Embark on a captivating exploration into the heart of Vietnam’s technological evolution as we navigate the anticipated trends shaping the nation’s digital trajectory in 2024. From the burgeoning influence of Cloud Computing and the transformative power of Artificial Intelligence (AI) to the pervasive impact of Internet of Things (IoT) and the critical importance of Cybersecurity, Vietnam stands at the forefront of technological innovation.
In this article, we explore the promising opportunities lie ahead, offering a comprehensive overview of the anticipated trends that will define Vietnam’s technology and innovation landscape in the coming year.
Top 5 Technology Trends In Vietnam 2024
1/ Cloud computing
Vietnam’s total cloud computing market revenue reached USD 133 million in 2019. However, in 2022, 80% of the market share is dominated by foreign cloud service providers (CSPs) and 20% by local enterprises, with 27 data centers in the market, according to the National Institute of Information and Communications Strategy. In response, the Ministry of Information and Communications (MIC) aims to expand the market share covered by domestic CSPs to 70% in 2030 as part of national goals for digitalization. (Vero, 2022) .
Despite this growth, Vietnam still ranks relatively low in the global Cloud Ecosystem Index (53/76th in the ranking of Cloud Ecosystem Index in 2022), indicating that there is room for further strengthening and development within the local cloud ecosystem. (FPT Digital, 2023)
Cloud computing startup examples in Vietnam:
OSAM Cloud Innovator – A startup founded to address the growing demand for Amazon Web Services (AWS) features and services, including computing, storage, databases, networking, analytics, machine learning, Artificial Intelligence (AI), and Internet of Things (IoT)
CMC Cloud – A cloud solution for a broad spectrum of services, such as consultation for digital transformation, telecommunications, Internet of Things (IoT), and Artificial Intelligence (AI).
VNG Cloud – Founded in 2007, VNG Cloud is Vietnam’s first technology unicorn, focusing on delivering premium cloud computing services and solutions customized for businesses. One of its offered infrastructure services is vServer, designed to facilitate a straightforward setup of virtual servers tailored to meet the specific needs of customers.
2/ Internet of Things (IoT) and 5G
Countries in the Southeast Asian region have either initiated or are in the process of planning the deployment of 5G technology. Projections indicate that ASEAN and the Pacific region are expected to have approximately 620 million 5G subscriptions by the end of 2028. (Ericsson, 2023)
Internet of Things (IoT) is a rapidly growing technology trend in Vietnam, with the country poised to become a major player in the global IoT market. According to a report by FPT Digital, Vietnam’s IoT market is expected to grow at a compound annual growth rate (CAGR) of 24.03% between 2019 and 2025, reaching a market size of USD 7.3 billion by 2025. According to the report, one of the key drivers of IoT adoption in Vietnam is the increasing demand for smart home devices. The smart home market in Vietnam is one of the most popular IoT application use cases, with over 179.3 million homes already having smart home devices, an increase of 15.4% compared to 2021. The total revenue generated by the smart home market in Vietnam is expected to reach USD 2.3 billion by 2025, representing a CAGR of 45.8%.
The arrival of 5G technology is expected to significantly accelerate the popularity and adoption of Internet of Things (IoT) in Vietnam. 5G, as the fifth generation of wireless mobile communication technology, offers several key advantages that will enhance the capabilities and applications of IoT devices and systems such as Enhanced Connectivity, Increased Device Density, Expanded Use Cases, and drive transformative changes in various sectors. As 5G networks continue to roll out and mature in Vietnam, the synergy between 5G and IoT is anticipated to unlock new opportunities for businesses, government agencies, and technology providers.
The combination of high-speed, low-latency connectivity and the proliferation of IoT devices will fuel the growth of smart, interconnected ecosystems, driving digital transformation and economic development across the country.
Internet of Things (IoT) and 5G Startup examples in Vietnam:
Farmtech Vietnam – A startup that introduces ICT application ecosystem in agriculture, supporting farmers and farms in the sustainable farming model. This ecosystem connects individuals with experts using IoT devices installed on farms. Experts receive data, analyze it, and provide tailored advice to farmers through a unified application.
MimosaTEK – A precision agriculture IoT application, integrating technology into farmlands for sustainable agricultural development.
Rynan Technologies – A startup that delivers sustainable and innovative technology solutions, including advanced AI & IoT smart devices for Coding & Marking, Agriculture, and Aquaculture
XB Technology – A startup that provides an Internet of Drone platform from hardware, software to cloud, offering an unlimited flight communication range via cellular networks, allowing drone control and fleet management from anywhere in the world. XB Link dual cell with concurrent two 4G/5G modules and QoS module could provide reliable connection and high quality for drones.
