Vietnam Cloud Computing Market Outlook to 2030

Vietnam Cloud Computing Market Overview

• The Vietnam Cloud Computing market achieved a valuation of USD 1.8 billion in 2023. The rapid expansion is driven by increasing enterprise adoption of cloud solutions, a growing need for scalable IT infrastructure, and government support for digital transformation initiatives. The market is also bolstered by investments in 5G technology and the surge in data-driven applications across various industries.
• Major players in the Vietnam cloud computing market include Amazon Web Services (AWS), Microsoft Azure, Google Cloud, Viettel, and FPT Software. These companies are recognized for their diverse range of cloud services, technological innovation, and strong regional presence. Their continued investment in local data centers and tailored solutions supports their leading positions in the market.
• In early 2024, AWS launched a new data center in Ho Chi Minh City, enhancing its service capabilities in the region. Viettel also expanded its cloud service offerings significantly to cater to the growing demand from local enterprises. Additionally, the Vietnamese governments "National Digital Transformation Program 2025" has been actively supporting cloud adoption with substantial funding and regulatory incentives.
• Ho Chi Minh City and Hanoi are the dominant cities in Vietnam's cloud computing market. Ho Chi Minh City leads due to its status as the economic hub of Vietnam, with numerous businesses and tech startups driving demand for cloud services. Hanoi follows as the political and administrative center, with significant government and enterprise cloud adoption.

Vietnam Cloud Computing Market Segmentation

The Vietnam Cloud Computing market is segmented by service type, deployment model, and region.

By Service Type: The Vietnam Cloud Computing market is segmented by service type into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). In 2023, the SaaS segment held the largest market share due to its wide applicability across industries such as finance, healthcare, and retail. SaaS solutions are favored for their ease of use, cost-effectiveness, and scalability.

By Deployment Model: The market is segmented by deployment model into Public Cloud, Private Cloud, and Hybrid Cloud. In 2023, the Public Cloud segment dominated due to its cost-effectiveness and scalability. Public cloud solutions are widely adopted by businesses seeking flexible IT resources without the need for significant capital investment.

By Region: The Vietnam Cloud Computing market is segmented by region into North, South, East and West. In 2023, the Southern region held the highest market share due to its concentration of tech companies and startups, which drives demand for advanced cloud services. The Northern region follows closely with strong adoption among government and educational institutions.

Vietnam Cloud Computing Market Competitive Landscape

• Amazon Web Services (AWS): AWS has expanded its services in Vietnam with a new data center in Ho Chi Minh City in early 2024, enhancing its local infrastructure and service offerings.
• Microsoft Azure: Microsoft Azure has launched a new initiative to provide cloud solutions tailored for Vietnamese SMEs, focusing on boosting digital transformation in smaller enterprises.

Vietnam Cloud Computing Market Analysis

Vietnam Cloud Computing Market Growth Drivers

• Government Digital Transformation Initiatives: The Vietnamese governments commitment to digital transformation is a significant driver for cloud computing. In 2023, the "National Digital Transformation Program 2025" was launched, aiming to enhance IT infrastructure and cloud adoption across various sectors. This initiative includes substantial funding of USD 200 million allocated for upgrading IT systems and supporting digital projects. The programs objectives align with the broader goals of improving technological capabilities and fostering innovation within the country.
• Increased Adoption of Cloud-Based Solutions by Enterprises: Enterprise adoption of cloud-based solutions is accelerating. In 2023, over 65% of large Vietnamese companies reported using cloud services for critical business functions, up from 50% in 2022. This growth is driven by the need for scalable, cost-effective IT solutions. The shift towards cloud infrastructure is evident from the rising investments by companies such as Viettel, which increased its cloud service portfolio by 30% in 2023 to meet growing demand.
• Expansion of 5G Infrastructure: The rollout of 5G networks is boosting cloud computing demand. By the end of 2024, Vietnam is expected to have 5G coverage in major cities, enhancing connectivity and enabling faster data transfer. The governments investment of USD 1.5 billion in 5G infrastructure is expected to support the growth of cloud services by providing improved network capabilities. This advancement is crucial for supporting high-bandwidth applications and services reliant on cloud computing.

Vietnam Cloud Computing Market Challenges

• Data Security Concerns: Data security remains a significant challenge for cloud adoption in Vietnam. In 2023, reports indicated that 40% of Vietnamese enterprises cited security concerns as a major barrier to cloud adoption. Incidents such as data breaches have heightened these concerns, leading to increased scrutiny and demand for enhanced security measures from cloud service providers. This challenge necessitates continuous investment in robust security solutions to address vulnerabilities.
• Limited Cloud Computing Skills: A shortage of skilled professionals in cloud computing is impacting the market. In 2023, over 50% of IT managers in Vietnam reported difficulties in finding qualified cloud experts. This skill gap hinders the effective implementation and management of cloud services, limiting the growth potential of the market. The need for specialized training programs and educational initiatives is critical to addressing this challenge.

Vietnam Cloud Computing Market Government Initiatives

• National Digital Transformation Program 2025: The "National Digital Transformation Program 2025," launched in 2023, aims to enhance Vietnams digital infrastructure and promote cloud adoption across sectors. This program includes substantial funding and strategic initiatives to support digital projects and upgrade IT systems, fostering a conducive environment for cloud computing growth.
• Cybersecurity Law Compliance: Enacted in 2024, the "Cybersecurity Law" mandates strict data protection and privacy requirements. This regulation impacts cloud service providers by enforcing rigorous standards for data handling and storage. Compliance with this law is crucial for maintaining data security and building trust among users.

Vietnam Cloud Computing Future Market Outlook

Future Market Trends

Driven by continued digital transformation, the Vietnam cloud computing market is expected to experience substantial growth over the next five years. The following trends are anticipated:

• Expansion of Edge Computing: By 2028, edge computing is projected to become a significant component of Vietnams cloud landscape. As more businesses seek to process data closer to the source, investments in edge computing infrastructure are expected to grow. This trend will enhance the performance and efficiency of cloud services by reducing latency and improving real-time data processing.
• Increased Adoption of Cloud-Native Technologies: The adoption of cloud-native technologies, including containerization and microservices, is expected to rise. Businesses will increasingly leverage these technologies to build and deploy scalable applications. This shift will be driven by the need for greater flexibility and agility in managing cloud environments, supporting the growth of cloud-native solutions.