Vietnam’s largest data centre will be invested in 2 HCM City districts

Digital economy will represent approximately 20 percent of Vietnam’s overall GDP by 2025

As a result of their proximity to end-users, Hanoi and Ho Chi Minh City are preferred locations for data center development. Hien Phung Thu/Shutterstock

Attempts have been made by the Vietnamese government to strengthen the country’s digital economy. According to the Chairman of the Vietnam Digital Communication Association (VDCA), the digital economy will represent approximately 20 percent of Vietnam’s overall GDP by 2025, according to data shared by Arizton.

Telecom operators, followed by colocation operators, dominate the Vietnam data centre market. Furthermore, new investors such as Data Center First and Edge Centres are entering the Vietnam data centre market with plans to build data centres across the country.

Free Trade Zones (FTZs) in Vietnam are attracting data centre operators to the country by offering various tax incentives for data centres built in the FTZs.

Meanwhile, state-run telecom company Viettel recently announced its plans to develop Vietnam’s largest data centre for a total investment of VND6,000 billion (~USD261 million), according to OpenGov Asia

The data centre will be invested in Ho Chi Minh City’s Hoc Mon and Cu Chi districts. The firm will collaborate with the two districts to advance the digital transformation of infrastructure, governance, the economy, and society as a whole.

The telecommunications company hopes to have invested in 4G and 5G infrastructure, as well as fibre optic connectivity for every household by 2025. Moreover, in terms of digital government, it aims to develop and implement smart-control centre services, as well as a shared data centre system for administration operations.

More: Vietnam’s journey to digitising the country, commercialising 5G

Minister of Information and Communications Nguyen Manh Hung stressed the importance of starting 6G research in 2022 in order for Vietnam to become one of the world’s leading 6G countries.

Vietnam must catch up to the world’s leaders in 6G technology. Before the commercialisation of 6G, the Ministry of Information and Communications will likely license the frequency in 2028.

As a result of their proximity to end-users, Hanoi and Ho Chi Minh City are preferred locations for data center development. Colocation service demand in Vietnam is driven by cloud service providers, telecommunication companies, 5G deployment, the adoption of machine learning, the Internet of Things (IoT), big data, and digital transformation.

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

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