The Role of Digital Technology Industry Activities Today

The role of digital technology industry activities is a topic of significant interest, especially in the era of the Industrial Revolution. Transitioning from a technical support role, the digital technology industry has now risen to become the operating system leading the national digital transformation process, opening up breakthrough growth spaces and reshaping how society operates. In the following article, Long Phan Consulting Company will provide information on the role of digital technology industry activities today.

What is the digital technology industry?

Based on Clause 1 and Clause 2, Article 3 of the Digital Technology Industry Law 2025, the definitions are as follows:

• Digital Technology: A collection of scientific methods, technological processes, and technical tools to produce, transmit, collect, process, store, and exchange information, digital data, and digitize the real world.
• Digital Technology Industry: An economic-technical sector based on the combination of science, technology, innovation, and digital transformation to create digital technology products and services; it is the next developmental step of the information technology industry.

What activities are included in the digital technology industry?

Based on Article 13 of the Digital Technology Industry Law 2025, guided by Chapter II of Decree 353/2025/ND-CP, activities include the production of digital technology products and the provision of digital technology services.

1. Production of Digital Technology Products This involves R&D, design, assembly, manufacturing, testing, and other tasks to produce:

• Hardware Products: Computers, network equipment, peripherals, telecommunications equipment, multimedia equipment, electronic components, semiconductor chips, etc.
• Software Products: System software, application software, utility software, digital platform software, etc.
• Digital Content Products: Information created and distributed in digital format for entertainment, education, communication, or commerce (text, digital data, images, audio/video recordings).

2. Provision of Digital Technology Services This includes consulting, design, installation, integration, operation, training, digitization, data processing, warranty, maintenance, repair, and distribution of digital technology products.

The role of digital technology industry activities today

Applying digital technology brings immense benefits, positively impacting almost all aspects of business operations.

Enhance internal connectivity and collaboration

Digital platforms allow for real-time interaction regardless of geography. Employees can easily share documents and update progress, fostering a cohesive working environment that surpasses traditional communication methods like email or physical meetings.

More transparent and effective management

Digital tools (CRM, ERP, Project Management) provide specific data-driven reports. This gives leaders a comprehensive view of the business, allowing for fairer decisions regarding resource allocation and performance evaluation.

Increase productivity and work efficiency

 Automating repetitive tasks (data entry, inventory management) releases employees from tedious work. This allows them to focus on high-value tasks requiring critical thinking, significantly boosting overall productivity.

>>> See more: Procedure for Technology Transfer Registration Amendment

Enhancing competitive position in the market

In the Volatile 4.0 era, digital tools allow businesses to analyze market data, competitors, and customers to predict trends and risks. Big Data and AI enable precise strategies, giving pioneers a significant advantage in innovation.

Expanding opportunities for learning and personnel development

Digital technology has revolutionized how people access knowledge. For businesses, this opens up unprecedented opportunities to invest in training and human resource development. Instead of relying solely on costly and time-consuming in-person training sessions, businesses can implement online training programs through Learning Management Systems (LMS). Employees can access learning materials, video lectures, and interactive courses anytime, anywhere, as long as they have an internet connection.

This facilitates continuous self-learning and skill development, helping employees adapt to changing work environments and contribute more effectively to the business.

Improve the customer experience

Digital solutions allow for personalized experiences across all touchpoints. CRM systems and AI Chatbots support 24/7 interaction, helping businesses understand customer needs deeply and build sustainable relationships.

Optimizing processes and reducing costs

Digital technology enables businesses to efficiently analyze and restructure internal operational processes. By automating manual tasks, eliminating unnecessary steps, and optimizing workflows, businesses can significantly save time and resources. For example, using automated accounting software, digital human resource management systems, or digital-based supply chain management tools minimizes errors, speeds up processing, and reduces operating costs. Data collected from these systems also provides insights to identify bottlenecks in processes and make necessary adjustments, contributing to improved overall operational efficiency.

Adopting digital technology in businesses is a journey that requires investment, commitment, and a long-term vision. However, with its outstanding benefits in operational efficiency, competitiveness, and customer satisfaction, it is certainly a strategic step that any business should seriously consider for sustainable future growth.

Current investment incentives and development opportunities for the digital technology industry

In the context of a strong and widespread digital transformation globally, the digital technology industry is becoming a crucial driving force for economic growth and enhancing national competitiveness. To attract investment, encourage innovation, and develop the technology ecosystem, the government has been issuing many practical investment incentives, creating a favorable foundation for the sustainable development of the digital technology industry.

Regarding investment and production

Priority Sectors: Production of software, AI development, semiconductor manufacturing (design, packaging, testing), and AI data centers are considered special investment incentive sectors.

Benefits: Incentives on corporate income tax, land use, and direct state support for infrastructure and equipment costs for large-scale key projects.

Customs: Priority customs regimes for enterprises implementing key digital technology projects.

Startup Incentives Innovative startups in this industry receive direct funding from the local budget or Development Programs for:

• Developing high-quality HR.
• R&D and trial production.
• Startup consulting and technology acquisition.

Regarding human resources

Policies to attract high-quality human resources in the digital technology industry, as stipulated in Article 19 of the 2025 Law on Digital Technology Industry, include:

• Foreign Experts: High-quality foreign personnel are granted 5-year temporary residence cards (extendable), covering spouses and children.
• Tax: Personal income tax incentives.
• State Employment: Mechanisms to recruit high-quality digital talent into state agencies without standard examination procedures, including appointment to leadership positions.
• Digital Talents: Special competitive salary/bonus mechanisms, housing support, and favorable working environments.

