Vietnamese Tech Companies: From Local Pioneers to Global Powerhouses

The Rise of Vietnam’s Tech Industry: From Humble Beginnings to Global Ambitions

Vietnam’s technology sector has undergone a remarkable transformation over the past three decades. Once defined by limited infrastructure and a lack of global experience, Vietnamese tech companies now stand at the forefront of international markets, exporting digital solutions, software, and innovation worldwide. This journey from local pioneers to global powerhouses is not just a story of economic growth but also of resilience, adaptability, and strategic vision.

Today, Vietnam’s tech industry is recognized globally for its rapid expansion, skilled workforce, and increasing presence in high-value markets. In 2024, the country’s revenue from international tech markets soared to $11.5 billion, up from $7.5 billion just a few years earlier. With over 52,000 digital businesses and more than 1,500 earning revenues overseas, Vietnam is no longer just a destination for outsourcing but a source of innovation and global competitiveness.

How Did Vietnamese Tech Companies Go Global?

The journey began in the late 1990s, when companies like FPT and Viettel made bold moves to enter international markets. At the time, Vietnam’s tech sector was in its infancy, with only about 2,000 programmers—most lacking English proficiency and global experience. Despite these challenges, FPT’s leadership adopted an “export or die” strategy, investing all its cash reserves to train programmers and pursue software exports. Viettel, then a small telecom company, also set its sights abroad, launching projects in Cambodia and Laos as a way to learn, compete, and secure its future.

Early attempts to break into markets like the United States and India were met with setbacks. The 2000 dot-com crash wiped out potential partners, and a lack of brand recognition made it difficult to win business. However, Vietnamese companies adapted quickly. FPT shifted focus to Japan, a market with strict standards but steady demand for offshore software development. By building development hubs, acquiring new technologies through mergers, and expanding into Singapore, Europe, and the US, FPT gradually established itself as a global player.

Viettel, meanwhile, faced unique challenges in developing countries, from cultural and legal barriers to natural disasters and political unrest. In Mozambique, for example, Viettel engineers risked their lives to restore networks after floods and storms. Their perseverance paid off: Viettel now operates in 10 countries across three continents, serving 90 million users and leading the mobile market in seven of them.

New Generation, New Strategies

The new wave of Vietnamese tech firms, such as Rikkeisoft, Amanotes, Elsa Speak, Sky Mavis, and Kyber Network, were born global. Founded by engineers with international experience, these companies designed products for global users from the outset. Rikkeisoft, for instance, boasts over 1,000 completed projects in the US with a 97% client retention rate, while Amanotes’ music games have been downloaded more than 3.5 billion times in 190 countries.

These companies have embraced a “fail fast, learn faster” mindset, adapting products to local markets, leveraging artificial intelligence for content creation, and focusing on digital platforms that scale internationally. By targeting overseas markets first, they compete directly with global players, accelerating their learning curve and market reach.

Why Is Vietnam Attractive for Global Tech Talent and Investment?

Vietnam’s appeal as a tech hub is rooted in several key factors:

• Young, Skilled Workforce: Over 1.67 million IT workers, with more than 50,000 new graduates annually, provide a deep talent pool. The majority of the population is under 35, and English proficiency is rising.
• Cost-Effectiveness: Hiring Vietnamese tech professionals is significantly more affordable than in developed economies, allowing companies to access high-quality skills while maintaining financial efficiency.
• Government Support: Heavy investment in STEM education, digital infrastructure, and innovation hubs has fueled growth in semiconductors, AI, and green energy.
• Strategic Location: Vietnam’s proximity to major Asian markets, political stability, and integration into global supply chains make it an attractive base for regional operations.

International tech giants have taken notice. NVIDIA is establishing an AI research and data center in Vietnam, Google has launched a local entity to support digital transformation, and Apple supplier Foxconn is investing in chip manufacturing. These moves signal Vietnam’s shift from a low-cost manufacturing destination to a center of tech innovation and talent.

Global Partnerships and Ecosystem Development

Vietnamese companies are increasingly forming strategic partnerships to accelerate their global expansion. FPT’s collaboration with Equinix, a global data center provider, has enabled Vietnamese firms to access high-speed, low-latency connectivity for international operations. Similarly, Viettel’s partnership with Dassault Systèmes focuses on deploying advanced AI, digital design, and simulation technologies to drive innovation in manufacturing and R&D.

These alliances not only provide access to cutting-edge technologies but also foster talent development, upskilling, and knowledge transfer—key ingredients for sustainable growth in the digital age.

