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Vietnam's Digital Boom: Challenges and Progress in Data Centre Sector

Vietnam's digital boom is here, but core tech challenges and architectural bottlenecks threaten to slow progress. The country is fighting back with new laws and plans to build local platforms and a skilled data workforce.

In this image we can see the information board, buildings, shed, trees, electric cables and sky...
In this image we can see the information board, buildings, shed, trees, electric cables and sky with clouds.

Vietnam's Digital Boom: Challenges and Progress in Data Centre Sector

Vietnam is experiencing rapid digital growth, with over 80 million internet users and a high deployment of Internet Protocol 6.0 by 2025. The country is restructuring its data centre sector, aiming to standardise national data architecture and build a high-quality data workforce. However, it still faces challenges in core technologies and high-performance computing, which limit the exploitation of big data sources and strategic technologies.

The global data centre sector is expanding at around 15 per cent each year, but demand is outpacing growth, with potential electricity consumption rising to 3-4 per cent by 2030. In Vietnam, major players such as the Vietnam Posts and Telecommunications Group (VNPT) are focusing on digital infrastructure and technology services to support the national digital transformation. The country is entering a decisive phase of its digital transformation, with progress most visible in connectivity and hardware.

Enterprises, both domestic and international, are responding to Vietnam's digital transformation with various strategies and platforms. However, data infrastructure in Vietnam faces architectural bottlenecks that slow down integration and prevent the creation of a seamless ecosystem. Vietnam aims to develop technology platforms owned by Vietnamese entities and build a high-quality data workforce to address these challenges. The country has enacted the Data Law and the Personal Data Protection Law to manage data securely and ethically, as data is considered the core means of production across every sector of the economy.

Vietnam's digital future relies on technology, data, and applications. Despite facing challenges in core technologies and architectural bottlenecks, the country is taking steps to standardise its data architecture, develop local technology platforms, and build a skilled data workforce. With over 80 million internet users and a high deployment of IP 6.0, Vietnam is poised for further digital growth and transformation.

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