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Ken Research: Cyber security market to hit $215mn by 2023

Released at: 13:53, 03/09/2019

Ken Research: Cyber security market to hit $215mn by 2023

Photo: Viet Tuan

Better protection needed as technology becomes more widespread.

by Doanh Doanh

According to the latest report from Ken Research, Vietnam’s cyber security market is expected to reach about $215 million by the end of 2023.

Vietnam is witnessing growth in its retail and ICT sectors due to overall development in its economy. According to Vietnam Bank Proprietary data, the retail market witnessed an increase in the number of credit card transactions from 10 million in 2013 to 46 million in 2018, which also increased the number of cyber threat incidents in the sector.

The ICT sector is the driving force of growth and transformation in Vietnam’s economy as the country has emerged as a production center for both IT hardware and services such as software development outsourcing.

Small and medium-sized enterprises (SMEs) are digitalizing rapidly and exploiting the power of technology to increase revenue and cater to a larger number of customers within and beyond their geographical boundaries. An efficient and effective IT infrastructure plays a very important role in the growth of Vietnam’s SMEs, and they are moving towards adopting security solutions that will positively impact the country’s cyber security market in the near future.

A law requiring internet companies in Vietnam remove content that authorities deem to be against the State came into effect in early 2019. The legislation requires internet companies remove content the government regards as “toxic”. Tech giants such as Facebook and Google will also have to hand over user data if asked by the government and must open representative offices in the country.

Threats from cybercriminals are becoming increasingly sophisticated, so security needs to be able to adapt in order to keep up with upcoming cyber threats. The adoption of technologies such as IoT security, cloud technology, blockchain, artificial intelligence, and others has been growing in Vietnam, resulting in the growth of the cyber security market. The adoption of these technologies would increase cyber crime in the country, which results in greater demand for security solutions protecting these technologies from cyber crime.

Analysts at Ken Research believe that the cyber security industry in Vietnam will expand further due to increases in the number of cyber crime incidents, rising awareness of security solutions among enterprises, growth in sectors such as retail, ICT and other end-user industries, increasing digital penetration in the country, and increases in demand for data security solutions by SMEs. The market is expected to register a positive CAGR of 14.8 per cent in terms of revenue during the forecast period of 2019-2023.

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