Vietnam’s Digital Infrastructure Master Plan 2030: Paving the Way to a High-Tech Future

Vietnam’s Information and Communication Infrastructure Master Plan aims to develop high-speed internet, green data centers, and specialized IT parks, while prioritizing comprehensive cybersecurity measures to establish the country as a leading hub for network security in Asia by 2030. Investors looking to tap into Vietnam’s digital economy are advised to align their products and services 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 2021-2030, with a Vision to 2050.

Issued as Decision 36/QD-TTg and approved by Prime Minister Phạm Minh Chính, the Master Plan was initially unveiled in January 2024. It outlines the trajectory for Vietnam’s information technology (IT) infrastructure development, focusing on emerging technologies like artificial intelligence (AI), big data, blockchain, cloud computing, and the internet of things (IoT). The goal is to integrate digital technology across all aspects of economic and social life, moving beyond mere assembly and processing to the production of electronic, telecommunications, and IT products and services within Vietnam.

Vietnam’s Master Plan for Digital Infrastructure: Overview

Establishment of Broadband Communication Infrastructure and High-Speed Internet

Central to Vietnam’s strategy for digital infrastructure development is the establishment of a broadband communication infrastructure characterized by large capacity, high-speed technology, and extensive IoT integration. The Master Plan prioritizes delivering high-speed internet across Vietnam to bridge the digital divide and ensure that citizens and businesses can access the opportunities offered by the digital realm. The plan aims to extend 5G mobile broadband networks to 99 percent of the population by 2030, driving innovation, education, and entrepreneurship.

Investments in International Telecommunications Cable Lines

Recognizing the importance of global connectivity, 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, offering enhanced scalability, security, and address space compared to IPv4, is a significant milestone in Vietnam’s digital infrastructure roadmap. By prioritizing this transition 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 grow to US$1.03 billion by 2028, the Master Plan emphasizes creating data centers that adhere to green standards and energy-efficient practices. These data centers will provide the necessary infrastructure for storing and processing data while minimizing energy consumption and carbon footprint. By 2025, the goal is to establish national data centers supporting national databases, with at least three multi-purpose data centers at the national level and additional ones at the regional level.

Establishment of Dedicated IT Parks

The Master Plan aims to establish 12-14 IT parks by 2025, 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 IT park and research and innovation center should have a minimum internet speed of 1 GB per second. Strategically locating these parks in regions with strong IT development, the government aims to stimulate significant added value.

Envisioning Cybersecurity in Vietnam’s Digital Future

The Master Plan places significant emphasis on cybersecurity, committing to achieving comprehensive security coverage by 2025 across digital government, economy, and society domains. This includes fortifying state agency information systems, raising public awareness about cyber threats, and equipping internet users with essential cyber information security services. By bolstering network information security, Vietnam aims to create a resilient digital infrastructure that safeguards critical assets and fosters a secure online environment.

Looking forward to 2030, Vietnam aims to emerge as a leading hub for network information security in Asia. Through strategic utilization of open-source technologies and a commitment to innovation, Vietnam seeks to achieve technological autonomy and mastery over its network security market, paving the way for strategic investments and collaborations.

Outlook for Investors

Vietnam is rapidly becoming a promising destination for high-tech ventures. The government’s prioritization of technological advancement and industrial transformation, coupled with a series of incentives and support measures, encourages investment in high-tech parks and technology enterprises. Priority industries in Vietnam, including high-tech enterprises, are eligible for corporate tax cuts, credit incentives, and exemptions or reductions in land and water surface lease fees.

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