Looking back at 2024: Key IT events

Turn off 2G.

According to the National Digital Transformation Program until 2025, Vietnam aims to build a digital society and narrow the digital divide by popularizing 4G/5G mobile network services and smartphones by 2025, and moving towards popularizing 5G mobile network services by 2030.

At midnight on October 16th, mobile network operators in Vietnam completed the shutdown of 2G networks, transitioning all mobile devices to operate on the 4G network. In the first 10 months of 2024, approximately 18 million 2G subscribers were upgraded to 4G, with a large proportion switching to smartphones. This enables people to utilize digital services and become modern-day digital citizens.

These figures demonstrate the success of the 2G shutdown roadmap implemented by the Ministry of Information and Communications, localities, and telecommunications enterprises. This is an important milestone for Vietnam to move closer to the goal of 4G and 5G universalization, promoting the digital economy and ensuring that no one is left behind in the national digital transformation process.

The National Assembly passed the Data Law.

On November 30th, the Vietnamese National Assembly passed the Data Law with 94.15% of delegates voting in favor; the law will take effect on July 1st, 2025. This law stipulates the establishment and operation of a national integrated database through the National Data Center, under the management of the Ministry of Public Security. The law also regulates the transfer and processing of data across borders.

Organizations, agencies, and individuals are free to transfer data from abroad to Vietnam and process foreign data in Vietnam, with their legitimate rights and interests protected by law. However, the transfer of data from Vietnam to abroad, especially core and critical data, will be more strictly controlled and require approval from competent authorities.

Furthermore, the Data Law also stipulates the provision of data to state agencies in cases such as responding to emergencies, disasters, riot control, and terrorism. Organizations and individuals must provide data upon request from competent authorities without needing the data subject's consent.

The Data Law is expected to establish a data market, promote digital transformation in various sectors of the economy, and change the way government agencies communicate with organizations and individuals in the digital environment.

Biometrics to combat online fraud

In 2024, biometric authentication became a crucial solution in the banking industry to combat online fraud. After six months of implementation, the results of biometric authentication have initiated a long-term strategy to ensure safety and security in online payments and bank cards.

According to regulations from the State Bank of Vietnam, from July 1st, electronic transactions by individuals with a value exceeding 10 million VND or a total daily payment value exceeding 20 million VND must apply biometric authentication. By the beginning of July 2024, 16.6 million customer accounts had been verified against the biometric data of the Ministry of Public Security.

Reports from credit institutions show that, after more than 3 months of implementing biometric authentication, the number of fraud cases decreased by up to 50%, and the number of accounts receiving fraudulent funds decreased by over 70% compared to the average of the first 7 months of 2024. Notably, some institutions did not experience any fraud cases in August and September.

From the beginning of October 2024, many banks such as Agribank, Vietcombank, VietinBank, BIDV, VPBank, Sacombank, SHB, TPBank, Nam A Bank, VietBank, Oceanbank, and Eximbank have required customers to update biometric information and identification documents to ensure the authenticity of their accounts. Some banks even opened outside of regular business hours to assist with biometric updates.

According to regulations from the State Bank of Vietnam, from January 1, 2025, account holders who have not completed updating their biometric information will not be able to conduct online transactions; accounts that have not been biometrically verified will only be able to provide services at the counter. This not only ensures security but also strengthens customer trust in banking transactions.

Commercialization of 5G

On October 15th, Viettel officially launched 5G, providing 100% coverage to the capitals of all 63 provinces and cities, industrial zones, tourist areas, seaports, airports, hospitals, and universities. By December 20th, VNPT Group also announced the launch of its VinaPhone 5G service, offering super-fast speeds and a superior experience, aiming for wider coverage in 2025 and reaching 85% of the population soon.

MobiFone plans to commercialize 5G in early 2025, aiming for nationwide coverage across all provinces and cities. By the end of this year, two mobile network operators had already launched 5G commercially.

Previously, in April 2024, Viettel successfully bid for and acquired the B1 frequency band (2,500-2,600 MHz), while VNPT won the auction for the C2 band (3,700-3,800 MHz). By July 2024, MobiFone also won the auction for the 3,800-3,900 MHz frequency band.

The nationwide commercialization of 5G helps to concretize the goal of universalizing the national digital infrastructure, promoting the development of digital applications and the digital service ecosystem, creating new impetus for economic growth and increasing labor productivity. It is projected that by 2030, 5G will bring Vietnamese network operators $1.5 billion in revenue. By 2025, 5G is likely to contribute 7.3-7.4% to Vietnam's GDP growth.

Merging the Ministry of Information and Communications and the Ministry of Science and Technology

The merger of the Ministry of Information and Communications with the Ministry of Science and Technology is a significant step in the digital transformation revolution and the streamlining of the political system's organizational structure. The goal of this merger is to perfect the organizational model of a multi-sectoral, multi-field ministry in accordance with Resolution No. 18-NQ/TW of the Party, while also rationally adjusting the division of state management responsibilities, overcoming overlaps and conflicts in functions and tasks among ministries and ministerial-level agencies.

