Vietnam cloud service market size is expected to grow at a CAGR of more than 25.6% during the forecast period. Cloud service refers to a wide range of services that are delivered to customers on-demand over the internet. Cloud services are gaining strong traction across the regions of Vietnam on account of accelerating digital transformation all across the country. As of 2020, nearly 11 local companies with over 270,000 servers have invested in the country’s cloud computing market to grow the number of cloud computing data centers to 27.
Moreover, the rise in the adoption of migration services across verticals such as IT & telecom is the latest trend in the cloud services market. Vietnam is strategizing its way ahead and aspires to rise through digital transformation with the introduction of distance learning platforms, remote medical examination and treatment, remote working, video conferencing, remote accounting services, network safety and security platform, and cloud computing infrastructure for pushing its digital transformation. Additionally, amid the COVID-19 pandemic, many organizations and businesses have adopted remote working culture, which has played a very crucial role to promote the development of the cloud computing market in the country.
Public Cloud is being popularly used by various end use industries
On the basis of type, the market is segmented into public cloud, private cloud, and hybrid cloud. The public cloud is expected to contribute significantly to the market over the forecast period on account of its growing popularity. Businesses in Vietnam are shifting toward the public cloud due to the lower cost and little or no maintenance. In addition, the key advantage for the customers who are using the public cloud is it eliminates the purchase requirement of hardware or software, as the customers only have to pay for the service they use.
Automotive industry to remain one of the key end users
The automotive industry is one of the leading industries that use cloud services in Vietnam. Cloud service enhances efficiencies, delivers worthy insights, and enables new, agile business models across the entire value chain of the industry. It further enables automotive suppliers and manufacturers to maximize uptime, improve first-time quality and optimize machine productivity. OEMs in the automotive industry are deploying a wide array of cloud services to improve quality and efficiency to design products and accelerate sales, marketing, customer services, and aftermarket services.
Northern Vietnam is growing due to growing urbanization
The Vietnam cloud service market is analyzed in Northern Vietnam, Central Vietnam, and Southern Vietnam. Northern Vietnam holds a substantial market share owing to its rapidly growing urbanization and digital transformation. In Vietnam, the state bank of Vietnam modified its policies to allow banks to perform digital KYC and other banking activities for banks and citizens to go digital for their banking needs, this has facilitated the cloud service market in Vietnam. Moreover, Southern Vietnam is expected to grow at a significant growth rate over the forecast period on the back of an increasing number of startups. Cloud computing helps start-ups to accelerate their growth due to the scalable nature of cloud computing and the reach of the internet enabling start-ups to go Vietnam within minutes.
Market Structure and Competitive Landscape
Vietnam cloud service market observes significant competition among different industry players. The cloud service market of the country is fragmented in nature with the presence of a mixture of foreign as well as domestic players. According to RationalStat Analysis, foreign players dominate Vietnam’s cloud service market with around 80% market share while domestic players account only for 20% market share in 2021.
Some of the prominent global players operating in the Vietnam cloud service market include Amazon Web Services Vietnam Company Ltd. (Amazon.com Inc.), Google LLC (Alphabet Inc.), SAP Asia (Vietnam) Co. Ltd. (SAP SE), IBM Vietnam Co., Ltd. (IBM Corp.), Salesforce, Inc., Oracle Corp., Microsoft Vietnam (Microsoft Corp.), and NTC Cloud Computing Company Ltd. among others.
Vietnamese players offering cloud services in the market include Viettel-CHT Ltd. Co., FPT Corp., HPT Vietnam Corp., CMC Corp., Mat Bao Corp., VCC Vinaphone (VNPT Cloud Contact Center), VNG Corp., Bizfly (VCCorp.), BASE Enterprise, Sapo Technology, and P.A Vietnam Co., Ltd. among others.
These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers & acquisitions, partnerships and collaborations, geographical expansion, and product launches are some of the strategies followed by industry players. Some of the recent developments observed in the market include,
- In October 2021, VIB Bank and Microsoft Vietnam announced a 3-year partnership to deploy multi-cloud on Microsoft Azure premise.
- In October 2021, Vietinbank cooperated with Amazon Web Services (AWS) to launch a digital banking service named VietinBank iPay, which is entirely deployed on cloud computing.
- In September 2021, Techcombank chose AWS as a strategic partner to supply cloud computing services, including inclusive training packages AWS Skills Guild.
Key Market Segmentation
RationalStat has segmented the Vietnam cloud service market on the basis of service type, type, organization type, end user, and region.
- By Service Type
- Infrastructure-as-a-Service (IaaS)
- Platform-as-a-Service (PaaS)
- Software-as-a-Service (SaaS)
- By Type
- By Organization Type
- Large Enterprises
- Public Administration
- By End-Use
- Banking, Financial Services & Insurance (BFSI)
- Retail & Warehousing
- IT & Telecom
- Media & Entertainment
- Public & Government
- Others (Agriculture etc.)
- By Region
- Northern Vietnam
- Central Vietnam
- Southern Vietnam
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid database, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for cloud computing service providers, cloud service providers, data centers providers, government organizations, market educational organization, regulatory agencies and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The Vietnam cloud service market is expected to grow at a CAGR of approximately 25.6% during the forecast period 2022-2028.
Northern Vietnam holds a prominent share of the Vietnam cloud service market.
The Vietnam market for cloud service was US$ 250 Million in 2021.
The rise in the adoption of migration services and the flourishing automotive industry are the major factors fuelling the growth of the Vietnam cloud service market.
Major companies operating in the Vietnam cloud service market are Amazon Web Services Vietnam Company Ltd. (Amazon.com Inc.), Google LLC (Alphabet Inc.), SAP Asia (Vietnam) Co. Ltd. (SAP SE), IBM Vietnam Co., Ltd. (IBM Corp.), Salesforce, Inc., Oracle Corp., Microsoft Vietnam (Microsoft Corp.), and NTC Cloud Computing Company Ltd. among others.