You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

September 26, 2025

Vietnam’s Data Center Market: A Strategic Guide for Investors

Subscribe to Updates

As Vietnam accelerates its digital transformation, data centers have emerged as critical infrastructure supporting the shift toward a digital government, digital economy, and digital society. For businesses targeting Vietnam’s rapidly growing data center market, a clear understanding of the evolving regulatory landscape, compliance obligations, and government incentives is key to successful market entry and operation. This article provides a strategic overview of investment opportunities and key compliance requirements in Vietnam’s dynamic data center sector.

Investment Incentives to Boost Data Center Growth

Since July 1, 2024, organizations and individuals across all economic sectors have been encouraged to invest in and contribute to the development of data centers. By law, there are no restrictions on shareholding ratios, capital contributions, or foreign investor participation in data center and cloud computing services under business cooperation contracts.

Currently, investment in AI data centers is classified as a specially incentivized industry, qualifying for preferential treatments and incentives in terms of investment, taxation, land use, and other related areas.

Large-scale data centers, together with AI and cloud computing, are currently considered as strategic technologies and products for which Vietnam offers significant fiscal, tax, and land incentives to promote investment. Additionally, these large-scale projects may receive direct financial support from local development budgets for facility construction, technical infrastructure, and equipment procurement, subject to state budget provisions and applicable laws. AI data center construction projects also enjoy preferential treatment under customs regulations.

Regulatory Approvals for Providing Data Center Services

The 2023 Telecom Law and its guiding documents marked a significant milestone by classifying data center services as value-added telecom services. Under the law, a data center service is defined as a telecom service that enables users to process, store, and retrieve information via a telecom network through the leasing of part or all of a data center. A data center is defined as a telecom facility consisting of buildings, stations, cable systems, computer systems, electrical systems, and auxiliary equipment, established to process, store, and manage data for one or multiple organizations or individuals.

While offshore data center service providers offering cross-border services to users in Vietnam are required to notify the Ministry of Science and Technology (MST) (formerly the Ministry of Information and Communications), onshore data center service providers that have been established in Vietnam must register with the provincial people’s committee where the enterprise is headquartered.

Key Standards and Technical Regulations for Data Center Compliance

By law, data centers in Vietnam must comply with standards and technical regulations covering design, safety, and operational assurance. These include national standards such as TCVN 9250:2021 (or international equivalents like ANSI/TIA-942-B:2017 or Uptime Institute Tier Standards), lightning protection for telecom stations and external telecom cable networks (QCVN 32:2020/BTTTT), national technical regulation on earthing for telecom stations (QCVN 9:2016/BTTTT), and fire safety for buildings and constructions (QCVN 06:2021/BXD).

Before providing data center services, enterprises are required to assess and announce conformity with the relevant standards and technical regulations and submit reports to the MST if there are changes that affect declared conformity. Data center service providers are also required to maintain and ensure compliance with all relevant standards and technical regulations throughout operation of the data center.

Key Ongoing Obligations

Data center operators must comply with a range of obligations. They are required to adhere to the laws on cybersecurity, network information security, personal data protection, and other applicable laws. At the same time, they must ensure the security of telecom infrastructure, maintain network information security, and safeguard the confidentiality of information. Operators must guarantee that service quality aligns with registered or published standards and that service pricing is accurate and consistent with contractual agreements. They are subject to oversight by state authorities and must submit periodic or ad hoc reports to the MST, ensuring timeliness and accuracy in their reporting.

Outlook

Vietnam’s regulatory framework for data centers is designed to encourage investment while ensuring compliance with essential legal standards. Clear policies, investment incentives, and operational guidelines provide a strong foundation for businesses looking to participate in Vietnam’s fast-transforming digital economy. With AI, cloud, and data center services driving this momentum, now is the time for businesses to move quickly. The key is to stay compliant, build to the right standards from the start, and make full use of investment incentives. Companies that act early will have the best chance to lead as Vietnam becomes a digital hub in the region.

