Vietnam Cloud Computing Market By Service (Infrastructure as a Service, Software as a Service, Platform as a Service), By Deployment (Private, Hybrid, Public), By Application Service (Large Enterprises, Small and Medium Sized Enterprises, Government), By End User (BFSI, IT and Telecom, Retail and Consumer Goods, Healthcare, Others), By Region, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

Vietnam Cloud Computing Market was valued at USD 3.71 Billion in 2024 and is expected to reach USD 6.98 Billion by 2030 with a CAGR of 10.94% during the forecast period.

The Vietnam cloud computing market has witnessed significant growth in recent years, driven by the country's rapid digital transformation, growing internet penetration, and government support for Industry 4.0 initiatives. As organizations across sectors embrace digitalization, cloud adoption has become a strategic priority for businesses looking to enhance operational efficiency, scalability, and innovation. Factors such as the rise of e-commerce, fintech, and remote work culture have accelerated the demand for public, private, and hybrid cloud models, with a strong emphasis on data security, agility, and cost-effectiveness.

Vietnam’s cloud ecosystem is characterized by a mix of global players and strong domestic providers. International giants such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud maintain a significant presence, particularly in servicing multinational companies and large-scale projects. AWS, for example, leads the market in terms of infrastructure and localized services, with edge zones already established in Hanoi and Ho Chi Minh City. Meanwhile, Google is reportedly planning a hyperscale data center in Vietnam to cater to growing demand. These international firms are also partnering with local enterprises to support cloud migration and infrastructure development.

At the same time, domestic cloud service providers such as Viettel IDC, FPT Cloud, VNG Cloud, CMC Cloud, and VNPT Cloud have emerged as strong competitors. These companies have capitalized on local knowledge, government partnerships, and data sovereignty regulations to strengthen their market positions. Viettel IDC, in particular, dominates the domestic cloud and data center space, offering a comprehensive range of cloud solutions and operating multiple Tier-3 and Tier-4 data centers across the country. The government’s directive to prioritize local cloud infrastructure for public sector projects has also bolstered the growth of domestic players.

Looking ahead, the Vietnam cloud computing market is poised for further expansion, supported by smart city projects, AI integration, and the digital transformation of key sectors such as manufacturing, healthcare, education, and banking. The emergence of 5G and IoT technologies is expected to create additional opportunities for cloud-based solutions. However, challenges such as skill shortages, cybersecurity threats, and regulatory complexity remain areas that require ongoing attention. Overall, Vietnam is becoming one of Southeast Asia’s most promising cloud markets, blending local innovation with international expertise to drive the next phase of digital growth.

Key Market Drivers

Government-Led Digital Transformation & Cloud Migration

Vietnam’s government has positioned digital transformation as a national priority, catalyzing the adoption of cloud computing across public and private sectors. As of 2023, approximately 47% of public services had been digitalized, doubling from previous years. The government aims for 100% of government agencies to use cloud computing by 2025. In addition, the digital economy already contributes 16.5% of Vietnam’s GDP, with a target of 30% by 2030. Financial backing is also growing, with around USD 128 million allocated toward digital infrastructure development in 2023 alone. For small businesses, the state offered USD 75 million in cloud-focused SME digitalization support. These policies, paired with data localization laws, are pushing ministries and provincial departments to adopt domestic cloud platforms for hosting critical public service platforms. Regulatory mandates and funding are driving demand for public cloud solutions, especially Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS), at both national and provincial levels.

Internet, Mobile, 5G & IoT Connectivity Expansion

Cloud computing thrives on connectivity, and Vietnam is experiencing a major boom. In 2023, Vietnam reached over 77 million internet users, up from 68 million three years prior. Mobile broadband subscriptions stood at 82 million, while fixed broadband grew to 18.8 million households, a 14.6% year-over-year increase. Smartphone penetration hit 73.5% of the adult population, with rising demand for on-the-go services hosted on cloud platforms. The government piloted 5G across 16 major provinces, with nationwide coverage targeted by 2025. Additionally, IoT adoption rose to 86.7%, up nearly 20% from just two years prior, further intensifying the need for real-time data processing. These digital gains are driving strong interest in hybrid and edge cloud architectures, particularly for logistics, manufacturing, and smart city projects. Reliable, high-speed access is enabling Vietnamese firms to tap into scalable cloud infrastructure to meet growing operational needs.

