Vietnam opens digital transformation market to Russian tech firms

The Vietnamese Government has introduced a new mechanism enabling foreign technology companies, including Russian IT developers, to participate more deeply in national digital transformation projects through public-private partnerships (PPP), opening up significant opportunities for technology exports while imposing strict localisation requirements.

The information was highlighted in reports published by Russian technology news portal www1.ru and Novosti IT-Kanala, a reputable electronic publication of Russia specialising in the IT sector.

The reports cited Decree No. 180/2025/ND-CP on mechanisms and policies for public-private cooperation in science, technology, innovation and digital transformation, which stipulates that foreign IT providers are allowed to establish joint ventures with Vietnamese partners, enabling them to qualify for bidding and access public procurement projects under the national “Make in Vietnam” programme.

However, to benefit from bidding incentives and access to funding support, foreign companies must meet localisation commitments, including those related to production or cooperation in technology research and development in Vietnam.

For Russian technology developers, the mechanism is seen as a big chance to enter the South-east Asian market, but it also requires them to be prepared to transfer technology and maintain a solid legal presence in Vietnam.

Experts quoted by the Russian publications described Vietnam’s approach as a practical strategy to promote technology localisation by using access to public procurement as an incentive.

Ivan Gorkovenko, Regional Director for South-east Asia at Softline Group, said Russian businesses should quickly seek local partners and prepare technology-transfer plans to compete effectively in the Vietnamese market.

The reports noted that technological cooperation between Russia and Vietnam has developed over many years.

During Russian Prime Minister Mikhail Mishustin’s official visit to Hanoi in January 2025, the Vietnamese Ministry of Industry and Trade and the Ministry of Digital Development, Communications and Mass Media of Russia signed memorandums of understanding with Vietnamese counterparts to promote cooperation in radio-electronic technology and digital transformation. The two sides also identified cybersecurity, artificial intelligence (AI) and energy as key areas for cooperation.

According to a report by Russia’s software association Russoft, the country’s software exports to South-east Asia are showing a strong recovery. Russian software sales abroad reached nearly US$6 billion in 2025, with Vietnam identified as one of the region’s most promising and strategic markets, alongside Indonesia, Thailand and Malaysia.