Vietnam has a strong and robust private sector. Investment in this sector, domestic and foreign, has propelled the country’s security market to new heights.
Vietnam has a strong and robust private sector. Investment in this sector, domestic and foreign, has propelled the country’s security market to new heights. This article explores how Vietnam’s private sector is fueling growth in security, as well as some of the vertical markets where demand for security is especially booming.
Currently, Vietnam’s
private sector is home to over 6.1 million business establishments. These include approximately 940,000 registered enterprises and over 5.2 million household businesses. The sector contributes approximately 50 percent of the country’s GDP and employs about 82 percent of the workforce.
The thriving private sector provides the necessary fuel for Vietnam’s security market growth. “Private sector is warming up after Covid-19 pandemic due to increasing demand. Residential and retail markets are increasingly booming as a result of the urbanization trend,” said Thao Le Dang, Head of Video System at Keenfinity.
“There is strong demand in both (public iand private) sectors. In the private sector, demand is rising in retail chains, industrial parks, logistics, and education. There is also growing demand for smart surveillance in banking, retail, and transportation. Foreign investment and manufacturing expansion (for example Samsung and Foxconn) are driving up industrial security demand,” said Mei Guu, President of CyberLink BU2.
Rising FDI
Indeed, Vietnam’s foreign direct investment has risen sharply.
FDI inflow into Vietnam reached US$13.8 billion in the first four months of 2025, marking a whopping year-on-year surge of 39.9 percent. The country’s effort to build itself into a major economic and manufacturing powerhouse in the region has
attracted the likes of Amazon Web Services (AWS), Google, Siemens, Qualcomm, Ericsson, Foxconn and Goertek to either enter or expand presence in Vietnam.
This also puts Vietnam’s security market in a strong position to achieve further growth.
“Foreign direct investment is significantly increasing, especially in manufacturing, electronics, consumer goods, green energy, and smart agriculture,” said Peter Ngo, CEO and Head of APAC at Eurostellar. “The FDI sector is a significant growth driver, as European and US clients are investing more in Vietnam to navigate high tax tariffs imposed by the US on other countries.”
While increased FDI brings tremendous opportunities for Vietnam security players, challenges also await them as well.
“Foreign investors demand higher security standards and certifications (for example ISO and NDAA compliance). They often require integrated, scalable, and future-proof solutions, opening doors for advanced players. Local security companies must upgrade their offerings and certifications to meet foreign expectations,” said Vu Nguyen, Marketing Specialist at HTIC Law Firm who previously worked at ELV Vu Tien, a low-current security systems company.
Fortunately, with decades of experience and expertise accumulated, Vietnam security players stand ready to rise up to those challenges. “While foreign projects may come with higher technical standards and requirements, local system integrators and contractors in Vietnam have proven capable of meeting them, posing minimal challenges,” said Gioi Vu Manh, Senior Strategy Manager at Dahua. “Examples include access control, biometrics, alarm systems, long-term video storage, and integration with broader security or customs clearance systems.”
Booming verticals
With private sector investment and FDI surging in Vietnam, demand for security is seen in various verticals. Below we look at some of them.
Industrial manufacturing and logistics: Vietnam’s manufacturing and logistics sectors have benefitted greatly from increased investment, with factories and warehouses mushrooming across the nation. This is welcoming news for security.
Hospitality and luxury real estate: Hotels, resorts, and high-end residential properties are adopting smart security. “In terms of hospitality, especially with long sea coastline, diverse weather and culture, Vietnam attracted lot of multinational corporation investment for mid/high end hotels and resorts. Vietnam's tourism sector is forecasted with robust growth in next few years so hospitality will be booming vertical for security players,” Thao said.
Retail and shopping malls: Growth in retail, especially the high-end portion of the sector, is driving the need for modern surveillance and loss prevention systems. “Use of face-based analytics for VIP recognition and customer behavior analysis has become more common,” Guu said.
Healthcare and education: Healthcare and education are also important sectors. “International schools, hospitals, and clinics (especially with foreign partnerships) require compliance with international safety standards,” Vu said.