Policy Reforms: Building a Legal Framework for Global Competitiveness

Recognizing the importance of digital technology for economic growth, the Vietnamese government has enacted sweeping reforms to support tech exports and internationalization. The Digital Technology Industry Law, passed in July 2024, is the world’s first comprehensive legislation dedicated to the digital sector. It consolidates regulations for AI, cryptocurrencies, and tech startups into a single framework, aiming to:

• Grow the number of tech companies to 150,000 by 2035
• Encourage Vietnamese brands to become global players
• Offer tax and financial incentives for tech firms and foreign investors
• Support talent development through education funding, tax exemptions, and simplified visa processes
• Establish Digital Technology Offices abroad and special tech zones for sectors like semiconductors and green technology

This integrated approach is designed to simplify management, attract investment, and provide clarity for entrepreneurs. It also introduces a regulatory sandbox for blockchain and FinTech, allowing innovative business models to be tested under state supervision.

Challenges on the Road to Global Leadership

Despite these advances, Vietnamese tech companies face significant hurdles:

• Workforce Quality: While the talent pool is large, there is a shortage of highly skilled professionals in advanced fields like AI and semiconductors. Retaining top talent, who are often lured abroad by higher salaries, remains a challenge.
• Brand Recognition: Vietnamese tech brands are still relatively unknown in many international markets, making it harder to win contracts and build trust.
• Market Access Barriers: Stringent legal frameworks on intellectual property, cybersecurity, and export controls in markets like the US and Europe can limit entry and growth.
• Limited State Support: Funding for trade promotion and ecosystem development is still modest compared to regional competitors.
• Value Chain Position: Most companies remain focused on outsourcing and service delivery. Moving up the value chain to consulting, solution design, and proprietary product development is essential for long-term competitiveness.

Experts and industry leaders emphasize the need for a more integrated ecosystem, improved IT education, and a coordinated national campaign to promote Vietnam’s tech image globally. Building shared offices in major tech hubs, increasing trade promotion budgets, and fostering international collaboration are seen as critical next steps.

Case Studies: Vietnamese Tech Success Stories

FPT Corporation: From Outsourcing to Digital Transformation

FPT’s journey epitomizes Vietnam’s tech evolution. After initial setbacks in the US and India, FPT found success in Japan by focusing on offshore software development. The company then expanded through mergers and acquisitions, building a global presence in digital transformation, AI, and cloud computing. By 2024, FPT’s US market revenue had surged to $1.7 billion, with contracts from Fortune 500 companies and a growing portfolio in hardware and automotive technology.

Viettel Group: Telecom Pioneer in Emerging Markets

Viettel’s international expansion began with projects in Cambodia and Laos, eventually reaching 10 countries across three continents. The company’s willingness to invest in infrastructure, adapt to local conditions, and persevere through adversity has made it a leader in several markets. Strategic partnerships, like the one with Dassault Systèmes, are now helping Viettel move into high-tech sectors such as AI, robotics, and smart manufacturing.

Rikkeisoft and Amanotes: Born Global Startups

Rikkeisoft, founded by engineers trained in Japan, quickly adapted to international standards and built a reputation for quality and professionalism. Its rapid growth in Japan and the US demonstrates the potential of Vietnamese startups to compete globally. Amanotes, a music game company based in Ho Chi Minh City, leveraged AI and a global-first mindset to achieve 3.5 billion downloads in 190 countries, becoming a leader in its niche.

International Validation and Collaboration

Vietnam’s rise has attracted attention from global tech giants. NVIDIA’s investment in AI research, Google’s local expansion, and Foxconn’s chip manufacturing projects are just a few examples. These investments bring not only capital but also exposure to cutting-edge technologies and international best practices, further strengthening Vietnam’s tech ecosystem.

What’s Next for Vietnam’s Tech Industry?

Vietnam’s ambition is clear: to move from being the world’s factory to a center of tech innovation and leadership. The groundwork is in place—favorable demographics, government support, and a growing reputation for quality and reliability. However, realizing this vision will require:

• Continued investment in education and talent development, especially in advanced fields
• Streamlined regulations and fast-track procedures for startups and innovative companies
• Enhanced intellectual property protection and cybersecurity standards
• Greater international collaboration and bilateral agreements with leading tech nations
• Promotion of Vietnamese tech brands through coordinated marketing and trade initiatives

As digital transformation accelerates worldwide and developed countries face acute shortages of tech talent, Vietnam’s position as a trusted IT destination is only set to strengthen. The challenge now is to climb higher in the global value chain, moving from outsourcing to innovation, and from service delivery to solution leadership.

In Summary

• Vietnam’s tech industry has evolved from local beginnings to a global force, with $11.5 billion in international revenue in 2024.
• Early pioneers like FPT and Viettel paved the way for a new generation of globally minded startups.
• Key strengths include a young, skilled workforce, cost-effectiveness, and strong government support.
• Major international investments from companies like NVIDIA and Google are accelerating Vietnam’s tech transformation.
• Policy reforms, including the Digital Technology Industry Law, aim to boost exports and global competitiveness.
• Challenges remain in talent retention, brand recognition, and moving up the value chain.
• Vietnam’s ambition is to become a world-class tech hub, exporting not just services but innovation and leadership.