Data Centers in Vietnam

Vietnam – Accelerated Connectivity to Southeast Asia

Executive Summary

Vietnam is the premier destination for enterprises targeting the Mekong region's explosive digital economy. It serves organizations that prioritize low-latency access to a massive, mobile-first population where rapid deployment directly impacts market share and user retention.

Vietnam: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 6. Vietnam maintains a healthy mix of state-owned and private telecommunications providers as of December 2025. Major operators provide both domestic transit and international subsea capacity, offering reliable redundancy for enterprise traffic.

Direct Cloud On-Ramps: Over 1, enabling access to 1 cloud regions. As of December 2025, Alibaba Cloud is the primary provider with a local presence. For access to AWS, Google Cloud (GCP), or Microsoft Azure, organizations typically use private layer 2 extensions to regional hubs in Singapore.

Internet Exchange Points (IXPs): The primary exchange is VNIX (Vietnam Internet Network Information Center). It facilitates efficient local peering to keep domestic traffic within national borders and reduce expensive international transit costs.

Bare Metal: High-performance compute is readily available for deployments requiring physical isolation. Global providers like Hivelocity and Latitude.sh offer reliable bare metal options for organizations needing localized processing power without virtualization overhead as of December 2025.

Power Analysis

Average Cost Of Power: Industrial electricity ranges from $0.07 to $0.10/kWh as of December 2025. This price point provides a significant cost advantage for power-hungry AI and high-density compute workloads compared to more expensive neighboring markets.

Power Grid Reliability: The electrical grid is well-engineered to support major industrial corridors in Ho Chi Minh City and Hanoi. Redundant substation configurations and a diversified energy mix, with 44% coming from renewables as of December 2025, provide a stable foundation for mission-critical facilities.

Market Access, Business & Tax Climate

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

Regional Market Reach: Vietnam serves as a vital digital gateway for the Mekong region. It provides a strategic alternative path to Southeast Asia that avoids traditional congestion points while serving a tech-savvy population of nearly 100 million people.

Tax Advantage For Data Centers: While specific tax credits for data center operations are currently absent, most providers manage costs by locating within specialized industrial zones. These zones offer broader corporate tax holidays and land-use benefits that improve the overall financial profile of a deployment.

Natural Disaster Risk

Vietnam maintains a Moderate (4.0/10) risk profile as of December 2025. The geography makes water-related events the primary concern for facility uptime.

• River Flood: 9.9 (Extreme risk for facilities in low-lying delta regions).
• Coastal Flood: 9.6 (Significant indirect risk for coastal landing stations).
• Tsunami: 5.9 (Moderate regional risk for coastal infrastructure).
• Tropical Cyclone: 5.9 (Seasonal occurrence affecting coastal and inland sites).
• Epidemic: 6.7 (High potential for impact on operational staffing).

Other natural hazards, such as earthquakes and droughts, are considered minor or do not significantly threaten modern facility operations as of December 2025.