International Journal of Research and Review Vol.8; Issue: 3; March 2021 Website: www.ijrrjournal.com Review Article E-ISSN: 2349-9788; P-ISSN: 2454-2237

Trends and Development Solutions: Internet of Things (IOT) Market in Vietnam

Nguyen Xuan Ha1, Dang Minh Tuan2, Tran Duc Can3, Nguyen Thi Lan Huong4, Nguyen Huu Xuyen5

1Hanoi University of Science and Technology, Vietnam 2CMC Institute of Science and Technology, Vietnam 3University of Economics - Technology for Industries, Vietnam 4Hanoi Industrial Textile Garment University, Vietnam 5National Institute of Patent and Technology Exploitation, Vietnam

Corresponding Author: Nguyen Xuan Ha

ABSTRACT Then there are various interpretations of IoT. According to the International Internet of Things (Internet of Things) market Telecommunication Union (ITU, 2015), the development trends has an important role in the IoT connects objects in both intelligent and process of building a technology roadmap and sensible ways, through the technical technology innovation roadmap. The development of object recognition development of the IoT will impact the consolidation of technologies and blur the lines technologies via RFID radio waves, sensor between the physical, digital and biological technology, smart technology and realms. In Vietnam, the development of the IoT nanotechnology. IoT is a global market has been interested by the Government, infrastructure for information society, but the domestic supply is still limited, mainly providing advanced services by connecting depends on the source of technology imported objects (both real and virtual) based on the from abroad, so the IoT market is still in its existence of information, interoperability of infancy, not really developed. This article will that information and based on identify and analyze the development trend of communication technologies. By exploiting the IoT market, and then propose solutions to the ability to identify, collect data, process develop the IoT market to serve the data and communication technology, IoT development of the roadmap for IoT application technology innovation in accordance with the systems provide services for many different strategy of change number of Vietnam. The types of applications, simultaneously, paper is part of the research results of the topic ensuring security and privacy. From there, "Construction technology map and the IoT can be considered a technology technological innovation roadmap in developing trend and a development trend of society, and applying IoT in Vietnam”, code: especially in the context of the fourth ĐM.40.DA/19. industrial revolution is taking place strongly. Keywords: IoT, IoT market Up to now, in general, there are still many different perspectives about IoT, but 1. INTRODUCTION the concepts are basically about connecting At first, IoT was understood quite objects over the Internet. In studies of IoT, simply, to refer to indoor objects and the concept of IoT of ITU is most cited and devices such as televisions, refrigerators, referenced by researchers. IoT is understood washing machines, gas cookers, ... equipped that when everything is connected to each with technologies such as wifi, bluetooth, other through the Internet, users can control RFID sensors, etc. .. to help them connect. all their objects over the network with just

International Journal of Research and Review (ijrrjournal.com) 520 Vol.8; Issue: 3; March 2021 Nguyen Xuan Ha et.al. Trends and development solutions: internet of things (IOT) market in Vietnam. one smart device. IoT has some Internet or internal LAN. Therefore, with characteristics such as: the ability to the development of IoT we can connect with communicate anytime, anywhere, anytime; everything; supervise everything; control the ability to locate devices; the device's everything; find everything when it is ability to exchange information via the needed and manage everything.

Figure 1: Location of IoT and related technologies Source: Gartner, 2020

IoT can create a new industrial IoT is considered the most revolution, transforming the world economy breakthrough technology and has many and human life. The IoT will create opportunities in the future. The greatest opportunities for all industries to benefit, power of the IoT is its ability to turn data increasing data transmission and Internet into action without the need for communication. Therefore, all businesses intermediary entities. The fact that the IoT and industries can use those data to analyze stands at its highest point is the result of and decide their strategies in the future. many globally influential activities. In it, Over the years, Gartner has consistently there must be the initiatives and moves of made research and predictions about the the world's largest technology and industry development of a technology known as the firms in North America and Europe. Thus, Hype Cycle (Figure 1). The Hype Cycle according to Gartner predictions, IoT will consists of five phases: start-up of develop strongly in the next 5-10 years, and technology; the climax of the hype about then go into stable development. At that technology's expectations; concave at the time, the application and development of end of the hype; the beginning of the climb IoT will bring many economic benefits to goes up when the problems are clarified; organizations and countries participating in stable development. Gartner recommends investing in IoT development. The growth waiting for the technology's ripe stages to of the IoT is underpinned by a number of put it into practice. related technologies. Some key areas such

