How Vietnam Businesses Leverages Cloud Computing To Gain Competitive Edge in Asia

Vietnamese businesses are not simply keeping pace but setting the standard for innovation and efficiency. And at the heart of this transformation is cloud computing.

Cloud computing, a powerful tool enabling organizations to access and store information without the need for physical devices or IT infrastructure, is profoundly reshaping how companies operate.

How are forward-thinking companies in Vietnam leveraging cloud technology to gain a competitive edge in the Asian market? Here are ways cloud computing is revolutionizing business operations, driving growth, and positioning enterprises as digital leaders.

The current state of cloud computing in Vietnam

In 2024, cloud computing adoption among Vietnamese businesses has reached impressive levels, reflecting the country’s rapid digital transformation.

According to a recent report from Gartner, global spending on Cloud services is estimated to increase by 20.4%, nearly three times the growth rate of all the IT services combined, reaching 678.8 billion USD.

Additionally, infrastructure as a service (IaaS) is projected to expand at the fastest rate, at 26.6%, while platform as a service (PaaS) is projected to grow at 21.5%. The finance, retail, and manufacturing industries primarily drive the adoption of cloud computing.

One of the reasons cloud computing is so widely used is government initiatives and policies that have facilitated adoption.

In particular, the Vietnamese government has launched the National Digital Transformation Program, set to culminate by 2025 with a vision extending to 2030. This ambitious initiative targets businesses, cooperatives, and business households. To achieve these targets, the Ministry of Planning and Investment (MPI) will issue comprehensive guidelines and tools. This includes a detailed roadmap for production facilities and a 50 percent reduction in consultancy costs.

Overall, the current state of cloud computing in Vietnam is characterized by rapid adoption, supportive government policies, and a thriving market landscape, positioning the country as a dynamic player in the Asian digital economy.

Benefits of cloud computing for Vietnamese businesses

Cloud computing is revolutionizing the business landscape in Vietnam, providing a springboard for innovation and growth. Here’s how Vietnamese businesses are harnessing its power:

Scalability: Scale operations without financial stress or sacrificing quality

Imagine having the flexibility to scale your business operations seamlessly, just like expanding your store without needing new real estate. Cloud computing allows exactly that—scaling resources up or down based on demand, with no hefty upfront investments.

As a result, Vietnamese SMEs can now efficiently handle fluctuating workloads without investing in expensive hardware.

Cost efficiency: Pay only for the space you actually need

By adopting cloud computing, businesses can significantly reduce capital expenditure and operational costs, particularly by consolidating vendor contracts and minimizing maintenance expenditures.

For Phu Nhuan Jewelry, cloud computing is a true revolution. Particularly on God of Fortune Day, most Vietnamese people come to Phu Nhuan Jewelry to buy gold, but traditional systems can’t handle the heavy traffic.

With the help of cloud platform solutions, the company has increased system capacity by as much as 500% without increasing costs, saving thousands of hours on internal operations, and increasing sales productivity by about 200%.

Accessibility and collaboration: Expand operations across multiple jurisdictions

FPT Software, a leading IT services provider in Vietnam, is an example of how enterprises should leverage cloud computing to support their global workforce. After utilizing Microsoft Azure’s cloud platform, FPT enables its employees to access critical data and applications securely from anywhere.

As remote work became the norm during and after the COVID-19 pandemic, such a solution was and still is critical to Vietnam and the world. Along with other innovations shaping the future of Asian startups, cloud computing has integrated greatly into business operations.

Key cloud computing technologies driving changes

Cloud computing technologies are reshaping Vietnamese businesses by providing scalable solutions that drive efficiency and innovation across various sectors.

Infrastructure as a Service (IaaS)

Infrastructure as a Service (IaaS) offers scalable infrastructure resources that businesses can utilize on demand. This flexibility is crucial for companies looking to expand or contract their IT resources based on current needs without investing in physical hardware.

Nowadays, IaaS providers also guarantee security measures, including data encryption, access controls, and compliance certifications, to protect users’ privacy and information.

Popular examples include Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and IBM Cloud.

In Vietnam, VNG Corporation, a prominent tech company, exemplifies the application of IaaS through its proprietary system, CloudVerse. This platform supports VNG’s diverse array of online services, encompassing gaming, e-commerce, and social networking platforms. Through CloudVerse, VNG efficiently manages its infrastructure needs.

Overall, IaaS plays a critical role in enabling businesses in Vietnam and globally to innovate, scale, and adapt to evolving market demands in the era of digital transformation.

Platform as a Service (PaaS)

Platform as a Service (PaaS) is a system that simplifies application development and deployment by providing developers with a comprehensive environment that includes essential tools, libraries, and infrastructure. This approach effectively reduces the complexity and costs typically associated with software development.

KMS Technology, a reputable IT services provider based in Vietnam, uses PaaS to optimize its software product development lifecycle. Utilizing PaaS solutions, KMS Technology streamlines its development processes, and collaboration among teams, and significantly accelerates the time-to-market for its software products.

PaaS platforms come equipped with built-in scalability and security features, allowing KMS Technology to focus more on innovation and quality assurance while mitigating concerns related to managing underlying infrastructure challenges.

Software as a Service (SaaS)

Software as a Service (SaaS) means facilitating software applications over the internet and helps businesses access and use software without the need for local installation or maintenance. This model is particularly advantageous for companies aiming to reduce IT overhead.

For example, BBCIncorp, a corporate service provider, utilizes SaaS to expedite its operations and enhance the delivery of comprehensive company services to its clients. The company employs a SaaS-based Client Relationship Management (CRM) system to automate various aspects of the sales process, including lead generation, follow-ups, and customer onboarding.

This solution allows BBCIncorp to handle customer interactions more effectively, ensuring prompt and personalized responses. The system’s automation capabilities free up valuable time for the customer support team. They are able to focus on resolving complex issues and improving overall customer satisfaction.

The adoption of these cloud computing technologies is not only enhancing the operational capabilities of Vietnamese businesses but also fostering a culture of innovation and agility. This technological transformation is positioning Vietnamese enterprises as competitive players in the Asian market and beyond.

Moreover, the ongoing advancements in cloud computing are expected to bring even more sophisticated tools and services to the market.

Conclusion

The adoption of cloud computing technologies is revolutionizing the landscape for Vietnamese businesses. These cloud solutions are providing them with the tools needed to compete effectively in the Asian market, thus expanding across nations worldwide.

Whether your business is using Infrastructure as a Service (IaaS) to build scalable infrastructure, Platform as a Service (PaaS) to streamline application development, or Software as a Service (SaaS) to enhance operational efficiency, these crucial updates are transforming business operations for the better. Stay current, or risk falling behind.

As Vietnam continues to embrace cloud computing, businesses are well-positioned to harness these advancements, securing a competitive edge and thriving in the dynamic digital economy.

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