Vietnam introduces sweeping reforms for data center industry

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Jan Yong
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Vietnam has introduced comprehensive reform of the administrative procedure in the telecommunications sector which include simplified processes for data centers and cloud providers. Signed on 12th June, Decree 133/2025/NĐ-CP will take effect on 1 July, 2025.

The changes, detailed in Annex 1 of the Decree, bring major benefits and regulatory clarity for data center (DC) businesses operating in or entering Vietnam:

1. Provincial-Level Licensing for Faster Local Deployment:

The Decree authorizes provincial People’s Committees to handle licensing and registration for certain telecom services, including fixed-line, data centers, and cloud services. This enables:

– Faster licensing turnaround;
– Streamlined procedures for foreign and domestic investors;
– Decentralized, regionally driven infrastructure development.

2. Simplified Process for DC + Cloud Providers:

Enterprises offering both data center and cloud computing services are no longer required to submit separate filings. A single registration suffices, reducing regulatory overlap and promoting:

– Integrated hybrid infrastructure models;
– Seamless investment in edge and hyperscale DC facilities;
– Administrative efficiency.

3. Fully Digital Procedure Framework:

All applications are processed via the National Public Service Portal or standard postal/onsite options, ensuring:
– Transparency;
– Minimal manual handling;
– Lower operational costs for enterprises.

4. Mandatory Notice & Compliance for Service Suspension or Amendments:

Enterprises must provide advance notice and fulfill formal procedures if they intend to cease services or change license terms. This strengthens:

– Regulatory oversight;
– Customer protection;
– Risk management in service continuity.

5. Policy Alignment with National Digital Strategy:

The Decree operationalizes key goals of Resolution 57-NQ/TW and Resolution 175/NQ-CP on digital infrastructure and National Data Center development. It directly supports:

– Growth of sovereign and commercial DCs;
– Data governance, localization, and secure cross-border operations;
– Vietnam’s positioning as a regional digital hub.

Conclusion

Decree 133/2025/NĐ-CP marks a pivotal step in modernizing telecom governance. For data center businesses, it offers legal certainty, investment facilitation, and streamlined compliance—reinforcing Vietnam’s commitment to digital transformation and infrastructure readiness.

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