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Vietnam must prepare for data centre development trends

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2 months ago

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According to statistics from the US Chamber of Commerce, there are 244 data centres in the United States, each with an average investment of $215 million. When a data centre is built, it can generate more than $240 million for the local economy and brings in an average revenue of over $30 million.

Vietnam must prepare for data centre development trends
Hoang Viet Tien, deputy secretary general, Vietnam Digital Communication Association

In addition to generating revenue, data centres also create a huge number of jobs, specifically when starting to build a data centre, it recruits an average of 1,700 related workers. Data centres also indirectly encourage environmental activities when major data centre operators in the world look towards using renewable energy.

An example of a developed country in the Southeast Asian region is Singapore. Data centres contribute $1.5 billion to GDP in Singapore, creating 2,500 direct jobs and 1.6 million indirect jobs, attracting a series of big tech investments in the country. Typically, Google increased its total capital in Singapore from $800 million to $5 billion in early June 2024 with the completion of the expansion of its latest data centre and cloud infrastructure.

Currently, Vietnam has a total of 28 data centre projects with a total capacity of 45MW, with the participation of 44 service providers. According to a 2023 Research and Markets report, the data centre market in Vietnam is expected to reach just over $1 billion in 2028 and more than $1.25 billion in 2030, with an average compound growth rate of 10.8 per cent per year.

The Vietnamese market has received positive attention from foreign corporations such as Alibaba, Australia Edge Centres Company, GAW Capital Investment Fund, NTT Group, Nvidia, and Google, among others. In the development of data centres, the influence and game-changing factor is now AI technology. With a growth rate of 36 per cent, generative AI applications span varied areas from customer care, e-commerce, after-sales service, to user experience.

DeepSeek, ChatGPT, and OpenAI are developing strongly every day, creating many important strategic events, not only for the technology industry but also relate to geopolitics. This is especially true when technology, especially AI, is seen as a strategic tool to shape the future of the world economy and politics.

After the explosion of AI and 5G, edge computing is also oft-mentioned because data is not only stored in data centres but also processed at the edge layer to reduce latency, reduce bandwidth costs, and increase scalability. Smart factories, self-driving cars, and banking are the sectors where edge computing develops.

In July 2024, Vietnam opened its data centre market to foreign investors. The Law on Telecommunications took effect, allowing full foreign investment in data centre services. It is predicted that cooperation deals between investors and data centre operators will take place, accelerating the expansion of Vietnam’s data centre market.

With this potential, many investors want to build data centre projects in Vietnam. Some notable projects include Gaw Capital’s 20MW data centre in Ho Chi Minh City’s High-Tech Park, Worldwide DC Solution’s 30MW project, and a collaboration between Japanese telecommunications giant NTT and DQ Tek.

Notably, Alibaba has announced plans to set up a data centre in Vietnam, reflecting the growing trend of global cloud service providers, especially from the US, increasing market competition and diversifying services.

Meanwhile, many other foreign investors are cooperating with Vietnamese technology companies with available data centre platforms to invest and guarantee output. Specifically, last May, ST Telemedia Global Data Centres, one of the fastest expanding data centre service providers worldwide, announced its cooperation with VNG to build and operate international standard data centre initiatives in Ho Chi Minh City.

In 2023, the government also issued a decree to regulate the protection of personal data and the responsibility to protect the personal data of relevant agencies, organisations, and individuals. This move aims to meet the requirements of protecting personal data rights, while preventing acts of personal data infringement.

According to Checkpoint’s research, 61 per cent of businesses experienced security incidents in 2023, a 2.5-fold increase from the previous year, causing direct losses of about $12.8 billion. These incidents also indirectly affect the world economy, causing losses of $9.5 trillion, meaning that every second the world loses $300,000 due to cyberattacks that disrupt supply chains and infrastructure.

Other trends affecting Vietnam in beyond in this area include deploying integrated multi-cloud and hybrid cloud, bringing many benefits to businesses; and mergers and acquisitions in data centres and the cloud. Currently, some foreign corporations want to speed up cooperation in Vietnam. Instead of setting up from scratch, they cooperate or contribute capital to domestic companies that have available licenses and infrastructure.

We can see the continuous development of tech and specifically the trend of data centres and AI. To create better conditions, the Vietnamese market needs to prepare a number of things. They include utilising policies and legal frameworks by issuing policies to support innovation in data and AI; and creating a safe legal environment for testing AI products without hindering innovation.

