Business Talk – Vietnam’s Digital Boom: Growth of the IT and Digital Services Sector in Ho Chi Minh City

Business Talk – Vietnam’s Digital Boom: Growth of the IT and Digital Services Sector in Ho Chi Minh CityProjected to exceed $169 billion by 2025, Vietnam’s tech industry is experiencing explosive growth, positioning the country as a digital innovation leader in Southeast Asia. Global tech giants are taking notice—Elon Musk, for example, recently confirmed the launch of Starlink in Vietnam to expand satellite internet services.

With nearly 74,000 digital enterprises—90% of which are small or micro-businesses—Vietnam’s IT ecosystem thrives on a dense network of local players. These businesses are the real drivers of the country’s digital transformation, far beyond the internationally known startups.

Da Nang is emerging as Vietnam’s new digital development hotspot. Home to several specialized tech parks, including the Da Nang Concentrated IT Park with over 10,000 employees, the city is investing heavily in semiconductors, artificial intelligence, and cloud technologies. An international community of digital nomads, developers, and engineers is fueling its fast-growing tech scene.

Yet Ho Chi Minh City remains the digital heartbeat of Vietnam, hosting a large share of the country’s startups, IT hubs, and neighborhood tech services.

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🚀 INSIDE THE ECOSYSTEM

What makes Vietnam’s digital growth so dynamic?We sat down with two entrepreneurs who are living it from the inside out.

In this episode of our Business Talk series with Relocation Vietnam, we met with Hien and John, founders of New IT, a local tech company based in the Thao Dien district of Ho Chi Minh City. They offered insights into how grassroots businesses help sustain Vietnam’s digital momentum during this period of rapid change.

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Hi Hien and John, thank you for speaking with us. You’ve both lived in Vietnam for some time now. How do you see the country evolving today?

Hien: Of course! I’ve always lived in Vietnam, and while John arrived more recently, we both witness daily how fast things are changing here. Every sector—construction, design, hospitality, e-commerce, crafts—is booming. There’s a strong desire to innovate, create, and move forward. Even small businesses can make an impact and carve out space in the ecosystem. Unlike some other countries, there’s no invisible ceiling holding people back. What I love is that you can start small, learn, adapt, and grow. It’s a unique energy—driven by both Vietnamese and expats. We’re seeing more and more foreigners launching their own ventures here.

John: This growth mindset is deeply connected to digitalization—it’s everywhere. As businesses grow, so does the demand for IT, and the booming tech sector, in turn, creates more opportunities for entrepreneurs.

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Vietnam is often described as a rising tech hub in Asia. Do you think the country has the potential to become a true digital powerhouse?

John: The numbers speak for themselves. There are now around 80 million internet users in Vietnam, and more than 84% of adults own a smartphone—an increase of 8.5 million people since 2022. Phones have become essential tools for work, education, and social life. This digital reliance goes beyond individuals—freelancers, cafés, small shops, and local businesses all depend on simple, reliable tech solutions. On top of that, e-commerce is growing at around 20% per year, accelerating the spread of digital services even in rural areas. Vietnam’s digital transformation is happening fast—and in very real, tangible ways.

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Unlike many Western countries, Vietnam doesn’t have large centralized tech retailers. How do people—both individuals and businesses—access digital services?

Hien: That’s right. We don’t have big tech chains here like Best Buy, Currys, or Amazon covering everything. In Vietnam, people turn to small, specialized neighborhood stores for their tech needs—repairs, software, support. Each shop has its niche, whether it’s phone repairs, web development, or data recovery. This decentralized network forms a local, fast-growing digital ecosystem—especially visible in cities like Ho Chi Minh City.

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And in Ho Chi Minh City, we assume this model is even more prominent. What sets this city apart digitally, in your opinion?

Hien: Ho Chi Minh City is without a doubt Vietnam’s most tech-driven city. It has the highest concentration of digital businesses in the country, making it a true IT hub. For many expats and professionals moving here, this digital vibrancy is a real opportunity—whether to start a business or access reliable services. In this fast-paced context, neighborhood tech shops play a vital role in ensuring daily digital continuity. They offer essential services like laptop setup, phone repairs, data recovery—simple but crucial things that keep everything running. This local mesh forms the backbone of the broader ecosystem.

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Let’s talk about your own business. What motivated you to open New IT, which began as a small phone repair shop?

John: The idea came from a real need. Back then, you had to cross the entire city to fix a phone or computer—there were no local IT services in Thao Dien. As an expat, I know how isolating it can be to live without digital tools, especially when you’re new to Ho Chi Minh City. That gap inspired the creation of New IT.

Hien: By addressing a real, consistent demand, we’ve built a loyal customer base. Today, about 60% of our clients are expats, and 40% are locals. Our location in Thao Dien and the way we communicate with customers help build trust with both communities.

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It sounds like New IT has grown since its launch. What services do you offer now?

Hien: We started with phone and computer repairs, and sales of used devices. As more clients asked for websites or software, we expanded our offerings. Today, New IT operates across three main service areas. First, repair & sales of electronic devices (phones, laptops, all brands), with on-site diagnostics to minimize delays. Then custom development of websites and software—especially valued by local businesses. And more recently, automation & data analysis—a growing segment that many companies are now exploring.

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🔧 Local Innovation, Global Mindset From neighborhood tech shops to scalable solutions—Vietnamese SMEs are redefining what it means to grow sustainably in tech.

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That’s great! Looking ahead, what are your plans for the future?

John: So far, we’ve grown in response to client demand. But now, we want to shift toward anticipating their future needs. That means growing our team, improving our workspace, and offering more complete services for both individuals and businesses. We’re not trying to become a big company overnight. Our goal is to grow steadily and build something solid—without losing our identity.

Vietnam’s fast-growing IT sector is not only shaped by global tech giants or high-profile smart city projects. Local businesses like New IT play a key role in delivering digital continuity on a human scale. Thanks to their deep roots in the community, agility, and customer-focused approach, they address real needs—both for consumers and companies.

From the vibrant streets of Ho Chi Minh City to rising digital hubs like Da Nang, a new generation of tech players is transforming Vietnam’s economy and making it increasingly attractive to expats, digital entrepreneurs, and investors alike. In doing so, Vietnam is rapidly emerging as one of the most promising and open tech ecosystems in Southeast Asia. 📍 Visit New IT in Ho Chi Minh City 26 Thảo Điền, Thủ Đức, Hồ Chí Minh 700000 Open daily until 7:00 PM Phone: 0901 100 534

Trusted IT support and services in the heart of Thảo Điền.

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