Source: GlobalData
Enterprise ICT market revenue in Vietnam to witness 16% CAGR over 2023-2028, forecasts GlobalData
Posted in Technology
The enterprise ICT revenue opportunity in Vietnam is projected to increase at a compound annual growth rate (CAGR) of 16%, driven by the acceleration in enterprise digital transformation efforts, especially in banking, financial services and insurance (BFSI) segment – the largest end-use market for ICT in the country, according to GlobalData, a leading data and analytics company.
GlobalData’s Vietnam Enterprise ICT Country Intelligence Report shows that the ICT market size in Vietnam will increase from $15.7 billion in 2023 to $33 billion in 2028, in line with the positive ICT investment sentiment seen among the enterprises.
This is put to perspective by findings from the GlobalData’s 2024 ICT customer insight survey*, which reveals that 91.2% of respondents, who are the key ICT decision makers in their respective enterprises, have confirmed that there has been an increase in their enterprise ICT budgets in 2024 as compared to previous year.
Of the three IT infrastructure segments: hardware, software, and services, the services segment is expected to experience the highest cumulative revenue growth over the forecast period. This growth will be largely driven by the widespread enterprise adoption of cloud computing services, revenue for which is projected to increase at a CAGR of 24.8% during the forecast period.
Samrat Volam, Technology Analyst at GlobalData, says: “The growth of cloud computing services in the country is driven by the enterprises’ push for digital transformation and the growing demand for scalable, cost-effective IT solutions. Additionally, the need for reliable data storage and processing capabilities plays a significant role. The continuing shift towards flexible and remote working solutions further accelerates this growth.”
BFSI is the largest end-use vertical
GlobalData forecasts the BFSI sector represents the largest revenue contributor for Vietnam’s ICT market and will remain so through the forecast period, generating an average 10% of the total cumulative revenue for ICT market between 2023 and 2028.
Volam adds: “The BFSI sector in Vietnam is growing rapidly due to the modernization of financial services and the expansion of digital banking, driven by increased internet and smartphone penetration. Fintech innovations have introduced a variety of financial products, making them more accessible to consumers and businesses. Government initiatives, such as the “National Digital Transformation Program” and the 2021-2025 cashless payment project, are creating a supportive environment for digital transformation in the sector.
Volam concludes: “The government-owned National Innovation Center (NIC) plays a key role in advancing Vietnam’s ICT market by fostering an open ecosystem, encouraging the adoption of cutting-edge technologies, and driving digital transformation across various industries. By supporting local startups and attracting international investments, the NIC creates a dynamic environment conducive to growth. Additionally, the rapid growth of Vietnam’s IT sector and the rising need for robust cybersecurity measures are accelerating the adoption of advanced security solutions thereby driving the overall ICT market in the country.”
*GlobalData’s ICT Customer Insight Survey carried out during H1 2024 highlights survey responses related to ICT investment priorities and budget allocations by enterprises in Vietnam.