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Vietnam ramps up data center construction

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3 months ago

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A massive rise in the demand for data storage and the resulting increase in high-quality data centers (DCs) being built to meet that demand have led to Vietnam being named amongst the world’s top 10 emerging markets in the data storage industry.

Both foreign and domestic businesses are looking to cash in on Vietnam’s demand for data storage.

In mid-December of last year, local tech firm VNG Corporation put its 12,400-square-meter VNG Data Center into operation in Ho Chi Minh City.

VNG Data Center currently features 410 server racks, but plans are in place to expand the center’s capacity to 1,600 racks to meet the safe data storage and cloud computing needs of its clients. 

It is one of three DCs in Vietnam that have been awarded a Tier III certification of design documents (TCDD) and constructed facility (TCCF) by Uptime Institute, the world’s most prestigious data center evaluation system.

Vietnam’s Viettel Group has also involved itself in the DC industry.

In October of last year, the military-run corporation launched the Viettel Cloud ecosystem with 13 centers measuring a combined 60,000 square meters and including 9,000 racks.

The group also announced that it would invest an additional VND10 trillion (US$426.5 million) in Viettel Cloud to expand its scale to 17,000 racks by 2025.

Furthermore, in August 2022, CMC Corporation inaugurated a 13,000-square meter, 1,200-rack DC in Ho Chi Minh City. The center cost VND1.5 trillion ($64 million).

In addition to domestic enterprises, several foreign firms have built DCs in Vietnam. 

For example, Japan’s NTT Group in March of last year partnered with Quang Dung Technology Distribution Joint Stock Company, an arm of GREENFEED Vietnam Corporation, to develop a Tier III DC in Ho Chi Minh City.

The center is expected to be put into service in 2024.

Tough competition

According to Huy Nguyen, founder and CEO of KardiaChain and former senior technical director at Google, it is no surprise that Vietnam is attracting domestic and global investors in the DC industry, especially given the sector’s massive financial upside.

“My company currently pays a Vietnamese company $50,000 per month for data storage services,” Huy Nguyen said.

An expert in the sector told Tuoi Tre (Youth) newspaper that leading global Internet service providers, such as Google, Facebook, and Apple, had installed servers at DCs in Vietnam before the Law on Cyber Security took effect on October 1, 2022.

Pursuant to the law, foreign enterprises providing services in Vietnam must store the data of Vietnamese users locally.

Nevertheless, Huy Nguyen assessed that DCs in Vietnam remain small compared with those operated by large firms in other countries, such as AWS, Google, and Microsoft.

Domestic DCs currently fail to meet local demands as they have been prioritized for state-owned enterprises and firms which are required to store their data in Vietnam.

Due to their small scale, local DC service providers charge high costs compared to companies like AWS, Google, and Microsoft.

“Vietnam’s digital transformation is still in progress, so the country still needs to develop more DCs to meet its demand and eventually dominate the Southeast Asian market,” Huy Nguyen added.

A future regional powerhouse

Vietnam was listed amongst the top 10 emerging markets in the global data center industry in 2021 by ResearchAndMarkets, one of the world’s largest market research organizations.

The Southeast Asian country generated revenue of some $858 million from DCs in 2020. The Vietnamese data center market is projected to post a growth rate of nearly 15 percent per year until 2026.

“The growth rate of the Vietnamese data center market is impressive with its capability to provide services meeting international standards and large enterprises,” according to ResearchAndMarkets.

Domestic enterprises also expect that ‘made-in-Vietnam’ DCs will significantly contribute to the country’s digital economic development.

Tao Duc Thang, chairman and general director of Viettel Group, said it had set a target to provide each Vietnamese citizen, household, organization, and enterprise with a cloud-based data store located in Vietnam and researched, developed, and operated by Vietnamese engineers.

Meanwhile, Nguyen Trung Chinh, chairman and executive president of CMC Corporation, said the launch of its DC in August last year is a milestone in pushing Vietnam toward becoming a digital hub in the Asia-Pacific region.

To date, Vietnam has been home to nearly 30 DCs, with over 46 percent located in the north, 35 percent in the south, and some 18 percent in the central region.

Since 2010, the power volume consumed by DCs in Vietnam has tripled.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

A massive rise in the demand for data storage and the resulting increase in high-quality data centers (DCs) being built to meet that demand have led to Vietnam being named amongst the world’s top 10 emerging markets in the data storage industry.

Both foreign and domestic businesses are looking to cash in on Vietnam’s demand for data storage.

In mid-December of last year, local tech firm VNG Corporation put its 12,400-square-meter VNG Data Center into operation in Ho Chi Minh City.

VNG Data Center currently features 410 server racks, but plans are in place to expand the center’s capacity to 1,600 racks to meet the safe data storage and cloud computing needs of its clients. 

It is one of three DCs in Vietnam that have been awarded a Tier III certification of design documents (TCDD) and constructed facility (TCCF) by Uptime Institute, the world’s most prestigious data center evaluation system.

Vietnam’s Viettel Group has also involved itself in the DC industry.

In October of last year, the military-run corporation launched the Viettel Cloud ecosystem with 13 centers measuring a combined 60,000 square meters and including 9,000 racks.