Enterprise and SME Digitalization

Vietnamese businesses are increasingly prioritizing cloud computing as a pillar of digital transformation. In 2023, about 58% of enterprises reported using cloud services—up from just 35% in 2020. Average annual cloud spending per firm crossed 68 million VND (approximately USD 2,700). Among large organizations, 65% have deployed mission-critical applications on the cloud, particularly for HR, CRM, and analytics. Small and medium enterprises, which account for 98% of Vietnam’s total business base, are quickly adopting SaaS tools, with 30% now using digital platforms hosted in the cloud. In the aviation industry, a leading airline manages over 200 cloud-based software systems, handling 140,000 flights and 20 million passengers annually. Cloud computing helps SMEs and enterprises reduce capital expenditure, streamline workflows, and scale operations. As firms look to remain competitive in e-commerce, fintech, and logistics, cloud-based services offer the flexibility and cost-efficiency they require.

Data Sovereignty and Localization Regulations

Vietnam’s strict data laws are pushing organizations to host data locally, fueling demand for domestic cloud services. As of 2023, 80% of businesses expressed concerns about data sovereignty in their cloud strategy. New regulations required 70% of cloud service providers to revise infrastructure or build local capacity. Personal Data Protection laws introduced in 2023 led to a 25% rise in compliance costs for cloud vendors. Major government and financial data must now be stored domestically, favoring local providers. Domestic data center expansion is accelerating: one major provider added 1,200 racks across 13,000 square meters of data space in 2023 alone. Another announced plans for three new Tier-3 and Tier-4 facilities to meet growing localization demands. This legislative environment is driving up investment in local infrastructure and giving domestic providers a competitive edge in regulated sectors such as banking, telecom, and public administration.

Domestic Cloud Growth and Foreign Investment Surge

The local cloud ecosystem is flourishing alongside rising foreign interest. Domestic cloud providers saw revenue jump by 37.4% year-over-year in 2023, reaching over VND 2.3 trillion. Their collective market share rose from 20% in 2021 to 22.2% in 2023, boosted by regulation and improved service offerings. More than 50 domestic and international cloud vendors now compete in Vietnam, fueling pricing and service innovation. In 2023, foreign direct investment into Vietnam’s ICT sector surpassed USD 600 million, a significant portion directed toward cloud and data center projects. A global tech firm recently announced a USD 1 billion investment to build a data center with 50 MW capacity, creating over 10,000 local jobs. Policy reforms now allow 100% foreign ownership of cloud infrastructure, accelerating project approvals. The rise of both domestic champions and global hyperscalers is enhancing competitiveness and service availability, making Vietnam a hub for cloud innovation in Southeast Asia.

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Key Market Challenges

Talent Shortage & Skills Gap

Vietnam’s cloud ambitions are held back by a serious shortage of qualified professionals. As of 2024, the nation had approximately 3 certified cloud engineers per 10,000 IT workers, far below the 15 per 10,000 seen in mature markets. University cloud curriculum slots number fewer than 50 nationally, though total IT graduates rose from 65,000 in 2022 to 72,000 in 2024 (+10.8%), only a fraction receive cloud-specific training. Approximately 42% of local tech firms report unmet demand for cloud skills, while 60% of startups cite recruitment issues as a top barrier. Average salaries for cloud architects in Vietnam have risen 25% year‑over‑year, reaching VND 720 million (~USD 30,000), compared to VND 480 million two years ago. High attrition—about 18% annually in cloud-related roles—further destabilizes teams. Only 12 of 64 provinces have formal cloud education programs. With 48% of projects delayed due to skills issues (per industry survey), the talent deficit remains a top drag on market growth.

Cybersecurity Risks & Compliance Overheads

Rapid cloud adoption has magnified cybersecurity concerns. By mid-2024, 67% of businesses reported at least one cloud security incident (malware, misconfiguration, DDoS). Average remediation costs per incident rose to USD 18,000, up from USD 12,000 in 2022 (+50%). Compliance burdens are intensifying — 78% of providers must meet both ISO 27001 and national standards, leading to 35% higher audit costs. Personal data privacy regulations require substrate encryption at rest and in transit, imposing a 20–30% performance overhead. Monthly security operations expenses for enterprises average USD 6,500, up 45% since 2021. Furthermore, 28% of SMBs said they lack the budget for comprehensive cloud security tools. Incidents cause average downtime of 4.5 hours, affecting productivity and business continuity. As financial and public sector firms grapple with quarterly compliance reporting, providers are burdened by over 500 policy checkpoints per year on average.

