Business News

Vietnam is advancing new mechanisms and incentives to strengthen workforce quality as part of a strategy to engage high-tech investment and enhance its economic competitiveness. The government announced at a recent National Assembly (NA) session that it would increase investments in education and training quality in the next few months.

To harness its vast renewable energy potential, which Statista estimates at 120.30 billion kWh with an annual growth rate of 3.39 per cent from 2024 to 2029, Ninh Thuan, the region with the most favourable natural conditions in Vietnam for such development, recognises that without a skilled workforce, natural advantages alone cannot drive the industry towards sustainable growth.

The Ministry of Information and Communications has, as of 2024, granted licences for frequencies to deploy 5G networks to major operators like Viettel and VNPT, with the goal of achieving nationwide coverage by 2030. Viettel, the first network to successfully test commercial 5G technology in 2019, has now expanded testing to 61 provinces and cities nationwide.

The rapid development of the technology market creates numerous job opportunities and poses significant challenges for businesses. One of the most notable challenges is the shortage of skilled professionals. According to the Ministry of Information and Communications, Vietnam's IT market needs to add at least 500,000 technology workers in 2025 to meet demand. This necessitates a pressing need for businesses to implement upskilling and reskilling programmes for their employees.

Mobile network operators in Vietnam are rapidly deploying 5G infrastructure, poised to unlock new revenue opportunities for themselves and for domestic and international technology firms. This advancement is set to play a pivotal role in accelerating the country’s digital transformation and fostering the development of its digital economy.

To commercialize 5G nationwide, in 2019, MIC granted testing licenses to carriers and issued many support policies to promote 5G network and application development. Meanwhile, Vietnamese telecom firms have also constantly invested, researched and implemented many activities to develop and expand 5G network operations.

Accordingly, the State Bank of Vietnam was assigned to partner with the Ministry of Information and Communications, the Ministry of Public Security, the Ministry of Justice, and relevant agencies to review and report the issuance of legal documents regulating Mobile-Money service before May 2024 to competent authorities.

According to a report by Tracxn, a global SaaS-based market intelligence platform, the fintech sector in Vietnam has experienced a significant downturn in funding throughout 2023, largely attributed to the lingering effects of the funding winter and the prevailing global macroeconomic uncertainty.