# Vietnam’s Data Center Market Liberalization lifts 49% foreign ownership cap

- Link: https://www.thailand-business-news.com/tech/153344-vietnams-data-center-market-liberalization-lifts-49-foreign-ownership-cap
- Published: 2024-07-26T11:37:43+07:00
- Author: Bui Dung

Vietnam’s data centre market is undergoing significant liberalisation as the government
aims to bolster the nation’s ambitions in artificial intelligence (AI).

**Key View**

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 * Vietnam has liberalised its data centre market by lifting the previous 49% foreign
   ownership cap, enabling full foreign investment in data centres, as per the newly
   effective Law on Telecommunications.
 * The initiative seeks to ignite global investor interest to realise Vietnam’s 
   AI goals but we note that such ambitions will be hard to achieve insofar the 
   country cannot access US-manufactured GPUs.
 * While the liberalisation of its data centre market is beneficial, we believe 
   that in the coming years Mainland China-based cloud vendors such as Huawei and
   Alibaba will remain the main foreign investors in Vietnam’s digital infrastructure
   market.

By creating a more open and competitive landscape, Vietnam hopes to attract foreign
investments and advanced technologies. The government’s new policies encourage local
firms to innovate while collaborating with international partners. This shift is
critical for the establishment of robust infrastructure that supports AI applications
across various sectors, enhancing productivity and fostering economic growth.

Despite the promising outlook, the liberalisation of the data centre market brings
inherent risks. The rapid expansion may lead to security concerns, particularly 
regarding data privacy and protection. As international players enter the market,
maintaining compliance with local regulations becomes a challenge, potentially exposing
critical data to breaches. Policymakers must therefore strike a balance between 
fostering innovation and ensuring that adequate safeguards are in place to protect
sensitive information.

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Moreover, competition may create disparities in access to modern technology, especially
for smaller entities lacking resources. Striking this balance will be key to ensuring
that all players in the market can benefit from the advancements made in AI and 
data management. As Vietnam progresses on this journey, it must remain vigilant,
addressing these challenges while leveraging its data centre market to achieve its
AI objectives.
[Read More](https://www.fitchsolutions.com/bmi/telecommunications/vietnams-data-centre-market-liberalisation-aid-its-ai-ambitions-risks-will-persist-11-07-2024)