If Vietnam focuses on developing these areas and takes advantage of the opportunities from the global shift in technology, it can rise to become a leading data and AI centre in the Southeast Asian region. The key is the combination of the state’s strategic vision, resources from businesses, and the participation of young researchers and startups.

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Billionaire Trần Bá Dương’s VND 2,000 Billion, 200-Hectare Industrial Park in Thái Bình Could Begin Operations This Year

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3 weeks ago

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March 31, 2025

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The Thaco – Thái Bình Industrial Park, covering more than 194 hectares with an investment of over VND 2,100 billion, is expected to become operational within this year, according to the development plan.

Recently, provincial leaders of Thái Bình conducted an on-site inspection of land clearance efforts and infrastructure construction progress at the Thaco – Thái Bình Industrial Park located in Quỳnh Phụ District.

To date, Quỳnh Phụ District has completed compensation and land clearance for nearly 192 hectares of agricultural land, involving the land recovery of 1,067 households to hand over to the investor for project implementation.

Currently, the district is focusing on clearing the remaining land, involving 94 households in Lương Cầu Hamlet, An Cầu Commune. At the same time, it is coordinating with the electricity sector to relocate a 220kV high-voltage power line.

On the investor’s side, groundwork construction is underway, including roadbeds, internal roads, stormwater and wastewater drainage systems, and communication infrastructure within the industrial park.

The Thaco – Thái Bình Industrial Park is a specialized high-tech agricultural industrial park proposed by THACO Group (chaired by billionaire Trần Bá Dương) since 2017, originally planned to cover 250 hectares. By July 2017, the provincial authorities agreed to incorporate the project into Thái Bình’s industrial development master plan.

In August 2020, THACO officially broke ground on the industrial park’s infrastructure. A year later, in August 2021, the project’s investment certificate was revised, confirming a total investment of over VND 2,100 billion and a land area of more than 194 hectares. The project is being developed across An Thái, An Ninh, and An Cầu communes in Quỳnh Phụ District.

According to the roadmap, the investor is determined to complete and officially launch the project in 2025.

The Thaco – Thái Bình Industrial Park is designed as a dedicated high-tech agricultural zone, featuring various functional subdivisions including an administration center, agro-food processing zone, high-tech agricultural training center, experimental farms, agricultural materials production area, and a cargo transport port.

This project is considered one of the key developments in Thái Bình Province, playing a crucial role in the region’s socio-economic growth strategy.

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Carbon labels: a gateway to high-value global markets

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4 weeks ago

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March 27, 2025

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In an era where sustainability is not just a choice but a requirement, carbon labelling is emerging as a crucial factor for exporters.

Carbon labels: a gateway to high-value global markets
Vu Trung Kien, director Climate Change Resilience Centre

Countries like the US and the European Union are implementing stringent carbon regulations, such as the EU’s Carbon Border Adjustment Mechanism and increasing scrutiny on supply chain emissions.

Vietnamese businesses that fail to adopt carbon labelling risk losing access to lucrative markets. However, those that proactively integrate carbon footprint transparency into their products can gain a competitive advantage, enhance brand reputation, and secure long-term profitability.

Across the world, forward-thinking countries have embraced carbon labelling as a strategic tool for trade success. These efforts have not only helped businesses comply with regulations but have also opened doors to new investment and consumer markets.

Japan has implemented a government-backed carbon labelling programme that allows companies to display detailed carbon footprint information on their products. This has strengthened consumer trust and made Japanese goods more attractive in environmentally conscious markets such as the EU and North America.

The South Korean government incentivises businesses to adopt carbon labelling through tax benefits and green export support schemes. Companies that participate gain access to new trading partners, particularly in Europe, where sustainable supply chains are becoming the norm. Thailand, a key competitor to Vietnam, has integrated carbon labelling across industries such as food processing, textiles, and electronics. Thai exporters, particularly in agriculture, now benefit from preferential treatment in European supermarkets and trade agreements.

These case studies highlight an important lesson: carbon labelling is not just about compliance – it is a business strategy that enhances market access, builds consumer confidence, and future-proofs exports.