International Journal of Research and Review (ijrrjournal.com) 521 Vol.8; Issue: 3; March 2021 Nguyen Xuan Ha et.al. Trends and development solutions: internet of things (IOT) market in Vietnam. as: data aggregation / virtualization tools; are mobile phones, laptop PCs, and tablets. IoT network edge architecture; integrated The world will spend about 1,300 billion IoT; IoT services; low-cost, self-developed USD on the IoT (IDC, 2018). The added user electronic circuits; machine learning; value brought about by the IoT will reach product data management. about 1,900 billion USD by 2020 (Gartner, 2018). 2. RESEARCH METHODS According to McKinsey (2018), by The authors have inherited the 2025, IoT will contribute to the global researches published at home and abroad on economy of 11,000 billion US dollars. In the IoT market, developing the IoT market. 2021, it is expected that the number of Especially some announcements: of the subscribers will reach 9.1 billion. This International Telecommunication Union number of subscribers is higher than the (2015), Gartner (2018, 2020), Ericsson population because each person can own Mobility Report (2017), Research Company many devices. In IoT connections, there are Rand Europe (2019), Consulting Firm SIM / eSIM subscriptions embedded in the Accenture (2018); Vietnamese Ministry of device and also devices such as consumer Information and Communications, Vietnam electronics that do not require a SIM (Non- Ministry of Science and Technology, and SIM). The IoT is going strong. 50% of some information from experts and businesses have started implementing IoT consulting companies in Vietnam have been projects with the expectation of providing published at websites such as: revenue opportunities for many industries, https://techinsight.com.vn, and those solutions start to commercialize at https://iotvietnam.com/, a very rapid rate. Utilities, transportation, https://ifactory.com.vn/, smart building, agriculture, and retail are the https://bkaii.com.vn/, leading industries in IoT application https://solutions.viettel.vn, In 2020, IoT can bring huge https://www.cisco.com/. potential revenue to industries around the In addition, to clarify the published world at about 1.4-14.4 trillion USD data on IoT, the IoT market, the authors (equivalent to GDP of the European Union) have collected, selected and analyzed the (Rand Europe, 2016). Not only that, many information obtained through the seminars basic economic industries can increase held in Vietnam. in 2019 and 2020; At the investment in the IoT ecosystem with the same time, using interview results in 2020 total investment in IoT solutions estimated from a number of experts working at at $ 6 trillion (Business Insider Intelligence, German research institutions, businesses, 2018). In particular, manufacturing and universities such as German Aerospace enterprises can increase investment by 35% Center, Ostbayerische Technische in the use of smart sensors. The transport Hochschule Regensburg, Technical industry will have more than 220 million University of Darmstadt. connected cars. The defense industry can spend $ 8.7 billion on unmanned vehicles 3. RESEARCH RESULTS and about 126,000 military robots will be According to Ericsson Mobility shipped. Agricultural production can install Report (EMR, 2017), by 2021, it is expected 75 million IoT devices, mostly sensors that there will be 28 billion connected placed in the soil to monitor acidity, devices, of which 15 billion are connected temperature and other metrics to help to IoT, including M2M (Machine-to- farmers increase crop yields. The Machine) equipment such as smart meters, infrastructure sector can increase investment road sensors, retail locations, and consumer by $ 133 billion for IoT systems. electronic devices such as televisions, Many other areas also increase DVRs, wearables; the remaining 13 billion investment in the IoT and IoT ecosystems

