Unlocking Business Potential with The Internet of Things (IoT)

The Internet of Things (IoT) is a network that includes everyday objects like devices, vehicles, and appliances. These items have special technology in them that lets them talk to each other and share information. In the business world, IoT can make things run smoother, work better, and even save money. With new 5G technology coming out, we’re going to see even more use of IoT soon. If you’re curious about why IoT companies in Vietnam are getting so popular and how they might help your business, keep reading this blog.

1. What is the Internet of Things (Iot)?

The Internet of Things (IoT) is all about making everyday devices smart. They’re connected to the internet, talk to each other, and make decisions based on the information they share. For example, think of a house where the lights turn on by themselves when you walk in or can be turned on from your phone, even when you’re not home.

This smart technology is becoming a big deal for businesses. In Vietnam, for example, it’s expected to make over $13 billion between 2024 and 2028, growing by nearly 15% every year. By 2024, it’s likely to earn about $7.54 billion (according to Statista).

Right now, there are more than 15 billion smart devices around the world, which means there are about two for every person. But in Vietnam, the average is less than one device per person. This just shows there’s a lot of room for growth.

What’s really exciting is how this technology can change the way businesses work. By connecting devices and collecting data, companies can learn a lot about how they operate. This can help them work more efficiently, save money, and even find new ways to make money. Plus, it can make customers happier by offering them better service and new experiences.

2. How the Internet of Things benefits businesses

The Internet of Things (IoT) is being celebrated as a major transformative force for companies. Its ability to deliver real-time data and insights makes it invaluable for enhancing decision-making, boosting efficiency, and uncovering new opportunities for income.

So, what specific advantages does IoT offer to businesses? Here are some key ways:

• Better asset management: IoT allows companies to monitor their assets continuously, providing up-to-the-minute updates on location and usage. This visibility helps reduce losses from theft or mismanagement and improves overall asset utilization.

• Improved customer service: By gathering detailed data on customer habits and preferences, IoT technology enables companies to personalize the customer experience, offering services and products that meet unique customer needs.

• Increased operational efficiency: IoT can automate routine tasks and streamline processes, freeing up staff for more strategic work. It also helps cut down on waste and makes better use of resources, lowering operational costs.

• Innovative business models: IoT opens up possibilities for entirely new services. For example, leveraging data from connected devices for predictive maintenance can prevent equipment failures and save customers from potential downtime.

• New revenue opportunities: The vast amounts of data gathered by IoT devices can offer businesses deep insights into their operations, leading to enhanced processes and additional revenue sources. Many IoT companies in India, for instance, utilize this data to refine their business models and strategies.

In essence, IoT holds the potential to revolutionize business practices across various sectors, promising not just improvements in current operations but also paving the way for innovations and growth.

3. Vietnam’s IoT ecosystem:

Government initiatives

Vietnam’s government has laid a foundational blueprint for the IoT industry’s expansion with Decision 36/QĐ-TTg. This policy specifies that by 2025, all of Vietnam’s high-tech parks, along with research and development centers, should achieve internet connectivity speeds of at least 1Gb per second, as outlined in Point A, Clause 2 of Article 1 of the Decision.

Moreover, the country is on a path to offer 5G mobile broadband network coverage to 99 percent of its population by 2030, marking a significant step towards digital inclusion and technological advancement.

Innovation zones

Vietnam has seen the establishment of several high-tech zones aimed at attracting foreign tech manufacturing investment. For instance, Hoa Lac High-Tech Park (HLHTP), among the first of its kind in Vietnam, is dedicated to research and development in information technology, biotechnology, new material technology, and automation technology.

The Ho Chi Minh City High-Tech Park stands out as one of the most successful in the country, drawing over US$12 billion in investment, reflecting its appeal and the conducive environment for technological advancements.

Openness to foreign investment

While Vietnam generally imposes restrictions on foreign investment in the telecommunications sector, it adopts a more open stance towards core IoT-related areas such as cloud computing and data center development, as per the amendments in Vietnam’s Telecommunication Law targeting foreign firms. This policy approach underscores Vietnam’s commitment to fostering a robust IoT ecosystem, encourages international collaboration and investment in its digital infrastructure.

4. Opportunities and challenges in Vietnam’s IoT sector

Opportunities

• Consumer electronics market

Vietnam’s thriving economy and increasing urbanization are fueling demand for IoT products. From smart home gadgets like remote-controlled security systems to WiFi-enabled TVs for seamless content sharing across devices. The consumer appetite for connected technology is growing. This creates a fertile ground for foreign electronics companies to introduce a wide range of IoT products, from simple mobile devices to advanced monitoring systems. Thanks to Vietnam’s expansive network of electronics retail chains, manufacturers have a straightforward path to tapping into the country’s vibrant consumer market.

• Education and training

A notable gap exists in Vietnam’s IoT sector: a shortage of skilled experts, highlighted by Minh Duc Nguyen from Hanoi University of Science and Technology. The country’s educational institutions currently offer limited IoT development programs, leaving a vast potential for foreign educators to fill this gap by setting up comprehensive IoT education and training initiatives. Despite the presence of some programs, the market is far from saturated, presenting a ripe opportunity for investment.

Challenges

• Need for Standardization

The true potential of IoT devices is unlocked when they operate cohesively with other connected devices. However, a lack of technical standardization across the IoT spectrum can lead to compatibility issues, diminishing efficiency and driving up operational costs. Establishing universal standards is crucial to ensure seamless integration and optimal performance of IoT systems.

• Cybersecurity risks

As IoT devices proliferate, so do concerns over cybersecurity. Vulnerabilities in connected devices can lead to significant data breaches, affecting consumers and businesses alike. Addressing these risks necessitates ongoing investment in security infrastructure and vigilance in updating protective measures to safeguard against potential cyber threats.

In sum, while Vietnam’s IoT sector offers promising opportunities for growth in consumer electronics and educational initiatives, it also faces challenges that need strategic attention, particularly in standardization and cybersecurity. Navigating these opportunities and challenges wisely can unlock significant benefits for businesses and educators looking to make their mark in Vietnam’s IoT landscape.

Conclusion

The surging interest in IoT service solutions in Vietnam is becoming increasingly apparent, with the government actively endorsing the sector’s growth through investment and development initiatives. This encouragement has catalyzed the introduction of a range of local IoT service solutions, marking the emergence of a vibrant industry within the country.

Despite these advancements, the IoT service solutions sector in Vietnam is still in its infancy compared to the global landscape, offering substantial opportunities for growth. This emerging market presents enticing prospects for international firms specializing in IoT services and solutions, keen on penetrating this dynamic and rapidly expanding market.

For those interested in delving deeper into the Vietnam IoT service solutions market and uncovering the potential it holds, the team at Sphinx stands ready to offer expert business advisory services. Reach out for comprehensive insights and tailored guidance on navigating this promising market.

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