Data Centers in Vietnam

Vietnam – Southeast Asia’s Rising Digital Frontier

Executive Summary

Vietnam is a high-growth market for digital infrastructure, serving as a critical gateway for businesses targeting one of the fastest-growing internet economies in Southeast Asia. This market is built for organizations requiring low-latency access to a massive, tech-savvy population where speed to market translates directly into revenue.

Vietnam: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 5. Vietnam features a mix of state-owned and private telecommunications providers, with around 6 major network operators providing international and domestic transit as of December 2025.

Direct Cloud On-Ramps: Over 1, enabling access to 1 cloud regions. Currently, Alibaba Cloud maintains a presence, providing local on-ramps for low-latency connectivity as of December 2025. For other major providers, private extension options via dedicated fiber are the standard approach for reaching regional hubs like Singapore.

Internet Exchange Points (IXPs): The primary exchange is VNIX (Vietnam Internet Network Information Center), which facilitates efficient local peering to keep domestic traffic within the country and reduce operational costs.

Bare Metal: Bare metal services are widely available through global providers such as Hivelocity and Latitude.sh, allowing for flexible, high-performance compute without the overhead of virtualization.

Power Analysis

Average Cost Of Power: Industrial electricity rates range from $0.07 to $0.10/kWh as of December 2025. This pricing makes Vietnam an attractive location for power-dense deployments compared to more expensive markets in the region.

Power Grid Reliability: The electrical grid is well-engineered to support major industrial corridors in Ho Chi Minh City and Hanoi. The power mix is diversified, with 44% coming from renewables and 56% from fossil fuels as of December 2025.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located near the financial hubs of District 1 in Ho Chi Minh City and the administrative centers of Hanoi. This proximity ensures that enterprise workloads stay close to the corporate headquarters they serve.

Regional Market Reach: Vietnam is a primary hub for serving the Mekong region and provides an alternative digital path to Southeast Asia that bypasses traditional, congested routes.

Tax Advantage For Data Centers: There are no specific financial incentives dedicated to the data center industry at this time. Most operators rely on broader industrial zone benefits to manage cost structures.

Natural Disaster Risk

Vietnam maintains an overall risk score of Moderate (4.0/10) as of December 2025. The risk profile is dominated by water-related hazards due to its geography.

• River Flood: 9.9 (Extreme risk for facilities in low-lying delta regions).
• Coastal Flood: 9.6 (Indirect risk for metropolitan coastal sites).
• Tsunami: 5.9 (Moderate regional risk for coastal landing stations).
• Tropical Cyclone: 5.9 (Regular seasonal occurrence affecting coastal and inland areas).
• Epidemic: 6.7 (High impact on operational continuity and staffing).

Other hazards such as earthquakes and droughts are considered minor or are not listed as significant threats to facility uptime as of December 2025.