Vietnam Market Insights 2020
Vietnam Market Insights 2020
Among ASEAN countries, Vietnam has increasingly proven itself to have one of the largest room for cloud adoption with the country’s rapid growth in Cloud expenditure. In 2018, Vietnam’s Cloud service market was valued at USD$165 million and it is projected to reach $291 million by 2024, exhibiting a double digit CAGR of 10% between 2019 and 2024.
According to APAC SMB Digital Maturity Index released in April 2019, 18% of Small and Medium-sized Businesses (SMBs) in Vietnam kickstarted their digital transformation journey through investing in Cloud Computing. Venturing into Cloud Computing enabled these companies to build large-scaled computing power, as well as to minimise technical requirements and physical storage. In addition, Cloud adoption has also equipped these SMBs with the appropriate technology to expand their IT infrastructure, which would have otherwise required a significant upfront capital investment.
Following through a conversation with Mr Luong Huu Tuan, Co-founder of Vietnam Open Infrastructure Community, he highlighted that Vietnam’s Cloud market in in 2020 would be extremely exciting, with many interesting changes in the market to anticipate and new challenges to be tackled. For instance, the young talents in Vietnam’s IT industry are currently implementing a smart cloud platform for the digital transformation process in the country. With this move, we can expect Vietnam’s Cloud market to advance even further in the near future.
While local SMBs are moving towards cloud adoption and digital transformation, these are not without challenges. Based on APAC SMB Digital Maturity Index, local respondents indicated these areas that they lack of which deters them from cloud adoption: Digital Skills and Talent (17%), Insights into Operational and Customer Data (17%), Robust IT platform (9%). However, the Vietnamese government has stepped up and is taking measures to tackle these challenges that the locals face, which has greatly aided the decision of SMBs to adopt digitalization. For example, most of the respondents are aware of the government’s initiatives to support SMBs in digitalization and at least 64% had benefitted from them.
Moving forward with the navigation and growth of Vietnam’s digital businesses, W.Media will be bringing back the largest Vietnam Cloud & Datacenter Convention to Ho Chi Minh on 27th August 2020. It is the one and only inclusive event where end-users, operators, system integrators, consultants & engineers are able to meet and connect. Our conference agenda would help to tap on key progresses, best practices, concerns and the future of cloud and data centre innovations.
Keep watch – W.Media will commence its 2020 survey for the Vietnam market in Q3.
Visit the Vietnam Cloud and Datacenter Convention here.