Market Trends of Vietnam Cybersecurity Industry
This section covers the major market trends shaping the Vietnam Cybersecurity Market according to our research experts:
Increasing Demand for Digitalization and Scalable IT Infrastructure
- Cloud computing has advanced significantly in recent years because cloud solutions provide several benefits but exposed data hosted to severe risks such as privacy and identity theft. Cloud computing companies should consider implementing IT services that assess all executions, apps, and network connections.
- IT services have become more data-driven and real-time due to developments in IT operation across the cloud-based platform, producing higher value for the business, particularly in operational efficiency, business opportunity identification, and remote access optimization.
- For instance, According to a recent study by IBM Institute for Corporate Value (IBV), business executives in Vietnam are increasingly planning to invest in hybrid multi-cloud platform strategies and capabilities to drive business transformation and value creation. Sixteen percent of their IT spending is committed to the cloud, and they intend to expand the amount of hybrid spending from 41% in Feb 2021 to 43 percent by 2023. In addition, during the next two years, businesses in Vietnam intend to use at least eight clouds from an increasing number of vendors.
- The young population rate and the high smartphone and Internet coverage are the factors that will help Vietnam expedite its digital transformation.
- For instance, According to World Bank data, Vietnam's digital economy is growing at 10% per year. It could reach more than USD 200 billion by 2045, a massive figure compared to the country's GDP, which was approximately USD 352 billion in 2021.
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IT and Telecommunication Expected to Drive the Market Growth
- Increased smartphone device penetration and rising demand for high-speed data connectivity are some of the factors driving the growth of the Vietnam Telecom market during the forecast period. Rapid urbanization and rising living standards are increasing the demand for faster internet access, which is expected to drive the expansion of the Vietnam Telecom industry.
- For instance, On May 2022, two Vietnamese-invested enterprises, MB Cambodia and Viettel (Cambodia) Pte., Ltd (Metfone), signed a special credit package deal for 2022 to upgrade Cambodia's telecoms network.
- Moreover, Under this contract, MB Cambodia, a division of Vietnam's Military Commercial Joint Stock Bank, would provide a loan package with a credit ceiling of up to USD 100 million for Metfone, a subsidiary of the Viettel Military Industry and Telecoms Group, to modernize the telecom services network and expand operations in Cambodia.
- According to a statement announced by the Ministry of Information and Communications, the Department will continue to finalize documentation and set specific goals in 2022 to grow the overall income of the Vietnamese ICT industry from USD 136 billion in 2021 to USD 148 billion in 2022. The agency has also set a lofty goal of 70,000 digital technology enterprises in 2022.
- In addition, mobile network operators will expand 5G commercial coverage to 16 provinces and cities in 2021. The Department of Telecommunications has made it easier for these companies to adopt mobile services and Internet packages. All three leading mobile network carriers have introduced a Mobile Money service, opening up a new development space and laying the groundwork for having 100% of adults have a Mobile Money account. The Department also collaborated with mobile network operators to protect customers' interests to combat spam texts, calls, and SIMs.
