Vietnam is currently considered a potential market for data center services, but in terms of market size, it is only 1/15 of Singapore, 1/5 of Indonesia and Malaysia. The size of the cloud computing market is also only over 50% compared to some countries in the region.
On March 18, the International Conference on Data Center and Cloud Computing (Data Center & Cloud Infrastructure Summit) took place in Hanoi, with the theme "Developing a sustainable digital future".
This is the third year Viettel IDC (under Viettel Group) has organized this conference with the goal of developing the data center and cloud computing market in Vietnam.
The conference is divided into 3 thematic sessions: Data Center Room, Cloud Room and AI Room.
Here, Viettel IDC Director Hoang Van Ngoc said that data center (DC) services are shifting from the primary market (developed countries) to secondary markets (developing countries, including Vietnam) and are expected to have explosive growth.
Currently, the global DC market size is approximately 70 billion USD in 2023 and has maintained a stable growth rate of approximately 14.7% over the past 10 years. This growth rate is forecast to last until 2030. In Vietnam, the DC market size is forecast to reach 1.266 billion USD by 2030, with an average growth rate of 10.8% per year.
According to Mr. Ngoc, Vietnam is currently considered a potential market for DC services but is always behind other countries. Specifically, in terms of market size, Vietnam is only 1/15 of Singapore, 1/5 of Indonesia and Malaysia.
In the years 2020-2023, DC services in Indonesia and Malaysia grew 6 times while Vietnam only grew 1.5 times.
Regarding the reasons, Mr. Ngoc said that Vietnam has the motivations to develop this market (cheap labor costs, cheaper construction costs due to large population size, etc.), but its growth is slower than other countries in the region, stemming from certain barriers. One of them is that the undersea fiber optic cable connection is both lacking and unstable, causing Vietnam's DC service to not explode as expected.
The Asia-Pacific Cloud Computing market is forecast to have the largest growth rate until 2030 thanks to rapid and strong industrialization, initiatives and support from governments.
Along with that, there is a clear awareness of digital transformation in businesses, increasing investments in IT infrastructure, industrial shifts into emerging markets in the region, and the concentration and growth of IT industries.
In the Vietnamese market, it is forecasted that the scale of Cloud Computing services will reach about 1.2 billion USD by 2030.
However, a representative of Viettel IDC said that after a period of rapid development, this market is in a period of slowing down (2022-2023). The reason is that businesses and organizations, after transferring services to the cloud, tend to optimize costs, but this is only a short-term trend.
This market is forecast to recover by the end of 2024 and will grow again in 2025-2026.
Mr. Ngoc said that currently, the size of the Cloud Computing market in Vietnam is only over 50% compared to some countries in the region. However, Vietnam is assessed to have the fastest growth rate in Southeast Asia and ranked 3rd in Asia (increasing 19% in 2023) and it is forecasted that by 2030 Vietnam will still maintain a growth rate of 11-12%/year.
Viettel IDC's report also said that both DC and Cloud Computing services still have a large market share in the hands of foreign enterprises; however, there are still opportunities for domestic enterprises, especially when the Government and related ministries and branches have issued a legal corridor with clear regulations on the use and protection of personal data...
Therefore, the development of these services must ensure standards and regulations on carbon and emission reduction... according to COP 26 commitments.
According to Viettel representative, along with 13 DCs with a total capacity of 106 Megawatts (MW), in April 2024, Viettel will open another DC in Hoa Lac High-Tech Park (Hanoi) with a capacity of 25 MW, ensuring standards on clean energy use, along with integrating AI for operation.
By 2030, Viettel will build 2 other large DCs (Mega DCs) in Hanoi and Ho Chi Minh City with a total capacity of 45 MW.
At the AI session, experts from famous technology companies in the world and Vietnam such as Qualcomm, Radware, Viettel AI discussed AI and practical applications, optimal deployment plans in Vietnam; AI in information security attacks and defense; AI applications in marketing and sales strategies, to high-performance and cost-effective AI infrastructure - the key to development in the AI era.
In addition to the content sessions, guests visited and experienced the booths of major technology companies, and interacted with Viettel's Human AI - Vi An.
TRAN BINH
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