Minister of Information and Communications Nguyen Manh Hung emphasized that the merger of the two ministries will benefit the country and the sector. The combined ministries will create a stronger apparatus, promoting more effective digital transformation. After the merger, the new ministry and its departments will have better positions and roles, becoming important and indispensable multi-sectoral agencies of the country.

National Data Strategy

On February 2nd, Deputy Prime Minister Tran Luu Quang signed Decision No. 142/QD-TTg approving the National Data Strategy until 2030. This strategy aims to successfully connect 100% of national, regional, and local data centers, as well as national-level centers for big data storage and high-performance computing across the country by 2030. This will create a network for sharing computing and big data processing capabilities, serving the economic, social, and cultural development of the nation.

Government cloud computing platforms and Make in Vietnam mobile applications will ensure that 100% of Vietnam's data storage, collection, connectivity, and sharing needs are met. At the same time, the strategy also ensures information security, cybersecurity, and data privacy in accordance with the Law on Cybersecurity.

The strategy also aims for 100% of national databases in the priority deployment category to be digitized, updated, and put into effective use. These databases will be connected and shared with the integrated data warehouse at the National Data Center and nationwide.

Digital Infrastructure Strategy

On October 9th, the Prime Minister approved Decision No. 1132/QD-TTg on the Digital Infrastructure Strategy to 2025 and orientation to 2030. This strategy aims to popularize fiber optic cables to households; ensure 100% of provinces, cities, and high-tech zones have 5G mobile services; deploy at least two new international submarine fiber optic cables; develop data centers supporting Artificial Intelligence (AI); and ensure each citizen has one IoT connection and one digital identity.

Vietnam will develop digital technology platforms such as IoT, artificial intelligence, blockchain, and big data, and put into operation at least two new international submarine fiber optic cables. By 2030, the goal is to achieve 5G mobile network coverage for 99% of the population, conduct 6G network trials, develop six new international submarine fiber optic cables, and increase submarine fiber optic cable capacity to at least 350 Tbps. Simultaneously, Vietnam will build hyperscale data centers and support the development of regional data centers, bringing the number of IoT connections in Vietnam to a high-average level globally.

Decree on the management and use of Internet services

On November 9th, the Prime Minister signed Decree No. 147/2024/ND-CP on the management, provision, and use of Internet services and online information, replacing Decree No. 72/2013/ND-CP and Decree No. 27/2018/ND-CP. This Decree applies to domestic and foreign organizations and individuals involved in the management, provision, and use of Internet services and online information.

The decree sets out detailed regulations on the rights and obligations of organizations and individuals involved in providing and using Internet services. At the same time, it establishes measures to protect personal information, prevent harmful and toxic information, and handle violations. Domestic and foreign digital platforms are responsible for complying with Vietnamese regulations, including data storage and providing user information upon legitimate request.

This decree also emphasizes coordination among state agencies, businesses, and the community in ensuring a safe and healthy internet environment and promoting the development of the digital economy. The issuance of this decree is expected to create a clear and transparent legal framework, while simultaneously enhancing Vietnam's competitiveness internationally in the field of information technology.

Semiconductor Industry Development Strategy

On September 21st, Prime Minister Pham Minh Chinh signed Decision No. 1018/QD-TTg promulgating the Strategy for the Development of Vietnam's Semiconductor Industry until 2030 and with a vision to 2050. In Phase 1 (2024-2030), Vietnam aims to become one of the global semiconductor workforce centers, developing fundamental capabilities in all stages of the semiconductor industry from research, design, production, packaging, and testing. The projected revenue for the semiconductor industry in Vietnam is expected to exceed US$25 billion per year.

In phase 2 (2030-2040), Vietnam will become one of the global centers for semiconductor and electronics industries, developing its semiconductor and electronics industry through a combination of self-reliance and FDI. The scale of semiconductor industry revenue in Vietnam is expected to reach over 50 billion USD/year.

By phase 3 (2040-2050), Vietnam will become one of the world's leading countries in the semiconductor and electronics industry, mastering research and development in these fields. By 2050, the revenue of the semiconductor industry in Vietnam is expected to exceed US$100 billion per year; the revenue of the electronics industry in Vietnam is expected to exceed US$1,045 billion per year.

NVIDIA opens two AI research centers.

On December 5, 2024, NVIDIA Corporation signed a cooperation agreement with the Vietnamese Government to establish a Vietnam AI Research and Development Center (VRDC) and AI Data Center in Vietnam. VRDC will be one of three major AI research and development centers in the world, alongside Silicon Valley in the US and another in Taiwan (China). Simultaneously, NVIDIA also acquired VinBrain (Vingroup) to develop a design center in Vietnam.

NVIDIA has also signed agreements with several partners to shift production chains from other countries to Vietnam, committing to invest $4-4.5 billion over the next four years. This will create approximately 4,000 direct jobs and around 40,000-50,000 indirect jobs in the coming years.

This is a crucial "boost" that helps Vietnam make a leap forward in technology, attracting the attention of other high-tech investors around the world, especially in the fields of AI and semiconductors. At the same time, it also helps attract and retain many talented individuals in these fields.

According to the Ministry of Planning and Investment, Vietnam currently has 174 FDI projects in the semiconductor sector with a total registered capital of nearly US$11.6 billion.