Vietnam is charging ahead in its digital transformation, with the government unveiling ambitious plans to integrate technology into every facet of society and the economy. At the 10th meeting of the National Committee on Digital Transformation on Thursday, Prime Minister Phạm Minh Chính symbolically launched the healthcare sector data coordination system, a milestone in a broader strategy to position Vietnam as a regional leader in the digital economy. With the country’s digital economy already growing at over 20% annually—the fastest in Southeast Asia—this push signals a transformative vision for 2025 under the theme ‘Comprehensive Digital Transformation for Economic Growth’.
A Digital Powerhouse in the Making
Vietnam’s ascent in the digital realm is nothing short of remarkable. According to the Ministry of Information and Communications, the nation has climbed to 71st in the UN’s global e-government rankings, a 15-position leap since 2022, earning a ‘very high’ e-government development index for the first time. This achievement reflects years of legislative and infrastructural groundwork, from amendments to the Telecommunications Law to the National Data Strategy, which tackles long-standing challenges in data management.
Infrastructure has been a cornerstone of this progress. In 2024, Vietnam auctioned additional 5G frequency bands and launched its sixth and largest undersea cable, boasting a 20Tbps capacity. This has turbocharged internet connectivity, with fibre optic coverage now reaching 82.4% of households—surpassing the 2025 target of 80%. Mobile broadband speeds rank 37th globally at 86.96 Mbps, while fixed broadband stands at 35th with 159.32 Mbps. These figures are not just statistics; they represent a foundation for economic innovation, enabling everything from e-commerce to digital public services. 
The economic impact is already evident. Vietnam’s digital economy now accounts for 18.3% of GDP, with e-commerce retail sales hitting US$25 billion in 2024, placing the country among the world’s top 10 fastest-growing markets. Cashless payments have surged by over 50% annually, the highest rate in Southeast Asia. These developments underscore Vietnam’s potential to redefine itself as a digital powerhouse, a vision articulated by Prime Minister Chính during the meeting: “Digital transformation must be closely linked to the revolution in administrative reform and improving the quality of government officials and civil servants.”
A Vision for Comprehensive Transformation
Prime Minister Chính’s address outlined a sweeping agenda, emphasising that digital transformation must be nationwide, comprehensive, and aligned with global trends while meeting the needs of the Vietnamese people. He framed science, technology, and innovation as “an objective necessity, a strategic choice, and a top priority” for sustainable economic growth, aiming to build a prosperous and civilised nation where citizens enjoy greater well-being.
The government’s strategy hinges on five key areas: integrating digital technology across all economic sectors for double-digit growth; digitising industries like manufacturing, agriculture, and services to boost productivity; developing robust digital infrastructure; building a tech-savvy workforce; and creating a digital government to enhance administrative efficiency. By June 2025, all ministry and provincial leaders are expected to conduct operations and sign documents digitally, with full digital task-handling mandated for local government officials by year-end.
Specific targets for 2025 include achieving 80% fully online public services, with 40% of adults using these services and 100% of administrative procedures linked to personal identification numbers. Already, initiatives like the National Public Service Portal, integrating over 4,475 administrative procedures, and the VNeID app for online transactions demonstrate the government’s commitment. In parallel, digital adoption is transforming sectors like healthcare and education, with over 90% of insured individuals holding electronic health records and 100% of students having digital learning profiles.
Challenges on the Horizon
Despite these strides, significant hurdles remain. The adoption of digital public services is uneven, particularly in rural and mountainous regions where digital literacy lags. Data sharing between government agencies is not yet fully integrated, hampering efficiency. Moreover, cybersecurity threats loom large. While Vietnam has improved its global cybersecurity ranking from 25th to 17th, online fraud and transnational cybercrime continue to escalate, posing risks to both citizens and the state.
The IT workforce also struggles to keep pace with industry demands, a gap that could slow progress if not addressed. Prime Minister Chính stressed the need for widespread communication to raise public awareness and a nationwide movement to drive digital transformation, alongside stricter oversight of civil servants’ roles in this shift. Without tackling these challenges, Vietnam risks falling short of its ambitious 8-10% GDP growth target for 2025, which hinges on digital breakthroughs across industries.
A Regional Leader in the Making?
If Vietnam sustains its current trajectory, it could solidify its position as a digital leader in Southeast Asia. The government’s focus on refining regulations, issuing supportive policies, and investing in digital infrastructure and national platforms bodes well for the future. The rapid uptake of digital signatures—up 58.61% in 2024 with 12.5 million users—and the activation of over 55.25 million VNeID accounts, surpassing national targets, signal a society increasingly ready to embrace a digital future.
Yet, success is not guaranteed. Analysts suggest that while infrastructure and legislative advancements are impressive, the real test lies in bridging the digital divide and ensuring cybersecurity measures keep pace with rapid expansion. If unaddressed, disparities in digital literacy and access could exacerbate social inequalities, particularly in remote areas. Similarly, without robust cybersecurity frameworks, public trust in digital systems may erode, undermining the government’s vision.
There is also the question of economic impact. While the government projects double-digit growth through digital integration, these estimates remain speculative. If reforms and investments fail to translate into tangible productivity gains across sectors like agriculture and manufacturing, the economic dividends of digital transformation may be limited. As one observer on social media noted, “Vietnam’s digital push is inspiring, but rural areas need more than just internet—they need training and support to use it effectively.”
A People-Centred Approach
At the heart of Vietnam’s digital agenda is a commitment to placing people and businesses at the centre of development. Prime Minister Chính’s vision is clear: technology should serve as a tool to enhance lives, not as an end in itself. This philosophy is reflected in initiatives like cashless payments in public healthcare and higher education, which aim to simplify transactions and improve access to services.
The government’s push for a digital workforce also speaks to this ethos, with plans to equip future employees with the skills needed to thrive in a digital era. If successful, this could create a virtuous cycle, where a tech-savvy population drives innovation, attracts investment, and fuels economic growth. However, as with other aspects of the strategy, execution will be key. Training programmes must be inclusive, reaching beyond urban centres to ensure no one is left behind.
Looking Ahead to 2025
As Vietnam sets its sights on 2025, the National Digital Transformation Committee’s roadmap offers a compelling blueprint for progress. With decisive policies and continued investment, the country is well-positioned to achieve its goals, from enhancing digital infrastructure to fostering a digital government that better serves its people. Yet, the path forward demands vigilance—addressing cybersecurity risks, closing the digital divide, and ensuring that economic benefits are broadly shared will be critical to sustaining momentum.
For now, the launch of the healthcare sector data coordination system stands as a symbol of Vietnam’s broader ambitions. It is a reminder that digital transformation is not just about technology, but about building a future where innovation drives prosperity and well-being for all. As Prime Minister Chính put it, this is a journey towards a “prosperous and civilised nation”—a vision that, if realised, could redefine Vietnam’s place in the region and the world.
