Vietnam’s security market remains a robust and exciting one. Growth is in part driven by government spending on various infrastructure projects, triggering security demand. Private investment, meanwhile, is also playing a role in accelerating security adoption, especially in certain sectors such as data centers and industrial manufacturing.
Growth stimulated by strong economy
Economically speaking, Vietnam’s economy grew 8 percent in 2025 – the fastest in ASEAN – buoyed by surging exports and investment, and the momentum is expected to extend into this year where the country’s GDP is forecast to grow 6.8 percent, the
World Bank notes.
This, then, is having a positive effect on the country’s security market.
“Vietnam remains one of the strongest security markets in Southeast Asia. The main drivers are infrastructure development, continued foreign investment in manufacturing, and increasing awareness around critical infrastructure protection,” said Michael Fu, Business Development Manager for ASEAN & CHINA, Intelligent Transportation Systems and Security Solutions at Teledyne FLIR.
“The market is showing solid growth, especially after a slow year in 2025 due to government project delays. Nx total revenue for Vietnam market in 2026 is expected to grow at 20-50 percent compared to 2025. The main reason is that some projects delayed in 2025 will carry over into 2026. High compound growth is expected to persist over the next 3 to 5 years,” said Annie Tran, Regional Sales Manager for Vietnam at Network Optix.
Gov’ spending gives rise to strong security demand
A key driver to growth in Vietnam’s security market is strong government spending on public infrastructure projects, ranging from airports to metro to highways and creating overwhelming demand for security solutions.
“Large infrastructure projects such as airports, transportation hubs, metro systems, and smart city initiatives create long-term opportunities for AI-powered identity solutions. These projects increasingly require biometric access control, visitor management, and real-time watchlist monitoring,” said Mei Guu, President of CyberLink Business Unit 2.
“Vietnam’s Ministry of Public Security is accelerating infrastructure development and video security through the deployment of thousands of AI-powered cameras. Significant funding initiatives include a US$93 million (VND 2.15 trillion) CCTV rollout for road safety. Hanoi is also rolling out an ambitious project to install over 40,000 AI-powered security cameras by 2030 to modernize urban management, ease traffic congestion and enforce environmental laws,” said Jason Tan, VP for Video Security, Asia Pacific at Motorola Solutions.
A word on the recent administrative restructuring
It should be noted that Vietnam has carried out one of the most significant administrative reorganizations in its modern history, where 63 provincial-level administrative units have been reduced to 34, effective July 2025. Most security players note that while this may produce minor disruptions in the short term, impact for the long term would be less significant.
“The reorganization has seen changes across provincial governments adjusting plans for cities, and although in some cases it has caused delays or cancelations for specific projects, we are seeing a stabilization in the deployments and a continuation of adoption of technology for provinces, said Ta Quang Huy, Senior Country Manager for Vietnam at Hanwha Vision.
“Any major government restructuring typically creates some short-term disruption as budgets, responsibilities and approval processes are realigned. We have seen some projects take longer to progress through the decision-making process. That said, we view this as a temporary adjustment rather than a long-term concern. The need for public safety and infrastructure protection remains unchanged,” Fu said.
In fact, the restructure may even be beneficial for Vietnam’s security industry.
“In the medium to longer term, we expect the restructuring to create a more efficient administrative framework through more streamlined procedures and faster investment decision-making. This should create favorable conditions for more standardized and integrated security platforms across public-sector infrastructure,” said Shelby Do, Chairman of TECHPRO Investment Corp.
Tan concurs. “The consolidation into 34 mega-provinces has catalyzed a wave of new, large-scale video security projects. Fragmented, district-level projects are being replaced by extensive provincial deployments integrated with smart city initiatives. The establishment of unified provincial smart city command centers facilitates the management of tens of thousands of video feeds from vast regions, necessitating AI-powered security systems to process content and replace legacy assets,” he said.
Private investment further drives growth
Another element driving Vietnam’s security market growth is the extraordinary private investment, foreign and domestic, seen in the country.
“Vietnam continues to attract strong investment across key sectors supported by sustained FDI inflows into industrial and technology-related sectors, multinational investors are increasingly defining security requirements early in the design phase. From our project experience, they are also prioritizing AI-enabled video surveillance, intelligent access control, and integrated security management platforms rather than standalone hardware,” said Do said.
Especially, investments are more prominent in certain key verticals. “We see growing demand from banking, manufacturing, retail, logistics, commercial buildings, and critical infrastructure. Banking continues to lead facial recognition adoption through eKYC and biometric authentication, while enterprises are increasingly deploying AI for access control, workforce management, and visitor management,” Guu said.
“The most active vertical market is industrial and logistics, where electronics, semiconductor, and automotive manufacturing plants backed primarily by investors from East Asia and Europe are setting very high standards for asset protection and requiring high-end, European-standard security,” said Peter Ngo, CEO of Estellar Group who doubles as a Board Member of the Central and Eastern European Chamber of Commerce (CEEC) in Vietnam. “Commercial and smart residential real estate also plays a big role, as high-end residential projects and premium commercial buildings are heavily adopting smart building automation and mobile access control to differentiate themselves.”
Another important vertical is data centers, which are mushrooming across Vietnam to support the country’s various digitization efforts. “An ongoing transformation trend we see are the private investments withing the data center landscape and industries, which are due to data localization and the AI, e-Commerce and 5G adoptions in the market. The local digital infrastructure is growing at a rapid pace and a range of hyperscale and co-location data centers are increasing capacity to serve the market,” Huy said.