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Vietnam Data Center Market Investment Report 2022-2027 with Focus on Hanoi & Ho Chi Minh City
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Dublin, July 19, 2022 (GLOBE NEWSWIRE) -- The "Vietnam Data Center Market - Investment Analysis & Growth Opportunities 2022-2027" report has been added to ResearchAndMarkets.com's offering.

Vietnam data center is expected to grow at a CAGR of 6.63%.

The report considers the present scenario of the Vietnam data center market and its market dynamics for the forecast period 2022-2027. It covers a detailed overview of several growth enablers, restraints, and trends in the market. The study includes the demand and supply aspects of the market.

KEY HIGHLIGHTS OF THE REPORT

Vietnam has around 23 operational colocation data centers. The major colocation operators are CMC Telecom, Viettel IDC, VNPT, and FPT Telecom. Most colocation data centers are being developed according to Tier III standards. According to Uptime Institute, there are around seven data center facilities certified under tier III standards by uptime institute.

The major demand drivers for colocation services in Vietnam are cloud service providers, telecom, 5G deployment, increase in adoption of AI, Internet of Things (IoT), big data, and digital transformation.

In December 2021, the Ministry of Public Security issued Draft Decree on Personal Data Protection (PDPC), which encouraged the data center operators to store and preserve the data inside Vietnam.

In Vietnam, Hanoi and Ho Chi Minh City are preferred locations for developing data centers due to their proximity to end-users.

The deployment of 5G networks will boost the digital economy of the region and will lead to higher demand for high-bandwidth networking infrastructure. For instance, Amazon Web Services (AWS) announced AWS outposts in Vietnam in November 2021.

Vietnam has witnessed more than a 20% increase in investments in 2021 compared to 2020 due to investments from colocation providers such as CMC Telecom, NTT Global Data Centers, HTC Telecom International, Edge Centres, and Data Center First, among others.

The introduction of the data localization law, which comes under the cybersecurity law and mandates that operators must establish a local data center in Vietnam, has been a major driving factor for the Vietnamese data center market.

As a result of the COVID-19 pandemic, the Vietnamese Government transformed the country digitally with various initiatives, including the National Public Services Portal, National Digital Transformation Roadmap 2025, and National e-document Exchange.

VENDOR LANDSCAPE

FPT Telecom, CMC Telecommunication Infrastructure Corporation (CMC Telecom), Viettel, NTT Global Data Centers, VNTT, Vietnam Posts and Telecommunications Group (VNPT), Telehouse Vietnam, and HTC Telecom International (ECODC) are some significant data center operators in the country.