Hanoi (VNA) -  Vietnamhopes to develop 100,000 digital technology companies with a workforceof 1.5 million by 2030.

This is one of the targets set in a draft national strategy for developingVietnamese digital technology companies recently devised by the Ministry ofInformation and Communications.

According to the draft strategy, inthe next 10 years, digital companies would contribute 20 percent of GDPand Vietnam would be one of the top two countries in ASEAN and the top 50in the world in technology and innovation ranking.

By 2025, Vietnam strives to have 70,000 digital technology companies with aworkforce of 1.2 million. They are expected to have revenue growth 1.5-2times higher than the country’s GDP expansion rate and export growth at 10-20percent per year.

Such companies are expected to contribute 10 percent of GDP and to bring Vietnaminto the top three countries in ASEAN and the top 70 in the world fortechnology and innovation ranking.

To realise these targets, the ministry proposes six solutions, including perfectingthe legal framework to create a favourable environment for digital technologycompanies, strengthening research and development capacity, developing a robustmarket for digital technology companies, building a data industry and digitaltechnology ecosystem, and developing human resources.

Digital technology companies are expected to play an important rolein making Vietnam a developed and industrialised country with rapid,sustainable and inclusive economic development as well as turning Vietnam intoa high-income country by 2045.

TheVietnamese Government estimated the country would need at least 100,000 digitaltechnology companies to develop a digital economy, smart urban areas,e-Government and promote the application of digital technology advancements insocio-economic fields as well as accelerate national digital transformation.

Under the draft strategy, Vietnam will focus on developing four types ofdigital technology companies, namely those developing core technologies,developing digital technology products, providing digital technology solutionsand digital-technology start-ups.

According to the Ministry ofInformation and Communications, about 43,000 enterprises currentlyoperate in the information and technology sector together with 17,000others doing business in distributing and providing IT products and solutions.

The ministry said hitting100,000 digital technology companies would be challenging, given the country'sheavy dependence for core technology on foreign countries, the low added valueof IT products and limited innovation capacity and competitiveness, togetherwith increasing competition from international IT companies.

Vietnam’s competitive advantageof cheap labour is being undermined by breakthroughs in new technologies, theministry said, stressing that it is critical to develop a national strategy fordigital technology./.