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DIGITAL BIZ

Driven by data

Vietnam’s internet data center market has substantial
potential for growth as digital transformation takes hold.
| By LINH NGOC

he Vietnam Posts and Telecommu- opportunities to cooperate with partners more than 13,000 sq m with 1,200 racks.
nications Group (VNPT) officially and investors to build new regional and Viettel also announced a plan last year
T opened its eighth internet data cen- world-class data centers using green and to build a large data center in Hoc Mon
ter (IDC) at the Hoa Lac Hi-Tech Park in sustainable technology.” and Cu Chi districts, Ho Chi Minh City,
Hanoi in October. With a total usable area with total investment of VND6 trillion
of up to 23,000 sq m of floor space, VNPT GROWING COMPETITION ($250 million). In its planning to 2025, it
IDC Hoa Lac has some 2,000 racks, making Vietnam’s IDC market has witnessed a will expand the center’s scale to 17,000
it the largest in Vietnam today. It will be race between many local technology and racks, and in the roadmap to 2030 invest-
the safest choice for data of international telecommunications businesses over the ment will be increased to VND40 trillion
brands, large economic corporations, past few years. ($1.6 billion) to grow to 34,000 racks.
organizations, and businesses undertaking At the end of 2022, the VNG Joint Stock Vietnam currently has 29 data centers
the digital transformation journey. Company put into operation a new data from eight providers, according to the Author-
Mr. Huynh Quang Liem, General Director center at the Tan Thuan Export Processing ity of Telecommunications at the Ministry
of the VNPT Group, said that with IDC Hoa Zone in Ho Chi Minh City, on 7,800 sq m of Information and Communications (MoIC).
Lac, it now has eight data centers in major and with a total floor area of 12,400 sq m. It is expected that tech enterprises such as
cities and provinces around Vietnam, includ- The VNG Data Center will initially provide Viettel, VNPT, and CMC will put many new
ing Hanoi, Da Nang, and Ho Chi Minh City. 410 rack cabinets (server installation cabi- IDCs into operation over the next two or
“IDC Hoa Lac is the largest and most nets), then expand to 1,600 rack cabinets to three years. VNPT has a plan to build and
modern such center in Vietnam, capable quickly respond to expected strong growth transform so that from now to 2025 a new
of providing the most advanced data serv- from the digital transformation process. IDC will be built each year. It expects that
ices, and is ready to meet the ‘tailored’ Prior to that, in August 2022, the CMC one will be put into operation in Ho Chi
requirements of all customer segments Corporation put its CMC Data Center Tan Minh City by the end of this year and, in
domestically and internationally,” he said. Thuan in District 7, Ho Chi Minh City, 2025, will launch the second phase of its
“The VNPT Group will continue to seek into operation, which has a total area of IDC in Tan Thuan district.

36 | VIETNAM ECONOMIC TIMES | DECEMBER 2023 en.vneconomy.vn