Market Trends of Vietnam Data Center Physical Security Industry
Video Surveillance is Anticipated to be the Largest Segment
- The rising demand for the video surveillance market in Vietnam has been driven by several factors, including increased construction activity, expected new data centers, and rising digitization rates.
- The Vietnamese video surveillance market is expected to grow in the coming years due to the implementation of smart city projects, such as North Hanoi's and Xuan Mai's smart cities. Vietnam's government has announced that it will invest USD 123.5 billion in public investment by 2025, which will also help the video surveillance market grow in Vietnam.
- The National Data Centre Project will build a national data center for storing Vietnamese government information. As Vietnam moves towards more digitization in its governmental sector, a much larger volume of information must be kept and secured. Therefore, the data center shall have a state-of-the-art facility that meets the most stringent technology and safety standards.
- Further, the increasing data center upcoming projects in the country would drive the segment's growth. For instance, in March 2022, QD.TEK worked with NTT GDC through HCMC1 (data center), a joint venture company to be established in Vietnam, QD.TEK, a local ICT company providing services to a wide range of clients, including the Vietnamese government, major financial institutions, telecommunications companies, IT companies, and manufacturers, will provide services through this collaboration.
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IT & Telecommunication is Anticipated to be the Fastest Growing Segment
- Over the last few years, the Vietnamese ICT market has been growing steadily. It is regarded as one of the leading markets in Southeast Asia for information and communication technologies, with an excellent internet infrastructure and a large tech-savvy population. The government of Vietnam took several initiatives aimed at encouraging development. According to a report from Economy Southeast Asia, the Vietnam digital economy is expected to exceed USD 50 billion by 2025, which could create new growth opportunities in the ICT market.
- The need for cloud computing technologies has increased over the past years because solution providers offer a range of benefits but also pose severe risks to hosted data, such as privacy and identity theft. For instance, as part of national goals for digitalization, the Ministry of Information and Communications (MIC) focuses on expanding the market share covered by domestic CSPs (cloud service providers) to 70% by 2030.
- The ongoing market growth trend in the Indian telecommunications services sector is supported by increased network infrastructure, e.g., fixed and mobile broadband. For instance, in May 2022, Casa Systems signed a memorandum of understanding (MoU) with Vietnam Posts and Telecommunications Group (VNPT) to introduce next-generation 5G technologies, such as cloud-native 5G Core, RAN, and fixed wireless access (FWA) solutions in Vietnam.
- Additionally, the government plans to expand network coverage from 3G and 4G networks to 5G networks. For example, the Ministry of Information and Communications (MIC) reported that it has installed its 5G stations, each using open radio access network (ORAN) technology with download speeds of 900 Mbps and upload speeds of 60 Mbps. Thus, increasing infrastructure to support growth in data centers would drive the physical security market in the country.
