Vietnam's cloud service market reaches nearly $200 million in 2020

Vietnam's cloud service reached $196.11 million in 2020 on the back of rising digital transformation

The cloud service is an internet-based service that has a wide range of services delivered on-demand to companies and customers over the internet. Cloud services are fully managed by cloud computing vendors and service providers. The extensive use of cloud computing in various sectors including private organisations, government, retail, healthcare, and education, among others is anticipated to act as a catalyst in the growth of Vietnam's cloud service market.

According to a report by Research and Markets, Vietnam's cloud service sector will enjoy an annual growth rate of 18.8 per cent until 2026. This growth is due to the growing need for security and safety of the official data of various organisations and corporations across the country.

Based on service type, the market can be segmented into infrastructure as a service (IaS), platform as a service (PaaS), and software as a service (SaaS). Among them, IaS dominated the Vietnamese market in 2020 with a market share of 41.74 per cent owing to its high scalability, cost-effectiveness, pay-on-demand for utilities, location independence, redundancy, and the security of the user's data.

Based on type, the market can be divided into public cloud, private cloud, and hybrid cloud. The public cloud segment dominated the market in 2020 with a market share of 65.44 per cent owing to its lower costs, no maintenance, and near-unlimited scalability with on-demand resources.

However, the hybrid cloud was the fastest-growing segment and is forecast to grow at the swiftest pace until 2026. The growth of the hybrid cloud is due to its better support for a remote workforce and improved security and risk management along with the accessibility of multiple vendors and platforms by a single user.

Major companies are developing advanced technologies and launching new service plans to stay competitive in the market. Other competitive strategies include mergers and acquisitions and the development of new innovative services.

At present, the cloud computing market in Vietnam is led by both domestic and foreign suppliers. The key players in the Vietnamese cloud services market are FPT Corporation, Viettel-CHT, CMC Corporation, IBM Vietnam, Microsoft Vietnam, Amazon Web Services Vietnam, Mat Bao Corporation, NTC Cloud Computing, SAP Asia (Vietnam), HPT Vietnam, Google LLC, and Salesforce.