Digital talent - key constraint in Vietnam’s digital push

Vietnam’s digital transformation is entering an accelerated phase, with the government targeting the digital economy to contribute around 30% of GDP by 2030 under the National Digital Transformation Programme. Yet while telecommunications infrastructure and internet penetration rank among the highest in the region, the country’s digital workforce is increasingly viewed as the most significant constraint on progress.

According to the National Statistics Office, Vietnam’s labour force aged 15 and above reached approximately 53.5 million in 2025, but only about 29% of workers hold formal qualifications or certificates. The figure underscores a substantial gap between workforce quality and the demands of a rapidly expanding digital economy. A World Bank report on the future of jobs in Vietnam also notes that automation and technological adoption could reshape millions of jobs in the coming decades, requiring continuous skills upgrading across the labour force.

This creates a paradox: Vietnam benefits from a young population and high technology adoption, yet faces a serious shortage of advanced digital skills.

Technology talent shortages and the digital skills gap

Reports from ManpowerGroup and related labour data suggest that the share of high-skilled workers in Vietnam remains relatively low compared to regional peers, often below the 14–29% range recorded in countries such as Thailand, the Philippines and Malaysia. This reflects a shortage of highly qualified professionals in fields including artificial intelligence, big data analytics, cloud computing and cybersecurity- the core pillars of Vietnam’s digital transformation agenda.

The International Labour Organization has similarly highlighted that most Vietnamese workers possess only basic digital skills, while employer demand is shifting rapidly toward more advanced competencies. The widening skills gap is placing pressure on both businesses and training institutions.

From a corporate perspective, technology firms report that newly recruited employees often require six months to a year of additional training before meeting operational requirements. The need for retraining raises costs and slows the rollout of digital transformation projects.

Automation pressures and risks of labour market polarisation

Digitalisation and automation are generating new job opportunities while simultaneously displacing traditional roles. The World Economic Forum’s Future of Jobs Report indicates that developing economies such as Vietnam are likely to experience significant shifts in skill structures over the next decade. Repetitive tasks face a higher risk of automation, while demand is rising for analytical, creative and technology-driven roles.

Without timely reskilling and upskilling policies, Vietnam’s labour market faces growing polarisation between workers equipped with digital skills and those without them. Such divergence will not only affect income distribution but also national productivity and the competitiveness of Vietnam’s digital economy.

Experts: The bottleneck extends beyond technology

Economists argue that the digital workforce challenge is not solely about technical training. Associate Professor Tran Tho Dat, former President of National Economics University - Hanoi, has noted that the most critical constraint in digital transformation lies in governance capacity and the ability of institutions and managers to adapt to new business models. Without parallel changes in management thinking, investments in digitalisation may yield limited returns.

This view aligns with recommendations from the Asian Development Bank, which has emphasised that developing countries must simultaneously reform education systems, strengthen digital skills and build innovation ecosystems to fully harness the benefits of the digital economy.

Way forward for Vietnam’s digital workforce

Addressing the technology talent gap requires a long-term strategy. Accelerating reforms in higher education and vocational training is essential, with curricula updated to reflect emerging technologies and stronger linkages established between universities and industry. Developing a national digital skills framework could also help align training outcomes with labor market needs.

Beyond new training pipelines, large-scale reskilling and upskilling initiatives for the existing workforce are urgent. As Vietnam’s digital economy expands, investment in human capital will be the most sustainable form of development.

Vietnam’s digital transformation is not only about infrastructure and data platforms; at its core lies the quality of its digital workforce. Talent shortages, skills mismatches and automation pressures are creating mounting challenges for the labour market in the years ahead. Without a comprehensive and timely digital skills strategy, Vietnam’s ambition to build a competitive regional digital economy may prove difficult to achieve.

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