Network Infrastructure & Latency Limitations

Vietnam’s cloud delivery performance is constrained by uneven network infrastructure. While urban centers boast 1 Gbps fiber access for 68% of households, rural areas lag, with only 12% fiber penetration and 3G/4G still dominant for 45% of the population. Average latency to metro-area data centers is 25–40 ms, but climbs to 60–100 ms in remote provinces. During peak hours, packet loss hit 1.8% in small cities and up to 3.2% in deep-lying areas. Despite 82 million mobile broadband subscriptions, throughput remains limited—only 18 Mbps average, versus 85 Mbps in regional peers. Edge compute access points across Vietnam remain fewer than 8, limiting real-time application support. As a result, for services with sub-50 ms response requirements, adoption stalls. Businesses in logistics report delays of 100–250 ms per transaction in some areas. Until consistent national telecom upgrades take place, latency and quality-of-service variance remain significant barriers to advanced cloud applications.

High Infrastructure Costs & Power Constraints

Building and operating data centers in Vietnam is increasingly expensive. Average rack deployment cost per unit across Tier‑III facilities has risen to USD 9,500, up 18% over the past two years. Real estate acquisition costs near major cities now average USD 450/m², representing a 22% increase since 2021. Per-kWh energy costs have risen 12%, averaging USD 0.11/kWh. Cooling and PUE (Power Usage Effectiveness) inefficiencies push operational costs higher: average PUE stands at 1.65, lagging behind best-practice 1.2–1.3 levels. High-density power usage (20–30 kW per rack) leaves fewer than 6 of the top providers able to scale easily. Local renewable energy contributions remain low—only 8% of energy sourcing for data centers—exposing them to price fluctuations. Monthly OPEX per rack now averages USD 1,200, up 27% from two years prior. With financing rates at 8% for local debt, expansion timelines are stretched, and return-on-investment horizons are delayed.

Vendor Lock-in & Ecosystem Fragmentation

Cloud market maturity is hindered by fragmented ecosystems and proprietary dependencies. Across enterprises, 62% report being locked into at least one provider due to proprietary APIs or migration costs. Developing multi-cloud strategies is uneven: only 18% of firms actively manage workloads across 2+ cloud vendors. Among SMEs, 42% fear migration complexity, citing estimated switching costs at USD 55,000 per project. Open-source adoption remains low—only 24% use open-source PaaS or Kubernetes, while 76% rely on vendor-specific platforms. Interoperability issues persist in 58% of hybrid deployments. Integration projects incur 3–6 month delays, costing an average of USD 72,000 in additional consulting fees. Standardization efforts have slowed, with just 6 working groups in the country focused on cloud interoperability. This concentration on distinct ecosystems restricts flexibility, inflates operational costs, and slows adoption of multi-cloud and hybrid cloud strategies, ultimately stalling innovation across industries.

Key Market Trends

Hybrid & Multi-Cloud Strategies Going Mainstream

Vietnamese firms are increasingly adopting hybrid and multi-cloud architectures to balance flexibility, cost, and compliance. A 2024 survey shows over 65% of large enterprises now use at least two cloud environments. Hybrid setups, combining public and private clouds, currently represent ~60% of cloud deployments, particularly in regulated sectors like banking and healthcare. This shift aligns with demand: ~55% of workloads now reside in hybrid environments. Multi-cloud adoption—using multiple public providers like AWS, Azure, and Google Cloud—is practiced by ~18% of businesses, driven by efforts to avoid vendor lock-in and leverage best-in-class services. The strategy is accelerating edge/hyperscalar builds as bandwidth-intensive apps emerge. In fact, ~45% of companies now report hybrid cloud performance goals as their top IT priority, emphasizing seamless data portability and orchestration across clouds.

Edge Computing & 5G Fusion

With 5G trials ongoing in 16 provinces, and forecasts projecting 6.3 million 5G subscriptions by 2025, edge computing has emerged as a critical infrastructure layer. By 2024, ~30% of cloud providers offered edge-integrated services, supporting low-latency apps. In manufacturing and smart-city pilots, response times of under 10 ms are now achievable close to industrial sites. IoT penetration, at 86.7% among enterprises, is driving on-site data aggregation and processing demand. Edge-hosted analytics platforms are already handling 25–30% of factory sensor data, reducing backhaul bandwidth by nearly 40%. As 5G expands, edge-cloud synergy continues to unlock new applications in AR/VR, autonomous vehicles, and real-time monitoring.

