Digital transformation is central to Vietnam’s national agenda, supported by both government and private sectors. This initiative promotes a digital economy, implements Industry 4.0 in enterprises, enhances online public services, and digitises resident data.
Vietnam’s National Digital Transformation Program aims to establish 3 pillars by 2025: digital government, digital economy, and digital society.
HSBC highlights Vietnam as the fastest-growing digital economy in ASEAN, potentially becoming the second largest by 2030.
Vietnam’s cyber security challenges
Vietnam’s digital transformation journey faces 3 major cyber security challenges.
Increasing security vulnerabilities
As of June 2024, there were 90,033 recorded vulnerabilities related to information security across various agencies and organisations in Vietnam. The rising number of recorded cyber security vulnerabilities indicates an urgent need for enhanced security measures to protect sensitive data across various sectors.
Rise in data breaches and information theft
During the first half of the year, Vietnam reported 46 data leak incidents impacting various businesses and organisations. The number of fraudulent webpages impersonating organisations and businesses has increased fourfold compared to the previous period, leading to a rise in scams and financial fraud.
The significant rise in data breaches and information theft, particularly in sectors such as retail, education and electronic Know Your Customer (eKYC) data, raises concerns about the adequacy of current protective measures.
Sophisticated ransomware attacks
Various attack campaigns have targeted multiple sectors including finance, public service, information technology and manufacturing. As of the first half of 2024, ransomware attacks have resulted in the encryption of approximately 3 terabytes of data, leading to an estimated financial loss exceeding $10 million.
Importantly, the number of Distributed Denial-of-Service (DDoS) attacks occurring at less than 1 Gbps has tripled compared to the previous year. This is attributed to a new attack strategy that utilises low-intensity methods to bypass traditional traffic threshold-based protection systems.
Proactive government measures
To address these challenges, the Vietnamese Government is enhancing its cyber security framework by establishing 3 key organisations:
- National Cyber Security Association (NCA): This association is focused on developing comprehensive cybersecurity strategies with participation from ministry leaders and tech conglomerates.
- Vietnam Computer Emergency Response Team (VNCERT): VNCERT is dedicated to coordinating national responses to cyber security emergencies.
- National Cyber Security Monitoring Center (NCSC): The NCSC is responsible for monitoring and safeguarding the integrity of cyberspaces.
Opportunities for Australian cyber security providers
There are significant opportunities for Australian technology innovators to supply Vietnam with advanced cyber security solutions. The demand for cyber security solutions creates a pathway for collaboration and partnership.
SME demand for managed security services
Small and medium enterprises (SMEs) in the growth phase are focused on core operations. This segment has similar needs to larger counterparts — they have the same global supply chain and customer bases, similar security and compliance requirements and similar data analytics needs.
However, they lack the in-house IT resources or skills to manage cyber security that larger firms have. SMEs are looking for managed security services providers for their cyber security needs.
Geographical hubs for business and government
Australian cyber companies looking for opportunities can focus on 2 regions:
- the northern region, which has a higher concentration of government agencies
- the southern region, which is the hub of industry.
Join Austrade’s Landing Pads program in Vietnam
Austrade is running a Landing Pads in-market immersion program in Hai Phong and Hanoi from 26–28 November 2024. Participants will attend Techfest Vietnam 2024 as part of the program.
This program is your gateway to connect with key local stakeholders and present innovative solutions that can tackle Vietnam’s cyber security challenges.
Express your interest in the program by 14 October 2024. Contact Austrade’s Landing Pad Manager in Vietnam Trang Vũ for more information about the program.
Sign up to receive the latest news and insights about Southeast Asia.
Go further, faster with Austrade
Austrade’s Go Global Toolkit helps you learn the export basics, find the right markets and understand market requirements.