The market is valued at just 50 percent of comparable markets in the region. However, it is among the fastest-growing markets in Southeast Asia and is ranked third in Asia in 2023 (+ 19 percent), according to a report released at the Data Center & Cloud Infrastructure Summit held March 18.

The report by Viettel showed that the country would maintain an annual 11-12 percent growth rate from now to 2030. Statistics show that the global data center market is valued at about $70 billion and has had a stable compound growth rate of 14.7 percent over the last 10 years.

Asia Pacific (APAC) is believed to have a much higher data center growth rate than other regions. The market value in Asia will be $30 billion with a compound growth rate of 18.9 percent until 2028.

APAC’s cloud computing market is seeing high growth rates thanks to rapid industrialization. Government initiatives, the awareness of digital transformation in businesses and increasingly high investments in IT infrastructure are also factors influencing the results.

Viettel IDC CEO Hoang Van Ngoc said, in the data center service market, there is a clear transition from primary markets (developed countries) towards secondary markets (developing countries), including Vietnam.

“Vietnam is considered a potential data center service market, but it has been behind other countries. In terms of market size, Vietnam is just equal to one-fifteenth of Singapore, and one-fifth of Indonesia and Malaysia,” Ngoc said.

Ngoc said Vietnam has driving forces to develop the market, including cheap labor costs, high population, and lower construction costs, but has been growing more slowly than other countries because of certain barriers.

One of the problems is the unstable submarine fiber cable connection, which is why Vietnam’s data center services still have not seen a boom as expected.

However, Ngoc said Vietnam’s cloud computing market is predicted to begin recovering in the fourth quarter this year and rise in 2025-2026.

Regarding demand, experts said cloud computing can serve as the foundation for smart cities, and as a tool to help manage and analyze data, making a core contribution to developing smart cities in Vietnam.

Cloud computing plays four important roles: storing and managing data effectively; processing and analyzing data quickly; helping to connect different fields; and playing an important role in information security and safety.

Trong Dat