AI & Cloud-Native Innovation

AI adoption is reshaping cloud service consumption. By late 2023, 66.7% of enterprises had integrated AI into their cloud strategies, and AI spending via cloud will account for ~20% of total cloud budgets by 2025. Leading providers like FPT and Viettel are launching “AI Factories” with Nvidia-powered GPU clusters—FPT invested USD 200–250 million, while Nvidia committed USD 250 million to develop local AI infrastructure. Qualcomm's new AI R&D Centre in Hanoi further supports Vietnam's AI-cloud ecosystem. Containerization and Kubernetes are the chosen platforms in over 24% of deployments, enabling scalable AI workloads. AI-driven automation tools are now managing ~35% of routine IT operations, enhancing efficiency and slashing human intervention by 25–30%.

Segmental Insights

Service Insights

Infrastructure as a Service segment dominates in the Vietnam Cloud Computing market in 2024 due to its scalability, cost-efficiency, and ability to support rapid digital transformation across industries. IaaS allows organizations to rent virtualized computing resources over the internet, including servers, storage, and networking, without the need for upfront hardware investments. This model is particularly attractive in Vietnam, where small and medium enterprises (SMEs) make up over 98% of the business population and are actively embracing digital tools to remain competitive. IaaS provides these businesses with the flexibility to scale resources on demand, matching fluctuating workloads without overextending budgets.

Large enterprises and government bodies are also accelerating IaaS adoption to support digital infrastructure modernization. As of 2024, over 65% of enterprises in Vietnam are hosting at least part of their workloads on IaaS platforms. Public sector digitalization efforts, driven by Vietnam’s National Digital Transformation Program, have further boosted demand. IaaS serves as the foundation for hosting e-government platforms, public databases, and digital citizen services, offering secure, compliant, and localized infrastructure in line with Decree 53/2022.

Moreover, IaaS supports the deployment of cutting-edge technologies such as artificial intelligence (AI), big data analytics, and Internet of Things (IoT), all of which are gaining traction in Vietnam. For example, AI-powered logistics and manufacturing applications require dynamic infrastructure provisioning, which IaaS handles efficiently. Additionally, Vietnam’s ongoing 5G expansion and smart city initiatives further necessitate reliable, cloud-based infrastructure at scale.

The growing presence of both global (AWS, Azure) and domestic (Viettel IDC, FPT Cloud) IaaS providers ensures a competitive market, offering a wide range of solutions tailored to different industries. With improved pricing, localization compliance, and service diversity, IaaS continues to lead Vietnam’s cloud adoption journey, supporting both innovation and resilience.

Deployment Insights

Private segment dominated the Vietnam Cloud Computing market in 2024 due to rising concerns over data security, regulatory compliance, and data sovereignty. Organizations in banking, government, and healthcare increasingly preferred private cloud environments to ensure greater control over sensitive data. The implementation of Decree 53/2022, mandating local data storage, further accelerated this shift. Additionally, enterprises requiring customized infrastructure for critical workloads found private clouds more suitable than public alternatives. With domestic providers like Viettel IDC and CMC Cloud offering secure, scalable private solutions, many businesses opted for this model to balance performance, control, and regulatory alignment.

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Region Insights

Largest Region

Southern Vietnam dominated the Vietnam Cloud Computing market in 2024 driven by its strong economic base, advanced infrastructure, and high concentration of digital-first enterprises. The region, particularly Ho Chi Minh City, serves as Vietnam’s financial and commercial hub, housing a large number of banks, fintech startups, e-commerce firms, and manufacturing companies—all of which are key adopters of cloud technologies. These industries require scalable, secure, and agile IT environments, making cloud computing—especially Infrastructure as a Service (IaaS) and Platform as a Service (PaaS)—a natural fit.

Southern Vietnam also leads in terms of data center infrastructure. Major providers such as Viettel IDC, FPT Telecom, and CMC Telecom have established multiple Tier III and IV data centers in the region, offering high availability, robust connectivity, and localized services. This infrastructure density ensures lower latency and higher reliability for businesses operating locally. As a result, organizations in Southern Vietnam can access faster deployment, localized support, and more efficient cloud services than those in other regions.

