Vietnam Cybersecurity and MSSP Market

Vietnam Cybersecurity and MSSP Market Overview

• The Vietnam Cybersecurity and MSSP Market is valued at USD 2.4 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing frequency of cyber threats, the digital transformation of businesses, and heightened awareness of data protection among organizations. The demand for robust cybersecurity solutions has surged as companies seek to safeguard their digital assets and comply with regulatory requirements. Additional growth drivers include the rapid expansion of IT infrastructure, increased adoption of cloud services, and the rise of zero-trust security models, which emphasize thorough verification of users and devices to reduce unauthorized access and data breaches. The market is further stimulated by the growing popularity of managed security services, as organizations increasingly outsource security needs to specialized providers for threat monitoring, incident response, and compliance management.
• Key cities such as Ho Chi Minh City and Hanoi dominate the market due to their status as economic hubs, housing numerous tech startups and multinational corporations. The concentration of IT infrastructure and investment in digital services in these urban areas fosters a competitive environment for cybersecurity solutions, making them pivotal in driving market growth.
• The Vietnamese government has strengthened the regulatory framework for cybersecurity through the Law on Cybersecurity (No. 24/2018/QH14), issued by the National Assembly of Vietnam and effective from January 1, 2019. This law mandates that organizations protect personal data and critical information infrastructure, requiring data localization for certain sectors and granting authorities enhanced powers to request data access and block content deemed harmful to national security. In 2023, Vietnam also enacted the National Data Protection Law, which specifically prohibits the purchase and sale of personal data, further compelling businesses to invest in cybersecurity measures to ensure compliance with these legal standards.

Vietnam Cybersecurity and MSSP Market Segmentation

By Solution Type:The solution type segmentation includes various subsegments that cater to different aspects of cybersecurity needs. The primary subsegments are Network Security, Endpoint Security, Application Security, Cloud Security, Data Security, Identity and Access Management, Antivirus/Antimalware, Encryption and Tokenisation, Compliance and Policy Management, Firewall, and Others. Each of these subsegments plays a crucial role in addressing specific security challenges faced by organizations. The market is witnessing a notable shift toward cloud security and AI-powered solutions, reflecting the rapid adoption of cloud computing and the need to defend against increasingly sophisticated, AI-driven cyber threats.

The leading subsegment in the solution type category is Network Security, which is crucial for protecting organizational networks from unauthorized access and cyber threats. The increasing number of cyberattacks targeting network vulnerabilities has driven organizations to prioritize investments in network security solutions. Additionally, the rise of remote work and cloud services has further emphasized the need for robust network security measures to safeguard sensitive data and maintain operational integrity.

By End-User:The end-user segmentation encompasses various industries that require cybersecurity solutions to protect their operations. The primary subsegments include Government and Defence, Financial Services (BFSI), Healthcare and Life Sciences, Retail, Manufacturing, Energy and Utilities, IT and Telecommunications, Education, and Others. Each sector has unique security requirements, driving the demand for tailored cybersecurity solutions. The modernization of technology in industries such as banking, healthcare, and e-commerce is accelerating the adoption of advanced information security solutions.

The Financial Services (BFSI) sector is the dominant end-user segment, driven by stringent regulatory requirements and the need to protect sensitive financial data. With the increasing frequency of cyber threats targeting financial institutions, there is a heightened focus on implementing comprehensive cybersecurity measures. This sector's reliance on digital transactions and online banking further necessitates robust security solutions to mitigate risks and ensure customer trust.

