Vietnam: A Promising Destination for High-Tech Investment in Data Centers and Industrial Parks

Vietnam is emerging as a key destination for high-tech investment, particularly in the fields of data centers and industrial parks. During an official visit to Singapore, Vietnam’s National Assembly Chairman Tran Thanh Man met with Mr. Lee Ark Boon, CEO of Sembcorp Development and Chairman of the Board of VSIP Group. Mr. Lee shared insights into Sembcorp’s 28-year journey in Vietnam, where it has developed 18 Vietnam-Singapore Industrial Parks (VSIPs) across 13 provinces and cities. These industrial parks have generated employment for over 300,000 workers, playing a significant role in Vietnam’s economic growth.

Mr. Lee reiterated Sembcorp’s commitment to expanding its footprint in Vietnam. He emphasized the company’s plans to invest further in low-carbon, high-tech industrial parks and green data centers. These initiatives align closely with Vietnam’s strategic goals of promoting sustainable development and advancing its green transformation. Mr. Lee also expressed hope for continued support from the Vietnamese government to facilitate these investment plans, ensuring their successful implementation.

Vietnam’s data center market is currently undergoing rapid growth and transformation. According to a report by Research and Markets, the market is projected to reach $1.03 billion by 2028 and surpass $1.26 billion by 2030, reflecting a compound annual growth rate of 10.8%. This robust growth trajectory has attracted a wide array of domestic and international investors eager to tap into Vietnam’s burgeoning digital economy. For instance, Saigontel has proposed the development of a data center at the Tan Phu Trung Industrial Park in Cu Chi District, Ho Chi Minh City. The proposal has received positive feedback from the city’s Export Processing and Industrial Zones Authority, which considers it consistent with the city’s strategic priorities and industrial planning.

Ho Chi Minh City is also actively seeking investment for a data center in its High-Tech Park. Several prominent players, including Vietnam’s CMC Group, Singapore’s Evolution Group, Japan’s NTT Data, South Korea’s Hyosung, and a joint venture between Vietnam’s Coteccons and the U.S.-based Eaton, have expressed interest in this high-potential project. These investments highlight the growing confidence in Vietnam’s capabilities as a hub for digital infrastructure.

Telecommunications giant Viettel is a significant contributor to this evolving landscape. It has recently launched a state-of-the-art data center at Viettel Hoa Lac in Hanoi. With the capacity to house 60,000 servers, over 2,400 racks, and 21,000 square meters of operational space, this facility stands as the largest data center in Vietnam. Viettel is also in the process of developing another data center in Ho Chi Minh City, an ambitious project valued at $617 million, which is expected to be operational by the fourth quarter of 2025.

Similarly, FPT Telecom is making substantial investments in data center infrastructure. The company is advancing its HN03 data center project with a total investment of $121 million, scheduled for completion between 2024 and 2032. Alongside its three existing data centers, FPT is constructing two additional facilities in Ho Chi Minh City and Da Nang to meet the escalating demand for digital services. Vietnam currently hosts 32 small to mid-sized data centers with a combined capacity exceeding 20,000 racks. However, experts estimate that the country will need at least three medium-sized data centers annually to keep pace with demand.

The focus on data centers is a critical component of Vietnam’s National Digital Infrastructure Strategy, which aims to drive digital transformation and economic growth by 2025, with a vision extending to 2030. This strategy is integral to Vietnam’s ambitions to become a leading player in the global digital economy. By fostering innovation and building robust digital infrastructure, Vietnam is laying the groundwork for long-term economic resilience and competitiveness.

The active participation of industry leaders such as Sembcorp, Viettel, FPT, and CMC underscores the strategic importance of digital infrastructure in Vietnam’s development agenda. These investments are not only addressing the country’s increasing technological needs but also aligning with broader economic and environmental goals. By facilitating collaboration between domestic and international enterprises, Vietnam is reinforcing its position as an attractive destination for high-tech projects.

In a rapidly evolving global technology landscape, Vietnam’s proactive approach to digital infrastructure and data center development has positioned it as a regional leader. With strong government support and an open investment environment, the country is set to attract even more significant investments in the years ahead. This synergy between local and foreign expertise is expected to generate momentum for sustainable growth in Vietnam’s digital economy, paving the way for a prosperous and innovative future.

Source: CafeF