Vietnam Cybersecurity Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

Vietnam Cybersecurity Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

The Vietnam cybersecurity market is expected to register a CAGR of 16.8% during the forecast period (2022-2027). With the recent COVID-19 pandemic, organizations across the country respond proactively to cyber threats that have witnessed a spike during the pandemic. Therefore, cyber resilience, which refers to a sector or organization's ability to respond to, prepare for, and recover from cyberattacks, has become an absolute necessity rather than an option in the current scenario.

Key Highlights

• The internet has become a crucial part of modern society's daily life due to its ease of information sharing, accessibility, communications, and applications, among other things. The rising number and diversity of connected devices and digital services pose security concerns for businesses and individuals.
• These security concerns are only likely to exacerbate as the internet becomes more and more convenient for a range of everyday applications such as banking, online bill payments, online shopping, online entertainment services, texting, and sharing media, among others.
• Vietnam is one of the growing economies, with expanding IT infrastructure investment and rising smartphone and internet adoption. Although the country is advancing toward advanced ICT, it lacks adequate cybersecurity protections, which hackers exploit. As a result, the expanding number of IoT connections is increasing the need for cybersecurity solutions.
• Businesses' widespread use of cloud computing services to reduce operational and maintenance expenses and eliminate the need for investment purchases and infrastructure setup in office premises is driving growth in the Vietnamese cyber security market.
• The Vietnam National Cyber Security Centre (NCSC) detected 718 cyber intrusions in June 2021 alone. It registered 2,915 cyber attacks in the first six months of 2021, an increase of 898 over the previous year.
• According to the Vietnam National Cyber Security Centre (NCSC), there were 1,383 cyberattacks registered in Vietnam in the first month of 2022, a 10.29% rise over December 2021.
• Because of the COVID-19 epidemic, people turned to the internet more for study, work, and trading. The pandemic created conditions for attackers to distribute fake news and fraud, as well as harmful malware and data theft. The most common are fraudulently stealing personal information and impersonating financial institutions. The most significant barrier is that many users still have poor digital and information security skills, making them easily deceived.
• According to the International Telecommunication Union (ITU) report, Vietnam's ranking in Global Cybersecurity Index (GCI) increased significantly by 25 compared to the previous year, to 25th out of 194 countries and territories.

Key Market TrendsIncreasing Demand for Digitalization and Scalable IT Infrastructure

• Cloud computing has advanced significantly in recent years because cloud solutions provide several benefits but exposed data hosted to severe risks such as privacy and identity theft. Cloud computing companies should consider implementing IT services that assess all executions, apps, and network connections.
• IT services have become more data-driven and real-time due to developments in IT operation across the cloud-based platform, producing higher value for the business, particularly in operational efficiency, business opportunity identification, and remote access optimization.
• For instance, According to a recent study by IBM Institute for Corporate Value (IBV), business executives in Vietnam are increasingly planning to invest in hybrid multi-cloud platform strategies and capabilities to drive business transformation and value creation. Sixteen percent of their IT spending is committed to the cloud, and they intend to expand the amount of hybrid spending from 41% in Feb 2021 to 43 percent by 2023. In addition, during the next two years, businesses in Vietnam intend to use at least eight clouds from an increasing number of vendors.
• The young population rate and the high smartphone and Internet coverage are the factors that will help Vietnam expedite its digital transformation.
• For instance, According to World Bank data, Vietnam's digital economy is growing at 10% per year. It could reach more than USD 200 billion by 2045, a massive figure compared to the country's GDP, which was approximately USD 352 billion in 2021.

IT and Telecommunication Expected to Drive the Market Growth

• Increased smartphone device penetration and rising demand for high-speed data connectivity are some of the factors driving the growth of the Vietnam Telecom market during the forecast period. Rapid urbanization and rising living standards are increasing the demand for faster internet access, which is expected to drive the expansion of the Vietnam Telecom industry.
• For instance, On May 2022, two Vietnamese-invested enterprises, MB Cambodia and Viettel (Cambodia) Pte., Ltd (Metfone), signed a special credit package deal for 2022 to upgrade Cambodia's telecoms network.
• Moreover, Under this contract, MB Cambodia, a division of Vietnam's Military Commercial Joint Stock Bank, would provide a loan package with a credit ceiling of up to USD 100 million for Metfone, a subsidiary of the Viettel Military Industry and Telecoms Group, to modernize the telecom services network and expand operations in Cambodia.
• According to a statement announced by the Ministry of Information and Communications, the Department will continue to finalize documentation and set specific goals in 2022 to grow the overall income of the Vietnamese ICT industry from USD 136 billion in 2021 to USD 148 billion in 2022. The agency has also set a lofty goal of 70,000 digital technology enterprises in 2022.
• In addition, mobile network operators will expand 5G commercial coverage to 16 provinces and cities in 2021. The Department of Telecommunications has made it easier for these companies to adopt mobile services and Internet packages. All three leading mobile network carriers have introduced a Mobile Money service, opening up a new development space and laying the groundwork for having 100% of adults have a Mobile Money account. The Department also collaborated with mobile network operators to protect customers' interests to combat spam texts, calls, and SIMs.

Competitive Landscape

The Vietnam cybersecurity market is moderately fragmented and competitive, with few international and regional players. Innovation can bring about a sustainable, competitive advantage to these firms. New fields, such as Big Data and IoT, are reshaping security trends, and the firm concentration ratio is expected to record higher growth during the forecast period.

• January 2022 - Vietnam aims to grant 5G wireless service licenses this year, with coverage beginning in Hanoi, Ho Chi Minh City, and many other cities. Military-owned Viettel, Vinaphone, and MobiFone, the country's leading three operators, will approach the market following trails in 16 provinces and cities.
• February 2022 - SeABank AI has accelerated the digitization of banking operations. Seeing digitization as a critical pillar in advancing banking, Southeast Asia Commercial Joint Stock Bank (SeABank - Vietnam) is constantly upgrading its infrastructure to include the most recent Artificial Intelligence (AI) systems, which are used to improve the customer experience while optimizing the Bank's operations.

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• The market estimate (ME) sheet in Excel format
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