International Journal of Research and Review (ijrrjournal.com) 522 Vol.8; Issue: 3; March 2021 Nguyen Xuan Ha et.al. Trends and development solutions: internet of things (IOT) market in Vietnam. that can cover most industries in three main that the economic value generated by this regions: Governments, businesses, and market could be $ 19,000 billion by 2020, consumers, with an estimated 24 billion which includes direct and past impacts. devices connected to the Internet and cutting costs, increasing productivity ... participating in the IoT ecosystem. As a Therefore, it is not simply based on sales of result, the IoT can generate significant additional products and services (Cisco, growth for the global economy. If the US 2018). By 2020, IoT devices could reach invests more than 50% in IoT technology to about 26 billion IoT devices and products expand its network of connections, it can (Gartner, 2018). Service providers that can generate profits of up to $ 7.1 trillion, generate incremental revenue in excess of $ contributing to higher GDP 2 , 3% in 2030 300 billion, are primarily services. The IoT compared with investment in other projects. can deliver $ 1.9 trillion worth of global Meanwhile, Germany could reach a profit of economic value in 2020. In the IDC report 700 billion USD and increase its GDP up to on the growth prospects of IoT for the 1.7%; The UK could reach a profit of $ 531 period 2013-2020, at the end of 2013, 9.1 billion and raise GDP by 1.8%; China could billions of IoT installations - with IP reach a profit of $ 1.8 trillion and raise its connectivity and communicating without GDP to 1.3 percent by 2030 if investing in human interaction. IDC predicts that with a IoT is similar to that of the US, and the IoT growth rate of 17.5%, by 2020 the world market can reach revenue of around $ 7,100 may have 28.1 billion connections (Table billion by 2020 (Accenture, 2017). 1). The IoT market is still in its early stages of development, Cisco has predicted

Table 1. The IoT development of regions around the world 2013 2014 2015 2016 2017 2018 2019 2020 2013-2020 CAGR (%) Asia Pacific 2,8 3,6 4,4 5,4 6,4 7,6 8,9 10,1 20,1 Central Europe and Eastern Europe 0,3 0,3 0,4 0,5 0,6 0,7 0,8 0,8 15,0 Latin America 0,2 0,2 0,3 0,2 0,4 0,4 0,5 0,6 17,0 Middle East / Africa 0,3 0,4 0,4 0,5 0,5 0,7 0,7 0,8 15,0 North America 3,1 3,8 4,5 5,2 5,9 6,5 7,0 7,5 13,5 West Europe 2,4 3,1 3,7 4,5 5,4 6,3 7,3 8,3 19,4 Total 9,1 11,4 13,7 16,3 19,2 22,2 25,2 28,1 17,5 Source: IDC, 2018

Regarding the forecast of developed - IoT will be the largest device market in areas in the world, IDC has assessed for the world. In 2019, the number of IoT each major region in the world and said that, devices could double the total number of while everywhere in the world has begun to smartphones, PCs, tablets, and implement IoT solutions, development area wearables. Development is leading and will continue to - IoT can bring $ 1,700 billion in value lead the way for the massive growth of the added to the global economy in 2019. IoT in 2020. Investing in information, This includes hardware, software, communication and technology is one of the installation costs, management services key factors to develop the IoT market in the and economic value added future. IoT is thriving as consumers, - The value of IoT devices could reach 6.7 businesses, and governments realize the billion USD in 2019. While hardware benefits of the platform. IoT can boost the revenue accounts for 8% (about $ 50 economy strongly in the coming time, million), software makers and experts of Business Insider have made infrastructure companies benefit more several forecasts about the future of IoT from IoT shares. (Business Insider Intelligence, 2018): - The growth of IoT brings greater efficiency and lower costs in homes,

