The prospect of IT Industry
Increasing investment in technology
In the two years since the pandemic appeared, every business, organization, and individual has realised and experienced the power of technology. Production, business, practice, and management activities all need technology to ensure efficiency, continuity, and sustainability. As a result, investments in technology are expected to grow at a steady rate not only in 2022 but also over the next decade.
Unit: billion USD
1,280
↑7.9%
672
↑11.9%
226
↑4.7%
Source: Gartner forecast for IT spending in 2022
The forecast of IDC – the world’s leading IT market data provider – also shows that investment in global digital transformation is still increasing with a compound annual growth rate (CAGR) to reach 15.5% over the period of 2020 to 2023.
IDC also confirms that digital transformation investment will continue to rise. By the end of 2022, 70% of organizations and businesses will accelerate digital transformation in order to transform current operating processes to enhance customer interaction, improve labour productivity and promote business resilience.
According to Comptia, in 2022, the financial situation of businesses will be strengthened. Hence, there may be more room for technologyy investment in 2022. In the current era, focusing on technology has never been considered as essential as it is now.
Highlights of the national digital transformation goals by 2025
Much lower than 2021
Lower than 2021
Equal to 2021
Higher than 2021
Much higher than 2021
Significant tech trends
With the increase in investment budget, according to Compita, there are two areas that IT professionals see as having peak significance. Firstly, those are innovative, advanced technologies with more strategic approaches. Secondly, are collaboration tools which bear huge significance when the working environment has changed as dramatically as it has during the pandemic and now requires much greater flexibility.
Among innovative technologies, moving to Cloud is a top priority. According to Gartner, about 95% of new technology workloads will be deployed on the Cloud by 2025, compared with 30% in 2021. As a result, revenue from this segment in 2022 could reach 474 billion USD globally, increasing by 16.2% over the previous year.
Whether dealing with internal stakeholders or external customers, companies emphasise the importance of user experiences. Accordingly, Artificial Intelligence and Machine Learning will make greater steps forward this year as companies pursue increasing competitive advantages using intelligent algorithms.
In addition, 2022 will see technological leaders innovate to achieve business continuity success and support employee productivity using technology to promote hybrid/remote working models.
In particular, with AI and machine learning being used to make the Internet of Things (IoT) devices smarter and more secure, by 2022, more than 80% of IoT initiatives will integrate these technologies.
According to Fortune Business Insights, the AI market size is forecasted to increase from 47.47 billion USD in 2021 to 360.36 billion USD in 2028, with a CAGR of 33.6% during this period.
The Big Data market size will rise from 162.6 billion USD in 2021 to 273.4 billion USD in 2026, with an 11% CAGR during the period. In addition, the global digital conversion market size will be up from 522 billion USD in 2021 to 1,248 billion USD in 2026, with a CAGR of 19.1% (2021-2026).
In 2022, the Ministry of Information and Communications aims to comprehensively accelerate the national digital transformation development in all three pillars: digital governance, digital economy, and digital society. The core missions will be accompanying government ministries and agencies and nationwide localities and creating breakthroughs in promoting residential and land databases.
Successful national digital transformation will contribute to (i) stimulate the recovery of the economy with large investment projects in technological infrastructure, an opportunity to revive domestic technological enterprises, (ii) establish a potential market for the digital economy (total value is forecasted to reach more than 360 billion USD by 2025) and (iii) help the digital economy reach all people and households as diminishing the digital gaps in society has been identified as a vital premise for socio-economic development.
More specifically, in 2022 and the coming years, the Ministry of Information and Communications has identified 03 critical tasks to focus on in order to realise the set digital transformation goals by 2025.
First of all, Vietnam’s Government needs to develop significant national digital platforms to accelerate digital transformation. These are key technological platforms that help develop the Digital Governance, Digital Economy and Digital Society.
Secondly, the interconnection ensures the smooth and consistent sharing and storage of data, helping create, enrich and effectively exploit data resources as well as bringing more added values to the Government, organisations, and individuals.
Last but not least, digital transformation helps improve public service quality based on the data collected by the interconnected data warehouse.
Digital platforms and data warehouses are expected to contribute to the Government’s rapid recovery and future socio-economic development.
Highlights of the national digital transformation goals by 2025
Towards digital government to improve operational efficiency
- 80% of online public services at level 4.
- 90% of work records at ministerial and provincial levels are online, while 80% of work records at the district level and 60% of work records at the commune level are processed online.
- 100% of national databases are online and connected.
- 50% of the inspection of state management agencies are done through digital systems and information systems.
- Vietnam is in the top 70/193 leading countries in e-Government EGDI.
Towards digital economy to enhance the global competitiveness
- The digital revenue accounts for 20% of GDP
in IT (IDI)
in Innovation (GII)
Towards digital society to narrow down digital gap
- Fiber optic internet infrastructure covers 80% of households and 100% of communes
- Universalisation of 4G/5G mobile network services and smartphones
- 50% of the population has a digital checking account
- Vietnam is in the Top 40 leading countries in cyber safety and security
Due to the Covid-19 crisis, businesses are boosting information technology and are ready to invest more appropriately in digital transformation. More than ever, we must agree that technology is a powerful tool that helps develop business models, create innovative solutions, products, services and improve governance efficiency, resource use, and inform decision-making as well.
According to the 2021 Annual Report on Business Transformation published by the Department of Enterprise Development (under the Ministry of Planning and Investment), in more than 1,000 Vietnamese businesses, 57% of them had searched for online marketing solutions, 53.7% needed internal business operation solutions. Other demands were digital transaction solutions (43%) and network and data infrastructures (39.6%).
For developing businesses that were on the track of acceleration, the most considerable demand in this period was data analysis and intelligent reporting (BI, Big Data, Data warehouse), with 63.5% of total participants selected. In addition, 60.7% of the total needed CRM solutions and Omni channel sales management. The remaining two solutions, including Enterprise Resource Planning (ERP) and Database & Security, have similar requirements of 57.8% and 50.2%, respectively.
The Covid-19 pandemic has hit the entire economy and many aspects of people’s social lives. Researchers pointed out that up to 06 technological areas will be greatly advanced, including Remote working; Online education; Telemedicine; Autonomous driving vehicles; Online shopping; industries; Virtual events and exhibitions in cyberspace.
Information technology enterprises are expected to benefit from digital transformation in Vietnam and worldwide. Moreover, the increase of technology investment packages will also facilitate businesses in the information technology and telecommunications industry to grow strongly.