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 

A digital economy would propel productivity and efficiency in the upcoming years. VietnamStockImages/Shutterstock

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 solutionsmastering 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.