For businesses in Vietnam, waiting until carbon labelling becomes a legal requirement would be a mistake. Many international corporations have already set ambitious sustainability targets, requiring suppliers to provide verifiable carbon footprint data. Voluntary carbon labelling can position Vietnamese enterprises as reliable, future-ready partners.

It works by companies conducting a life cycle assessment to measure emissions from production to disposal. Products are labelled with a carbon footprint score, helping consumers and businesses make informed choices. Labels are often verified by third-party certifiers to ensure credibility and compliance with global standards.

The benefits include a boost for green supply chains. Companies like Nestlé and Unilever prioritise suppliers that provide carbon footprint transparency. Vietnamese food and beverage exporters can gain an edge by aligning with such demands.

Businesses with carbon-reduction strategies attract funding from international banks and investors that focus on increasing environmental, social, and governance (ESG) investment.

It also leads to improved consumer trust and higher sales. Studies indicate that climate-conscious consumers prefer labelled products. In markets like the EU, organic rice, seafood, and textiles from carbon-labelled brands command higher prices.

For Vietnamese companies looking to integrate carbon labelling into their strategy, a step-by-step approach can make the transition smooth and effective.

Pilot carbon labelling programmes in key sectors are critical, with a focus on industries where carbon labelling is already gaining momentum, such as textiles, seafood, agriculture, and furniture.

The process must start with one or two high-export products and conduct a carbon footprint analysis to understand emissions sources. Industry associations must also work with international partners to ensure the label aligns with EU and US standards.

Collaboration with certification bodies is also key, and partnering with recognised organisations such as the Carbon Trust (UK), TÜV Rheinland (Germany), or SGS (Switzerland) for certification is advised, as is engaging with Vietnamese regulatory bodies to advocate for government incentives similar to South Korea’s model.

Another vital part of the process is to leverage green financing and government incentives to access ESG-linked loans and grants that support supply chain improvements. Alongside this, there needs to be a move to propose carbon labelling incentive programmes through the Vietnam Chamber of Commerce and Industry or the Ministry of Industry and Trade.

The future of Vietnam’s export competitiveness is green. The world is moving towards sustainable trade, and carbon-labelling is no longer optional for businesses that want to thrive in international markets. By learning from successful global initiatives, Vietnamese companies can turn carbon transparency into an economic advantage rather than a compliance burden.

The time to act is now. Companies that lead in carbon labelling will not only future-proof their businesses but also shape Vietnam’s reputation as a responsible trade leader.

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Industrial parks in Binh Duong increase FDI attraction by 232%

Published

4 weeks ago

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March 27, 2025

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In the first quarter of 2025, an additional 588 million USD in foreign direct investment (FDI) poured into Binh Duong Province’s industrial parks, marking a 232% increase compared to the same period in 2024 and reaching 53.43% of the 2025 annual plan, as reported by the provincial Management Board of Industrial Parks on March 26.

Of the 588 million in FDI USD invested in industrial parks during the first quarter, there were 25 new investment projects with a total registered capital of more than 60.2 million USD and 26 projects with additional capital adjustments, contributing nearly 528 million USD in increased capital.

With this positive investment attraction in the first quarter, industrial parks in Binh Duong have so far attracted 3,252 active projects, including 2,561 FDI projects with total registered capital of 31.57 billion USD and 691 domestic investment projects with total registered capital of 93.664 trillion VND.

According to the Management Board of Industrial Parks in Binh Duong, 10 new projects have become operational in the first quarter. Currently, the province’s industrial parks have 2,706 active business and production projects, including 507 domestic projects and 2,199 FDI projects.

With effective operations, the estimated business and production targets for the first quarter of 2025 in the province’s industrial parks exceeded 11 billion USD, increasing by 7.72% compared to the same period last year and reaching 31.49% of the annual plan. Export turnover surpassed 6.34 billion USD, up 9.22% year on year, achieving 25.36% of the annual plan. Taxes and budget contributions reached nearly 175.4 million USD, increasing by 10.23% year on year and fulfilling 25% of the annual target.

Binh Duong currently has 29 industrial parks with a total planned area of 12,746 hectares. Of which, 28 industrial parks are already operational, covering a total of 12,046 hectares.

According to the Binh Duong Provincial Master Plan for 2021-2030, with a vision to 2050, which was approved by the prime minister, the province is planned to develop 48 to 50 industrial parks with a total planned area of 25,000 hectares.

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