Technical processing at VNPT Centre Hanoi Transmission Room. (Photo: VNA) Even under the attraction of the field of telecommunications technology,mergers and acquisitions activities in this industry have been promoted.
Analyst Chu Duc Toan from VNDirect Securities Joint Stock Company said thedigital transformation revenue growth rate is expected to be up 18% thisyear compared to last year and could double that of traditional ITservices, showing great potential in the market.
Like the rest of the world, the Vietnamese economy is also undergoingdigital transformation.
Accordingto the National Digital Transformation Program to 2025, with a longer-termvision to 2030, Vietnam’s digital economy will account for 20% of GDP by 2025.
Vietnam has launched the "Make in Vietnam 4.0" Programme to preparefor the Fourth Industrial Revolution.
This programme will facilitate the development of new industries and encouragenew policies, thinking and technologies in line with Industry 4.0 and ambitionstowards the digital economy.
In the context of strong digital transformation, the Government, organisationsand businesses in Vietnam have actively received and participated in activitiesto catch up with the trend of the Fourth Industrial Revolution.
The government is promoting the development of the digital economy through aseries of mechanisms and policies. These policies have recently been reinforcedby the Prime Minister's Directive No 16/CT-TTg on strengthening theaccessibility to the Fourth Industrial Revolution.
Accordingto the e-Conomy SEA 2021 report by Google, Temasek and Bain, Vietnam’s digitaleconomy is predicted to reach a value of 52 billion USD by 2025, with acompound growth rate of 24% and ranking third in Southeast Asia.
Vietnam is also a pioneer in 5G technology. 5G network opens a new era for aseries of technologies in Việt Nam, which is among the countries with thefastest internet growth globally.
According to Internet World Stats, internet subscribers have increased 343times from 2000 to 2021.
Thegrowth potential for fixed broadband internet in Vietnam is still outstanding,with the coverage rate at about 21 subscribers/100 people, which isrelatively low compared to the Southeast Asia average of 38 subscribers/100people.
Vietnam has become one of the pioneer countries to successfully set up phonecalls on the 5G technology platform.
Cisco forecast that the number of 5G subscribers in Vietnam will reach 6.3million by 2025.
Moreover, the early deployment of 5G services could help Vietnamese mobilecarriers increase revenue by $300 million annually starting in 2025.
Vietnam may soon become one of the first Southeast Asian countries to launch a5G network, with domestic telecommunications companies racing to develop thefirst national network (Viettel, Vinaphone, Mobifone).
With the advent of breakthrough 5G technology, technology firms face manyopportunities to develop modern applications to diversify their products andservices.
Thereis also a high demand in the data centre market in Vietnam. The Vietnamesegovernment's digitalisation trend has facilitated increased demand for datacentres nationwide.
Moreover,converting enterprise data to the cloud platform drives the Vietnamese datamarket.
Thishas led to an increase in the application of data storage solutions, which willpositively affect the market's growth.
Inaddition, the rising adoption of big data, the Internet of Things (IoT) andcloud-based technology solutions, among others, are expected to accelerate anddrive market growth until 2026.
Accordingto research and reporting firm Research And Markets (Ireland), Vietnam’s datacentre market is forecast to grow at a compound rate of over 14.6% until 2026.
With political and social stability, and few natural disasters likeearthquakes, experts from VNDirect said that Vietnam has the necessarycharacteristics to become a big data centre market in the region.
Toan said that mergers and acquisitions (M&A) activities are promoted underthe attraction of the technology sector.
In recent years in Vietnam, the M&A market in the technology sector hasbeen growing rapidly, especially in enterprises that own or invest in advancedtechnology and have a large customer database.
The difficult global economy opens up opportunities for businesses with largeamounts of cash; despite widespread uncertainty, technology M&A activitiesare continued and fueled by strong private capital flows.
Althoughconditions in capital markets have tightened in the first half of last year,many businesses still have large amounts of cash ready to be disbursed.
Amongthe listed technology companies in Vietnam, for example, FPT Joint StockCompany is an enterprise with abundant cash, and has actively carried out manyM&A deals in the past two years./.
VNA