3/ Artificial Intelligence (AI)
The global market for AI is forecasted to grow strongly in the next decade with the market for the AI will be $313.86 billion by 2025. (FPT Digital, 2023)
Artificial Intelligence (AI) is another rapidly growing technology trend in Vietnam, with the country poised to become a major player in the global AI market. According to a report by FPT Digital, Vietnam’s AI market is expected to grow at a compound annual growth rate (CAGR) of 30% between 2020 and 2025, reaching a market size of USD 1 billion by 2025.
One of the key drivers of AI adoption in Vietnam is the increasing demand for automation and efficiency in various industries. AI is being used to automate various processes, improve decision-making, and enhance customer experience. For example, in the banking sector, AI is being used to improve fraud detection and prevention, while in the healthcare sector, AI is being used to improve disease diagnosis and treatment.
In addition to automation and efficiency, AI is also being used to drive innovation and create new opportunities in various industries. For example, in the agriculture sector, AI is being used to improve crop yields and reduce waste, while in the education sector, AI is being used to personalize learning and improve learners’ outcomes.
In 2024, a predominant trend among businesses is the utilization of AI to gain a deeper understanding of their customers. Simultaneously, they may contemplate employing AI to enhance brand quality. This encompasses a reassessment of social media communication strategies and the adoption of suitable tools to craft marketing campaigns that can distinctly set the brand apart. Many companies have already leveraged OpenAI’s ChatGPT for this purpose, showcasing the growing reliance on AI for refining customer engagement and brand positioning strategies. (Dien Dan Doanh Nghiep, 2024)
Artificial Intelligence (AI) startup examples in Vietnam:
VNLIFE – A unicorn fintech startup specializing in omnichannel banking and distribution services software in Vietnam. Leveraging various technologies such as AI, blockchain, IoT, and big data, they implement digital banking channels, payments, and solutions tailored for travel and retail businesses.
Abivin – A startup that provides AI-powered Supply Chain Optimization solutions for enterprises. The core strength of Abivin is in smart algorithms and optimization, which can resolve multiple business constraints for our customers.
Clever Mushroom – An AgriTech startup that integrates artificial intelligence, data science, and computer vision into mushroom cultivation. The company employs these technologies to gather data on the entire mushroom growth process within cultivation rooms.
OKXE Inc.– An artificial Intelligence (AI) startup that operates as an online listing marketplace platform for motorcycles. Buyers can search, compare prices & can contact the sellers via the platform. Sellers can register on the platform to list their bikes.
4/ Data Security
Vietnam’s data security landscape is witnessing significant growth, with the cybersecurity market projected to reach $300 million USD by 2023, reflecting a substantial increase from previous years. The country’s cybersecurity market is expected to grow rapidly, with the revenue expected to show an annual growth rate (CAGR 2024-2028) of 16.02%, resulting in a market volume of US$565.00m by 2028. (Statista, 2023)
Furthermore, the Law on Cybersecurity, implemented in 2019, underscores the government’s commitment to enhancing cybersecurity and protecting national security in cyberspace. Vietnam’s cybersecurity readiness is also reflected in its response to the evolving threat landscape, with a focus on combating diverse cyber threats such as malware attacks, data breaches, and phishing attempts. (The Vietnamese Magazine, 2023)
Additionally, the adoption of advanced security technologies, including AI-enabled threat detection systems and encryption protocols, is playing a crucial role in bolstering data security. This proactive approach aligns with the increasing awareness of data privacy and protection among businesses and consumers in Vietnam, highlighting the growing emphasis on safeguarding personal data and complying with data protection regulations.
As Vietnam continues its digital transformation journey, robust data security measures will be essential for maintaining trust in digital services and supporting sustainable growth in the technology sector.
Data security startup exemples in Vietnam:
Bkav – A startup that specializes in cyber security, software, e-government, smartphone manufacturing and smart electronic devices, Smart City and AI camera.
Computervision – A tech startup specializing in computer vision APIs that facilitate the development of machine learning applications. Their solutions cover facial recognition, OCR, eKYC, visual search, tagging, and more, with applications spanning telecommunication, logistics, retail, banking, insurance, and various other sectors.
TrueID – A “Made-in-Vietnam” eKYC solution built on artificial intelligence, incorporating facial recognition and optical character recognition.
