Latest Development: Viettel and Singtel are partnering to deploy the first subsea cable to directly connect Vietnam and Singapore. The new cable would enhance Vietnam’s international bandwidth capacity, which will be key in achieving its goal of becoming an alternative data centre hub within the east Asian region. The project also aligns with the aim of having 70% of Vietnamese enterprises integrating domestically-powered cloud solutions into their workflows before the end of the decade.
Forecast Implications: Vietnam is expected to see substantial growth in cloud computing spending between 2024 and 2030, seeing spending rising from USD1.57bn to USD8.07bn over this period, a CAGR of 31.3%. This rate of growth will be second only to India which has the fastest forecasted growth in the APAC region. The new subsea cable is likely to provide upside to our Vietnam cloud computing outlook as it will reassure domestic and international ventures of the viability of establishing high-performance computing (HPC) resources in this emerging market. This is essential, as domestic resources alone are insufficient to support the expected growth, and international investment in data centres will be key to transforming Vietnam into a strategic regional hub like Singapore.
