Vietnam ICT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Vietnam ICT Market is Segmented By Type (Hardware, Software, IT Services, and Telecommunication Services), Hardware (Network Switches, Routers and WLAN , Servers and Storage, and Other Hardware), and Industry Vertical (BFSI, IT and Telecom, Government, Retail, and E-commerce, Manufacturing, Energy and Utilities, and Other Industry Verticals). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Vietnam ICT Market Size

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Vietnam ICT Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 8.31 %
Market Concentration Low

Major Players

Vietnam ICT Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Vietnam ICT Market Analysis

The Vietnam ICT Market was valued at USD 8.30 billion the previous year and is expected to grow at a CAGR of 8.31%, reaching USD 13.32 billion by the next five years. The Vietnam ICT market is primarily driven by the increasing government initiatives to boost digital transformation in the public sector, growing adoption of advanced hardware and software solutions in end-user industries, and growth in new product launches by major market vendors operating in the country.

  • Vietnam's information and communication technology (ICT) market has grown steadily over the past few years. The country is considered one of Southeast Asia's most advanced ICT markets, with a strong digital infrastructure and a tech-savvy population.
  • The Vietnamese government has taken several initiatives to foster new developments. According to the Economy Southeast Asia Report, Vietnam's digital economy is anticipated to reach USD 50 billion by 2025, creating new growth opportunities for the ICT market.
  • The government approved the National Digital Transformation Program through 2025, with a vision to 2030, which will further support the growth of the ICT market. World Bank data shows that Vietnam's digital economy grows 10 percent annually and could exceed USD 200 billion by 2045. Additionally, to cultivate the country into an innovation and AI hub in ASEAN and the world, the government issued a national strategy on research and development applications for AI until 2030. Such government investments will help start-up companies offer ICT solutions in the market.
  • The inadequate ICT infrastructure in certain regions of Vietnam is a significant restraint in the Vietnam ICT market. While major cities have seen significant improvements, rural areas still face connectivity issues, including limited broadband coverage and unreliable network infrastructure. Additionally, the shortage of skilled professionals in the ICT industry is significantly challenging the growth of the ICT market in Vietnam. The rapid pace of technological advancements requires a well-trained workforce to develop, implement, and support ICT solutions. Vietnam faces a gap between the demand for skilled ICT talents and the availability of qualified individuals, which can challenge the growth and innovation potential of the market.
  • The COVID-19 pandemic drove people to opt for the work-from-home mode and increased their time spent watching videos and playing games, leading to increased Internet penetration and a demand for data competition. To address this, Jones Lang LaSalle (JLL) has received numerous requests to rent land or lease buildings to construct and develop Tier-3 or Tier-4 data centers in Vietnam, creating new growth opportunities for the ICT market.

Vietnam ICT Market Trends

Increasing Investment on Key Technologies (Cloud Technology and Artificial Intelligence) is Expected to Drives the Market

  • There has been an increasing demand for cloud computing technology in recent years because cloud solutions providers offer several benefits but also expose hosted data to severe risks such as privacy and identity theft. For instance, as part of national goals for digitalization, the Ministry of Information and Communications (MIC) aims to expand the market share covered by domestic CSPs (cloud service providers) to 70 percent by 2030.
  • The government and large corporations have invested heavily in core technology areas, such as artificial intelligence (AI) and cloud computing. For instance, the Vietnam International Bank (VIB) signed a three-year strategic partnership with Microsoft Azure to deploy multi-cloud on the Microsoft Azure premise, which will further increase the growth of the cloud computing market.
  • Additionally, growing investments in advanced technologies, coupled with growth in funding to innovative startups, further drive the development of the market. For instance, according to the OCED data, as of March 2023, OKXE Inc. was the leading Artificial Intelligence (AI) startup in Vietnam, with a capital investment value of USD 15 million, followed by Edmicro Education Co., Ltd. with a total capital investment value of USD 6 million.
  • Increasing investment in infrastructural development projects would create new growth opportunities for the ICT market. Viettel Cloud, for example, has 13 data centers in Vietnam and plans to invest over USD 400 million to expand the scale to 17,000 racks by 2025. Following the roadmap, in 2030, the total investment would reach USD 1.6 billion, with 34,000 racks meeting international standards.
  • According to a report published by Google, Vietnam has a thriving startup scene, with a rapidly growing number of innovative startups emerging in various sectors, such as e-commerce and fintech. Vietnam is predicted to achieve the highest growth of 31% in the digital economy in Southeast Asia between 2022 and 2025.
Vietnam ICT Market: Leading Startups in Artificial Intelligence (AI), Based on capital Investment Value, in USD million, Vietnam, March 2023

