The cloud computing service market in Vietnam will reach tens of thousands of billions of VND/year in the next few years.

In 2019, total cloud computing market revenue of Vietnam reached about 133 million USD. Vietnamese enterprises accounted for about 20% of the market share, with 27 data centers invested in by 11 domestic enterprises with over 270,000 servers.

By June 2022, at the Data Center and Cloud Infrastructure Summit 2022, according to data from the Institute of Information and Communication Strategy, Vietnam still had only 27 data centers invested by 11 domestic enterprises.

Revenue grew, estimated at VND 4,500 billion, but Vietnamese enterprises accounted for about 20% of the market share, with about VND 900 billion. The remaining 80% of the market share belonged to foreign suppliers such as Amazon Web Services (33%), Google (21%), Microsoft (21%) and others.

Hoang Van Ngoc, Director of Viettel IDC, said in the past 10 years, data traffic in Vietnam increased 7 times, domestic connection traffic 40 times in terms of bandwidth, and international connection traffic by 25 times.

“In the 2010s, Vietnamese businesses mainly provided single data services, but now, Make in Vietnam suppliers have offered a diverse ecosystem with more than 30 products and services, helping to solve domestic demand," said Mr. Ngoc.

Currently, domestic cloud service providers have competitive advantages in terms of flexible prices, meeting the needs of many users. Foreign enterprises, however, have abundant financial advantages, new technology, relatively cheap prices for loyal customers, and many promotions to attract new users.

The gap between foreign service providers such as Amazon, Google, Microsoft and Vietnamese providers is still wide. It is very difficult for domestic firms to compete, increase market share, and master the market.

What are the opportunities?

Vietnam has a huge demand for cloud services. With the impact of the Covid-19 pandemic, demand has increased and providers of cloud storage services have also begun to charge users.

If the cloud trend continues to grow until 100 million people in Vietnam use cloud services, the cloud storage market alone can reach 10,800 billion VND. By 2025, if all Vietnamese businesses switch to using cloud services, the market will reach more than 53,200 billion VND (about 2.3 billion USD).

Mai Lan