Vietnam has made a name for itself in the world of cloud and data center colocation, and there is much to learn about the emerging market as it becomes one of the industry’s key regional players.
We sat down with Mr. Hoang Van Ngoc, Director of Viettel IDC, Vietnam’s leading cloud and data center provider, to learn about the growth opportunities that the southeast Asian nation can offer growing businesses.
For SMEs looking to expand their presence or gain a foothold somewhere new, we discuss four things affecting the state and future of Vietnam’s cloud and data center market…
The last decade has seen Vietnam emerge as an economically robust and promising nation in southeast Asia; which bodes well for businesses wanting to expand their footprint into new regions with high growth potential.
Despite falling short of forecasts in 2021 due to the pandemic, Vietnam’s GDP per capita has increased almost threefold between 2002 and 2020. This significant growth sets the stage for 2045 when Vietnam hopes to be considered a high-income country.
From a business perspective, investment from foreign enterprises and new mergers and acquisitions (M&As) are set to pick back up in 2022 after a two-year plateau, which will enable businesses of all sizes to tap into the Vietnamese market and contribute to its value chain.
The economy isn’t the only thing headed on an upward trajectory in Vietnam. The country’s data center market is projected to grow at a Compound Annual Growth Rate (CAGR) of 8.18% between 2021 and 2026, reaching an estimated $673 million by the end of the term. At the same time, Vietnam’s cloud computing market is expected to reach a staggering $500 million by 2025, with a CAGR of roughly 30-40%.
Reflecting its impressive year-on-year growth, international standard service delivery capacity, and high volume of organizations and enterprises, Vietnam was rated as one of ten emerging markets within the global data center market.
According to a recent report, its growth is accelerating due to the rapid digitalization of services, the need for data to be localized, the introduction of government initiatives, low start-up costs and global connectivity - all of which have been spurred on by the COVID-19 pandemic.
Currently, Vietnam has around 27 data centers located in major cities including Hanoi, Ho Chi Minh, Da Nang, Binh Duong and Can Tho, with a variety of sizes and Uptime certifications that help to capture the demand and standards of all different kinds of businesses.
The Vietnamese government has also stepped in to ensure maximum protection for users of its cloud and data center infrastructure, introducing the Law on Cybersecurity (LCS) in 2019. This legislation requires data of Vietnamese users to be stored in Vietnam itself by local and offshore providers.
Not only is Vietnam’s infrastructure well-protected; it is becoming a sustainable IT solution thanks to the initiatives of the Vietnamese government and service providers like Viettel IDC.
A recent report tells us that Vietnam is striving to generate close to 30% of its electricity via renewable sources and reduce its emissions by 8% by 2030. Viettel IDC data centers are pioneers in this space, employing new solutions and technologies such as solar energy systems, FreeAir Cooling, Uninterruptible Power Supply (UPS) to name a few.
These strategies enable Viettel IDC to optimize costs, improve service quality, and move towards sustainable development. Combining technological solutions with improved standards and updated operational procedures results in excellent data center performance for Viettel IDC and Vietnam.
As Vietnam’s economy grows, the nation’s cloud and data center market comes to the fore, and new initiatives are enabling safer and greener cloud and colocation solutions, local service providers are making it their mission to help SMEs seamlessly tap into what Vietnam has to offer.
“Viettel IDC is the first and only company in Vietnam to provide a full-service ecosystem for businesses,” Mr Van Ngoc says, allowing the transition into a geographically new environment much easier for SMEs.
“We have over 15,000 domestic and international customers who have trusted and chosen to use our cloud and data center services, and have helped them to implement cost-efficient, secure sustainable operations in Vietnam and beyond,” he says.
Having a team of trusted regional experts will be the key to navigating Vietnam’s emerging cloud and DC environment, which is well on its way to becoming the bedrock of IT infrastructure in Southeast Asia.
Head to Viettel IDC’s profile on Cloudscene to see what they can do for your organizations, or reach out to Cloudscene’s team of experts in cloud and colocation for assistance with your next data center project or implementation strategy.
Contributor: Mr. Hoang Van Ngoc, Director of Viettel IDC
Mr. Hoang Van Ngoc has held various positions of senior directorship in Viettel Group for more than 12 years. He has deep industry knowledge and global market experience in IT & Telecommunication.
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