IT and Telecom Industry Vertical Segment is Expected to Hold Significant Market Share

  • The IT and Telecom sector in the country has been thriving rapidly in the past few years. According to the 2023 GSMA Mobile Economy, The government of Vietnam is also aiming to upgrade mobile infrastructure and make 5G universal by 2030, offering new services and improved networks. The online population in the country is also increasing. According to PPRO, In 2022, the online population in Vietnam amounted to 70.9 million.
  • Expanding network infrastructure, including fixed and wireless broadband, is a longer-term supporting trend for ITC market growth. For instance, in May 2022, Casa Systems signed a memorandum of understanding (MoU) with Vietnam Posts and Telecommunications Group (VNPT) to introduce next-generation 5G technologies, such as cloud-native 5G Core, RAN, and fixed wireless access (FWA) solutions in Vietnam.
  • According to the MIC's Authority of Telecommunications, telecoms network infrastructure has been expanded to cover 100 percent of communal-level localities. The 2G, 3G, and 4G mobile networks have covered 99.8 percent of the population, while 5G has been piloted in 16 provinces and cities. Such initiatives from the government would create new growth opportunities for telecom service providers.
  • Furthermore, the government has plans to expand its network coverage from 3G and 4G to 5G networks. For example, the Ministry of Information and Communications (MIC) has reported that it has finished installing 5G stations using open radio access network (ORAN) technology, with download and upload speeds of 900 Mbps and 60 Mbps, respectively.
Vietnam ICT Market: Number of Online Users, in Millions, in Vietnam and other Asia Pacific Countries, 2022

Vietnam ICT Industry Overview

The Vietnamese ICT market is fragmented, with the presence of major players like Microsoft Corporation, Cisco Systems Inc., Viettel, Qualcomm Technologies, Inc., and Google LLC (alphabet Inc.). Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product and service offerings and gain sustainable competitive advantage.

  • May 2023 - HGC Global Communications Limited (HGC), an ICT service provider and network operator, and Telehouse Vietnam, a premier ICT solutions provider, signed the Joint Marketing Agreement to provide EdgeX by HGC Global Communications Limited in the Vietnam market as part of the strategy to implement EdgeX by the company in Asia to support the emerging economies. By bringing the EdgeX infrastructure to Hanoi with Telehouse Vietnam, HGC expands its presence in Vietnam by extending its efficient services to the North.
  • May 2022 - Viettel Group announced a partnership with Qualcomm Technologies Inc. to develop a next-generation 5G Radio Unit (RU) with massive MIMO capabilities and distributed units (DUs). The collaboration aims to introduce 5G network infrastructure and services in Vietnam and globally.

Vietnam ICT Market Leaders

  1. Microsoft Corporation

  2. Cisco Systems Inc.

  3. Viettel

  4. Qualcomm Technologies, Inc.

  5. Google LLC (alphabet Inc.)

*Disclaimer: Major Players sorted in no particular order

Vietnam ICT Market Concentration
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Vietnam ICT Market News

  • October 2022: The Viettel Group launched the Viettel Cloud Ecosystem, cementing its position as Vietnam's largest cloud computing service provider. This launch will enable enterprise clients worldwide to accelerate cloud-enabled transformations with personalized and specialized solutions.
  • October 2022: K-One signed an agreement with the Vietnam Distribution Joint Stock Company to prepare for a joint venture, which aligns with its plan to expand its cloud computing business in Vietnam.
  • August 2022: Amazon Web Services (AWS) expanded its presence in Vietnam by launching new edge networking services in Ho Chi Minh City and Hanoi.

Vietnam ICT Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Ecosystem Analysis

    3. 4.3 Industry Stakeholder Analysis

    4. 4.4 Industry Attractiveness- Porter's Five Force Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 An Assessment of the impact and recovery from COVID-19

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Rising Smart City Initiatives Leading to Revamp of Technology Infrastructure

      2. 5.1.2 Digital Transformation and Industrial Automation

      3. 5.1.3 Increasing Investment on Key Technologies (Cloud Technology and Artificial Intelligence)

