Report Overview

Increasingly high adoption of digital transformation among small and medium-sized enterprises (SMEs), and a growing focus on reducing IT cost are expected to drive the Vietnam Cloud Computing Market during the forecast period between 2024 and 2030.

Vietnam Cloud Computing Market – Industry Trends & Forecast Report, 2030

Vietnam Cloud Computing Market size was estimated at USD 1,638.33 million in 2023. During the forecast period between 2024 and 2030, the Vietnam Cloud Computing Market size is projected to grow at a CAGR of 19.48% reaching a value of USD 4,765.85 million by 2030. A prominent driver of the market is the growing influence from expanding digitalization trends. Notably, the increased requirements for remote work, a flourishing startup ecosystem, a rising demand for scalable and efficient cloud services, and ongoing technological advancements are expected to further contribute to the market growth. Vietnam's robust digital transformation strategy propels a shift towards cloud-based solutions, creating an ideal environment for technology adoption. Vietnam-based enterprises increasingly embrace modern IT architectures, notably cloud technology, enhancing operational efficiencies and fueling market expansion. Another driving factor is the surge in e-commerce and remote work, accelerated by the COVID-19 pandemic, amplifies the demand for cloud services in data analytics, storage, and cybersecurity, fostering market growth. Regulatory support through data protection laws and tax incentives encourages local investment in data centers. Also, the market benefits from global cloud giants establishing infrastructure, offering reliable, scalable, and secure services. Growing awareness among SMEs, ongoing R&D, and strategic partnerships contribute to market diversification. Rapid advancements in IoT, ML, and AI technologies present lucrative opportunities across sectors.

Cloud Computing – Overview

Cloud computing is an innovative technology that enables both businesses and individuals to access, store, and run applications over the internet. By eliminating the necessity for physical ownership of hardware and software, it leads to substantial cost reductions and operational streamlining. The flexibility of cloud computing is evident in its ability to adapt to changes in workload, offering robust disaster recovery options that enhance overall business continuity. Standard cloud services, such as Platform as a Service (PaaS), Software as a Service (SaaS), and Infrastructure as a Service (IaaS), cater to specific needs. With the capability to connect users across different geographic locations, cloud computing fosters real-time collaboration and boosts operational efficiency. Cloud computing technology provides a cost-effective, secure, and adaptable solution for data storage and management while ensuring on-demand access to computational services.

Vietnam Cloud Computing Market

Growth Drivers

Accelerating Digital Transformation

The Vietnam Cloud Computing Market is experiencing robust growth, primarily fueled by the swift acceleration of digital transformation nationwide. Spearheaded by the Government's National Digital Transformation Program, cloud computing serves as a fundamental catalyst for the envisioned developments till 2030. This transformative approach prioritizes the renovation of government activities, production, and business processes. Cloud-based solutions streamline collaboration across diverse locations, eliminating the need for additional infrastructure. In various sectors, including private organizations, government, retail, healthcare, and education, cloud computing plays a pivotal role, evident in a survey revealing 56% of Vietnam-based enterprises utilizing cloud management platforms.

Rising Demand for IT Cost Reduction

The Vietnam Cloud Computing Market is witnessing substantial growth driven by the escalating demand for reducing Information Technology (IT) costs through the utilization of cloud computing services. The country's adoption of cloud technology facilitates seamless collaboration and eliminates the need for additional network infrastructure, resulting in cost-effective and efficient operations. The integration of cloud solutions allows for the instant analysis and storage of documents, enhancing accessibility and review processes. Moreover, the survey by the IBM Institute for Business Value underscores the prevalent use of cloud management platforms among Vietnam-based enterprises. As businesses plan to increase their investments in hybrid cloud computing, the Vietnam Cloud Computing Market is poised to address the rising demand for IT cost reduction effectively.

Growing Adoption of Cloud Computing by SMEs

The Vietnam Cloud Computing Market is experiencing robust growth, especially in response to the expanding presence of cloud solutions among various sectors, including private organizations and SMEs. Cloud-based storage facilitates effortless collaboration among teams across different locations, eliminating the need for additional infrastructure. As evidenced by the survey indicating the adoption of cloud management platforms by 56% of Vietnam-based enterprises, it is evident that SMEs are actively leveraging the cloud technology. The planned increase in expenditure on hybrid cloud computing further signifies the growing reliance of SMEs on cloud services. This trend reflects the market's ability to cater to the diverse needs of a growing number of SMEs in Vietnam.

Challenges

Cost Concerns

Cost concerns act as a significant constraint on the growth of the Vietnam Cloud Computing Market. Despite the increasing adoption of cloud technology, apprehensions about associated expenses hinder its widespread implementation. Businesses, wary of financial implications, may hesitate to fully embrace cloud solutions, impacting the market's expansion. Striking a balance between affordability and the benefits of cloud computing remains crucial to overcoming these cost-related challenges and unlocking the market's full potential.

