Vietnam Cloud Native Application Market Outlook to 2028

Vietnam Cloud Native Applications Market Overview

• The Vietnam Cloud Native Applications market is growing by the increasing adoption of cloud computing and digital transformation across various sectors. The Global Cloud Native Application Market is valued at USD 6.1 billion in 2023. By the increasing adoption of digital transformation initiatives across various sectors, the rise in demand for scalable and flexible IT solutions, and the significant investments from both government and private sectors to enhance cloud infrastructure and services.
• Key players in the Vietnam cloud native applications market includes FPT Software, Viettel Group, CMC Corporation, IBM Vietnam, Amazon Web Services (AWS). These companies are leading the market with their robust cloud service offerings, strategic partnerships, and continuous innovations in cloud technology.
• In 2023, FPT Software announced a strategic partnership with AWS to accelerate cloud adoption among Vietnamese enterprises. This collaboration aims to provide comprehensive cloud solutions and training programs to enhance the cloud skills of local IT professionals.

Vietnam Cloud Native Application Current Market Analysis

• In 2023, the market has increased in cloud service adoption among SMEs, driven by the need for cost-effective and flexible IT solutions. In 2023, according to a report by the Ministry of Information and Communications, the number of businesses utilizing cloud services in Vietnam grew, showcasing the growing reliance on cloud-native applications to enhance business operations.
• In 2023, the Vietnamese government launched the "National Digital Transformation Program" aiming to make Vietnam a leading digital economy by 2030. This initiative includes investments in cloud infrastructure, providing tax incentives for cloud service providers, and supporting startups in the cloud technology sector.
• Northern Vietnam, particularly Hanoi, has become a significant hub for cloud native application adoption. In 2023, over 500 companies in the region have integrated cloud-native solutions into their operations, driven by the increasing need for scalable IT infrastructure to support growing business activities.

Vietnam Cloud Native Application Current Market Segmentation

The Vietnam cloud native application market is segmented by various factors like Application, Deployment and Region.

By Application: The Vietnam cloud native application market can be segmented into application by banking and financing services, healthcare and retail. In 2023, the banking and financial services is dominate due to the sector's early adoption of digital transformation strategies, high investment in cloud infrastructure.

By Deployment: The Vietnam cloud native application market can be segmented into deployment by public cloud, private cloud and hybrid cloud. In 2023, Public Cloud is dominate driven by its cost-effectiveness, scalability, and the availability of advanced cloud services offered by providers such as AWS and IBM.

By Region: The Vietnam cloud native application market can be segmented into region by north, east, west and south. The South region is dominant due to advanced infrastructure, high concentration of tech companies, and significant investments in digital transformation projects.

Vietnam Cloud Native Application Market Competitive Landscape

• In 2023, Viettel Group announced the launch of a new cloud data center in Hanoi, aimed at expanding its cloud service capacity and enhancing data security. This development is expected to bolster Viettel's market position and provide businesses with reliable and secure cloud services, addressing the growing demand for cloud-native applications.
• In 2023, CMC Corporation introduced an AI-powered cloud management platform, enhancing the efficiency and scalability of cloud-native applications. This innovation aims to provide businesses with advanced tools to optimize their cloud operations, reduce costs, and improve overall performance. Such developments underscore the competitive nature of the market and the continuous efforts by players to innovate and meet customer needs.
• In 2024, CMC Corporation invested VND 1.5 trillion in developing new cloud technologies and expanding its data center capacity. This investment aims to enhance the company's service offerings and support the growing demand for cloud-native applications in Vietnam.

Vietnam Cloud Native Application Market Analysis

Vietnam Cloud Native Application Market Growth Drivers

• Increased Cloud Service Adoption by SMEs: In 2023, around 120,000 small and medium-sized enterprises (SMEs) in Vietnam adopted cloud-native applications to enhance operational efficiency and scalability. This number is expected to rise to 150,000 by the end of 2024, driven by the need for cost-effective IT solutions and a competitive edge in a digital economy.
• Rising Demand for Advanced IT Solutions: The financial services sector in Vietnam has increasingly adopted cloud-native applications, with over 30 banks and financial institutions integrating these solutions to improve transaction processing and customer service. This trend is expected to continue, with more institutions recognizing the benefits of cloud-native applications in enhancing their digital capabilities.
• Expansion of IT Infrastructure: In 2024, Vietnam increases in data center investments, with new facilities established by leading companies such as FPT Software and Viettel Group. The total investment in new data centers reached USD 208.33 million, providing the necessary infrastructure to support the growing demand for cloud-native applications.

Vietnam Electric Motor Sales Market Challenges

• Cybersecurity Concerns: In 2023, Vietnam reported over 6,000 cybersecurity incidents, highlighting the need for robust security measures in cloud environments. The increasing frequency of cyber-attacks poses a significant challenge to the adoption of cloud-native applications, necessitating continuous improvements in security protocols.
• Regulatory Compliance Issues: Businesses in Vietnam face challenges in navigating complex regulatory requirements for data protection and privacy. In 2024, the government introduced new regulations mandating stricter compliance for cloud service providers, which has increased the operational burden on companies adopting cloud-native applications.
• Limited Cloud Skills: Despite the growing demand for cloud-native applications, there is a shortage of skilled IT professionals in Vietnam. In 2024, the country has 100,000 cloud computing specialists, which is insufficient to meet the needs of the rapidly expanding market. This skills gap poses a significant challenge to the widespread adoption of cloud-native technologies.

Vietnam Cloud Native Application Market Government Initiatives

• Cloud Technology Support Fund: The government established a Cloud Technology Support Fund in 2024, with an initial funding of VND 1 trillion. This fund provides financial assistance to startups and SMEs adopting cloud-native applications, helping to reduce the financial barriers to entry and promote innovation in the cloud technology sector.
• Public-Private Partnerships: In 2024, the government entered into several public-private partnerships with leading cloud service providers, including AWS and IBM. These collaborations aim to develop cloud infrastructure, provide training programs for IT professionals, and support the adoption of cloud-native applications across various industries.
• Cybersecurity Enhancement Programs: In 2024, recognizing the importance of cybersecurity, the government launched a series of initiatives to strengthen data protection measures. These programs include mandatory cybersecurity audits for cloud service providers and the establishment of a national cybersecurity center to monitor and respond to threats.

Vietnam Cloud Native Application Market Outlook

The Vietnam cloud native application market is growing, by increased cloud services adoption, IT infrastructure expansion.

Future Market Trends

• Advancements in AI and Machine Learning: The integration of AI and machine learning technologies with cloud-native applications will drive innovation and efficiency in various sectors. By 2028, AI-powered cloud solutions are become mainstream, enabling businesses to automate processes, gain insights from data, and enhance decision-making capabilities.
• Expansion of Edge Computing: Edge computing is anticipated to gain significant traction in Vietnam, driven by the need for real-time data processing and low-latency applications. By 2028, the deployment of edge computing infrastructure is expected to cross 50,000 edge nodes, supporting the growth of IoT and other data-intensive applications.