Editor’s note: Discover Vietnam Tech is a new series where we dive deep into the vibrant and rapidly growing tech and innovation ecosystem of Vietnam. In this collection of interviews and editorials, we will spotlight key players—entrepreneurs, innovators, and thought leaders—who are driving the country’s emergence as a global tech hub.
Through candid conversations with industry leaders, we aim to explore the opportunities, challenges, and breakthroughs shaping Vietnam’s tech landscape. From emerging technologies like AI and blockchain to the nation’s efforts to nurture homegrown talent and innovation, Discover Vietnam Tech will give you exclusive insights into how Vietnam is positioning itself at the forefront of the global technology scene.
Stay tuned as we highlight the voices and visions of those at the heart of Vietnam’s tech revolution, offering a unique window into the country’s potential as a leader in innovation and digital transformation.
As someone who has been deeply involved in Vietnam’s tech ecosystem, I want to share my thoughts on the unique opportunities and challenges we face compared to other Southeast Asian countries. While the potential for growth is immense, what I’d like to emphasize most is the human factor. Vietnam is a country with a young, dynamic workforce. Our engineers are not just skilled, but they are quick to adapt to new technologies and solve real-world problems. This is one of the biggest differentiators I see in our tech community, especially among the younger generation.
With emerging technologies like blockchain and Web3, Vietnam remains a bright spot on the global map. Many Vietnamese-developed products are now being embraced by the world, and numerous startups originating from Vietnam are pioneering new and exciting fields. This ability to innovate and disrupt at a global level sets Vietnam apart, and it’s something we can all take pride in.
However, brain drain continues to be a significant challenge for our tech and startup ecosystem. While we’ve seen many tech talents from around the world return to Vietnam to contribute to its development, a considerable number of young professionals are being recruited by global corporations. This poses a serious challenge to the long-term sustainability of our tech sector. How do we nurture and retain talent? This is a long-term puzzle that businesses and the government must solve together.
Opportunities
- Young, tech-savvy workforce: One of Vietnam’s greatest assets is its young population, with a median age of around 32 years. Over 70 percent of the population is connected to the internet, and smartphone adoption is widespread. This generation of engineers, especially, is highly adaptive. They don’t just learn new technologies—they master them quickly and apply them to address local and global challenges. I see this most clearly in areas like blockchain and AI, where young Vietnamese professionals are leading the charge. It’s this speed of adoption and practical application that sets Vietnam apart in the global tech scene.
- Competitive labor costs: Compared to other tech hubs in Southeast Asia, Vietnam’s labor costs are incredibly competitive. According to JLL’s 2023 report, the average salary for a software developer in Vietnam is approximately $18,000 per year, far lower than the $40,000 to $60,000 per year in Singapore. This makes Vietnam an attractive destination for outsourcing and tech investments, and we’re seeing more and more foreign tech companies setting up shop here to take advantage of this cost-efficiency.
- Booming digital economy: Vietnam’s digital economy is growing at a remarkable pace. A recent report from Google, Temasek, and Bain (2022) predicts that our digital economy will reach $49 billion by 2025, with a growth rate of 29 percent annually. This growth is driven by strong demand in sectors like e-commerce, fintech, and digital payments. With a growing middle class and increased internet penetration, Vietnam is on track to be a leading digital economy in the region.
- Government support for innovation: The Vietnamese government has shown its commitment to supporting innovation through programs like the “National Innovation Network.” These initiatives foster an environment where startups can thrive, and they position Vietnam as a future leader in AI, blockchain, and fintech. I’m confident that with continued government backing, Vietnam will remain a competitive player in Southeast Asia’s tech landscape.
Challenges
- Infrastructure gaps: While Vietnam is making great strides in tech development, we still face challenges when it comes to infrastructure. Internet speed, for instance, is an area that needs improvement. According to Ookla’s Speedtest Global Index (2023), Vietnam ranks 60th in the world for internet speed, which puts us behind regional leaders like Singapore and Malaysia. For us to fully capitalize on our tech talent and digital economy, this gap in infrastructure must be addressed.
- Talent shortage and brain drain: One of the biggest challenges we face is retaining talent. As much as we have a highly skilled tech workforce, we’re struggling to keep our best and brightest here at home. According to Navigos Group (2023), 70 percent of IT companies in Vietnam report difficulties in recruiting talent in key fields like AI, blockchain, and cybersecurity. More concerning is the issue of brain drain—many young tech professionals are being headhunted by global tech giants. As a country, we need to ask ourselves: How do we not only attract talent but keep them here to continue contributing to Vietnam’s growth?
- Cybersecurity threats: As our digital economy expands, so too does the risk of cybersecurity breaches. Vietnam has seen a significant rise in cyberattacks, with over 52 million recorded in the first half of 2023 alone. This makes us one of the top targets in Southeast Asia. For businesses and the government, cybersecurity must become a top priority if we are to protect the gains we’ve made in our digital economy.
- Fragmented startup ecosystem: Finally, while we have a vibrant startup ecosystem, it remains somewhat fragmented. We lack the strong venture capital networks and collaborative ecosystems seen in places like Singapore and Indonesia. To compete at the same level, we need more cooperation between large tech companies, startups, and investors. This will help create a more cohesive and supportive environment for innovation.
Looking ahead
Vietnam’s tech sector is filled with immense opportunities. We have a young, talented workforce and a rapidly growing digital economy, but we must also address critical challenges like brain drain, infrastructure gaps, and cybersecurity. For Vietnam to fully realize its potential, it will take collaboration between businesses, the government, and the tech community. We’ve already proven that we can innovate and lead in emerging technologies; now it’s about creating the right environment to retain our talent and sustain our growth.
As the co-founder and CEO of–or the brain behind–LIFE AI, Dr. Tuan Cao leads the biotech company with a pioneering vision: empowering billions to own, use, and benefit from their genetic data. His career prior to LIFE AI includes roles as a Principal Research Scientist at Datometry and a senior position at Google, where he led the overhaul of the Google Adwords reporting engine. Dr. Cao’s academic credentials include a PhD in Computer Science from Cornell University, over ten peer-reviewed scientific publications, and three patents. Beyond his professional life, he is an avid long-distance runner and endurance cyclist, passions that inform his drive and endurance in the biotech sphere.
This contribution was originally published as part of a TNGlobal Q&A with Dr. Tuan Cao as part of Discover Vietnam Tech series. Read the full interview here.
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