Vietnam is among the many top 10 emerging markets in the worldwide data center market, in line with a number one research agency. It was noted that Vietnam is characterised by extraordinary growth, the flexibility to offer international services and numerous organizations and enterprises.
The Vietnamese data center market was valued at USD 858 million last 12 months and is projected to grow at a compound annual growth rate of over 14.64% until 2026. The growth within the Vietnamese data center market has been driven by government projects and initiatives, in line with Reportage.
Data protection is a world issue and is becoming a crucial issue on the agenda of the Vietnamese government. The data localization requirement under the Cybersecurity Law and the necessity for higher processing speeds to assist Vietnamese users are the predominant aspects which are expected to significantly increase demand for data centers within the country.
The Vietnamese government’s propensity towards digitalization has further increased demand for data centers across the country. Moreover, Vietnam’s data center market is driven by the migration of enterprise data to cloud platforms. This has led to a rise within the use of information storage solutions, which in turn is anticipated to positively impact the market development. Moreover, the growing adoption of digital technologies, big data solutions, Internet of Things (IoT) and cloud-based solutions is anticipated to drive the market growth by 2026.
Vietnam’s digital economy generates roughly 8.2% of GDP. The potential for the event of elements of the Internet and the digital economy is large. The ICT digital economy accounts for roughly 4.5% of world GDP, roughly 6.9% of US GDP and seven% of China’s GDP. In the case of Vietnam, the ICT digital economy is estimated to account for roughly 5.5% of the country’s GDP, with revenues of roughly $123 billion.
However, the federal government did it taken over that this figure doesn’t reflect the true potential of Vietnam’s online digital economy, as many cross-border digital platforms raise billions of dollars in Vietnam but don’t declare. The governance and management of online business forms has many gaps. Measuring the digital economy continues to be difficult, but this figure shows that Vietnam’s online digital economy still has huge potential for growth. According to a recent report, although Vietnam’s web economy lags behind Indonesia and Thailand when it comes to total revenue, Vietnam has the very best growth rate of 16% per 12 months, in comparison with 11% per 12 months in Indonesia and seven% per 12 months in Thailand.
To stimulate economic growth, ministries, sectors and native authorities can immediately implement measures to advertise the digital economy. They can implement training programs, universalize the digital skills of individuals and enterprises, and at the identical time construct a network of digital transformation and digital economy consultants of their industries and locations.
In addition to developing the ICT market, the country also goals to be a middle for innovation and artificial intelligence in ASEAN and the world. Most recently as OpenGov Asia reportedthe federal government has issued a national strategy for research, development and application of artificial intelligence (AI) with a vision to 2030. By then, Vietnam plans to ascertain 50 interconnected open databases in economic sectors. To achieve this, the country is improving legal documents, making a legal framework for artificial intelligence and promoting international cooperation on this field.
Source:
opengovasia.com