Vietnam Cybersecurity and MSSP Market Competitive Landscape

The Vietnam Cybersecurity and MSSP Market is characterized by a dynamic mix of regional and international players. Leading participants such as VNPT Cyber Immunity, Bkav Corporation, CMC Cyber Security, FPT Information System, Securenet Technologies, CyStack, VSEC (Vietnam Security Network), Viettel Cyber Security, MobiFone Cyber Security, NCS (National Cyber Security JSC), CMC Telecom, VNG Corporation, TMA Solutions, Athena Cyber Security, ECQ (ECQ Vietnam Technology JSC) contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Cybersecurity and MSSP Market Industry Analysis

Growth Drivers

• Increasing Cyber Threats:The Vietnam cybersecurity landscape is significantly influenced by the rise in cyber threats, with reported incidents increasing by 30% in the current year alone. The Vietnam Cybersecurity Center noted over 1,000 cyberattacks targeting government and private sectors, highlighting the urgent need for robust cybersecurity measures. This surge in threats is prompting organizations to invest heavily in cybersecurity solutions, with the market expected to reach $1.5 billion in the near future, driven by the necessity to protect sensitive data and infrastructure.
• Government Initiatives for Cybersecurity:The Vietnamese government has prioritized cybersecurity, launching the National Cybersecurity Strategy recently, which allocates approximately $200 million for enhancing national cybersecurity capabilities. This initiative aims to bolster the country's defenses against cyber threats and promote the development of local cybersecurity firms. Additionally, the government is implementing regulations that mandate compliance with cybersecurity standards, further driving demand for managed security services and solutions across various sectors.
• Rising Digital Transformation:Vietnam's digital transformation is accelerating, with the digital economy projected to contribute $57 billion to the GDP in the near future. This shift is driving businesses to adopt digital technologies, increasing their exposure to cyber risks. As organizations transition to cloud services and digital platforms, the demand for cybersecurity solutions is surging. In the current year, investments in digital infrastructure reached $3 billion, underscoring the critical need for comprehensive cybersecurity strategies to safeguard these new digital assets.

Market Challenges

• Lack of Skilled Workforce:The cybersecurity sector in Vietnam faces a significant challenge due to a shortage of skilled professionals. Currently, there are only about 20,000 cybersecurity experts in the country, while the demand is estimated to exceed 50,000 in the near future. This skills gap hampers the ability of organizations to effectively implement and manage cybersecurity measures, leaving them vulnerable to attacks. The lack of training programs and educational resources further exacerbates this issue, limiting the growth potential of the cybersecurity market.
• High Cost of Cybersecurity Solutions:The financial burden of implementing comprehensive cybersecurity solutions poses a challenge for many organizations, particularly small and medium enterprises (SMEs). The average cost of deploying advanced cybersecurity measures can range from $10,000 to $100,000, depending on the complexity of the systems. This high cost often deters SMEs from investing in necessary protections, leaving them exposed to cyber threats. As a result, the market struggles to achieve widespread adoption of cybersecurity solutions across all business sizes.

Vietnam Cybersecurity and MSSP Market Future Outlook

The future of the Vietnam cybersecurity and MSSP market appears promising, driven by increasing awareness of cyber threats and the necessity for compliance with evolving regulations. As organizations continue to embrace digital transformation, the demand for innovative cybersecurity solutions will grow. Furthermore, the collaboration between local firms and international cybersecurity companies is expected to enhance capabilities and foster knowledge transfer, ultimately strengthening the overall cybersecurity posture of the nation and creating a more resilient digital economy.

Market Opportunities

• Growth in Cloud Security Solutions:With the rapid adoption of cloud services, the demand for cloud security solutions is set to rise significantly. The cloud security market in Vietnam is projected to reach $300 million in the near future, driven by the need for secure data storage and management. This presents a lucrative opportunity for cybersecurity firms to develop tailored solutions that address the unique challenges associated with cloud environments.
• Expansion of Managed Security Service Providers (MSSPs):The MSSP sector is poised for growth as businesses increasingly outsource their cybersecurity needs. The number of MSSPs in Vietnam is expected to double in the near future, driven by the rising complexity of cyber threats and the need for specialized expertise. This trend offers significant opportunities for MSSPs to provide comprehensive security services, including threat detection, incident response, and compliance management.