Why SMEs in Vietnam and Indonesia Are Becoming Prime Targets for Hackers
Small and medium-sized enterprises (SMEs) in Vietnam and Indonesia are facing a growing and often underestimated threat: cyberattacks. While multinational corporations with large budgets and dedicated security teams tend to make headlines when data breaches occur, SMEs are increasingly becoming the preferred targets of hackers in Southeast Asia.
This is not simply a matter of bad luck—it is the result of a combination of economic growth, digital adoption, and limited cybersecurity readiness that make these businesses attractive opportunities for cybercriminals.
In recent years, both Vietnam and Indonesia have experienced rapid digital transformation. Vietnam has emerged as one of the fastest-growing digital economies in Southeast Asia, with its e-commerce, fintech, and manufacturing sectors driving widespread internet adoption. Similarly, Indonesia, home to more than 270 million people, has seen a surge in digital services across retail, transportation, banking, and government services. SMEs, which make up more than 97% of businesses in both countries, have embraced online platforms, mobile apps, and cloud technologies to compete and expand. This digital acceleration, however, has exposed SMEs to new types of risks they are often ill-prepared to manage.
Limited Investment in Cybersecurity
One of the main reasons SMEs in Vietnam and Indonesia are becoming prime targets is their limited investment in cybersecurity. Unlike larger corporations, SMEs often operate with tighter budgets and prioritize immediate business growth over long-term security measures. Many view cybersecurity as an unnecessary cost rather than an essential part of business operations. This leaves critical gaps in their defenses, such as outdated software, weak passwords, and lack of staff training.
Hackers are aware of these weaknesses and exploit them to gain access to systems, steal sensitive data, or install ransomware. In fact, according to regional cybersecurity reports, SMEs in both countries have become the entry point for many larger supply chain breaches, where attackers compromise a smaller vendor to infiltrate bigger organizations.
Valuable Data with Lower Risk
The attractiveness of SMEs as targets is also linked to the sheer volume of personal and financial data they handle. SMEs in retail, logistics, hospitality, and fintech often process customer information, payment data, and employee records. This data is valuable in underground markets, where stolen credentials, credit card details, and identity documents can be sold for profit.
For hackers, SMEs provide a steady stream of exploitable data with relatively low risk of detection. Many SMEs lack the ability to monitor their networks for suspicious activity or detect breaches in real-time, meaning attackers can remain undetected for weeks or months while siphoning information.
Cybersecurity Skills Gap
Another factor contributing to the vulnerability of SMEs in Vietnam and Indonesia is the shortage of cybersecurity talent. Both countries face a significant skills gap in the cybersecurity sector. Larger organizations can sometimes afford to hire specialists or outsource to managed security providers, but SMEs often rely on general IT staff with limited training in cybersecurity. This lack of specialized expertise makes it difficult for SMEs to keep up with the evolving tactics of cybercriminals.
Moreover, hackers themselves are becoming more organized and sophisticated, often operating as part of larger cybercrime groups that share tools, strategies, and stolen data across borders. The imbalance between attacker sophistication and SME preparedness is widening year after year.
Regulatory and Cultural Challenges
Cultural and regulatory factors also play a role in why SMEs are at greater risk. In Vietnam, the government has made efforts to introduce cybersecurity laws, but enforcement remains inconsistent, and many smaller businesses do not fully understand their obligations. In Indonesia, data protection regulations are still relatively new, with the Personal Data Protection Law only recently being introduced.
Compliance with these frameworks requires investment and knowledge that SMEs may lack. As a result, SMEs may underestimate the potential financial and reputational costs of cyber incidents, assuming incorrectly that regulations will not significantly affect them. Hackers, on the other hand, know that SMEs are less likely to report breaches or seek legal recourse, which makes them easier and less risky targets.
Remote Work and Cloud Vulnerabilities
The rise of remote work and cloud adoption has further expanded the attack surface for SMEs. In Vietnam and Indonesia, many SMEs adopted remote work during the COVID-19 pandemic and continue to rely on flexible arrangements. However, remote access often lacks strong authentication, and employees frequently use personal devices for work.
Cloud services, while improving efficiency, can also introduce risks when they are not configured securely. Misconfigured cloud storage is one of the most common issues leading to data leaks among SMEs. Hackers actively scan for such misconfigurations because they provide easy access without the need to exploit complex vulnerabilities.
The Ransomware Threat
Another growing threat to SMEs in both countries is ransomware. Cybercriminals recognize that while SMEs may not have the resources to pay million-dollar ransoms, they are often desperate to restore operations quickly. A ransomware attack that locks down customer records or financial data can cripple an SME within days.
As a result, attackers frequently set ransom amounts that are "affordable" relative to the victim's size, knowing that many SMEs would rather pay than risk permanent data loss or prolonged downtime. Unfortunately, paying ransoms does not guarantee recovery and often encourages repeat targeting.
Social Engineering and Phishing
Phishing and social engineering attacks are also prevalent. SMEs are particularly susceptible to these techniques because they often lack formal security awareness training for staff. Hackers send convincing emails that mimic trusted institutions, trick employees into clicking malicious links, or lure them into transferring funds to fraudulent accounts.
In Vietnam and Indonesia, where digital literacy varies widely across the workforce, attackers exploit the gap between rapid digital adoption and limited cyber hygiene. SMEs that do not train employees to recognize these tactics effectively leave their front line undefended.
Economic Impact and Recovery Challenges
The economic context makes the risks even more severe. Both Vietnam and Indonesia are positioning themselves as attractive destinations for foreign investment and innovation. If SMEs continue to suffer from frequent cyberattacks, the overall trust in the business environment could decline, discouraging partnerships and investment.
Furthermore, SMEs themselves may struggle to recover from even a single major incident. Unlike large corporations with insurance and reserves, SMEs often lack the financial buffer to absorb the costs of data recovery, legal liabilities, customer compensation, and lost business opportunities. For many, a cyberattack can mean permanent closure.
Building Resilience: The Path Forward
To address these risks, SMEs in Vietnam and Indonesia must begin to view cybersecurity as a business enabler rather than a burden. By protecting customer trust and ensuring operational continuity, cybersecurity investments can directly support long-term growth. Basic measures such as regularly updating software, enforcing strong passwords, enabling multi-factor authentication, and backing up critical data can drastically reduce the risk of compromise.
For SMEs with limited budgets, affordable managed security services are increasingly available in both countries, offering options such as monitoring, intrusion detection, and incident response.
Government and Industry Support
Government initiatives will also play a crucial role. Both Vietnam and Indonesia have launched digital transformation programs that include cybersecurity components, but greater outreach is needed to ensure SMEs are aware of and can access these resources. Grants, training workshops, and public-private partnerships could help level the playing field between SMEs and larger enterprises.
The private sector has a role to play as well. Large corporations that rely on SME suppliers and partners should encourage stronger cybersecurity practices across their supply chains. By offering shared training, resources, or requiring compliance with basic security standards, larger organizations can help raise the overall resilience of the SME ecosystem. This is particularly important given that supply chain attacks often start with smaller, less secure partners.
Conclusion
Ultimately, SMEs in Vietnam and Indonesia cannot afford to ignore the growing threat of cyberattacks. Hackers see them as easy prey—digitally connected, data-rich, but underprotected. The cost of inaction is too high, not only for individual businesses but for the broader digital economy of the region.
By taking proactive steps, embracing government support, and building a culture of cybersecurity awareness, SMEs can shift from being prime targets to becoming resilient players in the Southeast Asian digital landscape.