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workplaces and cities in the future. 2020. IoT helps Government focus on However, the use of electronic devices solutions to increase productivity, in security systems is still a problem. reduce costs, and improve the quality of - The IoT platform lacks a common life of the people. There are about 7.7 technology and standard for billion connected devices in the compatibility and use with devices. government sector by 2020, with an Currently, there are very few standards investment of about 2.1 billion USD. (or regulations) for devices running on Consumers are behind businesses and these platforms. The most pressing issue governments in getting IoT solutions. is to standardize IoT platforms and However, consumers can buy a large address current security issues. number of devices and invest a - The serving objects of the IoT substantial amount in the IoT ecosystem, ecosystem are: businesses, governments, which has about 5 billion connected and consumers. In particular, businesses devices, with a spending of $ 900 receive the most IoT solutions, focusing million. on the following goals: Reduce Development of IoT is also operating costs, increase productivity interested by many corporations around the and expand into new markets or develop world and promoting research. The number new products. The enterprise sector may of patents and patent transfer markets in the have 11.2 billion connected devices by sectors / industries has increased in recent 2020. Investment in IoT solutions is years (Table 2). about USD 3 billion for the period 2015-

Table 2: Number of IoT-related patents by public sector technology and the strengths of companies Technology Number of patents Companies leading in the number of The companies receive the transfer patents mainly Net 81.319 Samsung, Qualcomm, Huawei, LG, ZTE, Avago, Google, Autoconnect Holdings Intel LLC, Qualcomm, Cisco Sensor 47.207 Samsung, Korea Electronics Telecomm, Google, Avago, Autoconnect Holdings State Grid Corporation of China (SGCC), LLC, Samsung Siemens, LG, Philips Security 42.943 Samsung, Qualcomm, Intel, Huawei, LG, Avago, Google, Autoconnect Holdings Ericsson LLC, Qualcomm, Cisco Energy management 28.095 Intel, Samsung, Qualcomm, State Grid Avago, Google, Samsung, Xenogenic Corporation of China (SGCC), LG, Development LLC, Qualcomm, Rateze Siemens Remote Mgmt LLC Data analysis 24.068 Samsung, Qualcomm, Korea Electronics Autoconnect Holdings LLC, Avago, Telecomm, Sony, ZTE, Huawei Cisco, Google, Hewlett Packard Enterprise Data saving 7.008 Samsung, Intel, LG, IBM, Hitachi, State Avago, KIP SMRT P1 LP, Google, Grid Corporation of China (SGCC) Autoconnect Holdings LLC, Hewlett Packard Enterprise Data processing 6.893 Samsung, Sony, Microsoft, IBM, Autoconnect Holdings LLC, Avago, Panasonic, NEC Google, Hewlett Packard Enterprise, Eagle Harbor Holdings LLC Cloud computing 4.674 Samsung, Intel, Microsoft, IBM, Google, Autoconnect Holdings LLC, Samsung, Zongcheng Li Google, KIP SMRT P1 LP, Nokia Source: Relecura Inc (2017)

In Vietnam, developing the IoT technology solutions for software, market has also received the attention of the connectivity infrastructure, hardware, Government, businesses and science and services ...); market; and their relationship technology organizations in recent years. with each other. The IoT market in Vietnam According to Bach Tan Sinh and Dang Thi is attracting many technology companies to Hoa (2019), the IoT ecosystem includes the participate in research and production. Some main actors: Government (promulgating examples of IoT development are: Mimosa policies, promoting development through Tech commercialized the solution for public investment); businesses / startups / precision farming; Hachi is a solution that development communities (providing helps to build an automatic personal garden