Impact of Geopolitical Tensions on Vietnam Cloud Computing Market

The Vietnam Cloud Computing Market is impacted by geopolitical tensions in several ways. Ongoing tensions pose potential disruptions to international trade and data flows, potentially impacting the seamless operation of cloud services. Companies may face heightened regulatory scrutiny and compliance requirements, adding complexity to their cloud strategies. Moreover, geopolitical uncertainties could influence investment decisions, shaping the allocation of resources for cloud infrastructure development. Despite the challenges arising from global uncertainties, the region, especially Vietnam, has experienced a remarkable surge in cloud adoption, leading Southeast Asia with a substantial CAGR of more than 30% from 2018 to 2023, as highlighted by an industry estimate. Additionally, Southeast Asian nations, including Vietnam, strategically leverage cloud technologies to improve customer experiences, strengthen in-house development capacity, and advance digital transformation initiatives.

Vietnam Cloud Computing Market

Segmental Coverage

Vietnam Cloud Computing Market – By Service

Based on service, Vietnam Cloud Computing Market is divided into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) segments. The SaaS segment holds the highest share in the Vietnam Cloud Computing Market by service. The prominence of SaaS segment results from its straightforward deployment, cost-effectiveness in maintenance, and overall affordability. The IaaS segment is projected to exhibit the swiftest growth during the forecast period. This surge is linked to the escalating adoption of hybrid cloud platforms and the heightened need for business data storage and security solutions.

Vietnam Cloud Computing Market – By Deployment Model

On the basis of deployment model, the Vietnam Cloud Computing Market is divided into Public, Private, and Hybrid segments. The hybrid segment holds the highest share in the Vietnam Cloud Computing Market by deployment model. The capability of hybrid cloud solutions to effectively handle increased network traffic and safeguard sensitive data is anticipated to propel the growth of the cloud computing market in Vietnam. The imperative for businesses to rapidly transform into agile and cognitive enterprises is driving a heightened adoption of hybrid cloud strategies, consequently elevating the entire cloud computing market landscape in Vietnam.

Vietnam Cloud Computing Market – By Enterprise Size

By enterprise size, the Vietnam Cloud Computing Market is bifurcated into Large Enterprises and Small & Medium-sized Enterprises (SMEs) segments. The SMEs segment holds a higher share in the Vietnam Cloud Computing Market by enterprise size. It can be attributed to the substantial presence of SMEs in the country. According to the Vietnam Association of Small and Medium-sized Enterprises, nearly 98% of the country's over 800,000 enterprises fall within the SME category. Actively pursuing digitization efforts to elevate their business value, more than 30% of SMEs in Vietnam are now leveraging digital platforms, as indicated by the MIC. Cloud services offer a plethora of advantages to SMEs, allowing them to operate on-demand, exercise cost control, and scale rapidly. However, SMEs grapple with challenges in implementing their digital transformation strategies and sustaining their IT infrastructure.

Vietnam Cloud Computing Market – By End Use

Based on end use, the Vietnam Cloud Computing Market is divided into BFSI, IT & Telecom, Retail & Consumer Goods, Manufacturing, Energy & Utilities, Healthcare, Media & Entertainment, and Government & Public Sector segments. The BFSI segment holds the highest share in the Vietnam Cloud Computing Market by end use. The surge in online banking activities has propelled financial institutions to embrace the digital revolution, with cloud computing emerging as a pivotal factor in this transformation. Within the BFSI domain, life insurance companies are actively pursuing digital transformation initiatives to streamline operations, automate processes, and provide an array of digital services to their customers.

Competitive Landscape

Major players operating in Vietnam Cloud Computing Market include VNG Cloud, Viettel IDC, FPT Corporation, Vietnam Posts and Telecommunications Group (VNPT), CMC Corporation, NextTech Group, Mat Bao Corporation, VCCloud, Vietnam National Television Corporation (VTC), and HPT Vietnam Corporation. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2023 – Vietnam-based game developers, including VNGGames, Amanotes, and Wolffun Game, partnered with Google Cloud to boost their global gaming presence. Leveraging cloud, analytics, and AI, they aim to serve the domestic market and expand internationally.

Scope of the Report

By Service

• Infrastructure as a Service (IaaS)

• Platform as a Service (PaaS)

• Software as a Service (SaaS)

By Deployment Model

• Public

• Private

• Hybrid

By Enterprise Size

• Large Enterprises

• Small & Medium-sized Enterprises (SMEs)

By End Use

• BFSI

• IT & Telecom

• Retail & Consumer Goods

• Manufacturing

• Energy & Utilities

• Healthcare

• Media & Entertainment

• Government & Public Sector