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Vietnam enterprises hold 20 percent of domestic cloud market share

Vietnamese enterprises only account for about 20 percent of the cloud computing market share.
Vietnam enterprises hold 20 percent of domestic cloud market share ảnh 1Hoang Van Ngoc, Director of Viettel IDC, speaks at the summit. (Photo: laodongthudo.vn)
Hanoi (VNS/VNA) - Vietnamese enterprises only account for about 20 percentof the cloud computing market share.

The Data Center and Cloud Infrastructure Summit 2022 took place recently in Hanoi,as information and communication infrastructure plays an increasingly importantrole in digital, economic and social life.

Hoang Van Ngoc, Director of Viettel IDC, said that data usage in Vietnam hadincreased seven-fold in the past 10 years.

Domestic connection traffic has increased 40 times in terms of bandwidth, andinternational connection traffic grew by 25 times.

The number of internet subscribers now accounts for 75 percent of allVietnamese households.

“Currently, there are about 20 million to 25 million households that alreadyhave fixed broadband. This is the rapid growth of connectivity and people'sneeds," said Ngoc.

In the 2010s, Vietnamese businesses mainly provided single data services, butnow, Made-in-Vietnam suppliers have brought a diverse ecosystem with more than30 different products and services, helping to solve domestic demand.

Deputy director of the National Institute of Information and CommunicationsStrategy Tran Minh Tuan said that the data centre market in Vietnam had 27 datacentres over 11 enterprises.

Currently, Vietnam's data centres are mainly concentrated in the northern and southernregions.

The northern region accounted for 46.48 percent, the southern region accountedfor 35.13 percent, and the Central region accounted for 18.39 percent. The bigdata centres are mainly located in the ministries and branches in the northernregion.

In the near future, there will be a big shift when the digital transformationtrend takes place strongly in small and medium enterprises, from which we couldhope for the explosion of the data centre and equal development in all threeregions, he added.

Regarding cloud computing, the Vietnamese market currently has more than 40enterprises providing cloud computing services.

These include foreign enterprises Google, Microsoft, Amazon, and large-scaledomestic enterprises such as Viettel, VNPT, CMC, FPT and some small businessesproviding applications.

The cloud computing market share in Vietnam is mainly in foreign enterprises'hands. Vietnamese enterprises account for only about 20 percent of the marketshare with about 900 billion VND (39 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 andMicrosoft account for 21 percent.

If divided by region, cloud computing in the northern region is still at thehighest level with 42 percent, the southern region at 39 percent and the centralregion at 16.55 percent.

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

Tuan proposed a goal of two national large data centres serving the DigitalGovernment, a national monitoring centre on data centre, three regional datacentres serving the digital economy and digital society, and one or tworegional centres serving the needs of regional and international financialcentres by 2025.

By 2030, data centres will meet green standards, while 100 percent of Stateagencies and 50 percent of Vietnamese people will use cloud data.

"Vietnam strives to master technologies for cloud computing and diversifytypes of applications," Tuan said./.
VNA

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