Eighty percent of market share in cloud computing belongs to foreign companies, which is a worrying problem at a time when information and communication infrastructure plays an increasingly important role in digital society, according to the Data Center and Cloud Infrastructure Summit 2022, held on June 14.

The summit, the first large-scale event of its kind in Vietnam, was held at a time when Vietnam has built its reputation in information technology and witnessed strong digital infrastructure development.

Hoang Van Ngoc, Director of Viettel IDC, said that in the past decade, data traffic in Vietnam increased by seven times, and domestic connection traffic increased by 40 percent in bandwidth and international connection traffic by 25 times. 

The number of internet subscribers accounts for 75 percent of total number of households in Vietnam.

Ngoc said since 2010, electricity consumption of Vietnam’s data centers has increased by three times, and bandwidth used by 10-15 times. The standards and certificates in the field have become stricter.

In the 2010s, Vietnam’s businesses mostly provided separate data services. Meanwhile, ‘Make in Vietnam’ suppliers now offer a diverse ecosystem with more than 30 services, satisfying domestic demand.

Tran Minh Tuan, Deputy Director of the Ministry of Information and Communication’s (MIC) Institute of Information and Communications Strategy, said there are 27 data centers belonging to 11 businesses in Vietnam, including famous names such as FPT Telecom with big data centers in Hanoi and HCMC and Viettel IDC with data centers in Hanoi and Binh Duong. 

Vietnam’s data centers are mostly located in the north and the south, which account for 46.48 percent and 35.13 percent, respectively. The centers in the central region account for 18.39 percent.

There are over 40 businesses providing cloud computing services, including foreign companies (Google, Microsoft and Amazon), domestic big companies (Viettel, VNPT, CMC and FPT), and some small companies.

The cloud computing market share is now in the hands of foreign companies, while Vietnamese firms just hold 20 percent of market share (VND900 billion).

Of the 80 percent of foreign held market share, Amazon Web Services account for 33 percent, and Google and Microsoft 21 percent.

Vietnam aims to have 100 percent of government agencies using cloud computing by 2025, and 70 percent of Vietnam’s businesses using cloud computing services provided by Vietnamese firms.

Trong Dat