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Forecasts for technology in Vietnam in the period 2023-2025

Báo Khánh HòaBáo Khánh Hòa17/05/2023


According to FPT Digital, some key technologies such as Cloud Computing, IoT, AI, Cybersecurity and other prominent technologies such as Blockchain, Big Data, Data Analytics, Metaverse... will be widely applied.

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According to the recently published DxReport "Key technology landscape in Vietnam 2023-2025" by FPT Digital, some key technologies such as Cloud Computing, IoT, AI, Cybersecurity and other prominent technologies such as Blockchain, Big Data, Data Analytics, Metaverse... will be widely applied to production and business activities in the period of 2023-2025.

Cloud Computing

Cloud Computing - Cloud computing is a key factor to support the development of other modern technologies such as artificial intelligence (AI), data analytics, Internet of Things (IoT), Metaverse...

According to FPT Digital, the Cloud market in Vietnam is growing rapidly but not strong enough. Compared to the world, Vietnam is assessed to have many initiatives in the Cloud field and is on the way to strong development, but is still ranked 53/76 in the Cloud Ecosystem Index in 2022.

Mr. Nguyen Tuan Anh - Deputy Director of FPT Digital Transformation Consulting, predicts that Edge Cloud Computing - New generation cloud computing will be widely applied in the near future due to its outstanding advantages of saving bandwidth, improving data download speed, enhancing data security, and being the foundation for developing new technologies.

Also according to Statista, the speed of Edge Cloud Computing application is growing very quickly with a compound annual growth rate of 12% and this market is forecast to reach 65 billion USD by 2025.

IoT – Internet of Things

IoT is a market with great potential for development in Vietnam. According to TechSci and Sisco, if in 2019 the IoT market in Vietnam was just over 2 billion USD, then by 2025 this market could reach 7.3 billion USD.

More than half of companies in Vietnam rated IoT as one of the top three technologies that will impact their business’s digital future, with 36% of respondents having already started using IoT solutions. This is the highest rate in Southeast Asia, on par with Singapore.

Mr. Tuan Anh emphasized that IoT is expected to grow very strongly in the near future and the 5G network will be one of the most important factors for this increase. 5G - 5th Generation, is the fifth generation of wireless mobile communication technology, operating at higher frequency bands than previous networks, fast speed and stable connection with more devices, processing more data with very low latency, helping the system respond in real time.

With these benefits, 5G IoT will be increasingly applied in many fields such as: Automotive Industry, Smart Energy, Healthcare, Retail and Logistics.

AI - Artificial Intelligence

The AI ​​market is expected to grow strongly over the next decade worldwide. According to data from Precedence, the AI ​​market was valued at $119.78 billion in 2022 and is expected to reach $313.86 billion by 2025, with an average compound annual growth rate (CAGR) of 38.1% between 2022 and 2030. Among them, the Asia-Pacific market is expected to grow the fastest, with a CAGR of 42%.


The AI ​​field includes many technologies, typically: Machine learning, Natural Language Processing, Speech Recognition, Planning, Robotics, Industries with high demand for AI applications include: Retail and e-Commerce, Banking, Healthcare, Food, Automotive, Logistics

According to FPT Digital, Vietnam will also be one of the countries investing in the AI ​​industry for development in the coming time.

Cybersecurity – Cybersecurity

Cybersecurity - Network security, ranked second in the portfolio of the Cloud migration roadmap. Businesses need to be fully equipped with a network security system to minimize risks affecting business operations.

In 2022, the Vietnamese Cyber ​​Security market will grow strongly, reaching revenue of 246.7 million USD, an increase of 20.1% compared to 2021. In 2023, the market is forecast to approach 300 million USD.

Risk management and cybersecurity are the lowest scoring aspects in the survey assessing the digital transformation readiness of Vietnamese enterprises, achieving an average of only 2.4/5 points according to FPT Digital's survey.

