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DIGITAL BIZ

Sky’s the limit structure on a cloud computing platform
that inherits technologies from around the
world, including the OpenSack platform.

MARKET OF APPEAL
Vietnam’s cloud computing market boasts outstanding
potential and will continue ever-upwards if a number The demand for using cloud services in
Vietnam grew dramatically in 2022, when
of issues can be properly addressed. the market size increased to $393 million;
double the figure in 2021, according to the
| By LINH NGOC VNCDC Report. However, by 2023, growth
in the cloud market had slowed, largely
due to economic recession putting pressure
on enterprises to cut and optimize costs.
It has also been predicted that the mar-
ket will see no major fluctuations this year
and next, with its compound annual growth
rate (CAGR) in the 2023-2025 period to
stand at 20-23 per cent. By 2025, Vietnam’s
cloud market size will reach about $768
million. Statista has forecast that the market
value of cloud services in the country will
reach $291 million this year, with a CAGR
of over 10 per cent.
According to AWS, Vietnam’s “National
Digital Transformation Program to 2025 and
Vision to 2030” sets a target of the country
becoming a digital nation, a pioneer in testing
new technologies and models, transforming
public and private sector operations, ways
of living, and working, and developing a
PHOTO: VIET TUAN safe, humane, and broad digital environment
by 2030. This program has been widely fol-
lowed by ministries and departments from
the central to local level, such as the Ministry
n the context of increasingly compre- addition to the launch of AWS OutPosts. It of Finance establishing a modern, public,
hensive measures within Industry 4.0, has also announced plans to launch a new and transparent digital finance platform
I Vietnam has been witnessing significant AWS Local Zone in Hanoi. With these infra- based on big data and open financial data,
breakthroughs in the development of its structure investments, local enterprise cus- as well as a project on developing the appli-
cloud computing market, according to the tomers can run their applications and serve cation of population data, identification, and
Cloud Computing and Data Center Club end-users with even lower latency from data electronic authentication.
of Vietnam (VNCDC)’s VNCDC Report centers located in-country leveraging AWS “Organizations and businesses in Viet-
2023. Demand for cloud computing services technologies to drive innovation. nam will require the right infrastructure,
in the country has increased dramatically, The VNCDC Report also shows that solutions, and services to fully take advantage
which has caught the eye of major domestic there is clear progress being made at large of cloud and realize their business goals,
and foreign businesses. local enterprises such as Viettel, VNPT, and AWS is fully committed to providing
CMC, and FPT in providing cloud services. its customers in the region with access to
FOREIGN DOMINANCE The market share stood at 80 per cent for- these services,” Mr. Eric Yeo, Country Man-
The market share for cloud services in eign and 20 per cent domestic in 2021, but ager at AWS Vietnam, told VET. “In recent
Vietnam is held primarily by foreign enter- two years on the domestic share had crept years, cloud services have been playing a
prises such as Google, Microsoft, and Ama- up to 22.2 per cent. “The rise of more than critical role in helping Vietnam and ASEAN
zon Web Services (AWS), the report shows. 2 per cent represents great efforts from organizations increase productivity, reduce
Microsoft Azure is the foundation of domestic providers of internal cloud serv- costs, and continue to innovate.”
Microsoft Cloud, providing cloud services, ices,” said Mr. Dang Tung Son, Deputy Ms. Nguyen Quynh Tram, General Direc-
developer tools, scale, and security to Viet- General Director of CMC Telecom. tor Vietnam at Microsoft, also pointed out
namese startups and enterprises across a In 2023, FPT Cloud officially launched that Vietnam has a supportive and proactive
range of industries, regardless of where four new services, including FPT Kuber- government that has issued many policies
they are on their cloud journey. It provides netes with GPU, FPT Incident Manage- and strategies to promote digital transfor-
a low code, no code approach and AI-pow- ment, FPT Kafka, and FPT DevOps Service, mation and cloud adoption. In 2022, the
ered assistants called Copilots. Cooperation bringing the total number of its cloud plat- country posted the highest growth in the
has been established with over 1,200 partners form services to more than 25. digital economy in Southeast Asia, and
in Vietnam to deliver its services and solu- Viettel officially launched its cloud com- also aims to become a digital hub in the
tions, 70 per cent of which are small and puting ecosystem, Viettel Cloud, in 2022 region and has invested in building and
medium-sized enterprises (SMEs). as part of its digital transformation strategy upgrading its infrastructure and data centers.
AWS, meanwhile, has launched two Edge and it has contributed to popularizing cloud She added that Vietnam has a strong
locations in Hanoi and Ho Chi Minh City services around Vietnam. VNPT Cloud has IT workforce, with many talented and
as well as the AWS Global Accelerator, in also been launched, providing IT infra- skilled developers and engineers. “The

38 | VIETNAM ECONOMIC TIMES | FEBRUARY 2024 en.vneconomy.vn