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​ 

November 13, 2024
Thailand’s Electronic Transactions Committee has publicized a new draft notification detailing additional duties for specific marketplace digital platform service operators under Section 18(2) of the Royal Decree on Operation of Digital Platform Service Businesses Subject to Prior Notification B.E. 2565 (2022). The draft notification, which is open for public comments until November 30, 2024, aims to provide enhanced protection for users of “specific marketplace platforms” (defined below). Some key points of the draft notification are detailed below. Scope The draft notification applies to “marketplace digital platform services,” which refers to digital platform services that serve as an intermediary for buying or exchanging goods and provide services to facilitate sale transactions, such as providing communication systems (e.g., chat features), shopping carts, delivery arrangements, and supplemental payment processing facilitation. “Specific marketplace platforms” refers to Section 18(2) of the Royal Decree on Digital Platform Services, which covers digital platform services that pose risks to financial and commercial security, the reliability and credibility of data messaging systems, or potential harm to the public, and that have a high level of potential impact based on the criteria for assessing the impact of digital platform service operations. Key Obligations Registration. The draft notification requires the marketplace operators mentioned above to be registered as legal entities in Thailand. Terms and conditions. The draft notification details additional obligations relating to marketplace operators’ terms and conditions: In addition to existing obligations prescribed in the Royal Decree and the relevant subordinate laws, the draft notification emphasizes that the terms and conditions must be in Thai, clear, accessible, and understandable, and may include graphical elements to aid explanation. The terms and conditions must prescribe conditions relating to the sale of products subject to specific standards, such as those restricted under the Food Act, the Drugs Act, and the Industrial Product
Read More
November 11, 2024
The Vietnamese government has demonstrated a strong commitment to building a digital government, digital economy, and digital society through its recently issued national strategy on digital infrastructure. Under Decision No. 1132/QD-TTg dated October 19, 2024, on “Digital Infrastructure Strategy to 2025 with Orientation to 2030,” the government will create supportive conditions for both domestic and international businesses to invest in digital infrastructure with cybersecurity as a priority. Recognized as vital to the economy, this digital infrastructure will consist of four main components: (i) telecommunications and internet infrastructure, (ii) data infrastructure, (iii) physical-digital infrastructure, and (iv) digital utility infrastructure, including digital technology as a service. Key goals for 2025 include universal fiber optic access for households, 100% 5G coverage across all provinces and cities, deployment of at least two new international undersea fiber optic cables, establishment of AI data centers, development of green-standard data centers, and platforms for IoT, AI, big data, blockchain, and cybersecurity. By 2030, goals include fiber access with speeds of at least 1 Gbps, 5G coverage for 99% of the population, readiness for 6G trials, six additional international undersea fiber optic cables, development of a hyperscale data center, and positioning Vietnam as a digital hub. To achieve these goals, the government has outlined some core tasks, creating significant opportunities for both foreign and domestic investors: Developing telecommunications and internet infrastructure for widespread fiber optic and 5G access, while preparing for emerging technologies like 6G, Open RAN, satellite, and IpV6. Telecommunication enterprises will jointly invest in and share the use of international fiber optic cable routes to ensure efficient capacity utilization and optimize investment capital. Attracting foreign and domestic investment to establish hyperscale data centers and cloud computing services that meet global standards. Creating physical-digital infrastructure by integrating technology across key sectors such as transportation, energy, healthcare,
Read More
November 8, 2024
On October 31, 2024, Thailand’s Office of the Personal Data Protection Committee (PDPC) opened a public consultation period on its draft notifications—one directed at data controllers and another at data processors—regarding exemptions from the requirement to create and maintain records of processing activities (ROPAs) under the Personal Data Protection Act B.E. 2562 (2019) (PDPA). The draft notification for data controllers aims to amend and revoke certain aspects of the first ROPA exemption notification issued in June 2022 and outlines the criteria for data controllers to be exempted from the obligation to prepare and maintain such records. Although it is officially titled “Notification of the Personal Data Protection Committee on Exemption from Record-Keeping Requirements for Small Business Data Controllers,” this draft notification applies to all types of exempted data controllers (see list below), and not only small businesses. The draft notification for data processors is new and does not replace any prior notification. The criteria under both draft notifications exempt certain data controllers and data processors from the obligation to maintain ROPAs, but exempted data controllers are not free from the obligation to retain information on the rejection of data subjects’ requests to exercise certain rights under the PDPA. While these criteria remain consistent with the June 2022 ROPA exemption notification, there are a few key takeaways from the notifications, as detailed below. Types of Exempted Parties The draft notification on data controllers adds condominium and housing estate juristic persons, as well as individuals, to the list of parties eligible for an exemption, while removing internet cafes from the list. The new draft notification for data processors mirrors the corresponding list in the draft notification for data controllers. The complete list of parties eligible for ROPA exemptions under the draft notifications is as follows: SMEs according to the law on
Read More
October 8, 2024
On October 1, 2024, the Thai cabinet acknowledged the recommendations proposed by the National Anti-Corruption Commission (NACC) to prevent corruption related to online gambling. The Ministry of Digital Economy and Society (MDES) has been assigned as the lead agency to collaborate with various relevant agencies to reach a consensus on the necessary amendments and updates to laws related to online gambling. In assigning the MDES this role, the cabinet emphasized the importance of the following key items: Establishment of a national committee. The national committee will be chaired by a minister and will comprise relevant agencies, including policymaking bodies, technology agencies, frequency management agencies, law enforcement agencies, and other experts. The committee’s primary responsibility will be to consider amending and updating laws related to online gambling. Urgent action on online gambling. As online gambling has been deemed a serious issue requiring urgent action, joint policies will be developed among relevant agencies such as the Royal Thai Police, the Bank of Thailand, and the Anti-Money Laundering Office to elevate the importance of online gambling issues. Public awareness and law enforcement. Public awareness campaigns are to be conducted to educate the public about the risks and legal consequences of online gambling, and laws against online gambling and related financial crimes are to be strictly enforced. Compliance with the Cybersecurity Act. It is necessary to ensure strict compliance with the Cybersecurity Act B.E. 2562 (2019). At the same time, government data systems are to be moved to cloud computing for enhanced data security. Next Steps The MDES is tasked with summarizing the results of the related discussions, actions taken, and overall opinions and submitting the summary to the cabinet secretariat for further presentation to the cabinet. These measures aim to address and mitigate the risks associated with online gambling and related corruption.
Read More