Vietnam Eases Telecom Rules to Boost Data Centres

Vietnam is making significant moves to position itself as a rising player in Asia-Pacific’s data centre landscape. A newly enacted telecom decree, effective as of July 1, 2025, aims to simplify the regulatory environment for data centre operators, cloud providers and telcos, thereby attracting both domestic and international investment into the sector.

The policy reform represents a pivotal step in Vietnam’s broader digital transformation strategy, with a strong focus on modernising infrastructure and enhancing competitiveness across critical technology sectors.

Regulatory Reform to Boost Market Accessibility

The new decree introduces a streamlined licensing framework, allowing provincial People’s Committees to issue permits for selected telecom services, including fixed-line communications, cloud infrastructure and data centres. The decentralised model is expected to accelerate deployments and simplify bureaucratic processes for investors.

According to the Vietnam Investment Review, the amendments are designed to lower barriers to entry and encourage regional growth, with local governments better equipped to respond to the specific infrastructure needs of their territories.

A fully digital application system will be introduced, aiming to enhance transparency, reduce manual approvals and cut operational overheads, delivering efficiency gains for telcos and hyperscale cloud operators entering the market.

Vietnam’s Data Centre Market Matures

Vietnam is already seeing increased momentum in data centre development, backed by heavy investments from major industry players such as Telehouse, Viettel and STT GDC.

In April 2025, Viettel, the country’s largest telecommunications group, broke ground on a landmark high-tech data centre and R&D complex in Ho Chi Minh City’s Tan Phu Trung Industrial Park. The upcoming facility is the first in Vietnam to be classed as a hyperscale data centre, signalling the country’s growing capability to host large-scale, AI-driven computing environments.

STT GDC, meanwhile, is constructing its second data centre in Vietnam, projected to deliver an IT load of up to 60 megawatts, further reflecting the shift towards cloud-native, high-density infrastructure.

Foreign Investment Encouraged Through Ownership Reform

Vietnam’s decision to lift the 49% cap on foreign ownership in data centres marks a decisive shift towards market liberalisation. The move mirrors China’s earlier pilot scheme, aiming to attract technical expertise and capital from international operators.

“In terms of data centre capacity, Vietnam is still a developing market compared to the regional hubs,” says Dr Glen Duncan, Head of Data Center Research, Asia Pacific at JLL.

“Foreign operators will bring additional skills and capabilities to build large-scale data centres in the country, accelerating its digital economy.”

According to analysts, the policy shift not only facilitates inward investment but provides the foundation for long-term partnerships between Vietnamese telcos and international hyperscale operators.

Supporting Hybrid and Edge Infrastructure

Vietnam’s reform measures are geared towards enabling hybrid cloud and edge infrastructure models, which are critical for managing next-generation workloads, including AI, IoT and 5G applications.

By allowing local authorities to expedite project approvals and eliminating operational bottlenecks, the government is helping to unlock new opportunities for telecom service providers.

Industry observers view the decree as a foundational step in supporting an open and agile ecosystem capable of handling the growing demand for high-performance digital services.

Building a Regional Digital Hub

Vietnam’s ambitions extend beyond infrastructure expansion. By modernising data governance and aligning cross-border digital policies, the country aims to cement its role as a secure, strategic data centre hub within Southeast Asia.

The changes are timely, as enterprises across the region demand greater scalability, regulatory clarity and high-speed connectivity. Vietnam’s proactive approach to reform reflects a clear understanding of what global investors and technology partners require.

As the regulatory environment becomes more investment-friendly, Vietnam is poised to emerge as a preferred destination for hyperscale and edge deployments, delivering strategic advantages for telecom operators and infrastructure investors looking to expand in the APAC region.

Explore the latest edition of Mobile Magazine and be part of the conversation at our global conference series, Tech & AI LIVE and Cloud & 5G LIVE. Discover all our upcoming events and secure your tickets today.

Sign up to receive the Mobile Magazine weekly newsletter.

Mobile Magazine is a BizClik brand