Related Professionals

Industries

Technology

Practices

Corporate/M&A

Location

RELATED INSIGHTS​ 

July 15, 2025
Thailand has established new safe harbor rules that require social media platforms to remove specified content within 24 hours of government notification. On July 5, 2025, the Notification of the Electronic Transactions Commission on Measures to Prevent Technological Crimes for Social Media Service Providers was issued and took effect. This followed a hearing in May 2025 where only a select group of social media and online communication platform operators were invited to attend and comment on draft rules that could exempt social media platform operators from joint liability under the amended Emergency Decree on Measures for the Prevention and Suppression of Technological Crimes in cases involving victims of technological crimes. Safe Harbor Rules The notification stipulates procedures that must be followed in order to receive the protection of the safe harbor rules. Upon being notified by the Division of Prevention and Suppression of Cybercrime, Office of the Permanent Secretary of the Ministry of Digital Economy and Society (MDES) of the presence of false or misleading information that may lead to the commission of a technological crime, social media service providers must immediately take down the specified content, with a maximum allowable turnaround time of 24 hours from the time of receiving the notification. Social media service providers are required to promptly report the outcome of each takedown to the MDES Division of Prevention and Suppression. This shift in Thailand’s regulatory approach to social media content moderation establishes clear government oversight mechanisms while providing platforms with liability protection for compliance. As the new rules took immediate effect, social media platforms need to ensure that they have adequate systems and processes in place to comply with the requirements.
Read More
July 11, 2025
Vietnam’s recent embrace of “regulatory sandboxes” reflects a deliberate policy choice to balance the need for robust oversight with an equally pressing imperative to catalyze innovation. A sandbox is a controlled, time-bound framework in which businesses may pilot emerging technologies, products, or business models under relaxed or tailor-made regulatory requirements, thereby allowing regulators to observe risks in real time while innovators validate commercial viability without bearing the full weight of the traditional compliance regime. By issuing sandbox regulations, the government of Vietnam is signaling its commitment to accelerating digital transformation, attracting investment, and developing a knowledge-based economy, all while safeguarding financial stability, consumer protection, and national security. This strategy is embodied in a suite of instruments that together establish sector-specific sandboxes: Decree No. 94/2025/ND-CP on the Regulatory Sandbox in the Banking Sector (Fintech Sandbox Decree), effective July 1, 2025. Law on Digital Technology Industry (DTI Law), effective January 1, 2026, and Law on Science, Technology and Innovation (STI Law), effective October 1, 2025. Resolution No. 222/2025/QH15 on International Financial Centers (IFC Resolution), effective September 1, 2025. In addition, a draft resolution on the pilot implementation of the crypto-asset market (Draft Crypto Pilot Resolution) is expected to introduce a dedicated sandbox for crypto-asset service providers later this year, further underscoring Vietnam’s holistic, forward-looking approach to regulating emerging technologies. Below is a brief summary of all the regulatory sandboxes, who they are open for, and what businesses are attracted. Fintech Sandbox Decree Under the Fintech Sandbox Decree, besides credit institutions and foreign bank branches, fintech companies operating in Vietnam can apply for a Certificate of Sandbox Participation issued by the State Bank of Vietnam to operate any of the following services in Vietnam: Credit scoring: A solution applicable to information technology systems of credit institutions, branches of foreign banks, and fintech
Read More
July 11, 2025
On June 10, 2025, Thailand’s Supreme Administrative Court accepted for consideration a pivotal lawsuit concerning the regulatory obligations of administrative agencies over internet-based television broadcasting services, commonly referred to as over-the-top (OTT) services. This court’s decision in the case may set important precedents for how OTT platforms are regulated, especially regarding consumer protections and advertising practices. Background A user of an OTT television application initiated legal action against the National Broadcasting and Telecommunications Commission (NBTC) and related officials, alleging that the lack of clear regulatory criteria and oversight allowed OTT operators to broadcast general television content while compelling users to view advertisements before and during programming. The plaintiff argued this constituted consumer exploitation and claimed that the responsible authorities neglected or delayed their statutory duties under the Act on the Organization to Assign Radio Frequencies and Regulate Broadcasting, Television, and Telecommunications Services B.E. 2553 (2010). Initially, the Central Administrative Court declined to accept the lawsuit. However, on appeal, the Supreme Administrative Court determined that the claim fell within its jurisdiction, noting that OTT television services—defined under section 4 of the governing act—are subject to the same regulatory framework as traditional television services, regardless of the transmission method (frequency, cable, internet, or other system). Implications for OTT Services The key implications for OTT services concern the following issues: Regulatory oversight: The court recognized that OTT television services are explicitly covered under Thailand’s broadcast regulatory regime. Regulatory agencies may be compelled to establish clear operational rules and oversight mechanisms for OTT providers. Consumer protections: The plaintiff’s claim that excessive or unavoidable in-program advertising constitutes consumer exploitation was acknowledged as a matter of public interest. This may prompt stricter advertising standards for OTT platforms. Licensing requirements: The case raises the prospect that OTT operators may be required to obtain licenses from the
Read More
July 10, 2025
For companies and individuals doing business in Vietnam, a common question is whether electronic signatures (e-signatures) are legally recognized under Vietnamese law. This matter is governed by Law No. 20/2023/QH15 on Electronic Transactions issued on June 22, 2023 (ETL 2023) and its guiding legal documents such as Decree No. 23/2025/ND-CP dated February 21, 2025, and Circular 06/2024/TT-BTTTT dated July 1, 2024 (Circular 06). Recognition of Validity of E-signatures in Vietnam As a general principle, the ETL 2023 confirms that an e-signature cannot be denied legal validity solely due to its electronic form. The law categorizes e-signatures into three types: Type 1: Specialized e-signatures for organizations Type 2: Public digital signatures for individuals and organizations Type 3: Specialized digital signatures for government agencies Among these types, only secure specialized e-signatures (a secure e-signature of type 1) and digital signatures (type 2) are explicitly granted the same legal validity as handwritten (wet) signatures. This distinction is particularly important in legal disputes and for transactions with government agencies. (For more details, please refer to our previous article.) Domestic e-signatures A domestic organization can choose to use secure specialized e-signatures (type 1) and/or digital signatures (type 2) while a Vietnam-based individual can choose digital signatures (type 2) for their transactions—particularly for those involving government agencies and transactions of high value and complexity which require stronger legal protection. Specialized e-signatures (type 1) can be created by the organizations themselves, and additionally must be “secure” to be explicitly recognized as having the same legal validity as handwritten signatures. For clarity, “secure” specialized e-signatures are those certified (granted a safety certificate) by the Ministry of Science and Technology (MST). (This was formerly the responsibility of the Ministry of Information and Communications, which was merged with MST under Vietnam’s 2025 administrative restructuring.) Digital signatures (type 2) are
Read More