Vietnam Cloud Computing Market | Analysis 2019-2032

Vietnam Cloud Computing Market Growth and Performance

• Vietnam cloud computing market size is expected to witness substantial growth in the coming years, expanding at a CAGR of 9.77% to achieve market value of US$ 803.4 million by 2031.
• The cloud computing industry in Vietnam stood at US$ 672.9 million in 2022.

Vietnam Cloud Computing Market Outlook

The Vietnam cloud computing market is emerging as one of the fastest-growing markets in Southeast Asia, driven by rapid digital transformation, government initiatives, and increasing demand for cost-effective cloud solutions. With a strong push toward digitization and ambitious national targets, the Vietnam cloud computing market growth is set to redefine the country’s digital landscape, making it a key player in the region’s cloud industry.

Despite the rapid growth, the Vietnam cloud computing market faces challenges such as the dominance of foreign providers and the need for improved digital infrastructure. However, the government’s focus on building regional data centers, developing 5G networks, and promoting edge computing presents significant opportunities for growth. Domestic tech companies are stepping up their efforts to compete with global giants, focusing on innovation and scalability. The Vietnam cloud computing market development is also supported by a tech-savvy youth population and increasing data usage, which has grown seven-fold over the past decade.

Vietnam Cloud Computing Market Trend

One of the key Vietnam cloud computing market trends is the accelerated adoption of cloud services, fueled by the COVID-19 pandemic and government-led digital initiatives. In 2024, over 47% of administrative services were conducted online, a 1.7-fold increase from the previous year. Cloud computing has played a pivotal role in this transformation, with 58% of enterprises and organizations using cloud services in 2023, investing an average of over 68 million VND annually.

The Vietnam cloud computing industry is thriving, supported by government programs like Digital Vietnam and Smart Cities, which promote cloud-based infrastructure in sectors such as e-governance, healthcare, education, and finance. The National Digital Transformation Programme aims to ensure the digital economy accounts for 20% of GDP by 2025 and 30% by 2030, further driving the Vietnam cloud computing market development.

Infrastructure-as-a-Service (IaaS) is gaining traction due to its scalability, flexibility, and cost-effectiveness, making it an attractive option for startups, SMBs, and larger enterprises. The pay-as-you-go model is particularly appealing in a market where budget constraints are a common challenge.

Vietnam is positioned to become the third-largest data center market in ASEAN, bolstered by recent investment reforms and a strategic focus on enhancing digital infrastructure. Significant investments include Hyosung's $4 billion commitment to expanding industrial data centers and high-tech materials production, which is anticipated to create 10,000 jobs and stimulate economic growth. Additionally, foreign investors such as Alibaba and Google are considering substantial investments, further reinforcing Vietnam's status as a regional cloud hub.

Vietnam Cloud Computing Market Competitive Landscape

The Vietnam cloud computing market competitive landscape is characterized by a mix of international and domestic providers. Foreign players like Google, Microsoft, and Amazon dominate nearly XX% of the market, while domestic companies such as Viettel, VNPT, CMC, and FPT hold the remaining XX%. Despite this, local providers are focusing on building modern data centers of international standards, aiming to increase their market share to XX% by 2025. The Vietnam cloud computing market is on a robust growth trajectory, driven by government initiatives, foreign investments, and a dynamic digital economy. As the country continues to embrace cloud technologies, it is well-positioned to become a leading cloud hub in Southeast Asia, driving innovation, economic growth, and technological advancement for years to come.

Vietnam Cloud Computing Market Scope