Thursday, June 20, 2024

Vietnam’s Digital Infrastructure Master Plan to 2030

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Vietnam’s Information and Communication Infrastructure Master Plan includes the development of high-speed internet, green data centers, and specialized IT parks, while also prioritizing comprehensive cybersecurity measures to position the country as a prominent hub for network security in Asia by 2030. Investors keen to tap into opportunities in Vietnam’s digital economy are advised to align their products and service offerings with the Master Plan.


On February 23, 2024, Vietnam’s Ministry of Information and Communications disclosed detailed information about the Information and Communication Infrastructure Master Plan for the Period 2021-2030, with a Vision to 2050.

Issued as Decision 36/QD-TTg and sanctioned by Prime Minister Phạm Minh Chính, the Master Plan was initially unveiled in January 2024. It aims to establish the trajectory for Vietnam’s information technology (IT) infrastructure development in the country’s pursuits towards a high-tech future.

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According to the Master Plan, the development of the IT industry will hinge on emerging technologies, such as artificial intelligence (AI)big datablockchaincloud computing, and the internet of things (IoT). The ultimate goal is to integrate digital technology applications across all aspects of economic and social life, moving beyond mere assembly and processing to the production of electronic, telecommunications, and information technology products and services within Vietnam.

In this article, we outline the key details and objectives of Vietnam’s Master Plan to develop its communication and information infrastructure, highlighting specific initiatives aimed at fostering economic growth, innovation, and cybersecurity resilience in the country’s digital transformation.

Vietnam’s Master Plan for digital infrastructure: Overview

Establishment of broadband communication infrastructure and high-speed internet

At the heart of Vietnam’s strategy for the development of its digital infrastructure lies the recognition of the need to establish a broadband communication infrastructure distinguished by its large capacity, high speed technology, and extensive integration of the IoT.

As such, the Master Plan prioritizes the development of infrastructure capable of delivering high-speed internet to all corners of Vietnam. By doing so, the country aims to bridge the digital divide and ensure that citizens and businesses, regardless of location, can access the wealth of opportunities offered by the digital realm.

The Master Plan recognizes that high-speed internet facilitates innovation, education, and entrepreneurship, driving economic development and societal progress. As such, it targets extending the coverage of 5G mobile broadband networks to 99 percent of the population, prioritizing the advancement of next-generation mobile networks by 2030.

Investments in international telecommunications cable lines

Vietnam understands the importance of global connectivity in today’s interconnected world. As such, the Master Plan includes strategic investments in international telecommunications cable lines. These investments are crucial for enhancing Vietnam’s connectivity with the global digital ecosystem, fostering collaboration, trade, and innovation on a global scale.

Transition to IPv6 technology by 2025

The transition to IPv6 technology represents a significant milestone in Vietnam’s digital infrastructure roadmap, as outlined in the Master Plan.

IPv6 offers enhanced scalability, security, and address space compared to its predecessor, IPv4. By prioritizing the transition to IPv6 by 2025, Vietnam aims to future-proof its digital infrastructure, accommodating the increasing number of internet-connected devices and applications.

Large-scale data centers adhering to green standards

As Vietnam’s data center economy is forecasted to reach US$1.03 billion in growth by 2028, data centers will serve as the backbone of Vietnam’s digital capabilities. The Master Plan emphasizes the need to create data centers that adhere to green standards and energy-efficient practices. These data centers not only provide the necessary infrastructure for storing and processing data but also contribute to environmental sustainability by minimizing energy consumption and carbon footprint.

By 2025, the objective is to set up national data centers that underpin national databases, featuring at least three multi-purpose data centers at the national level and additional ones at the regional level.

Establishment of dedicated IT parks

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The Master Plan outlines Vietnam’s ambitious goal of establishing 12-14 IT parks by 2025, with this number increasing to 16-20 by 2030. These specialized IT parks are designed to cultivate the growth of high-value IT products and services, positioning themselves as centers for technological innovation and economic growth.

By 2025, each dedicated ITpark and research and innovation center should benefit from a minimum internet speed of 1 GB per second.

Strategically locating these parks in regions with strong IT development, the government is making a deliberate effort to stimulate the creation of timely and significant added value.

Envisioning cybersecurity in Vietnam’s digital future

The Master Plan places significant emphasis on cybersecurity. Vietnam has committed to achieving comprehensive security coverage by 2025, extending across the domains of digital government, digital economy, and digital society.

This requires fortifying information systems within state agencies, raising public awareness about cyber threats, and equipping internet users with essential cyber information security services. By bolstering network information security, the country aims to create a resilient digital infrastructure that safeguards critical assets and fosters a secure online environment for its citizens.

In line with its vision, the Master Plan seeks to establish a robust cyber information security product ecosystem. Through the development of key information security products and services, Vietnam aims to not only meet domestic cybersecurity needs but also emerge as a competitive force in the global cybersecurity market.

Looking forward to 2030, Vietnam harbors ambitions of emerging as a leading hub for ensuring network information security in Asia. Through the strategic utilization of open-source technologies and a steadfast embrace of innovation, Vietnam aims to achieve technological autonomy and establish mastery over its network security market.

Such efforts are poised to pave the way for strategic investments and collaborations, positioning Vietnam as a trusted partner in cybersecurity.

Investors seeking to capitalize on Vietnam’s burgeoning digital economy are advised to align their products and services with the Master Plan, and likely benefit from government support and sector-specific and regional incentives.

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Vietnam Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Asia, including ASEAN, China, and India. For editorial matters, contact us here and for a complimentary subscription to our products, please click here. For assistance with investments into Vietnam, please contact us at vietnam@dezshira.com or visit us at www.dezshira.com.

Dezan Shira & Associates assists foreign investors throughout Asia from offices across the world, including in Hanoi, Ho Chi Minh City, and Da Nang. We also maintain offices or have alliance partners assisting foreign investors in China, Hong Kong SAR, Dubai (UAE), Indonesia, Singapore, Philippines, Malaysia, Thailand, Bangladesh, Italy, Germany, the United States, and Australia.

 

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