return icon

Data centers: Vietnam's bright spot

Under the impact of Covid-19, many activities have moved to online platforms and amount of data uploaded has been increasing.

According to a report by technology company Technavio, Southeast Asia is an important region driving the growth of global data centers. 

Data centers grew at an annual growth rate of 14% from 2019 to 2023. To meet the explosive increase in storage capacity demand, the number of data centers is expanding quickly in all shapes and sizes, such as hyperfrequency, cloud, edge, micro, and module.

Troy Griffiths, Deputy General Director of Savills Vietnam, said that digital infrastructure has never been more important to the economy than it is now. During the firstCovid outbreak, from February to mid-April 2020, global internet traffic increased by nearly 40%, fueled by growth in video streaming, online conferencing, online games and social networks.

In 2020, 59% of the global population was connected to the Internet. This figure was only 26% in 2010. Global Internet traffic increased 12 times. The amount of data collected rose at an unprecedented rate with the continuous development of the Internet of Things (IoT), artificial intelligence (AI), virtual reality (AR) and blockchain. By 2026, the global data market is expected to reach US$251 billion with an average annual growth rate of 4.5%.

According to research firm Cushman & Wakefield, the Asia Pacific data center market is the fastest growing and is on track to become the largest in the world over the next decade.

The growth is mainly driven by huge markets like Tokyo and Shanghai along with tier 1 markets such as Singapore, Mumbai, Sydney and Seoul, and emerging Southeast Asian markets as Hanoi, Ho Chi Minh City, Bangkok, Kuala Lumpur and Jakarta.

According to Research and Markets, Vietnam is one of 10 emerging markets on the global data center map. The growth driver is believed to come from the booming e-commerce market, and the growing cloud computing and financial technology (fintech) businesses.

Ms. Trang Bui, General Director of Cushman & Wakefield, said that with political stability, no terrorism and few natural disasters like earthquakes, Vietnam has the necessary characteristics to become a major data center in the region.

The Vietnamese data center market grew 12.69%/year in the period 2016-2020 with a market size of $858 million in 2020. The market is forecast to have an annual growth rate of nearly 15% through 2026.

Regarding cloud computing, the scale is predicted to increase to $291 million in 2024. The Vietnamese market currently has more than 40 businesses providing cloud computing services.

New data centers formed

Vietnam has about 27 data centers located in big cities with diverse sizes, quality, and standards. The overall market is estimated at 45MW, with several new operators and developers looking to add more supply to the market in the short to medium term.

About 80% of data centers are operated by local telecommunications companies such as VNPT IDC of the Vietnam Post and Telecommunications Group (VNPT), Viettel IDC of Viettel Group or FPT Telecom of FPT Group. 

Customers are mainly companies in the fields of telecommunications and information technology, banking and finance, insurance, and government.

In June 2022, Gaw Capital Partners completed the acquisition of a land plot in the HCM City High-Tech Park to develop a Level 3 Data Center, expected to be completed in 2024.

Some other names include CMC Telecom, KDDI Corporation, Hitachi Asia (Vietnam), Hewlett Packard Enterprise, SAP Vietnam, IBM Vietnam Company Ltd., Microsoft Vietnam and Amazon Web Services Vietnam.

Viettel and FPT plan to expand their data centers with investment of hundreds of million USD from now through 2030.

According to Decree 53 detailing a number of articles of the Cybersecurity Law, Vietnam's data must be stored in the country. 

World suppliers like Amazon and Microsoft wanting to expand in the Vietnam market must have plans to use data storage services of domestic suppliers. Foreign suppliers are looking for investment opportunities in data center projects in Vietnam.

Duy Anh


Foreign SMEs pour capital into Vietnam

Foreign SMEs are paying much attention to Vietnam, given the fact that the number of under-$1-million projects accounted for nearly 70% of the total number of foreign-invested projects registered in Vietnam in Q1/2023.

Hanoi opens tour to Co Loa Ancient Citadel

Locals and foreign travelers to Vietnam will have a chance to experience and learn the stories of the Co Loa Ancient Citadel in the suburb of Hanoi through a fresh storytelling style.

HCMC talent-attraction program in public sector comes up short

Offering attractive salaries and working conditions, HCM City has been able to recruit only five "talented" experts in the last four years.

A fifth of Vietnam's soil remains contaminated with unexploded ordnance

VGP – Around 5.6 million hectares of land, or nearly a fifth of land in Viet Nam remains contaminated with unexploded ordnance, Deputy Foreign Minister Do Hung Viet told a regional seminar on Wednesday.


Vietnam contributes to resolution seeking ICJ’s act related to climate change

Trade Ministry signs cooperation deal with world leading fair organiser

The Trade Promotion Agency of Vietnam signed a memorandum of understanding with Messe Frankfurk Group on cooperation in trade promotion.

Over 500 individuals implicated in vehicle registration irregularities

Charges have been filed against 506 suspects for their alleged involvement in irregularities at multiple auto registration and inspection centers in the country, the Ministry of Public Security (MPS) said at a Government press conference.

Most of Vietnam’s outbound investments flow into Singapore in Q1

Vietnamese investors have injected nearly US$120 million into their projects overseas in the year to date, a sharp drop against the year-ago period, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Millions of mobile phone numbers in Vietnam to be locked soon

After March 31, the owners of nearly two million mobile phone numbers cannot make calls or send text messages as their user data stored by telecom providers does not match the national population database.

Global minimum tax rate to impact FDI firms in Vietnam

At least 1,015 foreign direct investment (FDI) enterprises will be affected by the global minimum corporate tax when this policy comes into force early next year.


VN central bank to cut refinance rate in next quarter: UOB

Feature film shot in Vietnam to be released on Netflix

Beautiful scenes of Vietnam and its people can be seen in the first official trailer of the movie "Tourist's Guide to Love".

Vietnamese badminton stars leap up world rankings

Several of the nation’s top badminton players have made significant jumps in the world rankings, according to the latest information given by the Badminton World Federation (BWF).

Paintings by local contemporary artists exhibited in UK

An exhibition displaying artworks from leading contemporary Vietnamese artists opened on May 29 at D-Contemporary gallery in Mayfair, one of London's premier shopping and entertainment centres.

Da Nang’s boat race attracts locals, tourists

Thousands of people and tourists stood on both sides of the Han River to cheer for teams participating in Da Nang’s boat race 2023, which took place on the morning of March 29.