Vietnam Cybersecurity Requirements and Capabilities
The Government of Vietnam considers cybersecurity a critical part in realizing the country’s strategic goals for Digital Transformation
In 2020, the Government of Vietnam (GVN) issued Decision number 749/QĐ-TTg to approve the National Digital Transformation Program through 2025, with a vision toward 2030. The program set out ambitious goals for developing digital government and digital economy. Accordingly, GVN aspires to be ranked top 70 globally on E-Government Development Index (EGDI) by 2025 and top 30 by 2030; and to have a digital economy accounted for 20% of GDP by 2025 and 30% by 2030. GVN targets by 2025, 100% governmental authorities use cloud computing, 70% Vietnam enterprises use cloud computing services provided by local suppliers. McKinsey forecasts that by 2025, the cloud computing market in Vietnam will reach US$ 400-700 million, with compound annual growth rate (CAGR) at 21%.
Parallel to these economic trends, the government and business environment poses greater needs and demands for cybersecurity solutions, services, and expertise. On August 10, 2022, the Prime Minister signed Decision 964/QĐ-TTg approving the Strategy for National Cyber Safety, Security, Active Responses to Challenges from Cyberspace until 2025 and Vision to 2030. The plan has made a boost to the overall cybersecurity market in Vietnam. Market revenue for cybersecurity in Vietnam in 2022 was VND 4,853.4 billion (approximately US$ 206.53 million). Vietnam was among the fastest-growing countries in the region in this sector, along with Indonesia, Philippines, and Malaysia, with 26.15% growth rate against 2021. The market is expected to keep its high growth rate of between 20% - 30% until 2030.
According to the Ministry of Information and Communication’s (MIC) latest report for the first half of 2023, of the 106 cybersecurity companies in Vietnam, 74 have import permits for cybersecurity solutions, 29 are licensed for cybersecurity solution developments, and 77 are licensed to provide cybersecurity services. The ratio between local developed solutions and imported ones in 2022 was 55%. In the first 6 months of 2023, this ratio was 45%. In July 2022, MIC issued Circular 10/2022/TT-BTTTT amending and supplementing a number of articles of the Minister of Information and Communications’ Circular No. 13/2018/TT-BTTTT dated October 15, 2018, providing the list of cybersecurity products imported under permits and the order, procedures, and dossiers for grant of permits for import of the products. The Circular has significantly simplified the process for obtaining the permit and made more room for foreign companies to sell their products to Vietnam. Vietnam companies also actively look for foreign partners, especially those from the U.S, to collaborate on research and development (R&D) and market development both in Vietnam and internationally.
With regards to human resource development to meet Vietnam’s strategic goals on digital transformation, Prime Minister signed Decision 146/QĐ-TTg dated January 28, 2022, on improvement of awareness, universalization of skills, and development of personnel for national digital transformation by 2025, with a vision towards 2030. Currently, Vietnam has 3,601 personnel working in cybersecurity space. According to this plan, it is expected that Vietnam will need 1,000 experts and 5,000 engineers and graduates in related fields by 2025 and 20,000 more by 2030. Besides, the market also has strong demand for advanced and highly specialized training courses on cybersecurity for sectors such as banking and financial services, e-commerce, fintech, energy, oil & gas, etc.
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