Emphasizing the significant investment potential in cloud computing infrastructure, Deputy Minister of Information and Communications Phan Tam highlighted opportunities for US cloud firms to establish regional-scale data centers in HCMC and Danang.

After establishing five data centers in Southeast Asia, Huawei is now considering Vietnam as the location for its next data center, signaling the growing attractiveness of Vietnam's cloud computing market.

Analysts believe the value of the cloud computing market in Vietnam will reach $1.2 billion by 2030 thanks to increased demand.

Although the competition for market share in providing cloud computing services between domestic and foreign investors is fierce, Vietnamese enterprises have not yet closed the gap with foreign rivals.

The Tan Thuan CMC Data Centre, considered the most modern and safest data centre and cloud computing infrastructure facility in Vietnam, officially opened on August 15.

Eighty percent of market share in cloud computing belongs to foreign companies

Cloud computing is strongly driving new business models in the media and entertainment industry, with more domestic and international cloud service providers boosting their footprint.

While international technology giants are seeking fresh opportunities to expand further in the local cloud computing market, local players are planning for a new cooperation way to increase competitiveness, heralding stiffening competition ahead.

The financial industry is leading the way in using the cloud, but other firms in Vietnam are also using the platform for digital transformation, according to Amazon Web Services (AWS).

Vietnam currently has over 1,000 organizations capable of supporting startups, including technology startups, with 202 coworking zones, 79 business incubators and 38 business promotion organizations.

Cloud computing platforms will be a new-generation telecommunications infrastructure used for the development of a digital government, economy and society.

The cloud computing market in Vietnam in 2020 was about 133 million USD. Vietnamese enterprises only exploited about 20% of the market, mainly in the infrastructure segment.

Edge computing is an important key to enterprises’ IT infrastructure strategies and the digital economy.

Cloud computing is acting as an enabler for businesses to modernise their operations and gain agility to respond to competitive pressures in the ASEAN region amidst the devastating effects of the global health emergency.

Around 91 per cent of businesses in Viet Nam expect to virtualise at least 30 per cent of their IT infrastructure in the next two year, according to a survey conducted by VMware Inc .

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A recent survey has found that the majority of Vietnamese businesses plan to use cloud computing, considering this the top priority. Meanwhile, more Vietnamese and foreign service providers have joined the market.