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Cloud, AI, IoT to Drive IT, Telecom Sector Growth in Vietnam

Cloud computing services, artificial intelligence (AI), the Internet of Things (IoT), 5G technology, fixed broadband Internet, and blockchain technology are expected to lead the information technology and telecommunications sector over the next few years. According to a recent survey, technology companies are investing in core and fundamental technologies to serve digital transformation. Encouraging the digital transformation of business could be a crucial step as the Department of Enterprise Management earlier estimated that the country’s gross domestic product (GDP) could surge by US$30 billion if the country successfully digitises its small and medium-sized enterprises (SMEs).

Cloud

Cloud computing services in Vietnam are forecast to develop with better security than physical servers, helping organisations increase productivity and reduce machinery and infrastructure costs. Vietnam’s cloud computing market is predicted to grow by nearly 26% annually, the fastest pace in Southeast Asia and higher than the global average of 16%.

Artificial Intelligence

About 66.67% of enterprises are applying AI to their digital transformation process. AI can manage and optimise infrastructure and customer support and is expected to access all businesses in the future. Last year, the government issued a national strategy on the research, development, and application of AI until 2030, aiming to gradually turn Vietnam into an innovation and AI hub in ASEAN and the world.

Internet of Things

The rate of firms using the IoT this year has reached 86.67%, an increase from 66.67% in 2021. IT experts believe it has the greatest development potential at present. Businesses can connect IoT devices from afar, collecting, and managing their data, processing data on demand, and sharing data with devices outside the IoT network. In this way, the IoT can automate processes, minimise labour and infrastructure costs, manage supply chains, optimise energy use, and improve sustainability.

5G

The 5G is expected to contribute about 7.34% to the country’s GDP by 2025, according to the Institute of Information and Communications Strategy under the Ministry of Information and Communications (MIC). The application of 5G services will help telecom enterprises boost the use of AI and IoT in smart city building and business operations and meet digital users’ demand for high-definition videos, virtual reality, and augmented reality.

According to the MIC’s Authority of Telecommunications, telecoms network infrastructure has been expanded to 100% of communal-level localities. The 2G, 3G, and 4G mobile networks have covered 99.8% of the population while 5G has been piloted in 16 provinces and cities.

Broadband Networks

By the end of last year, there were nearly 71 million mobile broadband subscribers and 18.8 million fixed ones, a 4% and 14.6% increase from 2020, respectively. Internet traffic in Vietnam also rose by over 40% last year. Currently, the proportion of adults using smartphones in Vietnam is 73.5%. Vietnam aims to increase the rate to 85% by the end of 2022.

Blockchain

With an increase in blockchain technology applications and rapid, large-scale digital transformation, Vietnam has the potential to compete in the global market and become a hub for technology. It is estimated that by 2030, blockchain will create 40 million jobs, and 10-20% of the country’s economic infrastructure will run on blockchain-enabled systems.

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