The Vietnam Internet Association (VIA) has formally requested that the Ministry of Industry and Trade maintain the current production-rate electricity pricing for data centers, arguing that a recent policy shift could significantly burden digital infrastructure operators and disrupt investment momentum in the country’s growing technology sector.

In a letter addressed to the ministry, the association noted that since the enforcement of Circular 60/2025/TT-BCT on December 2, 2025, data centers have been classified as “facilities providing centralized data processing, storage, and management services” and thus subjected to commercial electricity rates - a category far more expensive than industrial pricing.

Under Decision 1279/QD-BCT, retail power rates for business use are considerably higher than for industrial use. Once the circular took effect, data centers operated by members such as Viettel, VNPT, FPT, CMC, and VNG were automatically reclassified into the higher-cost commercial bracket, causing operational expenses to spike by more than 50%.

“Electricity is the largest single cost in data center operations. We propose that the government continue to apply industrial electricity pricing for data centers to ensure stable investment and expansion,” VIA chairman Vu Hoang Lien stated in the letter.

The association cited Article 3, Clause 9 of the Telecommunications Law No. 24/2023/QH15, which defines data center services as telecommunications services that provide data processing, storage, and access via telecommunications networks - thereby qualifying for production-rate electricity pricing.

It also referenced Decision 36/2025/QD-TTg, which distinguishes between “data center leasing activities” (such as renting servers and hosting space) and “facilities providing centralized data processing and management services,” reinforcing the need for clear classification and consistent policy.

VIA emphasized that the digital technology industry - encompassing digital infrastructure, data infrastructure, and data centers - is a strategic sector forming the backbone of Vietnam’s digital economy. Correctly defining electricity usage for these facilities is therefore critical not only to resolve immediate regulatory confusion but also to align national energy policy with broader goals for digital transformation.

“This issue directly affects investor confidence,” the association noted. “Ensuring consistent and reasonable power pricing is vital for mobilizing private capital into high-value industries like cloud computing and data infrastructure - key components of Vietnam’s strategy for technological advancement.”

Speaking to VietNamNet on February 12, CMC Telecom CEO Ngo Trong Hieu estimated that under the new pricing scheme, technology firms operating data centers would collectively pay an additional VND1,000 billion per year to the national utility, EVN. He warned that such a steep increase could push many operators into financial loss and dampen foreign investment interest - especially as Vietnam seeks to attract global technology leaders in semiconductors and AI.

Industry stakeholders also pointed out that the higher energy costs run counter to the spirit of Resolution 57 of the Politburo, which prioritizes the growth of high-tech industries and digital infrastructure.

For Vietnam’s digital economy to thrive, they argue, stable and supportive power pricing for data centers is not merely a cost issue - it is a national strategy.

Thai Khang