Vietnam becomes attractive colocation markets for foreign investors
Vietnam ranked seventh among the top 10 emerging colocation markets globally with a market size estimated to hit 1.5 billion USD by 2026, according to a recent report by KPMG published earlier this month.
Hanoi (VNA) – Vietnam ranked seventh among thetop 10 emerging colocation markets globally with a market size expected to hit 1.5 billion USD by 2026, according to a recent report by KPMG publishedearlier this month.
Colocation is the practice of renting space forservers and other computing hardware at a third-party provider’s data centrefacility.
Meir Tlebalde, merger and acquisition director forKPMG in Vietnam told Dau Tu (Vietnam Investment Review) that large tech investment traditionally tended to take placein tier-1 markets like Singapore, Hong Kong, Sydney, and Tokyo, which accountfor 82% of Asia-Pacific’s total data centre capacity.
However, tier-1 markets are facing a shortage in mass land for developmentand expensive renewables costs, high construction and power costs, andincreasing regulatory frameworks in sustainability and data privacy, Tlebaldesaid.
With rapid digitalisation, emerging Southeast Asia with land resource andcost competitiveness has become an attractive data centre investment destination.
According to Tlebalde, key growth drivers for Vietnam’s colocation market areattributed to the lowest development cost in Southeast Asia and capableinternet system, reliable power resources at the region’s lowest price, and theaccelerated digital transformation.
In terms of connectivity, Vietnam is ranked 39th globally in downloadfixed broadband, she added.
Along with the government’s commitment to sustainable development towards net-zeroemissions by 2050, Vietnam boasts the potential to become an eco-friendly datacentre market for investments in upcoming years.
As of April 2023, Vietnam was home to 28 data centres covering a total area of108,700sq.m. Hanoi and Ho Chi Minh City are the two major locations, with 11and 13 centres, respectively. The market is concentrated with 11 operators,among which five major players hold 89% of the country’s total computing space.
Experts said that major challenges for developmentin Vietnam are the need for a clear and streamlined legal framework, as well aspower stability. They highlighted the importance of a well-defined licensingprocess that provides clarity, adding that high financial costs and liquidityissues also pose obstacles for potential investors.
Chris Wallace, APAC Data Centre & Critical Facilities Lead of Mace Vietnam– a leading global consulting and construction corporation, said Vietnam’s strategiclocation and strong determination from its Government make it an attractivedestination for international investors./.
A cooperation agreement was signed on the investment of a data centre worth about 100 million USD in the central city of Da Nang, during a virtual ceremony held on November 23.
The Tan Thuan CMC Data Centre, considered the most modern and safest data centre and cloud computing infrastructure facility in Vietnam, officially opened on August 15.
Tech giant Google has launched its third data centre in Singapore on August 23, bringing its total investments in such facilities in the Southeast Asian nation to 850 million USD.
As Vietnam’s digital transformation accelerates, both the frequency and severity of cyberattacks are growing. The National Cybersecurity Association (NCA) reported that in 2024 alone, there were some 659,000 separate cybersecurity incidents, impacting around 46.15% of government agencies and businesses.
A key highlight will be the technology cluster pavilion, showcasing top enterprises selected for their innovation, market potential, and practical applications. These firms will display flagship products and solutions, supported by government policies to strengthen the tech sector.
Since 2022, more than 500 Vietnamese startups have engaged in Google’s Startup Academy, Google for Startups Accelerator, and Google Startup Masterclass. Nearly 100 of these firms received support to develop and improve their products, benefiting more than 300,000 customers and creating over 300 new jobs through successful fundraising and team expansion amidst Vietnam’s competitive economy.
Over the past three decades, Binh Duong has cemented its status as one of Vietnam’s most dynamic industrial hubs, building a robust foundation in manufacturing, exports, and investment. The province now has 30 operational industrial parks spanning over 13,000 hectares, with an occupancy rate exceeding 90%.
The diplomat emphasised that Vietnam places the highest priority on the development of science, technology, and innovation, viewing them as critical drivers for the country’s advancement in the new development era.
The PM revealed Vietnam’s plan to develop nuclear power in the near future, and called on the Swedish side to assist Vietnam in developing and refining legal and policy frameworks for the use of nuclear energy for peaceful purposes; training and developing human resources; ensuring nuclear safety; and conducting training and drills to improve incident management capabilities.
More than an art showcase, the second “Technology with heart” contest seeks to inspire innovation and spotlight the humanistic values that technology can bring into daily life, expected to contribute to a sustainable digital future.
The average speed of the national mobile broadband network remained stable, with download speeds reaching 76.86 Mbps and upload speeds reaching 26.98 Mbps.
Under the MoU, AMD will support several key initiatives spearheaded by HCM City’s authorities, including piloting policies, co-hosting innovation events, and evaluating the investment environment within the Saigon Hi-Tech Park.
The centre is a joint initiative between Australia’s Department of Foreign Affairs and Trade and Vietnam’s Ministry of Science and Technology, with PTIT and the University of Technology Sydney (UTS) serving as co-leads, and global telecommunications giant Nokia as founding industry partner.
The new centre, staffed by a team of scientists, researchers, and AI specialists working in Hanoi and Ho Chi Minh City, forms part of Qualcomm’s global AI research group.
As a flagship initiative of the community project “Digital Literacy for All”, the programme forms part of a national scheme to equip 20 million young people with digital business skills.
The organisers hope the competition will help shape a generation of exceptional engineers who will make significant contributions to Vietnam’s scientific and technological progress in this era of transformation.
In the digital age and amidst the Fourth Industrial Revolution, IP plays an increasingly critical role, not only in safeguarding inventions but also in reducing copyright infringement and curbing piracy.
Ambassador Nguyen Minh Vu laid stress on the significance of the Hanoi Convention, particularly to the Asia – Pacific, to handling legal gaps in international cooperation against rapidly increasing global cybercrime.
The week features a rich lineup of activities, including a plenary conference on blockchain and AI development, thematic seminars on future technology trends and investment visions, applications of blockchain and AI in business, the Super Vietnam PitchFest, as well as forums for blockchain and AI.
According to the Politburo’s Resolution No. 57-NQ/TW, dated December 22, 2024, on making breakthroughs in the development of science, technology, innovation, and national digital transformation, this is considered a decisive factor in the development of nations. It is seen as a prerequisite and the best opportunity for Vietnam to become prosperous and powerful in the new era of the nation’s rise.
Vietnam’s demographic advantage, including a youthful population of 100 million in a “golden age”, further bolsters its ambitions. Its dynamic workforce, with a natural inclination toward science, technology, engineering, and math (STEM), is a key asset in attracting private investment to innovation-driven sectors.
Illustrative image (Photo: baodautu.vn) 
