors, and local authorities have 
prioritized and actively promoted digital infrastructure development, achieving noteworthy outcomes. However, 
building digital infrastructure requires continuous investment, comprehensive development, synchronization, and 
modernization to address practical needs and readiness for achieving Vietnam’s digital economy development 
objectives. 
 

4. Contribution of Digital Economy to GDP in Selected Vietnamese Localities 
Vietnam has quickly grasped emerging technology trends and proactively developed strategic directions and 

solutions to participate in the Fourth Industrial Revolution and transition to a digital economy. Resolution No. 
52/NQ-TW identified digital economy development as one of Vietnam's three key priorities, setting a goal that by 
2025, the digital economy would account for approximately 20% of GDP, with labor productivity increasing by an 
average of over 7% per year, and by 2030, the digital economy would surpass 30% of GDP. 

The Vietnam Digital Economy Report 2023 presented measurements and rankings of the digital economy's 
proportion within the GDP for all 63 provinces and cities nationwide. The findings clearly distinguished between 
the share of the digital economy attributed to information and communication technology (ICT) and that 
attributed to sectors beyond ICT, providing a comprehensive perspective on the state of the digital economy at the 
local level. Results indicated that the share of ICT-driven activities largely influences the digital economy's 
contribution to each locality's GDP. 

Localities with high ICT-driven digital economy proportions can be divided into two groups. The first group 
comprises provinces with substantial contributions from hardware processing, manufacturing, and electronic and 
optical component production. This group exhibits very high ICT-driven economic proportions, driven by both 
domestic and foreign enterprises located in industrial zones. However, their digital economy proportions remain 
relatively low; typical provinces include Bac Ninh, Thai Nguyen, and Bac Giang. 

The second group includes provinces and cities with highly developed service sectors, characterized by 
significant contributions from ICT-related services and digital content within their local economies. These 
localities generally exhibit relatively high GDP levels and serve as national economic centers, such as Hanoi, Ho 
Chi Minh City, and Binh Duong Province. Geographically, provinces with high ICT digital economy proportions 
are predominantly located in Northern Vietnam, specifically within the Red River Delta and the Northern 
Midlands and Mountainous region. 

Meanwhile, localities demonstrating high shares of non-ICT digital economy sectors are primarily those with 
strengths in services and tourism, concentrated mainly in the North Central Coast and Central Coast regions, or in 



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manufacturing and processing industries prevalent in the Mekong Delta (Posts and Telecommunications Institute 
of Technology, 2023). 
 

Table 2. Contribution of the Digital Economy to GDP in selected localities of Vietnam, 2022. 

 
 Locality 

ICT-driven Digital 
Economy as % of GRDP 

Non-ICT Digital 
Economy as % of GRDP 

Total Digital Economy 
as % of GRDP 

Digital Economy 
Ranking 

Việt Nam 9.02 5.24 14.26  

Bac Ninh 53.70 3.12 56.83 1 
Thai Nguyen 38.73 4.20 42.92 2 
Bac Giang 37.31 4.82 42.13 3 
Hai Phong 24.50 4.99 29.48 4 
Vinh Phuc 19.46 3.40 22.87 5 

Đa Nang 8.86 10.90 19.76 6 

Ho Chi Minh city 8.56 10.10 18.66 7 
Hanoi 11.79 5.36 17.15 8 
Phu Tho 8.21 7.22 15.43 9 
Ha Nam 11.00 3.50 14.51 10 

Binh Dương 7.41 3.92 11.34 14 
   Source: Posts and Telecommunications Institute of Technology (PTIT) (2023). 

 
The provinces and cities in Northern Vietnam generally exhibit high levels of digital economy spillover effects 

within sectors such as electricity, gas, hot water, steam, and air conditioning production and distribution. 
Meanwhile, provinces and cities in the Red River Delta show strong digital economy spillovers primarily in service 
sectors, notably finance, banking and insurance, healthcare and social assistance, arts, entertainment, and 
recreation. This characteristic resembles the service-oriented provinces in the Central Coast and Southeast regions. 