Therefore, FPT Digital has proposed 5 trends that are expected to develop in the Cyber ​​Security market in Vietnam in the near future.

- Artificial Intelligence (AI) has brought about huge changes in cybersecurity. AI has been instrumental in building automated security systems, natural language processing, facial recognition, and automated cybersecurity threat detection. On the other hand, it is also used to bypass the latest security protocols in data control. Therefore, AI-enabled threat detection systems can predict new attacks and notify administrators of any data breaches immediately.

- The emergence and development of 5G has brought a new era of continuous real-time connectivity. However, the connection between many devices has the risk of creating vulnerabilities that can be attacked by outsiders or software errors that are difficult to identify. 5G architecture compared to other architectures in the industry is new and requires a lot of research to find vulnerabilities, making the system safe and not attacked from the outside. Therefore, manufacturers need to be very strict in building modern 5G hardware and software to control data intrusion.

- Data will continue to be a top concern for organizations around the world. Whether individuals or organizations, digital data protection is a key goal today. Any small error or bug in your system browser or software is a potential weak point for hackers to access personal information. Several data regulations have been issued: GDPR (General Data Protection Regulation) or Resolution No. 13/NQ-CP approving the dossier for building a decree on personal data protection by the Vietnamese government.

- Modern vehicles such as smart cars are equipped with automated software, creating seamless connectivity for drivers in cruise control, door locks, airbags and advanced driver assistance systems. These vehicles use Bluetooth and WiFi technology to communicate, which also poses a risk of creating many vulnerabilities or threats from hackers. Hackers taking control of vehicles or using microphones to eavesdrop are expected to increase in 2023 on automated vehicles. Therefore, self-driving or automated vehicles need to use a more complex mechanism, with strict cybersecurity requirements.

- As more and more business operations are being moved or developed directly on the Cloud, security measures need to be constantly monitored and updated to protect data from leaks. Although cloud applications are well equipped with end-user security, they are still a major source of errors, malware, and phishing attacks.

Big Data and Data Analytics

Globally, revenue from Big Data and Data Analytics is forecast to reach $41.5 billion in 2023 and $345.5 billion in 2038, with a compound annual growth rate of up to 30.4%. (Source: Statista, Gartner)

In Vietnam, Big Data and Data Analytics ranked 1st (52%) in the category of information technology that will increase the budget in 2023 and account for the 2nd proportion in annual information technology investment (after Cloud). According to FPT Digital, this will also be a technology that will be developed in the near future when Vietnam applies it in many fields such as Digital Government, Retail and e-commerce, Manufacturing and Agriculture.

Blockchain

According to sources from Statista and Gartner, Blockchain sector revenue is forecast to reach $25 billion in 2025, with a compound annual growth rate of up to 69.4%.

Vietnam is also currently ranked number 1 in the world in cryptocurrency acceptance and number 2 in ASEAN in the number of cryptocurrency holders. According to FPT Digital, in the coming years, there will be many fields that will apply Blockchain technology in Vietnam such as: Logistics, Education, Healthcare and Banking.

Metaverse (virtual universe)

According to Statista and Gartner, the Metaverse industry will reach $120 billion in sales in 2022 and is forecast to reach $5 trillion by 2030, with a projected compound annual growth rate of 41.6% from 2023-2030.

In Vietnam, Metaverse is starting to be applied in industries such as retail, tourism, real estate, and games.

FPT Digital believes that many fields will be developed in the near future thanks to the Metaverse application such as: Media and entertainment, retail & e-Commerce, education and training, manufacturing, healthcare.

With impressive numbers forecasting the growth rate of Cloud Computing, IoT, AI, ... in the world and in Vietnam, it can be seen that the application of new technologies in production and business is an undeniable trend.

The near future of production and business will depend heavily on the development and application of these technologies. Businesses should invest to increase competitiveness and improve production and business efficiency, quickly increase productivity, reduce costs, improve product quality, increase flexibility or increase responsiveness to customer requirements.

According to vnanet.vn



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