Vietnam enterprises hold 20 percent of domestic cloud market share

Vietnamese enterprises only account for about 20 percent of the cloud computing market share.

The Data Center and Cloud Infrastructure Summit 2022 took place recently in Hanoi, as information and communication infrastructure plays an increasingly important role in digital, economic and social life.

Hoang Van Ngoc, Director of Viettel IDC, said that data usage in Vietnam had increased seven-fold in the past 10 years.

Domestic connection traffic has increased 40 times in terms of bandwidth, and international connection traffic grew by 25 times.

The number of internet subscribers now accounts for 75 percent of all Vietnamese households.

“Currently, there are about 20 million to 25 million households that already have fixed broadband. This is the rapid growth of connectivity and people’s needs,” said Ngoc.

In the 2010s, Vietnamese businesses mainly provided single data services, but now, Made-in-Vietnam suppliers have brought a diverse ecosystem with more than 30 different products and services, helping to solve domestic demand.

Deputy director of the National Institute of Information and Communications Strategy Tran Minh Tuan said that the data centre market in Vietnam had 27 data centres over 11 enterprises.

Currently, Vietnam’s data centres are mainly concentrated in the northern and southern regions.

The northern region accounted for 46.48 percent, the southern region accounted for 35.13 percent, and the Central region accounted for 18.39 percent. The big data centres are mainly located in the ministries and branches in the northern region.

In the near future, there will be a big shift when the digital transformation trend takes place strongly in small and medium enterprises, from which we could hope for the explosion of the data centre and equal development in all three regions, he added.

Regarding cloud computing, the Vietnamese market currently has more than 40 enterprises providing cloud computing services.

These include foreign enterprises Google, Microsoft, Amazon, and large-scale domestic enterprises such as Viettel, VNPT, CMC, FPT and some small businesses providing applications.

The cloud computing market share in Vietnam is mainly in foreign enterprises’ hands. Vietnamese enterprises account for only about 20 percent of the market share with about 900 billion VND (39 million USD).

The rest, 80 percent of the cloud market share, is held by foreign providers. Amazon Web Services (AWS) accounts for the most with 33 percent, and Google and Microsoft account for 21 percent.

If divided by region, cloud computing in the northern region is still at the highest level with 42 percent, the southern region at 39 percent and the central region at 16.55 percent.

According to the Ministry of Information and Communications assessment, there will be three major trends at home and abroad affecting the data market: digital transformation, the development of 5G networks and edge computing, and the need to build a data centre serving the region.

Tuan proposed a goal of two national large data centres serving the Digital Government, a national monitoring centre on data centre, three regional data centres serving the digital economy and digital society, and one or two regional centres serving the needs of regional and international financial centres by 2025.

By 2030, data centres will meet green standards, while 100 percent of State agencies and 50 percent of Vietnamese people will use cloud data.

“Vietnam strives to master technologies for cloud computing and diversify types of applications,” Tuan said./.

For more information, please contact Vietnam Trade Office in Singapore at [email protected]