The region also benefits from a tech-savvy workforce and innovation ecosystem. With over 40% of Vietnam’s IT talent based in the south, the region supports rapid cloud implementation, migration, and management. Ho Chi Minh City’s vibrant startup scene, supported by incubators and international investors, further accelerates demand for cloud-based services, particularly in AI, SaaS, and mobile applications.

Moreover, smart city initiatives and 5G pilot programs are more advanced in the south, creating fertile ground for cloud adoption in urban management, transportation, and digital governance. Government digital transformation efforts and favorable business policies have also played a role in strengthening cloud market dynamics in the region. Altogether, Southern Vietnam’s economic scale, infrastructure readiness, and digital maturity make it the leading force in the country’s cloud computing landscape.

Emerging Region

Northern Vietnam is the emerging region in the Vietnam Cloud Computing market in the coming period due to increasing investment in data centers, rapid industrialization, and strong government presence. With Hanoi at its core, the region hosts numerous public sector agencies and state-owned enterprises prioritizing secure, localized cloud solutions. Major tech players are expanding infrastructure, including new hyperscale data centers to meet rising demand. Additionally, Northern Vietnam benefits from a growing high-tech manufacturing base and improved connectivity, including 5G rollouts. These factors, combined with policy support for digital transformation, position the north as a strategic hub for future cloud expansion in Vietnam.

Recent Developments

• In June 2025, Deputy Prime Minister Nguyen Chi Dung approved Decision No. 1121/QĐ-TTg, launching Vietnam’s National Cloud Computing Development Programme. The initiative aims to allocate strategic resources, foster technological mastery, and drive innovation to establish a secure, high-performance digital infrastructure. This programme supports Vietnam’s ambitions to lead the ASEAN cloud and data center market by 2030 and to position itself as a high-income, digitally advanced economy by 2045 through enhanced national competitiveness and accelerated digital economic growth.
• In March 2025, AHT Tech successfully facilitated a strategic partnership between Alibaba Cloud and the School of Information & Communications Technology (SICT) of Hanoi University of Industry. The agreement, formalized during Alibaba Cloud Vietnam AI Day, aims to enhance cloud technology adoption and promote digital transformation across the country. This collaboration strengthens Vietnam’s cloud capabilities by integrating advanced cloud platforms into education and industry, supporting the country’s long-term vision for innovation and a technology-driven economy.
• In December 2024, Taiwanese cloud provider eASPNet entered the Vietnamese market through a strategic partnership with local systems integrator Lac Viet. The collaboration introduces GWStack-O and GWS CLOUD-O solutions, designed to help Vietnamese SMEs transition from VMware to cost-effective hybrid cloud environments. Lac Viet’s extensive experience in CRM, ERP, HRM, and digital office solutions positions the partnership to accelerate Vietnam’s enterprise cloud migration and address growing demand for flexible, localized cloud infrastructure amid evolving global licensing landscapes.
• In June 2025, Deputy Prime Minister Nguyen Chi Dung signed off on a five-year national action plan to accelerate cloud computing adoption. The initiative prioritizes R&D investment, infrastructure enhancement, and innovation in high-performance computing. It seeks to strengthen Vietnam’s digital competitiveness and drive digital economic expansion. The plan plays a pivotal role in the country’s ambition to become a regional leader in cloud services and a high-income digital economy by 2045 through secure and sustainable cloud infrastructure.

Key Market Players

• Viettel IDC / Viettel Cloud      
• VNG Cloud
• FPT Cloud / FPT Corporation
• CMC Cloud
• VNPT Group
• Mat Bao Corporation
• HPT Vietnam Corporation
• NextTech Group
• VCCloud
• Vietnam National Television Corporation 

Report Scope:

In this report, the Vietnam Cloud Computing Market has been segmented into the following categories, in addition to the Application trends which have also been detailed below:

• Vietnam Cloud Computing Market, By Service:

o   Infrastructure as a Service

o   Software as a Service

o   Platform as a Service

• Vietnam Cloud Computing Market, By Deployment:

o   Private

o   Hybrid

o   Public

• Vietnam Cloud Computing Market, By Application:

o   Large Enterprises

o   Small and Medium Sized Enterprises

o   Government

• Vietnam Cloud Computing Market, By End User:

o   BFSI

o   IT and Telecom

o   Retail and Consumer Goods

o   Healthcare

o   Others

• Vietnam Cloud Computing Market, By Region:

o   Northern Vietnam

o   Central Vietnam

o   Southern Vietnam

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Vietnam Cloud Computing Market.

Available Customizations:

Vietnam Cloud Computing Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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