Sufficient, reliable power supply key for FDI inflow into Vietnam data centers
Sufficient and reliable power supply will be a crucial factor in attracting foreign direct investment (FDI) for developing data centers as Vietnam looks to tap the growing global demand for such facilities, experts say.
These days, the Saigon High-Tech Park (SHTP) in Ho Chi Minh City has caught the eye of many tech players looking to develop data centers.
For instance, in May-June 2024, South Korea’s Hyosung Group informed the HCMC People’s Committee that it was interested in investing in a three-hectare data center of tier-3 standards with a capacity of 1,500-4,000 racks.

Inside a data center in Ho Chi Minh City, southern Vietnam. Photo courtesy of Saigon Times.
Several other data center projects have already got the green light from Vietnam, including Hong Kong-headquartered Gaw Capital’s 20MW facility at SHTP, Singapore-based Worldwide DC Solution’s 30MW data center in Thu Duc city, and a project jointly developed by Japanese telecom giant NTT and South Korea’s DQ Tek.
China’s Alibaba has also announced a plan to build a data center in Vietnam. Hathor DC Vietnam Holdings Pte. Ltd – a subsidiary of Singapore’s SEvolution Data Centers Group, has asked for approval from the HCMC government to become a strategic investor in the SHTP Data Center project.
Alongside the race for data center development, an equally compelling competition is unfolding in the semiconductor industry.
In early July, a business mission from U.S. chip giant Nvidia visited HCMC to explore investment opportunities. Nvidia officials said they aimed to establish a research, development and training center focused on artificial intelligence; install a supercomputer system; and move some of its GPU production for supercomputers to Vietnam.
Another U.S. tech giant, Marvell Group, is also accelerating the expansion of its chip design centers in Vietnam. In mid-May 2024, Marvell launched a new chip design center in the central city of Danang, complementing two existing centers in HCMC.
Other key factors
On November 24, 2023, the National Assembly, Vietnam’s parliament, passed the Law on Telecommunications. Effective July 1, 2024, the new law is considered another key factor in attracting foreign investment for developing and operating data centers in Vietnam.
David Jackson, CEO of Avison Young Vietnam, told The Investor that besides the Telecommunications Law, there was a growing effort to spare industrial land for high-tech industries.
With an increasingly open and competitive market, Vietnam was poised to attract more investors into the high-tech sector, he added.
Cleared land (with all site clearance formalities completed) and reliable energy infrastructure were crucial factors for attracting foreign investment, Jackson said, noting that data centers required large and stable power supply.
He recommended that Vietnam in general and HCMC in particular continue to refine legal policies to guide the data center market towards sustainable and green development.
Celina Chua, director of Data Center Client Solutions (APAC) at JLL, a Singapore-based real estate investment advisory firm, remarked that Vietnam’s Telecommunications Law permits 100% foreign investment in data center services. However, market access restrictions will apply if the data center service provider also offers network connectivity services, she said.
Chua also said that Vietnam ranked high among countries that investors and operators were planning market entry strategies for. The country was becoming a key destination in the Asian data center market thanks to its strategic geographical location, dynamic economic policies, tech-savvy young population, and increasing demand for data localization, she added.
She also said that construction and operational costs gave Vietnam a relative advantage, with building data centers in the country costing $6 million to $13 million per megawatt.
Furthermore, under its latest Power Development Plan (PDP VIII), Vietnam aims to raise total power generation capacity from around 80 GW to 155 GW by diversifying the energy structure, reducing dependence on coal power and shifting to more sustainable energy sources.
Chua said that this transition will be crucial for ensuring stable and reliable energy supply to meet increasing demands of the rapidly expanding, energy-intensive data center sector in Vietnam.
Vietnam now has 33 data centers, mostly in Hanoi and HCMC, far below mature markets like mainland China, Hong Kong, and Singapore.
- Read More
Vingroup partners with e-commerce platform Shopee to develop logistics infrastructure
Vietnam’s leading multi-sector conglomerate Vingroup and Shopee, the country’s top e-commerce platform, on Friday signed an MoU to develop infrastructure for e-commerce fulfillment services, enhance digital connectivity between businesses and consumers, and build a sustainable digital ecosystem.
Companies - Mon, June 9, 2025 | 11:48 am GMT+7
Finish fund Pyn Elite spends $41.4 mln on MBB shares of MBBank in May
Finish investment fund Pyn Elite allocated an additional 3% of its portfolio (VND700 billion or $41.38 million) to 26 million MBB shares of MBBank last month, increasing the holding to 12.4%.
Finance - Mon, June 9, 2025 | 11:43 am GMT+7
Fund manager Eastspring Vietnam appoints new CEO
Eastspring Vietnam, one of the largest fund managers in the country by assets under management, last Friday appointed Nguyen Quoc Dung as its new CEO and legal representative.