The group also announced that it would invest an additional VND10 trillion (US$426.5 million) in Viettel Cloud to expand its scale to 17,000 racks by 2025.

Furthermore, in August 2022, CMC Corporation inaugurated a 13,000-square meter, 1,200-rack DC in Ho Chi Minh City. The center cost VND1.5 trillion ($64 million).

In addition to domestic enterprises, several foreign firms have built DCs in Vietnam. 

For example, Japan’s NTT Group in March of last year partnered with Quang Dung Technology Distribution Joint Stock Company, an arm of GREENFEED Vietnam Corporation, to develop a Tier III DC in Ho Chi Minh City.

The center is expected to be put into service in 2024.

Tough competition

According to Huy Nguyen, founder and CEO of KardiaChain and former senior technical director at Google, it is no surprise that Vietnam is attracting domestic and global investors in the DC industry, especially given the sector’s massive financial upside.

“My company currently pays a Vietnamese company $50,000 per month for data storage services,” Huy Nguyen said.

An expert in the sector told Tuoi Tre (Youth) newspaper that leading global Internet service providers, such as Google, Facebook, and Apple, had installed servers at DCs in Vietnam before the Law on Cyber Security took effect on October 1, 2022.

Pursuant to the law, foreign enterprises providing services in Vietnam must store the data of Vietnamese users locally.

Nevertheless, Huy Nguyen assessed that DCs in Vietnam remain small compared with those operated by large firms in other countries, such as AWS, Google, and Microsoft.

Domestic DCs currently fail to meet local demands as they have been prioritized for state-owned enterprises and firms which are required to store their data in Vietnam.

Due to their small scale, local DC service providers charge high costs compared to companies like AWS, Google, and Microsoft.

“Vietnam’s digital transformation is still in progress, so the country still needs to develop more DCs to meet its demand and eventually dominate the Southeast Asian market,” Huy Nguyen added.

A future regional powerhouse

Vietnam was listed amongst the top 10 emerging markets in the global data center industry in 2021 by ResearchAndMarkets, one of the world’s largest market research organizations.

The Southeast Asian country generated revenue of some $858 million from DCs in 2020. The Vietnamese data center market is projected to post a growth rate of nearly 15 percent per year until 2026.

“The growth rate of the Vietnamese data center market is impressive with its capability to provide services meeting international standards and large enterprises,” according to ResearchAndMarkets.

Domestic enterprises also expect that ‘made-in-Vietnam’ DCs will significantly contribute to the country’s digital economic development.

Tao Duc Thang, chairman and general director of Viettel Group, said it had set a target to provide each Vietnamese citizen, household, organization, and enterprise with a cloud-based data store located in Vietnam and researched, developed, and operated by Vietnamese engineers.

Meanwhile, Nguyen Trung Chinh, chairman and executive president of CMC Corporation, said the launch of its DC in August last year is a milestone in pushing Vietnam toward becoming a digital hub in the Asia-Pacific region.

To date, Vietnam has been home to nearly 30 DCs, with over 46 percent located in the north, 35 percent in the south, and some 18 percent in the central region.

Since 2010, the power volume consumed by DCs in Vietnam has tripled.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230105/vietnam-ramps-up-data-center-construction/70777.html

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Vietnam climbs to 10th on emerging global markets index

Vietnam has been ranked 10th out of the world’s top emerging markets in 2023 with regards to overall competitiveness by Agility, a global leader in supply chain services, infrastructure and innovation.

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6 hours ago

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March 28, 2023

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In Southeast Asia, Vietnam is behind Malaysia, Indonesia and Thailand, but ahead of the Philippines, Myanmar and Cambodia. China and India were first and second in the overall rankings.

Vietnam ranked 11th in 2022. The index ranks countries for overall competitiveness based on their logistics strengths, business climates and digital readiness, factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors.

According to Agility, nearly 70% of global logistics executives say they are bracing for a recession amid higher costs, slowing demand, and ongoing supply chain disruption arising from China’s battle to contain Covid-19, Russia’s war in Ukraine, and the impact of climate change.

Ninety percent of the 750 industry professionals surveyed for the 2023 Agility Emerging Markets Logistics Index also said their shipping, storage and other logistics costs remain well above pre-pandemic levels of early 2020.

“Carriers and shippers are feeling the effects of higher energy prices, tight labor markets and broader inflation even though freight rates have fallen and ports have cleared cargo backlogs,” said Agility vice chairman Tarek Sultan.

“Three years after the start of the pandemic, there is still a lot of volatility in supply chains. Now there’s fresh uncertainty as consumers and businesses pull back on spending and hiring,” he added.

In mid-March, the World Bank said that Vietnam’s economic expansion might ease to 6.3% in 2023 from a robust 8% last year, reflecting domestic and external headwinds.

“Vietnam has the fiscal space to implement measures to boost growth, unlike many other countries,” said Carolyn Turk, World Bank country director for Vietnam.

“Effective implementation of priority public investments is key to support growth, both in the short-term and in the longer term. Also, fiscal and monetary policies must be synchronized to ensure that support to the economy and macroeconomic stability are achieved effectively,” she added.