Regarding infrastructure

According to Article 21 of the 2025 Law on Digital Technology Industry, investment and development incentives for the digital technology industry in terms of infrastructure include:

• The State prioritizes budget allocation for essential shared infrastructure: Key national labs, data centers, centralized digital tech zones, and testing facilities.

• Enterprises may import used technological lines/equipment for R&D and training purposes (subject to criteria).

>>>See more: Procedure to Amend Technology Transfer Certificate

Consulting services on digital technology industry at Long Phan Consulting Company

Long Phan Consulting Company provides comprehensive consulting services on current digital technology industry operations. We are committed to assisting our clients in processing documents accurately and in strict compliance with legal regulations. Below are the specific work items that Long Phan Consulting Company performs:

• Review and evaluate technology transfer contracts;
• Assessing the level of readiness for digital transformation;
• Providing legal advice on cybersecurity and risk management;
• Providing advice on data compliance and privacy regulations;
• Prepare necessary documents and guide clients in preparing a complete set of documents as required.
• Representing the government in dealings with relevant agencies.

Frequently Asked Questions about The role of digital technology industry activities

Below, Long Phan Consulting Company provides some frequently asked questions related to The role of digital technology industry activities today. We invite interested clients to refer to them:

How is digital technology different from digital transformation?

Digital technology refers to digital tools and systems (e.g., Cloud, AI, Big Data). Digital transformation is the process of applying digital technology to comprehensively change how businesses operate, create new value, and interact with customers. Digital technology is the means, while digital transformation is the goal and the process.

What behaviors are strictly prohibited in the digital technology industry?

According to Article 12 of the Law on Digital Technology Industry 2025, as amended by Article 33 of the Law on Artificial Intelligence 2025, the following acts are strictly prohibited in the field of digital technology industry:

• Exploiting digital technology activities to infringe upon national interests, national defense, national security, social order and safety, public interests; human rights, civil rights, and the legitimate rights and interests of organizations and individuals; affecting social morality, health, and human lives.
• Intellectual property infringement in the digital technology industry.
• Using digital technology products and services to commit illegal acts.
• Falsification and deception to obtain preferential policies and support from the State; to be exempted from responsibility in controlled testing of products and services applying digital technology.
• Obstructing legitimate activities; supporting illegal activities in the digital technology industry by organizations and individuals.

Will AI replace humans in the digital industry?

Digital technology plays a supporting and enhancing role, rather than completely replacing it.

• It replaces dangerous, hazardous, and repetitive jobs.
• It requires people to shift to higher-value roles such as managing AI systems, creating strategies, and providing empathetic customer service.

Do small businesses need to adopt digital technology?

Yes, absolutely essential. Digital technology isn’t just for large corporations. Cloud solutions, web-based management software, and affordable, accessible digital marketing tools help small businesses optimize operations, enhance competitiveness, and reach broader markets.

How do you choose the right digital technology solution?

The choice should be based on specific business objectives, company size, budget, and current challenges. A thorough analysis of departmental needs is required, along with research into market solutions and consideration of integration with existing systems. Start with simple solutions that deliver quick results before expanding.

What are the challenges in implementing digital technology?

Common challenges include: insufficient budget, lack of digital skills and awareness among staff, resistance to change, poor solution choices, and data security issues. Thorough planning, staff training, and leadership commitment are crucial to overcoming these challenges.

How does digital technology affect corporate culture?

Digital technology fosters a more transparent, data-driven work culture that encourages collaboration and continuous learning. Employees need to adapt to new tools, changing workflows, and a more flexible mindset. Businesses need to proactively build a culture that supports digital transformation.

What sources of funding are available for the development of the digital technology industry?

Funding for the development of the digital technology industry includes the following sources:

• State budget sources for science, technology, innovation and digital transformation are regulated by the law on state budget; science, technology and innovation; and digital transformation.
• Sources of state budget funds include investment for development and recurrent expenditures for economic activities as prescribed by the law on state budget; and investment support funds as prescribed by the law on investment.
• Sources of funding include loans, contributions, sponsorships, and investments from domestic and foreign businesses, organizations, and individuals, as well as the enterprise’s science and technology development fund and other legitimate funds and financial sources as prescribed by law.

Legal basis: Clause 1, Article 11 of the Law on Industry and Technology No. 2025.

What conditions must be met to establish a concentrated digital technology zone?

Conditions for establishing and expanding concentrated digital technology zones include:

• In line with the State’s policy on the development of digital technology and the digital technology industry;
• In line with the orientations and objectives of national sectoral planning, regional planning, provincial planning, and local land use planning;
• The area has a suitable size and functional zoning to ensure favorable conditions for the development of the digital technology industry;
• There are plans for establishing and expanding the concentrated digital technology zone in accordance with its functions; meeting regulations on national defense and security, environmental protection and climate change adaptation, protection of natural resources and historical and cultural relics, and natural heritage;
• Other conditions may be appropriate to the development practices and management requirements.

Legal basis: Clause 1, Article 22 of the Law on Industry and Technology 2025.

What methods are used to establish concentrated digital technology zones?

The establishment and expansion of concentrated digital technology zones are carried out through the development of investment projects for the construction and operation of infrastructure within these zones using the following methods:

• Utilize state budget funds in accordance with the law on public investment;
• Investment through public-private partnerships;
• Utilize business capital.

Legal basis: Clause 2, Article 22 of the Law on Industry and Technology 2025.

Conclusion

Understanding the role and legal framework of the digital technology industry is crucial for businesses to thrive. Long Phan Consulting Company is ready to assist you in navigating legal complexities and building a safe, sustainable digital transformation roadmap. Please contact our experts via Hotline 1900636389 for in-depth consultation.