International Journal of Research and Review (ijrrjournal.com) 524 Vol.8; Issue: 3; March 2021 Nguyen Xuan Ha et.al. Trends and development solutions: internet of things (IOT) market in Vietnam. at home; BKAV and Lumi are two leading 4. CONCLUSION AND companies in the smart home market; RECOMMENDATION Abivin was one of the first businesses to To develop the IoT market on the collect data on vehicles in traffic and based basis of synchronization of legal on digital maps, optimized for vehicles. In environment, telecommunications fact, most of the current IoT application infrastructure, human resources and in systems in Vietnam are originated from accordance with the roadmap of IoT foreign enterprises, and domestic enterprises technology innovation, associated with "The are basically focusing on applications on National Digital Transformation Program to mobile phone platforms. small and mobile 2025, with a vision to 2030" according to computers that have not fully exploited the the Prime Minister's Decision No. 749 / QD- intelligence of the IoT system (Ministry of TTg of June 3, 2020, in the coming time, Science and Technology, 2019). In addition, Vietnam needs: businesses are hesitant to apply IoT Firstly, perfecting the legal because: poor infrastructure (31%), environment, creating favorable conditions inadequate staff (20%), lack of budget for the development of the IoT market. (44%) and uncertainty on the benefits and Currently, the construction of the current impact of IoT on businesses (48 %) (Cisco, legal environment is still very slow, failing 2018). to keep up with emerging social needs, Thus, although there is great especially in new areas when implementing potential for the IoT market in Vietnam to digital transformation. Specifically, there is develop, there are still certain difficulties for a lack of a legal framework for sharing the development of the IoT market in economic development; sharing and Vietnam, which are caused by: policies have opening data of government agencies and not kept pace with the rapidly growing IoT businesses; protection of personal data, market; Vietnamese enterprises are not private information; issues of rights and really ready to apply because of high initial ethics when applying artificial intelligence investment costs, limited ability to master and this hinders the digital transformation technology and capacity (Nguyen Huu process (Ministry of Information and Xuyen et al, 2020); Vietnamese people's Communications, 2019). Therefore, it is acceptance of the new and changing habits necessary to build a culture that encourages of consumers is still slow; IoT connectivity innovation, accept risks for new products, standards are lacking, asynchronous IoT solutions, business models, and connections create sudden large amounts of management methods when the legal traffic, especially when IoT technology provisions are not really complete and clear. requires interoperability between devices; Next, step by step complete the legal Security issues are not really guaranteed. framework for research, development, Besides, the IoT market in Vietnam has not testing and application of new products, yet developed strongly because the supply processes, and new business models into capacity of domestic enterprises is not high; socio-economic development reality; Research and development capacity of reviewing and studying points that are not universities and research institutes is still suitable for the development trend and IoT limited, intermediaries of consultancy, legal application to supplement and amend the assistance and technology transfer system of legal documents on creative connection are small in number and their startups, intellectual property, trade, operations are not highly professional. investment, business to facilitate national digital transformation and develop new products, services, business models based on digital technology, the Internet and cyberspace; at the same time studying,

International Journal of Research and Review (ijrrjournal.com) 525 Vol.8; Issue: 3; March 2021 Nguyen Xuan Ha et.al. Trends and development solutions: internet of things (IOT) market in Vietnam. proposing amendments and supplements to Accordingly, it is necessary to implement legal documents on information technology training solutions on information security and communication such as Law on for state agencies and organizations; Electronic Transactions, Law on information security training upon request Information Technology, Law on from these agencies and organizations; Telecommunications to ensure State training in management, profession and investment and mobilize resources from information security skills for leadership enterprises and society to implement the and management teams; updating and national digital transformation program. improving information security and Secondly, improving technology information technology techniques capacity in enterprises, supporting according to standards, program enterprises to innovate business models, frameworks and information security skills production processes, products to improve requirements issued by the Ministry of productivity and improve competitiveness Information and Communications; elaborate based on IoT application platforms; regulations on information security skills, consulting and assisting enterprises in standards, criteria, professional building a roadmap for digital requirements and information security skills transformation, facilitating the connection for full-time officials; speed up the training of capital and technology sources with of teachers and researchers on information international markets; supporting security and IoT in educational institutions Vietnamese enterprises to raise awareness and in scientific research and technology of the potential of IoT to soon have development. orientations and roadmaps to deploy IoT Fourthly, promoting the process of applications in production and business, linking and cooperating between create opportunities for businesses to apply educational institutions, research institutions IoT to optimize operations, improve and businesses. It is necessary to develop a innovation capacity, contribute to increasing priority mechanism for enterprises that revenue and competitive advantage in the support activities in training and scientific market; accelerate the support of innovative research, building an ordering mechanism startups, startups based on IoT research with enterprises in training and scientific results to form science and technology research, supporting quality and efficient businesses (Nguyen Huu Xuyen et al, training institutions. To prioritize 2019); supporting businesses in digital investment in a number of universities with transformation, applying 5G technology, effective scientific research and high building an institutional framework to pilot technology transfer in the higher education application of new business forms such as system. In addition, it is necessary to non-cash payments, electronic payment, implement productivity training and peer-to-peer lending, sharing economic fostering programs at a number of models. universities and vocational training Thirdly, propaganding to raise institutions on the basis of close connection awareness of people, businesses and civil with the needs of some businesses and servants about the role and benefits of industrial parks, specific high-tech zones; developing the IoT market for the economy, organize programs and training courses on society and national competitive advantage. solutions to improve productivity, digital Especially, it is necessary to effectively transformation, smart manufacturing, smart implement the Prime Minister's Decision transportation, smart cities, contribute to No. 21/QD-TTG dated January 6, 2021 supporting enterprises to improve their approving the project "Training and capacity to access the Fourth Industrial developing human resources in information Revolution according to Directive No. 16 / security for the period of 2021-2025". CT-TTg in 2017 of the Prime Minister.

