Vietnam Cloud Computing Market: What to Know

The Vietnam cloud computing market size growth is owing to the increasing demand for lower IT costs through service resources. The market is also expanding owing to the rising IoT adoption and 5G infrastructure. With businesses becoming more mobile with growing digitalization technology will boost the Vietnam cloud computing market growth in the coming years. Cloud storage basically enables teams across various locations to easily share and seamlessly collaborate. This further eliminates the need for extra infrastructure to connect on site equipment with remote teams. Cloud computing streamlines document analysis and storage which eventually provides users with easy access and the ability to review them effortlessly. Its growing presence in various industries like government and private organizations is likely to further fuel market growth. Growing Need for Digital Evolution Rapid digital evolution is the main catalyst for market growth. Cloud computing is particularly built to facilitate this evolution with the government initiation national transformation program. It basically outlines a clear focus on prioritizing digital transformation to overhaul government management and business operations. Hybrid Cloud Solutions The hybrid cloud has potential to handle large network traffic while safeguarding sensitive data which is likely to further propel market growth. The need for businesses to quickly become cognitive and agile is pushing its adoption which further drives demand for cloud computing in the country. 5G Technology The 5G introduction will eventually transform various factors like cloud computing. Vietnam is among the first countries to leads the way in this technology. It will subsequently facilitate large data transfers on mobile devices. This can also assist businesses that rely on cloud computing to handle the growing demands for data storage. Edge Computing Adoption Edge computing is another key driver. It specifically represents a distinctly hybrid approach which extends from enterprise computing to telecom networks. It subsequently reaches all the way to user sites. Edge computing certainly stands in contrast to multi cloud silos. That is because it necessitates unified platforms and management for effective operation. Talent Shortage A major obstacle to cloud adoption among enterprises in the country is the talent gap within the workforce. That is because most tech professionals currently are primarily skillful in developing business applications on traditional IT infrastructure. To ensure a smooth shift to a cloud environment most IT specialists must undergo reskilling or upskilling. If an enterprise lacks a cloud savvy workforce then its transformation efforts may eventually fail. The talent issues businesses are increasingly facing could significantly present hurdles for cloud provides aiming to expand their operations in Vietnam. Compliance to Regulations Tight regulatory frameworks along with compliance regulations in the country are the leading factors restricting the Vietnam cloud computing market growth. As an instance there is a decree that requires foreign and local service providers to keep specific data types within the country for at least 24 months. Foreign cloud providers should also set up representative offices within the country. The decree further provides specific guidelines which list ten services that should meet data localization regulations. This therefore could lead to higher expenses for foreign companies. The rigid governance along with cybersecurity compliance frameworks thus create obstacles for investors in the market. The Market Future Cloud computing is a transformative element in the digital evolution era. Many organizations across Vietnam are responding to digital disruption by adopting more comprehensive and strategic cloud adoption plans. This development further signals a bright future for the market which offers significant potential for foreign and local companies. While there is potential in the market but foreign investors often face challenges owing to intricate administrative processes and regulations. Companies intending to invest in the market should seek guidance from an experienced local advisor for expert guidance.