    2. 5.2 Market Restraints

      1. 5.2.1 High Initial Cost for Infrastructure

      2. 5.2.2 Need for Technology-Specific Skillset and Awareness

  6. 6. KEY TECHNOLOGY INVESTMENTS

    1. 6.1 Cloud Technology

    2. 6.2 Artificial Intelligence

    3. 6.3 Cyber Security

    4. 6.4 Digital Services

  7. 7. MARKET SEGMENTATION

    1. 7.1 By Type

      1. 7.1.1 Hardware

        1. 7.1.1.1 Network Switches

        2. 7.1.1.2 Routers and WLAN

        3. 7.1.1.3 Servers and Storage

        4. 7.1.1.4 Other Hardware (Fiber Optics solutions)

      2. 7.1.2 Software

      3. 7.1.3 IT and Infrastructure Services (includes Cloud)

      4. 7.1.4 Telecommunication Services

    2. 7.2 By Industry Vertical

      1. 7.2.1 BFSI

      2. 7.2.2 IT and Telecom

      3. 7.2.3 Government

      4. 7.2.4 Retail and E-commerce

      5. 7.2.5 Manufacturing

      6. 7.2.6 Energy and Utilities

      7. 7.2.7 Other Industry Verticals

  8. 8. COMPETITIVE LANDSCAPE

    1. 8.1 Company Profiles

      1. 8.1.1 Microsoft Corporation

      2. 8.1.2 Cisco Systems Inc.

      3. 8.1.3 Viettel

      4. 8.1.4 Qualcomm Technologies, Inc.

      5. 8.1.5 Google LLC (alphabet Inc.)

      6. 8.1.6 Fujitsu

      7. 8.1.7 Fortinet

      8. 8.1.8 Vietnamobile

      9. 8.1.9 D-Link Systems, Inc.

      10. 8.1.10 Hewlett Packard Enterprise

      11. 8.1.11 Telehouse Vietnam

    2. *List Not Exhaustive
  9. 9. INVESTMENT ANALYSIS

  10. 10. FUTURE OUTLOOK OF THE MARKET

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Vietnam ICT Industry Segmentation

Information and communications technology (ICT) is an abbreviation for Information and communications technology (ICT) is an extensional term for information technology (IT) that stresses the role of unified communications and the integration of telecommunications (telephone lines and wireless signals) and computers, as well as necessary enterprise software, middleware, storage and audiovisual, that enable users to access, store, transmit, understand and manipulate information.

The Vietnam ICT market is segmented by type (Hardware (Network Switches, Routers and WLAN, Servers and Storage), Software, IT and Infrastructure Services (including cloud), Telecommunication Services), by Industry Vertical (BFSI, IT and Telecom, Government, Retail, and E-commerce, Manufacturing, Energy and Utilities). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Type
Hardware
Network Switches
Routers and WLAN
Servers and Storage
Other Hardware (Fiber Optics solutions)
Software
IT and Infrastructure Services (includes Cloud)
Telecommunication Services
By Industry Vertical
BFSI
IT and Telecom
Government
Retail and E-commerce
Manufacturing
Energy and Utilities
Other Industry Verticals
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Vietnam ICT Market Research FAQs

The Vietnam ICT Market is projected to register a CAGR of 8.31% during the forecast period (2024-2029)

Microsoft Corporation, Cisco Systems Inc., Viettel, Qualcomm Technologies, Inc. and Google LLC (alphabet Inc.) are the major companies operating in the Vietnam ICT Market.

The report covers the Vietnam ICT Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam ICT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Key sectors driving the Vietnam ICT Market growth include telecommunications, software and services, and hardware, fueled by increased internet penetration and mobile usage.

Vietnam ICT Industry Report

The Vietnam ICT market is experiencing robust growth, driven by a surge in digital transformation initiatives across various sectors, as detailed in the Vietnam IT market report. Key market segments influencing this growth include hardware, software, IT and infrastructure services, and telecommunication services. Industry verticals such as BFSI, IT and telecom, government, retail and e-commerce, manufacturing, and energy and utilities are rapidly adopting ICT solutions to enhance operational efficiencies and service delivery. The increasing internet penetration and the adoption of advanced technologies are pivotal in expanding the Vietnam ICT industry. IT companies in Vietnam are capitalizing on these opportunities, supported by government initiatives aimed at fostering a digital economy and enhancing the country's tech infrastructure. This dynamic market environment is expected to continue its upward trajectory, bolstering Vietnam's position as a significant player in the global ICT landscape. For detailed statistics on the Vietnam ICT market share, size, and revenue growth rate, access a free report PDF download from Mordor Intelligence™ Industry Reports, which includes a market forecast outlook and historical overview.

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Vietnam ICT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)