CEO of AWS Vietnam: Vietnamese cloud computing is exploding thanks to AI

Amazon Web Services (AWS) is the cloud computing service provider with the largest market share in the world, according to research firm Synergy Research. The company is operating 38 Local Zones globally. At the end of June, they put Local Zone in Hanoi into operation, marking the first time cloud infrastructure directly managed by AWS is present in the country.

Communicate with VnExpressMr. Eric Yeo, General Director of AWS Vietnam, cited GlobalData’s research that the Vietnamese cloud computing market grows nearly 20% per year, among the fastest in the region.

He said that about 65% of domestic businesses plan to increase investment in cloud computing. “AI is the catalyst for the next stage of development of the Vietnamese cloud computing market,” he said. Unlike before when AI was mainly tested, many Vietnamese businesses have begun to put this technology into practical implementation. That shift entails greater demand for data processing capacity, computing infrastructure, and flexible scalability.

He believes that Vietnam has three conditions for the cloud computing market to enter a new stage of development. First is demand from businesses. Many units want to deploy AI but need infrastructure that can process data in real time, while also meeting domestic data storage requirements.

The legal environment around data is also increasingly clear. Meanwhile, Vietnam’s digital economy continues to grow, creating motivation for businesses to invest in technology. “That shows that the market is ready and the demand is real,” he said. These changes are also the basis for AWS’s decision to put the Local Zone model into operation in Hanoi.

Commenting on the future, Mr. Eric Yeo said that the Vietnamese market has “great potential” due to the rapid increase in demand for cloud computing and AI services in Southeast Asia, especially in Vietnam.

“The development momentum is undeniable,” he said, adding that the deployment of AI by Vietnamese businesses is expected to help the rate of cloud computing applications increase significantly.

This view was also mentioned by Mr. Jeff Johnson, ASEAN Regional Managing Director of AWS, when assessing Vietnam “as one of the most dynamic digital economies in Southeast Asia, where developers are progressing very quickly”.

In fact, the domestic digital infrastructure is making many improvements. According to a May report from the Ministry of Science and Technology, Vietnam currently has 42 data centers with a total design capacity of about 372.75 MW, an increase of more than four times compared to 2021.

Previously, at the KCD & OpenInfra Days in Vietnam event, on July 25, experts also assessed that AI is causing businesses to rethink their IT infrastructure problems. Mr. Daniel Dang, an expert at ZStack, said that this trend comes from three problems businesses must solve when putting AI into operation. First is cost. AI systems require large computing power, while hardware is increasingly expensive. Second is data. When using AI models or cloud services, many businesses wonder whether data will be exposed outside the system. The remaining challenge is operations. For businesses that do not have a team specializing in AI, their need is platforms that can be quickly deployed and simple to manage to shorten the time to put AI into application.