SaaS is considered a new trend for small and medium enterprises, especially when many businesses strive to strengthen the power of digital transformation to develop their business and increase their competitive advantage. So what is SaaS and what are the benefits it brings to the business? Development opportunities of SaaS in Vietnam? At the 2022 Korean SaaS day in Vietnam event, Mr. Bui Dinh Giap (akaBot CEO) represented orientations and shared about the SaaS market in Vietnam, as well as offering suitable solutions for SMEs.
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What is SaaS?
According to Gartner, SaaS (Software-as-a-Service) is a software distribution model based on cloud computing technology, in which a cloud provider makes applications available to end users over the Internet. This technology helps businesses to save time and costs because they do not need to install and run software on the system.
The development of SaaS in the Vietnam market
According to Statistics, the revenue in the SaaS market is expected to reach 136.30 million USD in 2022 and 250.10 million USD in 2027, with a compound annual growth rate (CAGR) during the 2022-2027 period is 12.91%.
Statistics on revenue of SaaS in the Vietnam market. (Source: statista.com)
According to Tracxn, as of 2021, there are 533 technology startups operating in the SaaS sector in Vietnam. SaaS is often used by technology solution providers for customer data management, store/POS management, customer support, etc.
Tracxn also points out that the number of enterprises applying SaaS in Vietnam in 2021 accounts for 9%. Despite its small size, Vietnam’s SaaS market has a noticeable growth rate. At the 2022 Korean SaaS day in Vietnam event, Mr. Bui Dinh Giap (CEO akaBot) said: “As one of the four most developed countries in Southeast Asia in terms of SaaS products, Vietnam’s market promises to continue to boom in the coming years, especially in the period of 2023 – 2027”.
Factors driving the development of the SaaS market in Vietnam
Increasing demand for digital transformation
According to a report from Google, Temasek and Bain & Company, Vietnam’s digital economy is experiencing the fastest growth in Southeast Asia with the total value of goods expected to increase by 28%, from 18 billion USD in 2021 to 23 billion USD in 2022. Thus, the current trend of digital transformation has become the focus of investment for many businesses.
To meet the strict requirements of the 4.0 revolution and the intense digital competition, businesses are always looking for compact, effective technology solutions at a reasonable price. SaaS technology with high applicability and practical efficiency is the right solution to help businesses achieve their digital transformation strategic goals.
At the event, Mr. Giap said: “After Covid-19, businesses always need to adapt faster, so they will focus on technology products that can be deployed quickly with a low upfront cost. In the market, SaaS is a potential technology solution that can meet those needs of businesses”.
SMEs in Vietnam account for a large market share
According to the Vietnam Association of Small and Medium Enterprises, the whole country has about 800,000 enterprises, of which small and medium enterprises (SMEs) account for over 98%.
With outstanding features, SaaS is being evaluated as a potential technology product for SMEs:
- SMEs often have limited budgets and resources. With the SaaS model, SMEs do not need to install or invest in a physical system to run the software, thereby saving a huge amount of money, time, and resources.
- SaaS providers regularly update software, optimize features, help SMEs catch up with business trends, and reduce the burden on the IT team in the enterprise.
With the current rapid growth of the number of SMEs in Vietnam, the SaaS market always has several opportunities to thrive.
The future prediction of the SaaS market in Vietnam
Research from Research and Market shows that, by 2025, the CAGR of the cloud computing market in Vietnam is expected to increase by over 18.88%. As one of the three cloud computing models besides IaaS and PaaS, the rise of the cloud computing market also leads to the revenue growth of the SaaS segment in the future.
According to the report of Nextrans (2021), SaaS is in the top 5 most funded sectors in Vietnam in 2021. It shows that despite the small market size, this is a potential investment area, especially after the demand for cloud-based services increased significantly after the COVID-19 pandemic.
RPAaaS – a SaaS RPA product is recognized as a potential solution because of the high automation needs of many Vietnamese businesses, particularly the manufacturing and financial industries that need to focus on promoting automation to accelerate the operating speed and save cost. In Vietnam, the Government has also been actively focusing on developing initiatives and enacting laws to accelerate the automation process to improve economic competitiveness and speed up industrialization.
RPAaaS is a compact, easy-to-install and uses technology solution that allows rapid expansion of automation projects without depending heavily on the IT team. This solution is an effective assistant to help businesses gain efficiency in a short time, and quickly pay back with a reasonable investment.
At the 2022 Korean SaaS day in Vietnam event, Mr. Giap also introduced UBot, a product belonging to the ecosystem of akaBot (FPT Software), which is one of the leading RPAaaS platforms in Vietnam. Possessing the advantage of a SaaS solution, UBot has accompanied 2,000 businesses, helping customers save 40% of operating costs and ensure uninterrupted business.
To have more details about the application and benefits of akaBot’s SaaS (Ubot) solution, please find the information at https://ubot.vn/
akaBot (FPT) is the operation optimization solution for enterprises based on RPA (Robotic Process Automation) platform combined with Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 20+ countries, across 08 domains such as Banking & Finances, Retails, IT Services, Manufacturing, Logistics…, akaBot is featured by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, etc.
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