Vietnam’s digital transformation makes a busy year for mergers and acquisitions
Vietnam’s digital economy is estimated to be worth USD43 billion by 2025
As reported by Vietnam News, digital transformation in Vietnam is expected to keep the mergers and acquisitions market busy (particularly in technology), as Vingroup — the country’s biggest conglomerates, led by 2020 PropertyGuru Vietnam Real Estate Personality of the Year recipient, Pham Nhat Vuong — sought to expand into the high-tech sector via the acquisition of state-of-the-art facilities.
The demand to fast track digital transformation has induced many Vietnamese companies like Vingroup to acquire foreign companies instead of constructing technologies from scratch.
In June 2020, Prime Minister Nguyễn Xuân Phúc advocated the national digital transformation programme up until 2025.
Moreover, deputy minister of information and communications Nguyễn Huy Dũng encouraged enterprises at a conference last December to speed up digital transformation as a solution for business growth.
He persuaded each firm to outline its strategic plans, indicating that Vietnamese digital technology companies would be a key role in developing digital infrastructure, platforms, services, and solutions, mastering core technologies and expanding global reach.
Trần Thọ Đạt, chairman of the National Economics University, mentioned that a digital economy would propel productivity and efficiency in the upcoming years, as well as motivate rapid improvement in labour productivity.
He also added that digitisation is necessary for every sector, including real estate, ICT, manufacturing, banking, science and technology, finance, and insurance.
Hoàng Việt Anh, deputy general director of FPT in charge of digital transformation, said digitisation would carry on being an important trend post-pandemic.
“During the toughest and most challenging times, technology is the key to opening up opportunities for growth, optimising operations, improving customer experience, and creating new business models,” he said.
More: COVID-19 triggers digital transformation in Taipei
With the current environment, digital transformation would be critical in allowing companies to influence and shape new realities, he added.
According to a report by Google and Temasek, Vietnam’s digital economy is projected to be worth USD43 billion by 2025, with the fastest growth coming from e-commerce, online travel, online media, and ride-hailing.
The pandemic has also forced companies all around the world to prioritise digital transformation in order to survive. Therefore, mergers and acquisitions are considered the fastest strategy as they would enable firms to surpass various technological disadvantages like the shortage of infrastructure.
Recommended
AI transforms Asia’s real estate sector: Enhancing valuation, customer interaction, and sustainability
From property valuation to measuring sustainability, AI is impacting nearly every aspect of Asia’s real estate industry
Bangkok’s luxury real estate flourishes amid economic challenges
New luxury mega projects boost the top end of Bangkok’s market, but stagnancy reigns elsewhere due to weak liquidity and slow economic growth
Investors shift focus to suburban and regional markets as Australian urban housing prices surge
Investors are gravitating to suburban areas and overlooked towns as Australia’s alpha cities see skyrocketing demand and prices
Hanoi’s air pollution crisis: Balancing urban growth with environmental sustainability
Hanoi’s worsening annual toxic smog is highlighting the pressures of balancing sustainability with rapid economic growth
U.S. tariffs pose challenges to China’s housing market amid economic slowdown
Escalating US tariffs are expected to strain China’s slowing economic growth and dampen buyer confidence, creating trouble for the country’s housing market