Vietnam wants to expand digital technology to international markets

April 26, 2023 | 06:15 pm GMT+7

Going abroad to compete, conquer, and increase revenues is now one priority of all Vietnamese telecoms, digital technology enterprises.


Among giant telecoms, digital technology companies of Vietnam, Viettel and FPT are two successful names in the strategy to enter the global market. In 2022, Viettel’s telecoms income from overseas markets reached US$3 billion, while the figure for FPT was $1 billion. These are the highest revenues of not only the two enterprises but also the telecoms, digital technology business community in the country.

Of FPT’s above earnings, $800 million came from software export and the rest IT, digital transformation service provision to foreign partners. FPT now has offices in 26 nations, with 60,000 employees in various fields, mainly software development. It is expected to earn $1 billion just from software export this year. Maintaining the growth rate of 26 percent, the income of FPT Software is estimated to double in 2026 and to reach $8 billion in 2032.

Chairman of FPT Group’s Board of Directors Truong Gia Binh recalled that his organization dreamt of expanding its market to other nations 23 years ago, with the first two offices being established in Bangalore and Silicon Valley in January 2000. Despite many obstacles and a nearly depleted budget, it still persisted with its goals and at last achieved them thanks to its determination.

Do Cao Bao, member of the Board of Directors of FPT Group, commented that software export is able to let the world be aware of Vietnamese intelligence, offer jobs to thousands of people, and earn foreign currency to the country, contributing to the national payment balance as well as stabilizing the national currency.

Viettel Group is investing in the telecoms field in 10 foreign markets of Mozambique, Myanmar, Haiti, Burundi, Timor Leste, Tanzania, Cameroon, Laos, Cambodia, and Peru. In 2022, its revenues from overseas markets for the first time reached $3 billion, equal to the domestic ones. The foreign currency repatriated to Vietnam last year came to $500 million, the highest in the last 5 years. In general, nearly 70 percent of its investments to international markets returned back to the country.

Since IT markets are limitless, domestic businesses in the field should go abroad to seek new opportunities. English-speaking markets do be more competitive, so aiming at non-English-speaking countries could provide more chances for success, as long as the Vietnamese staff are able to communicate in local languages.

Chairman and General Director of Viettel Group Tao Duc Thang recalled the time Viettel Global was established in 2006 to enter global markets. He then stressed that investing in foreign markets means facing high risks and tough challenges, including differences in culture, language, political institution, and law as well as instability in politics, exchange rate and a lack of companions to share these burdens.

During the journey from 2006-2022, Viettel tried its best and its brand value (worth $9 billion) was able to stand at the 17th position in the global telecoms community and the first in Southeast Asia. All lessons accumulated so far have made the enterprise more confident in helping Vietnam to renovate itself through digital transformation.

The success of Viettel and FPT have become the foundation for other domestic technology-telecoms companies to boldly enter overseas markets and achieve success of their own.

Minister of Information and Communications Nguyen Manh Hung stated that expanding the market to other nations is a tough yet glorious mission to help Vietnam transform into a developed high-income country by 2045.

Observing the motto ‘the State makes ways and experienced pioneers provide aid’, in the upcoming time, the Information and Communications Ministry (MIC) is going to host conferences and forums to promote investments in digital commerce and digital technology booths in international fairs at least once a month. Meanwhile, it will consult the Government to sign agreements of digital partnership with other countries. All are to catch the valuable chance of using digital technologies to conquer overseas markets.

Deputy Director Nguyen Thien Nghia of the Authority of Information Technology and Communication Industry – MIC said that domestic digital technology enterprises now have various opportunities to introduce ‘Make-in-Vietnam’ products to any nations in need to carry out the digital transformation process, and thus becoming global digital technology corporations.

Using the advantages of the dynamic, innovative human resources that are highly competitive, these Vietnamese companies can conquer the world. MIC has decided to aid them by working with diplomatic agencies, commercial investment representatives of many nations to seek even more chances to expand their markets.

Vice Chairwoman and General Secretary of Vietnam Software and IT Services Association (VINASA) Nguyen Thi Thu Giang reported a recent survey done by VINASA on 63 IT businesses about their current status and concerns when entering international markets. The survey reveals that domestic companies prioritize markets in the US, Europe, and Southeast Asia.

For the last 2 years, the national digital transformation has received much attention from state agencies, ministries, local authorities, and businesses in the field. The Covid-19 pandemic has accelerated this process nationwide and boost the shift of giant manufacturers in the world into Vietnam. These are the conditions to promote the application of IT products in all aspects of life all over the country, and in turn the growth of IT companies.