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TECHNOLOGY & TELECOMMUNICATIONS 2026 - RIDE OUT THE STORM

2026 OVERVIEW

Entering 2026, the global technology backdrop continues to echo the themes of 2025. Tech spending remains robust but skews upstream-favoring GPU chip supply and AI data center/server buildouts-over downstream areas like software outsourcing and telecommunications, which have traditionally been Vietnam’s strengths.

In the context of the above-mentioned industry, leading Vietnamese companies in segments such as software outsourcing – FPT and telecommunications – FOX are unlikely to re-enter a phase of explosive growth, but are expected to sustain annual growth of 10–18%, broadly in line with 2025, supported by company-specific growth stories related to the development of new segments. Meanwhile, VGI is expected to maintain double-digit growth, outperforming the industry average growth rate of 4-5% per year, driven by early adoption of new telecom technologies and expansion into overseas markets with significant headroom for new subscriber additions. Our preferred pick includes FPT

2026 HIGHLIGHTS

Software outsourcing - A global/Vietnam race reshaped by AI

A slow global macro recovery is keeping software outsourcing demand subdued (below 10%), particularly after the strong digital trans cycle of 2021-23. In addition, lower-value tasks like basic programming/testing are facing price pressure as clients expect engineers to complete larger workloads in less time via AI automation. Meanwhile, higher-value AI such as AgenticAI for operations/decision-making-have not yet reached broad adoption, blunting the near-term upside from AI. This dynamic is likely to persist through 2026.
Beyond core advantages of culture, language, and labor costs, Vietnamese outsourcing vendors are seeking new alpha by embracing an AI-by-default model in products and services, and by enhancing sales capacity through M&A of local consulting firms and larger advertising outlays. This approach supports share gains in slow-to-digitize markets like Japan and domestically; enables expansion into new lands such as Africa and Europe; and positions vendors to capitalize when tech spending rebounds in core market like US
Data centers - A rich runway driven by domestic and ASEAN “data storage and security” needs

Vietnam’s market has yet to hit an inflection point and remains far behind global hyperscalers in infrastructure scale and CAPEX intensity. Nevertheless, from 2026, it could prove fertile ground for data center operators, supported by strong government policy push (domestic data residency requirements, personal data protection, national digital transformation agenda) and increasing enterprise awareness. CMG (CMC) and FOX (FPT Telecom) stand out as direct beneficiaries.
Telecom - A resilient three-pillar structure domestically; competition shifts to service quality as technology is no longer a decisive “weapon”

Vietnam’s telecom market is saturated in subscribers: mobile subscriptions reached 99% of the population (voice and mobile services combined), and fixed broadband penetration is around 85% of households and businesses. Advanced network technologies, such as 5G or Wi-Fi 7 are no longer long-term differentiators as coverage levels converge, similar to previous technology cycles. Sustainable advantages now stem from service quality and connection reliability, underpinned by robust network and digital infrastructure.”
Simultaneously, expanding cross-border connectivity, tapping into nascent ‘blue ocean’ markets, and aligning with national strategic priorities, such as data centers to meet storage and processing demands while attracting investment - set the strategic direction for industry leaders like VGI (Viettel Global) and FOX (FPT Telecom)
2026 RISK

A slow global pace of digital transformation-especially the enterprise adoption of AI-could materially depress new contract bookings growth.