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​ 

May 22, 2026
On May 8, 2026, the Thai government held a press conference to announce a coordinated, multiagency initiative to strengthen oversight and enforcement over products sold on online platforms. The initiative involves the Office of the Consumer Protection Board, the Thai Industrial Standards Institute, the Electronic Transactions Development Agency, the Thailand Consumers Council, the Consumer Protection Police Division, and major online platform operators. With this appointment, the government has signaled a deliberate shift from a predominantly reactive enforcement framework toward a more proactive regulatory and monitoring approach for online commerce and digital platform services. Legal and Regulatory Reform The government is accelerating a proposed Product Liability Law that would introduce new statutory frameworks for defective or substandard products, along with amendments to food safety and consumer protection legislation. The draft law has already been approved by the cabinet; the Council of State and relevant authorities will further draft the law and subsequently issue it for public hearings prior to enactment. Authorities also plan to expand enforcement measures against noncompliant businesses and distributors. In particular: The implementation of stricter “know your merchant” (KYM) identity verification requirements for online sellers. Expanded mandatory standards and regulatory oversight for high-risk products, such as power banks, electrical appliances, food products, and household goods. Increased monitoring of online product listings, and coordination with platform operators to remove unsafe, counterfeit, misleading, or otherwise noncompliant products. Additional monitoring and enforcement measures targeting online scams and illegal goods distributed through digital platforms, including e-cigarettes, which authorities identified as a growing concern due to increasing online distribution channels and potential health impact on young consumers. Strengthening Consumer Complaint Mechanisms The government announced increased cooperation with the Thailand Consumers Council and other agencies to facilitate complaint handling, market monitoring, and policy recommendations. Enhanced interagency coordination will aim to ensure that consumer
Read More
May 19, 2026
Thailand’s telecommunications regulator has introduced a range of new compliance obligations for telecom licensees aimed at preventing and suppressing technology crime. On May 15, 2026, the National Broadcasting and Telecommunications Commission (NBTC) published in the Government Gazette Notification on Measures for Prevention and Suppression of Technology Crime No. 2, which amends the original NBTC notification dated August 24, 2025. The amendment derives its authority from the Emergency Decree on Measures for Prevention and Suppression of Technology Crime B.E. 2566 (2023), as amended in 2025, and took effect on May 16, 2026. SIM Card Registration Cap for Non-Thai Nationals Persons without Thai nationality are now limited to a maximum of three SIM cards per person per service provider. Identity verification must be done primarily via passport. For those without a passport, acceptable alternatives include travel documents or certificates of identity issued by foreign governments, accompanied by additional Thai government-issued documents, as well as pink ID cards (for persons without Thai nationality) and white ID cards (for persons without registration status). Registration must be done in person at a branch or authorized dealer. Service providers must develop their identity verification systems and obtain NBTC approval before deployment. SIM Activation Deadline and SIM Box Prohibition Both Thai and non-Thai service users must activate their registered SIM within 60 days of registration. If they fail to do so, they must re-verify their identity in person before activation, confirming they are the same person who originally registered. Service providers must prohibit SIM box and gateway devices capable of supporting four or more SIMs from connecting to their mobile networks unless the device has received a license under the Radio Communications Act. Blacklist Enforcement Service providers must refuse registration of additional mobile numbers for persons listed on a technology crime-related database maintained by the Royal
Read More
May 6, 2026
Thailand has introduced new requirements for online social media platforms to verify the identity of paying advertisers before publishing their advertisements. On May 5, 2026, the Electronic Transactions Commission published the Notification on Measures for Prevention of Technology Crime for Online Social Media (No. 2) in the Government Gazette. The notification, which aims to prevent technology crimes such as fraud and scams, takes effect 180 days after publication (i.e., on November 1, 2026). Mandatory Advertiser Identity Verification Online social media service providers must verify the identity of every advertiser before publishing an advertisement. Verification remains valid for up to one year from the most recent verification date. The notification requires social media providers to use either of the following methods when verifying advertisers: Document-based verification: Examine government-issued identity documents (e.g., national ID, passport, or juristic person registration certificate), cross-check the connection between the advertiser and the identity documents (e.g., facial comparison with photo ID), and ensure that the identity documents are verifiable against reliable sources. Digital identity verification: Use an identity verification system with a level of assurance no lower than that prescribed by the Electronic Transactions Commission. Advertiser Data Collection and Retention Service providers must collect and retain certain data—including name, identification number, and contact details—from the start of the advertising service and for a minimum of 90 days after the end of the advertising service relationship. The same requirements apply where there is a third-party payer, such as an ad agency. Implications for Affected Businesses The notification raises two key areas of concern for affected businesses: Social media platforms must implement know-your-advertiser (KYA) onboarding as described above, including document upload and identity matching processes. The 180-day implementation window requires immediate technical and operational planning. The collection and retention of national ID cards, passport copies, and other personal
Read More
April 30, 2026
Vietnam’s Decree No. 134/2026/ND‑CP, which took effect on 9 April 2026, plays an important role in detailing and implementing Vietnam’s Intellectual Property (IP) Law in the context of rapid digital transformation and the growing application of artificial intelligence (AI). The new decree provides comprehensive guidance on the application of copyright and related‑rights regulations, addressing key issues such as authorship, ownership, statutory exceptions and limitations, registration procedures, and enforcement mechanisms. Through these measures, Decree 134 seeks to achieve an appropriate balance between safeguarding the legitimate interests of rightsholders and fostering innovation, research, and technological advancement, thereby strengthening the state’s framework for the effective management, protection, and exploitation of intellectual property in the digital and AI‑driven environment. Some notable aspects of Decree 134 are discussed below. Copyright for AI-Created Works Decree 134 provides important guidance on the determination of copyright and related rights in works created with the assistance of AI. Article 5a reaffirms the principle that human creativity remains central to copyright protection, clarifying that copyright or related rights arise only where a human makes a substantial and decisive intellectual contribution, exercises effective control over the creative outcome, and assumes responsibility for the content and its legality. At the same time, the provision confirms that AI is regarded solely as a technological tool rather than a rights‑holding subject, thus ensuring consistency with the fundamental concepts of authorship and ownership under the IP Law. By introducing requirements on transparency, proof of human contribution, and compliance with AI‑specific labelling and technical marking obligations, Decree 134 establishes a clear and enforceable legal framework for the responsible use of AI in creative activities. Lawful Use of Copyrighted Texts and Data Article 37a of Decree 134 sets out the specific conditions under which copyrighted texts and data may be lawfully used for scientific research, experimentation,
Read More