Source: The Investor

Source: https://e.nhipcaudautu.vn/economy/vietnam-climbs-to-10th-on-emerging-global-markets-index-3351497/

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Hoa Phat Group eyes diversification with urban development

Steel giant Hoa Phat Group wants to build several major urban areas 300-500 hectares in size in the next 10 years as part of its diversification plans.

Published

7 hours ago

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March 28, 2023

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The company is looking for potential locations, it said in a recent report.

Last year its subsidiaries bid for construction of projects in the northern provinces of Hung Yen, Phu Tho and Bac Giang.

One of them is the 262-hectare Bac Pho Noi Urban Area in Hung Yen with malls, offices, apartment buildings, and villas.

The first phase of the project is set to cost VND6.5 trillion ($276.30 million), and basic infrastructure is now complete.

Though Hoa Phat has been involved in property development for 21 years, its activities were mostly in Hung Yen and Ha Nam Provinces and involved a total area of 1,100 hectares.

It also has four small apartment projects in Hanoi.

Last year property, mostly industrial complexes, fetched it revenues of VND1.43 trillion, or 1% of its total revenues, and 3% of its profits.

It plans to expand its Yen My 2 industrial complex in Hung Yen this year, and have a total of 10 industrial complexes within a decade.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/companies/hoa-phat-group-eyes-diversification-with-urban-development-3351524/

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Northern Vietnamese province exports first fresh sugarcane batch to US

Published

9 hours ago

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March 28, 2023

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Hoa Binh Province in northern Vietnam on Sunday held a ceremony to ship the first batch of fresh sugarcane totaling 17.3 metric tons stateside after six months of negotiations.

The provincial Department of Agriculture and Rural Development on Monday said it joined hands with the People’s Committee of Lac Son District and companies to hold the ceremony.

With the support of the Plant Protection Department under the provincial Department of Agriculture and Rural Development, local firms have met U.S. technical requirements.

The fresh sugarcane was collected, processed and packaged by Tien Ngan Trading Investment Co. Ltd.. Apart from the sugarcane, 10 sugarcane juicers were also sent stateside.

Speaking at the ceremony, vice-chairman of the Hoa Binh People’s Committee Dinh Cong Su expected the province to improve its initial achievements to expand the markets for many other agricultural products.

The export of sugarcane to foreign markets and the expansion of production will contribute to the development of the province’s sugarcane sector, Su said.

According to director of the provincial Department of Agriculture and Rural Development Nguyen Huy Nhuan, sugarcane holds high potential for export. 

Over the past few years, Tien Ngan Trading Investment Co. Ltd. has shipped nearly 100 metric tons of sugarcane to the European Union and South Korea.

The provincial Department of Agriculture and Rural Development will continue to create the most favorable conditions for local enterprises trading agricultural products to expand their markets, Nhuan added.

According to a report by the department, Hoa Binh exported its first 120 kilograms of sugarcane to Japan in 2019. 

The volume has increased sharply since then to reach 5.7 metric tons in 2020, 74 metric tons in 2021, and 300 metric tons last year.

In addition to Japan, the product has been supplied to South Korea, the United Kingdom, and the European Union.

More fresh sugarcane batches will be exported to South Korea this month.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Hoa Binh Province in northern Vietnam on Sunday held a ceremony to ship the first batch of fresh sugarcane totaling 17.3 metric tons stateside after six months of negotiations.

The provincial Department of Agriculture and Rural Development on Monday said it joined hands with the People’s Committee of Lac Son District and companies to hold the ceremony.

With the support of the Plant Protection Department under the provincial Department of Agriculture and Rural Development, local firms have met U.S. technical requirements.

The fresh sugarcane was collected, processed and packaged by Tien Ngan Trading Investment Co. Ltd.. Apart from the sugarcane, 10 sugarcane juicers were also sent stateside.

Speaking at the ceremony, vice-chairman of the Hoa Binh People’s Committee Dinh Cong Su expected the province to improve its initial achievements to expand the markets for many other agricultural products.

The export of sugarcane to foreign markets and the expansion of production will contribute to the development of the province’s sugarcane sector, Su said.

According to director of the provincial Department of Agriculture and Rural Development Nguyen Huy Nhuan, sugarcane holds high potential for export. 

Over the past few years, Tien Ngan Trading Investment Co. Ltd. has shipped nearly 100 metric tons of sugarcane to the European Union and South Korea.

The provincial Department of Agriculture and Rural Development will continue to create the most favorable conditions for local enterprises trading agricultural products to expand their markets, Nhuan added.

According to a report by the department, Hoa Binh exported its first 120 kilograms of sugarcane to Japan in 2019. 

The volume has increased sharply since then to reach 5.7 metric tons in 2020, 74 metric tons in 2021, and 300 metric tons last year.

In addition to Japan, the product has been supplied to South Korea, the United Kingdom, and the European Union.

More fresh sugarcane batches will be exported to South Korea this month.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230321/northern-vietnamese-province-exports-first-fresh-sugarcane-batch-to-us/72180.html

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