Vietnam's cloud computing market share is now mainly owned by foreign enterprises. Vietnamese businesses only account for about 20 percent of the market share (approximately 900 billion VND or 38 million USD. But the plan is to change this in the not-too-distant future.

All Vietnam gov’t agencies to use homegrown cloud computing services by 2025 hinh anh 1Associate Professor, Dr. Tran Minh Tuan - Deputy Director of the Information and Communication Strategy Institute speaks at the event. (Photo: Minh Son/Vietnam+)

The Data Center and Cloud Infrastructure Summit 2022 - Shaping the digital future in Vietnam took place in Hanoi on June 14.

The event was held in the context that Vietnam has made its name in the field of information technology, with strong development of digital infrastructure.

Vietnamese enterprises account for 20% of the Cloud market share

According to Hoang Van Ngoc, Director of Viettel IDC, data usage in Vietnam had increased seven-fold in the past 10 years. Domestic connection traffic has increased 40 times in terms of bandwidth, and international connection traffic grew by 25 times.

Ngoc said from 2010 to now, the power consumption capacity of Vietnam's data centers has increased by three times. The bandwidth used has increased 10-15 times. Along with that, the standards and certifications in this field are also increasingly strict.

In the 2010s, Vietnamese businesses mainly provided single data services. But now, made in Vietnam suppliers bring a diverse ecosystem with more than 30 different products and services, helping to basically solve the domestic demand.

Deputy director of the National Institute of Information and Communications Strategy Tran Minh Tuan said Vietnam is home to 27 data centres over 11 enterprises. These centres are mainly concentrated in Hanoi, Ho Chi Minh City, Hoa Lac, and Binh Duong province.

The northern region accounted for 46.48 percent, the southern region accounted for 35.13 percent, and the central region accounted for 18.39 percent.

Regarding cloud computing, the Vietnamese market currently has more than 40 enterprises providing cloud computing services. These include foreign enterprises Google, Microsoft, Amazon, and large-scale domestic enterprises such as Viettel, VNPT, CMC, FPT and some small businesses providing applications.

The cloud computing market share in Vietnam is mainly in the hands of foreign enterprises. Vietnamese enterprises account for only about 20 percent of the market share with about 900 billion VND (38 million USD). The rest, 80 percent of the cloud market share, is held by foreign providers. Amazon Web Services (AWS) accounts for the most with 33 percent, and Google and Microsoft account for 21 percent. Cloud computing in the northern region is still prevalent.

With the rapid development of cloud services, Tuan stated that cloud computing is on a strong development trend in Vietnam at the moment.

100% of government agencies to use cloud computing

Discussing Vietnam's orientation, Tuan, who is also Deputy Director of the Information and Communications Strategy Institute said Vietnam aims to have 100 percent of government agencies use cloud computing by 2025. Meanwhile, 70 percent of Vietnamese enterprises will use cloud computing services provided by domestic enterprises.

“Vietnam strives to master technologies for cloud computing and diversify its applications in reality,” he said.

Vietnam will connect the cloud computing service provision platform according to the Multi Cloud model. It will also create institutions in the direction of encouraging the development and use of Made in Vietnam products and services, he added.

“Albeit difficulties, with the strong development trend of cloud businesses in Vietnam today, these goals are completely feasible,” Tuan said.

According to the Ministry of Information and Communications assessment, there will be three major trends at home and abroad affecting the data market: digital transformation, the development of 5G networks and edge computing, and the need to build a data centre serving the region./.