Cloud and data centre advances on horizon

The amended law was adopted by the National Assembly on November 24. According to the Authority of Telecommunications (AT) under the Ministry of Information and Communications, the amended law will promote the development of services related to over-the-top telecoms services, cloud computing, and data centres.

The biggest telecoms companies in Vietnam are getting involved, photo Le Toan

“The regulations have legalised business activities of in these areas in the highest specific legal document, thus creating a favourable legal environment for businesses, by not causing a burden on them, and contributing to diversifying related products and services to serve growing needs,” said an AT representative.

Tien Hoang, deputy secretary general of Vietnam Digital Communications Association (VDCA) told VIR that the amended law and guiding documents will create a legal corridor to promote competition, and create conditions for businesses to participate in the market.

“The network of technical infrastructure is modernised; the quality of related services is improved; and the market develops a variety of services, meeting the needs of users and the national socioeconomic development needs,” Hoang said. “Enterprises providing cloud computing and data centre service will be among the beneficiaries of the new law because it details them with specific regulations to facilitate their performance, thus promoting the development of the market,” he added.

The VDCA represents 500 domestic Vietnamese and foreign-invested member companies. Many of them are focusing more on cloud computing and data centres to meet growing demands in Vietnam, where is witnessing strong development of digital infrastructure.

For instance, established in 2008, CMC has invested in building data centres meeting international standards for the highest requirements of businesses, especially those in finance and banking, insurance, and multinational corporations.

Currently, CMC operates a data centre in Hanoi and two in Ho Chi Minh City. It holds up to 40 per cent of the local market share of banks’ data centres, and more than 60 per cent of over-the-top business customers.

Similarly, Huawei is also venturing further into cloud services in Vietnam. At Vietnam Internet Day 2023 held in late November, Li Chufei, who is the sales director of Huawei Cloud Southeast Asia, said that it has continuously innovated and upgraded technical capabilities based on its comprehensive cloud solution, deploying more than 220 cloud services and 210 smart solutions.

From those efforts, Huawei Cloud maintains strong growth with revenue reaching $3.3 billion in the first half of 2023, expanding 62 per cent of customer files and 80 per cent of partner files over the past four years in the region.

“In Vietnam, Huawei Cloud is introducing advanced technologies in cloud and AI. These technologies act as catalysts to promote businesses to develop such as video streaming solutions, fintech solutions, robot automation processes, and other capabilities,” Chufei said.

“In addition, Huawei Cloud will bring more customers and partners to Vietnam, supporting the local ecosystem and development. We strongly believe that cooperating and sharing benefits with Vietnamese partners and customers will help cloud services develop faster, access more opportunities, and create more jobs, constantly contribute to the digital economy,” Chufei added.

However, while expecting opportunities from the amended law, the business community has some concerns. Tien Hoang from the VDCA admitted that the amended law still reveals a number of inappropriate points that need to be adjusted, such as the convergence trend between telecommunications and broadcasting; and between IT and automation, posing new requirements.

“Technological development has created new types of services and business models, promoting the formation of new telecommunications infrastructure combined with other technical infrastructure for the socioeconomic development needs. The sector should expand to infrastructure components to meet the requirements of infrastructure serving the digital economy and digital society,” he recommended.

Pavel Poskakukhin, co-chairman of EuroCham’s Digtal Sector Committee added, “The upcoming implementation of regulations for the these new services signifies a significant step towards cultivating fairness and competition within Vietnam’s telecommunications sector. As the digital landscape continues to evolve, these regulations aim to provide a level playing field, encouraging innovation, and fostering healthy competition among businesses.

Attention seized in data centre growth International players are devising strategies to develop data centres in both the public and private sectors for Vietnam’s digital evolution.

Room remains for data centre development The data centre industry in Vietnam is on the rise and is being driven by a number of factors, as heard at a Ho Chi Minh City forum at the end of last month.

VNPT opens Vietnam's largest data centre Vietnam Posts and Telecommunications Group (VNPT) inaugurated its eighth and largest data centre at the Hoa Lac High-Tech Park on October 25, marking a significant leap in Vietnam's data infrastructure capacity.

Plan approved to develop National Data Centre The Government on October 30 approved a development plan on the National Data Centre, expected to help Vietnam reach higher positions in the global e-Government, information technology, and cybersecurity rankings.