Vietnam now a magnet for datacentre developers


Vietnam's datacentre sector is attracting a lot of interest from foreign investors with international developers and operators, such as NTT and Alibaba, starting to enter the market in a sector that, currently, offers somewhat limited capacity and availability but has the potential for rapid and extensive growth. 

According to a new report from global real-estate company Jones Lang LaSalle (JLL), cited by Vietnam News, the Vietnamese datacentre market is, for historical reasons, currently dominated by local telcos, including VNPT, Viettel IDC, FPT Telecom and CMC Telecom, which have reported increasing demand for cloud and data analytics services. And the cloud services sector is expected to continue to grow for the rest of the decade: An IDC report cited in this post from the Vietnamese government suggests it will grow at a CAGR of 10.8% in the coming years and be worth $1.26bn by 2030. 

At the same time, Vietnam’s economy is on the up and is increasingly attractive to overseas investors and businesses. According to Vietnam’s General Statistics Office, the nation’s gross domestic product (GDP) grew by 6.7% in the final quarter of 2023 and by 5.66% during the first quarter of 2024 (with that slight slowdown attributed mainly to a decline in the number of mobile handsets shipped). 

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