At the M2M Viettel IoT 2023 (Photo: VietnamPlus)
Hanoi (VNA) – Vietnam’s Internet of Things (IoT) market is expected to hit 7 billion USD in 2025, according to Nguyen Thien Nghia, Deputy Director in charge of the Ministry of Information and Communications (MIC)’s Department of Information and Communications Industry.
IoT is the internet connected to computing devices embedded in everyday objects, enabling them to send and receive data. IoT presents an opportunity for the boom of startups and opens up new revenue streams in the future for technology-driven enterprises.
IoT is rapidly growing in Vietnam. Reports from GSMA Intelligence revealed that the number of IoT devices in Vietnam is predicted to increase from 21 million in 2018 to 96 million in 2025.
The integration of smart devices into the Internet has created a breakthrough in how people live and work. When applied to business operations, IoT devices can help enhance productivity, improve processes, optimise costs, and, most importantly, enhance user experiences.
Vietnam behind the world in IoT
IoT applications are being widely deployed in Vietnam in developing smart cities, smart homes, energy management, environmental monitoring, traffic management, and water quality management, among others.
However, the IoT application in Vietnam still faces various challenges, such as a shortage of skilled workforce, poor technical infrastructure, high investment costs, and information security concerns.
Illustrative image (Photo: VietnamPlus) Addressing a conference themed ‘Viettel M2M IoT’ in Hanoi on June 14 to discuss infrastructure and platforms for the growth of IoT in Vietnam, Deputy General Director of Viettel Telecoms Nguyen Trong Tinh said Vietnam is currently lagging behind the rest of the world in this field, so the country needs to make greater efforts to keep up with the international community.
To that end, it is necessary to enhance connection and partnership between technology firms, especially in areas of solution development and product supply, Tinh stressed.
Vietnamese enterprises want to have concrete figures regarding the value IoT can bring. However, this technology is relatively new and lacks data on its effectiveness, so it becomes challenging to convince investors to make an investment in it, according to Le Ngoc Quy, Director of IoT Viettel Hightech centre.
Investing in the workforce serving IoT operations is indeed a challenge to many businesses. This is the reason why the IoT infrastructure has not fully developed in Vietnam, Quy remarked.
Barriers to IoT development in Vietnam
According to IoT Architect Nguyen Minh Thi from Viettel Network, the main issue in Vietnam for the growth of IoT is the technological barrier.
Many corporations and organisations are aware of the indisputable benefits of IoT, and have developed corresponding solutions. However, when adopting those solutions, they encounter various challenges but they have to handle difficulties themselves and go ahead alone, Thi said.
“If these enterprises can cooperate with one another by sharing their own knowledge and experience about IoT, it is possible for them to reduce costs and time”, Thi stressed.
The lack of high-quality personnel is a barrier that has hindered the development of IoT in Vietnam. (Photo: VietnamPlus) Assoc. Prof. Dr. Nguyen Duc Minh from Hanoi University of Science and Technology reported that Vietnam is facing a situation of human resources shortage in the IoT field, especially high-quality engineers who can analyse business aspects for business owners to help them understand more about the benefits of IoT applications.
Hanoi University of Science and Technology is actively seeking ways to connect its students more closely with business activities, providing them with practical insights rather than solely theoretical knowledge, Minh said.
This is the best way for students to gain a better understanding of what businesses need, thus creating motivation fordeveloping the IoT industry in the future, he noted./.