5/ Smart Cars
The automotive industry in Vietnam is also experiencing significant growth, with the number of cars sold in the country increasing by 36% in 2020. In 2024, we anticipate witnessing advancements in self-driving vehicles, fueled by sensor technology, machine learning, and connectivity. This will empower autonomous vehicles to navigate through complex environments and interact with other vehicles and infrastructure in real-time, paving the way for a future where driving is no longer the norm. (Tạp Chí Công Thương, 2023)
Amidst the escalating issue of air pollution, electric vehicles (EVs) are also emerging as an inevitable trend in the worldwide automotive sector, and Vietnam is aligning with this transformative shift. Notably, Vietnam is identified as a market with high potential for electric cars in the imminent future. EVs excel by generating zero emissions, showcasing remarkable energy efficiency, and featuring advanced autonomous capabilities. The global electric vehicle market has witnessed substantial progress in recent years, boasting an impressive growth rate. In 2021 alone, the number of EVs surged to 17 million, marking a remarkable 2.5-fold increase compared to the figures recorded in 2019. (VietnamPlus, 2023) Furthermore, the government has been introducing incentives for using electric vehicles, from reducing import taxes to forgoing a substantial part of owner registration fees. The Vietnam Automobile Manufacturers Association (VAMA) predicts that Vietnam will achieve the milestone of 1 million electrified vehicles (EVs) around 2028, with a subsequent rapid growth trajectory from 2030 to 2040. By 2040, Vietnam will have about 3.5 million electric cars. (Statista, 2023b)
Smart Automotive startup examples in Vietnam:
Vinfast – Vietnam’s leading manufacturer of smart electric cars founded by Vingroup. VinFast incorporates smart technologies into its vehicle lineup, including security and safety support during operation, navigation and itinerary planning systems, intelligent control systems, features for battery and charging-related support, and a smart automotive software update and data management system.
Phenikaa-X – An autonomous vehicle startup operating a range of technologies such as 2D/3D mapping, Lidar sensors, SLAM, machine learning, deep learning, etc. in thẻi product lineup includes Level 4 autonomous vehicles proudly ‘Made-in-Vietnam.
Selex Smart Electric Vehicles JSC – A Hanoi-based startup that provides smart electric motorbikes, highly compatible batteries, automatic battery switching stations, and an Internet of Things (IoT)-based management platform
Conclusions & Suggestions
In 2024, Vietnam’s technology landscape is poised to be shaped by five key technology prospects and trends, presenting both opportunities and challenges for organizations across various sectors. Embracing these trends and preparing for their impact can position businesses to thrive in the rapidly evolving digital ecosystem. To achieve these results, firstly, businesses should meticulously define specific objectives when adopting new technologies, ensuring that investments yield tangible and effective benefits. Equally crucial is the emphasis on providing comprehensive training to personnel, equipping them with the requisite digital competencies for proficient and judicious application. This includes safeguarding customer, partner, and business information and data to uphold security and reliability standards. Additionally, adherence to relevant policies must be a constant consideration, ensuring that the incorporation of new technologies is both legal and compliant within the business framework.
Ericsson. (2023). 5G in South East Asia and Oceania: A closer look. Available at: https://www.ericsson.com/en/reports-and-papers/mobility-report/closer-look/south-east-asia-and-oceania.
FPT Digital. (2023). Vietnam Technology Trends 2023-2025. [online] Available at: https://digital.fpt.com/en/view-report?report-id=10568.
Statista. (2023a). Cybersecurity – Vietnam | Statista Market Forecast. [online] Available at: https://www.statista.com/outlook/tmo/cybersecurity/vietnam.
Statista. (2023b). Topic: Electric vehicle market in Vietnam. [online] Available at: https://www.statista.com/topics/10557/electric-vehicle-market-in-vietnam/#topicOverview.
Tạp Chí Công Thương. (2023). 5 xu hướng công nghệ 2024. [online] Available at: https://tapchicongthuong.vn/bai-viet/5-xu-huong-cong-nghe-2024-110710.htm [Accessed 17 Jan. 2024].
The Vietnamese Magazine. (2023). Vietnam’s Cybersecurity Law: A Timeline. [online] Available at: https://www.thevietnamese.org/2023/08/vietnams-cybersecurity-law-a-timeline/.
Vero. (2022). Vietnam’s Cloud Computing Potential for Businesses. [online] Available at: https://vero-asean.com/vietnams-cloud-computing-potential-for-businesses/.
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