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Fifthly, improving the capacity of information security phase from 2021 to intermediaries to support the growing IoT 2025, Hanoi, Vietnam. market. Therefore, in the coming time, it is 5. The Prime Minister (2017), Directive No. necessary to improve the capacity of 16 / CT-TTg dated 04 March 05 2017 on intermediaries (Technology Exchange; the strengthening of the capacity to access Technology Transfer Promotion and the industrial revolution Fourth, Hanoi, Support Center; Intellectual Property Vietnam. Valuation Support Center; Innovation 6. Bach Tan Sinh and Dang Thi Hoa (2019), Support Center; Technology Incubator) in the Internet connects all things in providing brokerage, consultancy, Vietnam: Situation and solution technology transfer promotion, evaluation, development, Journal of Science and Technology of Vietnam, the month appraisal of prices and technology appraisal 2/2019. services; providing connection services to 7. Gartner (2018), Understanding Gartner’s assist parties in technology-related Hype Cycles: transactions in the technology market https://www.gartner.com/en/documents/38 (support services for research and 87767 development, commercialization of 8. Gartner (2020), Five Trends Drive the technology; intellectual property services, Gartner Hype Cycle for Emerging standards, metrics, quality; investment Technologies: consulting, trade promotion, ...). Thus, the https://www.gartner.com/smarterwithgartn intermediary not only provides advice, er/5-trends-drive-the-gartner-hype-cycle- brokerage, legal assistance, and information for-emerging-technologies-2020/ provision, but also helps market participants 9. Business Insider Intelligence (2018), The realize the value of IoT technology, Internet of Things Report, Insider Inc, promoting organizations to be able to New York. access, use, and buy and sell IoT technology 10. Rand Europe Research Firm (2016), to serve their needs and production and Development forecast of IoT to 2020, UK. business activities; making an important 11. Relecura Inc. (2017), Technology contribution to the commercialization of IoT Landscape and IP commercialization research results, improving the quantity and Trends IoT - Internet of Things, India quality of IoT technology transactions in the 12. Ericsson Mobility Report (EMR, 2017), technology market. IoT platform, Stockholm, Sweden 13. Cisco (2018), The Internet of Things: 5 Predictions for 2018 by Maciej Kranz, REFERENCES 1. The Ministry of Science and Technology America

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approving the Conversion Program 16. IDC (2018), IDC FutureScape: countries by 2025 and orientation to 2030, Worldwide IoT 2018 Predictions, USA

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18. Nguyen Huu Xuyen et al (2019), Solution https://www.mic.gov.vn, to develop innovative start-up enterprise https://www.most.gov.vn in Vietnam, 1-2/2019, East West. 19. Web sites: https://techinsight.com.vn, How to cite this article: Nguyen Xuan Ha, https://iotvietnam.com/, Dang Minh Tuan, Tran Duc Can et.al. Trends https://ifactory.com.vn/, and development solutions: internet of things https://bkaii.com.vn/, (IOT) market in Vietnam. International https://solutions.viettel.vn, Journal of Research and Review. 2021; 8(3): https://cisco.com/. 520-528.

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