About Us
Global Advisory Experts Logo
Global Advisory Experts Logo

Find a Global Law Expert

Practice Area


Since 2010, the Global Law Experts annual awards have been celebrating excellence, innovation and performance across the legal communities from around the world.

Data Centers are Making Their Way to Vietnam

posted 10 months ago

Data centers are witnessing a surge in investment during 2022 and 2023, with local and foreign enterprises actively participating. Vietnam has emerged as a prominent destination among emerging economies to establish colocation hubs, projected to achieve a market size of approximately $1.5 billion by 2026.

1. What does a data center mean?

A data center refers to a physical infrastructure consisting of buildings, cable systems, and other necessary equipment. Its primary function is to store, exchange, and handle data belonging to one or multiple unrelated organizations or individuals.
Two main types categorize data centers. The first type, enterprise data centers, involves companies constructing and owning them to meet their internal needs and serve clients or customers. The second type is service data centers that offer data storage and computing services to various companies and users.

2. Establishing a data center with foreign-owned capital – Licensing process

When forming a data center with foreign-owned capital, the investor has the flexibility to choose from several corporate forms to conduct their business. The choice of corporate structure depends on the number of investors involved. The subsidiary can be established as a single-member limited liability company (LLC), a two-to-50-member LLC, or a joint stock company (JSC). The LLC is the simplest format, while the JSC requires a minimum of three shareholders and has a more complex corporate structure, which may be more suitable for complex ownership scenarios.

3. Upcoming Law on Telecommunications 

The upcoming revisions to the Law on Telecommunications have raised concerns regarding the inclusion of data center services. The draft proposes incorporating these services, which could potentially lead to changes in licensing requirements. If implemented, the new draft would impact various aspects of the data center business, including investment structure, foreign capital involvement, telecoms licenses, and more.

4. Conclusion

Data centers are clearly making their way to Vietnam, with the country witnessing a growing interest in this sector. As global digitalization continues to advance, the need for robust data infrastructure becomes crucial. With Vietnam’s strategic geographical location, increasing connectivity, and a young and tech-savvy population, the country holds immense potential in becoming a regional hub for data center operations.

For the full detail of this post, please reference on this link: http://hmlf.vn/data-centers-are-making-their-way-to-vietnam/

Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn
Email: [email protected]



who are already getting the benefits

Sign up for the latest advisory briefings and news within Global Advisory Experts’ community, as well as a whole host of features, editorial and conference updates direct to your email inbox.

Naturally you can unsubscribe at any time.

Newsletter Sign Up

About Us

Global Advisory Experts is dedicated to providing exceptional advisory services to clients around the world. With a vast network of highly skilled and experienced advisers, we are committed to delivering innovative and tailored solutions to meet the diverse needs of our clients in various jurisdictions.

Contact Us

Stay Informed

Join Mailing List