According to Gartner, 2020 saw a strong acceleration of DX projects globally. The percentage of DX projects in the implementation and realization phase has risen to 40% last year (2018: 17%) while that in the initialization phase has merely accounted for 60% (2018: 83%).
Gartner also forecasts that due to the acceleration of DX and cost optimization, companies will promote outsourcing IT services and particularly prioritize the IT providers with high-capacity and cost-effective advantages.
Industries that accelerate DX activities in response to the Covid-19 pandemic.
CEOs’ top priority is to remain competitive through pioneering in digital business/digital transformation
Additional spending on DX/technology investment each week by global IT leaders to deal with the Covid-19 crisis
In 2020, with a GDP growth of 2.8%, Vietnam was amongst the fastest-growing economies within the context of the Covid-19 pandemic. According to Statista (Germany), Vietnam’s IT service revenue has been estimated at USD1.12 billion, a slight increase compared to 2019 (at USD1.1 billion).
The low-cost young labour force is one of Vietnam’s considerable advantages, as they can adapt rapidly to innovative science and technology. Vietnam has also become an attractive destination for the supply chain shifts of service and goods. This is thus considered the once-in-a-life-time opportunity for the Vietnam IT industry to enhance its prestige and increase competition on a global scale.
The World Bank forecasts that Vietnam’s GDP growth rate would be at 6.8% in 2021, and stabilizing at around 6.5% in the next couple of years, given the pandemic is under control on a global scale.
According to Fitch Solutions, Vietnam’s GDP per capita expected to increase at a CAGR of 8.3% over the 2021-2024 period, to reach a total of USD3,964 per person in 2024, is a supportive factor for the development of the IT industry. On the other hand, DX trends in manufacturing, retail, public, finance and service sectors will also stimulate the demand for technology spending and investment in the medium-to-long term.