‘Soft management approach’ for data center services, cloud computing: Minister

Vietnam’s Information and Communication Minister Nguyen Manh Hung said Thursday that his ministry was pursuing a soft management approach for data center services and cloud computing.

The aim is to promote the sector’s development while ensuring national security, Hung said at a National Assembly (NA) plenary session as parliamentary members scrutinized the draft revised Law on Telecommunications.

Hung said that based on issues raised by NA members regarding the draft amendments, the ministry will propose that the government makes adjustments to the soft management approach in line with what other countries have done. The goal is strong development for the industry while protecting consumer interests and ensuring safety and security, he reiterated.

He said the amended law would also create an official legal framework for unregulated services to better serve relevant stakeholders like investors and service providers. The amended law is set to be passed this October or November.

Data center investments are gathering momentum as Vietnam targets digital transformation of its fast-expanding economy and implements regulations on data localization for foreign firms.

Vietnam’s data center market size is expected to increase to more than $1 billion by 2028 from $561 million in 2022, growing at a compound annual growth rate (CAGR) of 10.68%, according to Research and Markets, the world's top market research store.

In its report titled "Vietnam Data Center Market - Investment Analysis & Growth Opportunities 2023-2028", the firm says existing operators are expanding their presence in the country by investing in new facilities. It adds that the market’s strong growth is being driven by government efforts and initiatives like the Digital Transformation Program 2025, which aims to transfer around 50% of the business to digital platforms.