Vietnam Tracking as a Service Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Vietnam Tracking as a Service Market Overview

• The Vietnam Tracking as a Service market is valued at USD 180 million, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for real-time tracking solutions across various sectors, including logistics, transportation, and healthcare. The rise in e-commerce and the need for efficient supply chain management have further propelled the adoption of tracking services, enhancing operational efficiency and customer satisfaction.
• Key cities such as Ho Chi Minh City and Hanoi dominate the Vietnam Tracking as a Service market due to their status as economic hubs with a high concentration of businesses and logistics operations. The urbanization and rapid development in these cities have led to increased investments in technology and infrastructure, fostering a conducive environment for tracking service providers to thrive.
• The Cybersecurity Law, 2018 issued by the National Assembly of Vietnam requires tracking service providers to implement security measures for data protection, including encryption standards for tracking devices and software, mandatory reporting of cyber incidents within 24 hours, and compliance audits for entities handling location data above specified thresholds. This ensures data integrity and user privacy through licensing requirements for IoT-enabled tracking systems.

Vietnam Tracking as a Service Market Segmentation

By Service Type:The service type segmentation includes various subsegments that cater to different tracking needs. The primary subsegments are Real-time Vehicle & Fleet Tracking as a Service, Asset & Inventory Tracking as a Service, Personal & Workforce Tracking as a Service, Cold Chain & Environmental Tracking as a Service, and Others. Among these, Real-time Vehicle & Fleet Tracking as a Service is the most dominant due to the increasing need for logistics and transportation companies to monitor their fleets efficiently. This subsegment is driven by the growing e-commerce sector, which demands timely deliveries and effective route management.

By Solution Component:The solution component segmentation encompasses Hardware (Trackers, Sensors, Gateways), Software Platform & Analytics, and Managed & Professional Services. The Hardware segment is currently leading the market, driven by the increasing demand for advanced tracking devices that offer real-time data and analytics. The proliferation of IoT devices and the need for seamless integration with existing systems have further fueled the growth of this segment, making it essential for businesses to invest in reliable hardware solutions.

Vietnam Tracking as a Service Market Competitive Landscape

The Vietnam Tracking as a Service Market is characterized by a dynamic mix of regional and international players. Leading participants such as Viettel Group, FPT Corporation, VNPT (Vietnam Posts and Telecommunications Group), MobiFone Telecommunications Corporation, CMC Corporation, TMA Solutions, VNG Corporation, GHTK (Giao Hàng Ti?t Ki?m), GHN (Giao Hàng Nhanh), Viettel Post, VNPost (Vietnam Post Corporation), SCTV (Saigon Cable Television), CMC Telecom, Rada JSC, DHL eCommerce Vietnam contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Tracking as a Service Market Industry Analysis

Growth Drivers

• Increasing Demand for Real-Time Tracking Solutions:The Vietnamese logistics sector is projected to reach $82 billion in future, driven by the need for real-time tracking solutions. This demand is fueled by the rapid growth of e-commerce, which is expected to grow to $39 billion in future. Companies are increasingly investing in tracking technologies to enhance operational efficiency and customer satisfaction, leading to a significant uptick in the adoption of tracking as a service.
• Expansion of Logistics and Transportation Sectors:Vietnam's logistics market is anticipated to grow at a rate of 15-17% annually, reaching $45 billion in future. This expansion is largely due to increased foreign direct investment and infrastructure development, including new highways and ports. As logistics companies seek to optimize their operations, the demand for tracking services that provide visibility and efficiency will continue to rise, further propelling market growth.
• Rising Adoption of IoT Technologies:The Internet of Things (IoT) market in Vietnam is expected to reach $3 billion in future, with a significant portion allocated to tracking solutions. The integration of IoT devices in logistics allows for enhanced data collection and analysis, improving supply chain transparency. As businesses increasingly recognize the benefits of IoT, the demand for tracking as a service will grow, driven by the need for smarter logistics solutions.

Market Challenges

• Data Privacy and Security Concerns:With the rise of tracking technologies, data privacy has become a significant challenge. Vietnam's data protection laws are evolving, but many companies still face uncertainty regarding compliance. In future, 62% of businesses reported concerns about data breaches, which can lead to financial losses and reputational damage. This apprehension may hinder the adoption of tracking services, as companies prioritize data security.
• High Initial Investment Costs:The upfront costs associated with implementing tracking solutions can be prohibitive for many businesses, particularly small and medium enterprises (SMEs). In future, the average investment for a comprehensive tracking system is estimated at $55,000, which includes hardware, software, and installation. This financial barrier can limit market penetration, as many SMEs may opt for less expensive alternatives, stalling overall market growth.

Vietnam Tracking as a Service Market Future Outlook

The Vietnam Tracking as a Service market is poised for significant growth, driven by technological advancements and increasing consumer expectations for transparency. As logistics companies adopt AI and machine learning, operational efficiencies will improve, leading to enhanced service offerings. Additionally, the shift towards subscription-based models will make tracking solutions more accessible. The government's support for smart city initiatives will further catalyze the adoption of innovative tracking technologies, positioning Vietnam as a leader in the Southeast Asian logistics landscape.

Market Opportunities

• Growth in E-Commerce and Delivery Services:The e-commerce sector in Vietnam is projected to grow to $39 billion in future, creating a substantial demand for efficient tracking solutions. As online shopping becomes more prevalent, businesses will increasingly seek tracking services to enhance delivery accuracy and customer satisfaction, presenting a lucrative opportunity for service providers.
• Development of Customized Tracking Solutions:As businesses seek tailored solutions to meet specific operational needs, there is a growing opportunity for providers to develop customized tracking services. By leveraging data analytics and customer feedback, companies can create solutions that address unique challenges, thereby enhancing their competitive edge in the market.