Companies around the world are looking for ways out of the global pandemic, from making up for a talent shortage, to improving business models to speeding up digital transformation.
The answer to these challenges may come from Vietnam. The emerging technology center of Southeast Asia is one of the centers of the world The fastest growing economies, which has a successful history of beating COVID-19 much better than most.
March 2021, IMF Annual Evaluation From the economy of Vietnam mentioned: “Despite COVID-19, the Vietnamese economy has remained resilient, expanding by 2.9% in 2020 – one of the highest growth rates in the world – and growth is expected to reach 6.5% in 2021, thanks to strong economic fundamentals, and decisive containment measures. Well-targeted government support.”
Digital transformation will be a major contributor to this growth and is a very big focus for the Vietnamese government. In June 2020 the government Launched his National Program for Digital Transformation With the goal of achieving an average growth rate of the digital economy of 20% by 2025.
Leading industry players in Vietnam have already joined forces to drive the country’s digital transformation. In 2019, the five largest ICT companies in the country including FPT Corporation, Viettel, CMC, VNG and MobiFone, Founders of the Vietnamese Digital Transformation Alliance With the aim of making Vietnam among the top four countries in ASEAN in the field of digitization.
From a country whose economy relied heavily on agriculture 30 years ago, Vietnam climbed up 27 places in the Competitive Industrial Performance Index (CIP) of the United Nations Industrial Development Organization (UNIDO).
The GDP growth in 2020 was 2.91%, making Vietnam among the countries with the highest GDP growth rate. It is ranked fourth in Southeast Asia for digital readiness and ninth in the ranking of digital countries in Southeast Asia. It has a population of 97 million, a median age of 32.5, and more than 400 universities and colleges.
The country has enjoyed a growing trade surplus in recent years. Imports and exports were on par at US$162 billion in 2015 and in 2020 Vietnam recorded US$281.5 billion in exports and a trade surplus of US$19.1 billion.
Several recently signed business partnerships have contributed to this result: the Regional Comprehensive Economic Partnership; Free Trade Agreement between the European Union and Vietnam; and the Free Trade Agreement between Vietnam and the United Kingdom, which entered into force in 2020.
the Google, Temasek and Bain, e-Conomy SEA 2021 Report Vietnam has been known to be the fastest growing internet economy in Southeast Asia in the next 10 years. It is estimated that by 2030, Vietnam’s Internet economy will rank second in Southeast Asia, reaching $220 billion in terms of gross merchandise value (GMV).
While FDI in 2020 is down 25 percent from 2019 to $28.5 billion as a result of COVID-19, there have been some very significant projects.
In October 2020 LG Electronics and Trung Nam Land JSC signed an agreement To transform Da Nang – the largest city in the Central Coast – into a center for technology, research and development, and create a small Silicon Valley in Vietnam.
Da Nang was also selected by FPT Software, Vietnam’s largest ICT company and Japan-based IT solutions provider Smart Holdings to develop their joint venture. Provides digital transformation solutions for smart cities, with a focus on the manufacturing, automotive and construction industries.
March 2021, Intel revealed plans To invest $475 million in an assembly and testing facility, bringing the company’s total investment in the country to $1.5 billion.
In addition to the formation of the Vietnamese Digital Alliance, 2019 also saw the launch of “Made in Vietnam” by the Ministry of Information and Communications. He. She represents the drive We have digital products created, designed and manufactured in Vietnam for domestic and overseas markets.
Dr. Truong Jia Binh, Chairman of FPT, says the government aims par excellence National Program for Digital Transformation, for the digital economy to account for 30 percent of the total Vietnamese economy within 10 years, and digital transformation requires a goal for all levels of management “The government wants every ministry and every province to have a digital transformation program.”
He says the plan also calls for universal access to fiber-optic and 5G broadband services, and for Vietnam to have 100,000 digital businesses and 1.5 million strong digital workforce.
To date, Vietnam has 236 universities, 149 of which offer IT training, adding more than 50,000 IT engineers to the country’s workforce annually. Vietnam is among the ten countries with the largest number of IT students in the world.
A rapidly growing economy, well-focused government support and a strong talent pool make Vietnam a destination for companies seeking to expand their global footprint or change their supply chain. Many of them have made great strides with the support of the leading IT company in Vietnam – FPT.
FPT – a major digital player in Vietnam
FPT was established in 1988 and today is the largest IT service provider in Vietnam, and one of the fastest growing.
With revenues of $1.3 billion and 36,000 employees, it provides world-class services in a smart factory, digital platform, RPA, AI, IoT, enterprise packaging, cloud, AR/VR, embedded systems, managed services, and other services from delivery centers throughout the United States, Japan, and Europe Australia, Vietnam, and Asia Pacific.
The company places great emphasis on digital transformation. In April 2021 set a Rtarget To increase digital transformation revenue from overseas markets to $209 million in 2021, a 50 percent increase from 2020.
As the leading IT company in Vietnam, FPT contributes significantly to the national program for digital transformation. FPT works with 40 out of 64 cities and counties in the country to change the way people work and create a better standard of living. It has launched seven sub-programs for Industrial Infrastructure 4.0, Digital Government, Digital Economy, Digital Society, and Inclusive Digital Transformation Education.
In June 2020, FPT became the first technology company in Southeast Asia to form a Strategic partnership with the Canadian Mila AI Research Institute. The three-year agreement includes plans to establish a world-class artificial intelligence center in Vietnam.
Dr Binh said FPT aims to become the leading AI center in Southeast Asia with the help of MELA. Young tech talents in Vietnam will have the opportunity to get close to, experience and learn AI in depth. And FPT’s AI applications will be continuously upgraded and improved to help companies effectively solve operational problems, and build digital businesses to achieve a breakthrough in the “new normal”.
In parallel with developing Vietnam’s technology talent pool, FPT is also helping global companies tap into its dynamic workforce to accelerate digital transformation as a post-pandemic recovery lever.
In 2020, FPT announce cooperation With German auto supplier Schaeffler on Schaeffler’s global pilot project of a new digital manufacturing concept that has been deployed at its factory in Dong Nai County.
In September 2021, FPT . was revealed strategic cooperation With global oilfield services company Halliburton to accelerate digital transformation by reducing innovation costs and adoption time across the upstream and downstream sectors.
Recently, its subsidiary FPT Software signed an agreement with Airbus to support more than 140 airlines and 9,500 commercial aircraft worldwide in improving operations and preparing for a green restart after the pandemic.
Vietnam is going from strength to strength as a digital nation in a world where digital technology will become more important than ever. The country is looking forward to offering its potential and capabilities to companies around the world that are striving to achieve success in the digital economy.
Learn more about how to make digital transformation a reality with FPT.