Vietnam is gaining prominence as a strategic hub for major technology companies


Statista predicts a rapid surge in global data creation, reaching 64.2 zettabytes by 2020 and exceeding 180 zettabytes by 2025. The escalating data volumes have intensified the competition among countries and tech giants striving to establish strategic data center locations. McKinsey experts have identified Vietnam as one such location, prompting continuous investments by tech giants in data infrastructure.

According to Cushman & Wakefield’s Asia-Pacific Data Center Report, the region’s data centers are expanding swiftly to meet the increasing demand from digitalization and artificial intelligence. In this landscape, Hanoi, Ho Chi Minh City, Busan (South Korea), and Taipei (China) have emerged as standout markets, attracting the attention of data center operators in the first half of this year, as highlighted in the report.

Vietnam emerges as a strategic location for data centers

Australian company Edge Centres has made its foray into Asia through a collaboration with Vietnam National University, utilizing USDC technology to construct its inaugural data center in Ho Chi Minh City. Plans are also underway for the establishment of another.

In a parallel development, GAW Capital Partners, a Hong Kong-based private equity real estate fund, has invested in a new data center (IDC) encompassing over 18,000 square meters in Saigon Hi-Tech Park, Ho Chi Minh City.

Concurrently, NTT Global Data Centers of Japan and Vietnam’s Quang Dung Technology (QD.Tek) are collaborating on a new data center in Saigon Hi-Tech Park.

The Ministry of Information and Communications reports that the enactment of Government Decree 53, focusing on data localization for foreign enterprises, has prompted increased investments by domestic technology companies in data centers. However, despite these efforts, domestic companies currently hold only 21% of the market share. Major players in this segment include Viettel (25%), FPT (12%), CMC (15%), VNPT (10%), VC Corp (6%), and other providers (22%).

In contrast, foreign technology companies exert significant influence in the Vietnamese market, with AWS holding the largest share (33%), followed by Google (21%) and Microsoft (21%). Other providers such as Alibaba, Digital Ocean, and Vultr collectively account for 3%.

Projections by Research and Markets indicate that the data center market in Vietnam is poised to experience a CAGR of 10.68% from 2022 to 2028, reaching a valuation of $1.037 trillion. Simultaneously, the cloud market in Vietnam is anticipated to surpass $545 billion in 2022 and grow to $1.24 trillion by 2027, exhibiting a CAGR of 17.9%, according to a report from the Ministry of Information and Communications.

High-quality data centers

Building high-quality data centers has emerged as a pivotal aspect of Vietnam’s digital transformation strategy, aligning with the broader goal of fostering a digital economy and nation. Major technology companies in Vietnam, including VNPT, Viettel, CMC, VNG, and FPT, have made substantial investments in the construction and advancement of modern, internationally compliant data centers, aiming to provide top-notch services.

In Ho Chi Minh City, FPT Telecom is currently constructing a data center in Saigon Hi-Tech Park in District 9, while CMC Telecom is gearing up to launch a data center in the Tan Thuan Export Processing Zone in District 7. Viettel IDC is in the process of expanding its data center in the southern province of Binh Duong, and Hanoi Telecom is extending its data center in Hanoi’s Hoa Lac Hi-Tech Park.

VNPT has dedicated resources to unveil its eighth data center, named VNPT IDC Hoa Lac, marking its largest and most advanced data center. Positioned to cater to the specific needs of both domestic and international customers across various segments, this center was unveiled at the end of October.

Vietnam aspires to position itself as the “digital hub” of Southeast Asia, with the development of data centers serving as a foundational element for constructing a digital infrastructure optimized for economic activities, as highlighted by the Ministry of Information and Communications (MIC).

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