Vietnam Cloud Computing Market

Vietnam Cloud Computing Market Overview

Cloud computing is generally defined as the on-demand availability of computer system resources, particularly data storage and computing power. It has shifted the traditional way of how businesses think related to IT resources. There are various benefits related to cloud computing, such as it saves cost, offers self-service, increases productivity and performance.

Major Vietnam Cloud Computing Market Drivers

Vietnam’s cloud computing market is growing at a significant rate over the coming years. The country has around 27 cloud computing centres, and approximately 11 domestic firms have invested with more than 270,000 servers in the country. One of the biggest factors that is contributing to the growth of the Vietnam cloud computing market includes the increasing demand for various cloud services such as Infrastructure as a Service and Software as a Service, among others. In addition to this, the rising number of small and medium-sized enterprises is further surging the growth of the Vietnam cloud computing market share over the coming years. In 2020, the government of Vietnam introduced Decree No 37/2020/ND-CP to include SMEs businesses from accessing the investment incentives. This underlines the government’s efforts to support businesses, especially small and medium-sized enterprises impacted by the COVID-19 pandemic. Moreover, the regulation will increase the list of business lines eligible for investment incentives which include various types of SMEs business lines only.

The emergence of the COVID-19 pandemic has impacted the growth of the cloud computing market. Various enterprises around different industry verticals have adopted work from home policies for the safety of their employees and to maintain operational efficiency. This has boosted the demand for Software as a Service in the country. In 2020, five Vietnamese organizations had developed cloud computing platforms and were given certificates by the Ministry of Information and Communications (MIC) that they met the technical criteria to serve e-government and e-governance. Additionally, in the same year, the Ministry of Information and Communication (MIC) introduced a campaign in Hanoi to increase the digital transformation through cloud computing technologies. Thus, this is surging the growth of the Vietnam cloud computing market size.

Restraints in the Vietnam Cloud Computing Market

However, the rising number of cyber-attacks and various other digital losses are the two major factors that are hampering the growth of the Vietnam cloud computing market during the forecast period.

There has been an increase in the demand for IaaS, PaaS, and SaaS, particularly in the banking, financial services, and insurance (BFSI) sector. This is mainly attributed to the rising adoption of cloud computing to offer improved customer satisfaction and decrease operational cost. Furthermore, the country is focusing on developing smart cities across the country with a vision towards 2025-2030. There is a 270 Hectare Smart City being constructed near Hanoi, by the Vietnamese developer “BRG Group and Japan’s Sumitomo Corp.” The total investment required in this project amounts to USD 4.2 billion. Thus, the rising emphasis on smart cities will increase the implementation of advanced technologies such as AI, IoT, cloud computing, among others.

Key Developments:

• • In 2020, Microsoft Corporation entered into a partnership with the Vietnamese government to improve the cybersecurity. Though this partnership, the two companies aims to control the criminals remotely planning malicious code on unsecured devices.

Segments Covered in the Report:

The Vietnam Cloud Computing Market has been segmented based on Service Model, Organisation Size, Workload, and Industry Vertical. Based on Service Model, the market is segmented into Platform as a Service, Software as a Service and Infrastructure as a Service. Based on organisation size, the market is segmented into Small and Medium-Sized Enterprises, and Large Enterprises. Based on workload, the market is segmented into Storage, Backup, and Disaster Recovery, Application Development and Testing, Database Management, Business Analytics, Integration and Orchestration, Enterprise Resource Management, and Collaboration and Content Management. Based on industry vertical, the market is segmented into Financial Services and Insurance, Banking, IT and Telecommunications, Retail and Consumer Goods, Government and Public Sector, Energy and Utilities, Manufacturing, Media and Entertainment¸ Healthcare and Life Sciences, and Others.

Market Segmentation

Vietnam Cloud Computing Market by Service Model

• • Infrastructure as a Service
  • Platform as a Service
  • Software as a Service

Vietnam Cloud Computing Market by Deployment Model

• • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Vietnam Cloud Computing Market by Organization Size

• • Small and Medium-Sized Enterprises
  • Large Enterprises

Vietnam Cloud Computing Market by Industry Vertical

• • Banking, Financial Services and Insurance
  • IT and Telecommunications
  • Government and Public Sector
  • Retail and Consumer Goods
  • Manufacturing
  • Energy and Utilities
  • Media and Entertainment
  • Healthcare and Life Sciences
  • Others