The Vietnam Cloud Computing and Data Center Club (VNCDC) in late 2023 released a report about the Vietnamese cloud service market, showing that Covid-19 has accelerated digital transformation and businesses’ demand for using cloud services.

In 2022, after lockdown was removed, organizations and businesses began making heavy investment in digital technology to accelerate production and business activities, which led to a sharp rise in demand for cloud services in Vietnam. This has helped market value increase to VND9.7 trillion, double that of 2021.

However, the growth of the cloud service market slowed down in 2023, partially because of the poor economy which forced businesses to cut expenditures. However, the Vietnamese cloud service market still grew by 24.2 percent in 2023.

Many agencies and large businesses such as Vietnam Airlines and the Hue Department of Information and Communications have succeeded in switching to cloud systems.

Vietnam Airlines used more than 200 software systems, hundreds of servers and provided 140,000 flights with 20 million passengers. Striving to become a digital airline by 2025, the national flag air carrier has decided that it needs to digitize. 

The Ministry of Information and Communications (MIC) and the government want to create a market for Make in Vietnam products.

Decree 53/2022 on localizing data in Vietnam has helped domestic companies and organizations digitize and choose Vietnamese cloud service providers. The legal document stipulates that businesses and organizations in Vietnam must store data in Vietnam.

Under the national digital infrastructure strategy, Vietnam targets having 100 percent of government agencies using cloud computing by 2025 and 70 percent of Vietnam’s businesses using services provided by domestic companies.

“To create tech firms, creating a market for firms is the most important thing. The government is the biggest consumer in every country, and if it spends money on high-tech products, this will help generate technology firms,” said Minister of Information and Communications Nguyen Manh Hung.

“National digital transformation will help create a vast market for Vietnam’s digital technology firms,” he added.

Vietnam firms’ market share 

Three years ago, 80 percent of the cloud computing market share was held by foreign corporations, while domestic firms just had 20 percent. However, confidence in Vietnamese services has increased gradually.

According to VNCDC, current market share held by foreign and domestic tech firms is 77.8 percent and 22.2 percent, respectively, which means a 2.2 percent increase for domestic firms’ services.

Domestic cloud-service providers now can satisfy high demand, raising total revenue from VND900 billion in 2021 to VND2.362 trillion in 2022, a growth rate of 37.4 percent.

The large service providers creating Make in Vietnam cloud platforms include Viettel with Viettel Cloud; CMC Telecom with CMC Cloud; and FPT with FPT Smart Cloud. Tech firms are gathering strength to accelerate R&D (research and development) activities and run media campaigns to attract the public’s attention.

Viettel Solutions, after analyzing global cloud platforms' advantages and disadvantages, developed a cloud platform of its own – Viettel Cloud – based on the open source Openstack, providing clients a flexible and adaptable cloud infrastructure solution. It can be customized to satisfy requirements of clients while ensuring control and security. 

Viettel Cloud not only satisfies the requirement on building Private Cloud & Hybrid Cloud in accordance with Dispatch 1145 to serve e-government, but also meets specific requirements from different customers.

Viettel Cloud also has one more advantage – a reasonable price which saves clients up to 70 percent of expenditures, while the expansion capability is unlimited. In addition, its interface is friendly, and designed to fit Vietnamese users’ habits.

With the efforts by large Vietnamese tech firms such as Viettel, CMC, FPT and VNPT Vietnam Posts and Telecommunications Group), experts believe that Vietnamese solutions will no longer be inferior to foreign products.

Thai Khang