Bac Ninh leads the list with the highest proportion of digital economy in GDP, at 56.83%, primarily driven by 
an exceptionally high ICT digital economy share of 53.70%. However, its non-ICT digital economy proportion is 
relatively modest at 3.12%. Provinces and cities occupy the remaining top five positions with the highest ICT 
digital economy proportions nationwide, notably hosting significant industrial zones specializing in high-tech 
manufacturing. 

Da Nang records the highest proportion of non-ICT digital economy among all localities. The total digital 
economy proportion in Da Nang's GRDP stands at 19.76%, ranking sixth nationwide. Ho Chi Minh City and 
Hanoi occupy seventh and eighth positions, respectively, with total digital economy proportions of 18.66% and 
17.15%. Although Ho Chi Minh City has a slightly lower ICT proportion than Hanoi (8.56% compared to 11.79%), 
its non-ICT digital economy proportion is considerably higher (10.10% compared to Hanoi's 5.36%). Phu Tho and 
Ha Nam provinces rank ninth and tenth, with digital economy shares in their GRDP at 15.43% and 14.51%, 
respectively. 

Provinces in the Central Highlands and Mekong Delta regions exhibit relatively high non-ICT digital 
economy proportions but lower ICT proportions. The provinces with the lowest digital economy proportions are 
spread from the Central region to the Mekong Delta, with ICT digital economy proportions of around 2% and non-
ICT proportions ranging from 2% to 4%. Ba Ria-Vung Tau province is a unique case due to the substantial 
contribution of the oil and gas industry to its total GRDP, ranking fifth nationally in overall GRDP. Due to the 
unique nature of its mining sector, the mining industry was excluded from Ba Ria-Vung Tau's GRDP calculations 
(GRDP*) to assess its digital economy proportion more accurately. Despite having the lowest ICT digital economy 
proportion, Ba Ria-Vung Tau's non-ICT digital economy share is relatively high at 5.62%, ranking twelfth 
nationwide. 

Seven provinces and cities exceed the national average for ICT digital economy proportions, eighteen localities 
surpass the national average for non-ICT digital economy proportions, and eleven have overall digital economy 
proportions above the national average. This indicates uneven digital economy contributions across the country, 
with economic activity concentrated primarily in major economic hubs. Nonetheless, the high proportion of the 
non-ICT digital economy across many provinces and cities indicates active engagement in technological adoption 
and digital transformation within local production activities. 

Given limitations in human resources, infrastructure, and social awareness, achieving the 2025 target of the 
digital economy accounting for 20% of GDP and developing a robust digital technology enterprise community 
remains challenging for Vietnam. Lessons drawn from international trends suggest several critical steps for 
Vietnam. The government must adopt flexible management policies to liberate enterprises from restrictive 
regulations. Strategic investments in technology infrastructure, particularly 5G and 6G networks, are essential, 
demanding focused and synchronized efforts to avoid scattered and inefficient investment outcomes. Both public 
and private sectors should invest significantly in upgrading digital technical infrastructure and advanced digital 
technologies to facilitate innovative connectivity applications, especially cashless payment systems and enhanced e-
government efficiency. These represent essential foundations for online activities. Based on robust 
telecommunications infrastructure, Vietnam should prioritize building national and specialized databases alongside 
developing cybersecurity measures to ensure information security in cyberspace. 
 

5. Solutions for Developing Digital Infrastructure to Promote Local Digital 
Economies 

Developing Vietnam’s digital infrastructure to transform the digital economy into a key driver for economic 
growth, contributing to the country's achievement of upper-middle-income status by 2030 and high-income status 
by 2045, is essential. To effectively and rapidly develop national digital infrastructure, the following solutions 
should be implemented: 

Firstly, it amends and elevates national technical standards and regulations regarding broadband service 
quality to match those of developed countries. Establish national technical standards for digital technologies such 



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as AI, blockchain, and IoT. Develop IoT-specific national technical standards for healthcare, education, industry, 
agriculture, transportation, energy, electricity, water, and smart cities, emphasizing enhanced security and safety 
for IoT applications. Establish criteria to evaluate local and national digital infrastructure development, aligned 
with international evaluation standards. Implement measurement, monitoring, evaluation, and regulatory 
management systems for telecommunications infrastructure, data centers, cloud computing infrastructure, digital 
technology infrastructure, and digital platforms. Issue a set of digital infrastructure management, monitoring, and 
evaluation criteria. Conduct annual surveys, data collection, and publication of statistical results to measure and 
monitor the achievement of infrastructure development objectives at national and local levels. 

