Vietnam faces a data centre revolution and national transformation 

The country shows rapid growth with a data centre hub and the transformative National Data Center Project

Foreign investors can easily enter the market under Vietnam’s WTO commitments. Gorodenkoff/Shutterstock

The years 2022 and 2023 have witnessed a surge in data centre investments in Vietnam, positioning the country as a key hub among emerging economies. Lexology reported that the sector is expected to reach a larger market size by 2026. Vietnam’s digital transformation makes it an attractive destination for data centres, with increased demand for data storage and processing. 

Foreign investors can easily enter the market under Vietnam’s WTO commitments, with no specific restrictions on data centre investments. The licensing process involves obtaining an Investment Registration Certificate and an Enterprise Registration Certificate. However, potential changes in the Law on Telecommunications raise concerns about regulatory burdens on data centre development, though current expectations suggest data centres will be excluded when the law is promulgated in Q4, 2023.

According to W Media, Vietnam’s government has approved the National Data Center Project, a crucial initiative aimed at enhancing e-governance services and complying with data sovereignty regulations. The country, with over 98 million people, is striving to achieve full digitalization by 2030. 

Related: Vietnam accelerates digital transformation in the country, especially in the property sector

The project involves constructing a government-operated national data centre in Hanoi’s Hoa Lac High Tech Park. It will store diverse data, including population, insurance, health, education, and civil status records, contributing to the digital transformation process. With a projected completion by 2025, the government aims to replace 90 percent of administrative activities with digital data sharing by 2030, promoting efficiency and digital government development.

Vietnam Briefing discussed how Vietnam’s National Data Center Project aims to establish a cutting-edge facility for storing government data, supporting the country’s digital transformation. Objectives include managing data related to population, health, education, and finance, enhancing administrative processes, ensuring data security, and fostering international collaboration for scientific research. 

With targets set for e-Government, information technology, and cyber safety, Vietnam plans to be a major player globally by 2030. The project, primarily funded by the State Budget, encourages private investment for technical personnel development. The first data centre, NDC1, will be located in Hanoi, with subsequent centres following infrastructure plans. Legal frameworks, including the Personal Data Protection Decree, shape data governance.

The Property Report editors wrote this article. For more information, email: [email protected].