Despite a decline in revenue during the first quarter of 2023, the information and communications technology (ICT) sector leads the top seven industries assessed to have promising growth potential in Vietnam for at least the next two to three years.

Vietnam Report, a company specializing in marketing, investment, and research consultancy, revealed the forecast in a report released on Monday.

The Vietnam Report findings highlighted that businesses in the industry experienced the repercussions of weak demand during the period from late 2022 to early 2023, influenced by the global economic recession risk and inflationary pressure.

During the first quarter of 2023, both the revenue of the information technology industry and the export turnover of hardware-electronics in Vietnam witnessed a decline compared to the same period last year. 

The industry’s accumulated revenue by the end of March was estimated at VND845.6 trillion (US$35.9 billion), down three percent year on year. 

The export turnover of hardware-electronics approximated $26.6 billion, marking a 9.5-percent decrease in comparison to the preceding year.

Notwithstanding the downturn, a survey conducted by Vietnam Report in March showed that the ICT sector possesses the highest rate, 63 percent, among the seven industries regarded as having the most promising growth potential over the next two to three years.

Focus on cybersecurity

The report further revealed the four most significant challenges that enterprises in the industry have encountered, including difficulties in recruiting and retaining talented employees, the absence of well-defined and coordinated policies, regulations, and legal frameworks for products and services developed on new technology platforms, intense competition among industry players, and limited access to capital.

Additionally, cybersecurity has gained considerable attention, given its role as critical infrastructure, where any cyberattack can result in substantial harm to the country’s economy, security, and reputation.

Based on data from the cybersecurity firm Kaspersky, Vietnam recorded a decline of 33.8 percent in the number of detected and prevented online attacks in 2022, with a total of 41,989,163 cases. 

This figure placed Vietnam at the 49th position globally, marking a drop of 17 places compared to 2020.

Experts attribute these encouraging outcomes to the effective implementation of state regulations in the field of cyber information security and the incorporation of multiple measures.

Notably, 53.9 percent of technology companies surveyed by Vietnam Report stated that they have fully implemented cybersecurity measures, including 46.2 percent planning to enhance their efforts.

Enterprises also expressed high confidence in the level of cybersecurity assurance within their organizations, as they gave an average rating ranging from 4.3 to 4.7 on a five-point scale in the Vietnam Report survey.

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