Secondly, issue decrees guiding amendments to the Telecommunications Law, expanding management scope, 
resolving difficulties, and fostering conditions for broadband telecommunications and cloud computing 
infrastructure development. Elevate standards and regulations on network equipment, service quality, and user 
experience for digital services. Amend the Law on Radio Frequency to clearly regulate frequency resource 
allocation methods for developing 5G and subsequent mobile networks to serve diverse economic sectors. Develop 
a Digital Technology Industry Law to create a controlled sandbox regulatory environment, enabling trials and 
application of new technologies and digital infrastructure components. Consider adding digital infrastructure 
construction to the list of specially incentivized sectors under the Investment Law to attract private investment. 
Provinces and cities should ensure regional and provincial plans incorporate strategies for managing and 
promoting digital infrastructure development, prioritizing broadband infrastructure, data centers, Internet 
exchange points, and international connectivity stations. 

Thirdly, refine policies ensuring industry, regional, and provincial planning readiness for digital infrastructure 
development, prioritizing spaces and facilitating broadband infrastructure development, data centers, Internet 
exchange points, and international connectivity landing stations. Permit digital infrastructure development on 
public land and share the use of infrastructure with other sectors. Establish national and regional data centers 
integrated with electricity infrastructure, undersea fiber optic cables, landing stations, domestic backbone fiber 
optic networks, and Internet exchange points. Research and formulate frequency spectrum planning and allocation 
strategies to fully meet broadband mobile communication (4G, 5G, and subsequent generations) and IoT 
infrastructure development needs. 

Fourthly, investments should be significantly increased, and high-speed fixed broadband infrastructure (Gbps) 
should be developed by promoting public-private partnerships (PPP) to mobilize private sector resources under 
balanced benefit and risk-sharing principles among the government, investors, and citizens. Develop a roadmap for 
phasing out obsolete technologies to free frequency resources for new technologies (4G, 5G, and future 
generations), reducing operational costs for businesses and supporting broadband service universalization. 
Encourage enterprises to establish virtual mobile telecommunications networks (MVNOs). Efficiently utilize 
Vietnam's Public Telecommunications Service Fund funding to support universalizing fixed and mobile broadband 
services in public benefit areas. 

Fifthly, policies should be developed promoting cloud computing adoption among governmental agencies, 
organizations, enterprises, and citizens, prioritizing cloud services provided by Vietnamese enterprises within IT 
application projects. This strategy aims to stimulate widespread cloud computing adoption and set standards for 
integrating cloud computing and IoT infrastructure within key economic sectors, including healthcare, education, 
industry, agriculture, transportation, energy, electricity, water, and smart cities. 
 

6. Conclusion 
The development of national digital infrastructure is pivotal in driving the growth of the digital economy at 

both national and local levels in Vietnam. The research highlights the significant progress Vietnam has made, 
especially regarding telecommunications, ICT infrastructure, cloud computing, and Internet network 
advancements. Notably, regions such as Bac Ninh, Thai Nguyen, and Ho Chi Minh City demonstrate substantial 
contributions to the digital economy, primarily through ICT and service-oriented sectors. However, disparities 
remain evident across various localities, emphasizing the need for balanced, inclusive, and sustainable digital 
infrastructure growth. 

To achieve Vietnam's ambitious goals of the digital economy contributing significantly to GDP by 2025 and 
2030, targeted and strategic actions must be undertaken. The research proposes enhancing national standards, 
refining legislative frameworks, encouraging public-private partnerships, and promoting widespread adoption of 
emerging technologies like cloud computing, IoT, and 5G networks. Continuous investment, synchronized 
development across sectors, and proactive policy-making are critical. By addressing these strategic areas, Vietnam 
can ensure a robust digital infrastructure foundation, unlocking substantial economic potential and positioning 
itself favorably in the global digital economy landscape. 
 

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