Finance - Mon, June 9, 2025 | 9:03 am GMT+7
U.S. Grains Council signs 5-year cooperation deal with Vietnam
The U.S. Grains Council (USGC) on Friday signed a five-year cooperation agreement with the Partnership for Sustainable Agriculture in Vietnam (PSAV), reaffirming its long-term commitment to Vietnam’s agricultural development.
Economy - Sun, June 8, 2025 | 5:13 pm GMT+7
Bamboo Capital announces senior personnel changes
Under a board of directors resolution effective last Friday, Vietnam's multi-sector conglomerate Bamboo Capital Group has a new deputy general director, while its first vice chairman Pham Minh Tuan resigned to focus on subsidiary Bamboo Energy.
Companies - Sun, June 8, 2025 | 4:05 pm GMT+7
Vietnam signs deals to import nearly $3 bln worth of US agricultural products
Vietnamese businesses accompanying Minister of Agriculture and Environment Do Duc Duy on a six-day visit to the U.S. signed multiple agreements to import nearly $3 billion worth of American agricultural products, expanding bilateral cooperation in the agricultural sector.
Economy - Sun, June 8, 2025 | 10:33 am GMT+7
EPC contract signed for O Mon IV thermal power project in southern Vietnam
An EPC contract signing ceremony for the O Mon IV thermal power project in Can Tho city took place on Friday, at the headquarters of state-owned Petrovietnam - the investor.
Energy - Sun, June 8, 2025 | 8:00 am GMT+7
Vietnam's agri major Hoang Anh Gia Lai ventures into mulberry cultivation, coffee production
After overcoming two major obstacles - debt and accumulated losses - Vietnam's agri major Hoang Anh Gia Lai JSC (HoSE: HAG) is charting a bold five-year strategic roadmap, introducing two new business segments: mulberry cultivation and coffee-tea production.
Companies - Sat, June 7, 2025 | 4:35 pm GMT+7
Stock trading accounts hit 10 mln in Vietnam
Vietnam recorded a large increase in the number of stock trading accounts in April and May, when the U.S. tariff turbulence caused strong market fluctuations.
Finance - Sat, June 7, 2025 | 3:38 pm GMT+7
Thailand’s SCG books $301 mln in Q1 sales from Vietnam
Siam Cement Group (SCG) reported sales of VND7.77 trillion ($301 million) in Vietnam in Q1/2025, reflecting the country as a key market for the Thai conglomerate in Southeast Asia.
Companies - Sat, June 7, 2025 | 9:54 am GMT+7
Vietnam’s energy firm identifies 3 emissions violations among Vietnamese enterprises
Looking ahead, 2030 is a milestone year, as major global brands such as Unilever, Nestlé, H&M, and Nike have committed to cutting Scope 1 and Scope 2 emissions by 50-65%, said Pham Dang An, CEO of Vu Phong Energy Group, a major developer of clean energy in Vietnam.
Companies - Sat, June 7, 2025 | 8:00 am GMT+7
Deal acquiring financial firm of Vietnam's SeABank invalid: Aeon Financial
Aeon Financial Service Co., Ltd. on Friday stated that its deal to purchase a financial company owned by Vietnam's SeABank is invalid due to "inappropriate accounting transactions."
Finance - Fri, June 6, 2025 | 11:57 pm GMT+7
VSAP LAB to build $69 mln chip packaging tech laboratory in central Vietnam
Vietnamese private firm VSAP LAB JSC has been approved as the investor of a VND1.8 trillion ($69.11 million) advanced packaging technology laboratory project that will assist semiconductor production in the central city of Danang.
Industries - Fri, June 6, 2025 | 8:11 pm GMT+7
Vietnam's major property developer Hoang Huy successfully raises $30.7 mln from parent company
Hoang Huy Investment Services JSC (HoSE: HHS) has successfully issued 64 million shares for VND800 billion ($30.7 million) via private placement to its parent company – Hoang Huy Financial Services Investment JSC (TCH).
Companies - Fri, June 6, 2025 | 3:32 pm GMT+7
Subsidiaries, affiliates likely not to enjoy preferential corporate income tax in Vietnam
Subsidiaries and affiliates of enterprises in Vietnam might not be eligible for preferential corporate income tax (CIT) rates of 15-17%, in order to prevent abuse of incentives like splitting income for tax avoidance, according to the Financial and Economic Committee under the National Assembly, the country's legislature.
Finance - Fri, June 6, 2025 | 3:22 pm GMT+7
VPS Securities JSC named Vietnam’s best broker again by The Asset
VPS Securities JSC (VPS) has once again been honored as the “Best Brokerage House in Vietnam” at the Triple A Awards 2025, presented by The Asset, a leading Asia-focused financial publication.
Companies - Fri, June 6, 2025 | 11:40 am GMT+7