VNPT has urged the government to adjust regulations for IoT, cloud, big data, and AI service development in Vietnam. This could benefit various sectors but may also lead to state influence and limited competition in the telecoms sector. Overall, the IoT market in Vietnam is expected to develop slowly.
Latest Development: State-owned operator VNPT has called for the government to adjust the regulatory system to facilitate the development of Internet of Things (IoT), cloud, big data and AI service provision in Vietnam.
Forecast Implications: We see this as a positive development from the government to push for IoT infrastructure that would greatly benefit the private and public sectors across a number of industries. However, downside risks are apparent, stemming from heightened state influence over the telecoms sector, limited competition and frequently uneven operator treatment. The move is therefore likely aimed at forcing the development of the requisite infrastructure and establishing centralised service provision despite the market’s relative immaturity and limited scope for sophistication. We believe that Vietnam’s IoT market will be very slow to develop, hampered by operators’ limited capex capabilities and the likelihood that mass-market voice and broadband access will be prioritised over connectivity of things in Vietnam’s 5G ecosystem.
Source : Quick View: Muted Outlook For IoT Infrastructure In Vietnam