Vietnam's Digital Leap: Laws Enacted, Infrastructure Challenges Ahead
Vietnam is poised for a significant leap in its digital transformation, with the recent enactment of the Data Law and the Personal Data Protection Law marking a decisive phase. However, the country faces challenges in its data and application infrastructure, which are crucial for a seamless digital ecosystem.
Vietnam's digital future hinges on technology, data, and applications. While progress is evident in technical infrastructure, several hurdles remain. These include digital and energy infrastructure gaps, macro policy voids, talent shortages, and a fledgling data market. To tackle these, Vietnam plans to standardise its national data architecture, develop indigenous technology platforms, and foster a high-quality workforce through the Global Data Expert Network.
Data is increasingly recognised as the backbone of Vietnam's economy, permeating every sector. However, application infrastructure is the weakest link, lacking depth and robust ties to core technologies for genuine innovation. Meanwhile, the global data centre sector is expanding at a rapid pace of around 15 per cent annually. At a recent forum in Hanoi, several companies unveiled new initiatives in data centres, 5G, AI, blockchain, and security solutions, demonstrating Vietnam's attractiveness for investment in these areas.
By 2025, Vietnam boasted over 80 million internet users and a high IPV6 deployment rate. However, data centres, which currently consume 1-2 per cent of global electricity, are under scrutiny for their high water consumption, CO2 emissions, and e-waste, potentially rising to 3-4 per cent by 2030.
Vietnam's digital transformation is at a critical juncture, with the potential for significant growth and innovation. Addressing infrastructure and policy gaps, fostering talent, and promoting data market development will be key to unlocking this potential. As data centres and digital technologies advance, so too must efforts to mitigate their environmental impacts.
Read also:
- Cyprus, Kuwait Strengthen Strategic Partnership with Upcoming Ministerial Meeting
- BUND Protests Weser Deepening and Soybean Imports in Brake
- Philippines Demands Justice for Dafnie Nacalaban, Murdered Migrant Worker in Kuwait
- Trump administration faces lawsuit by Denmark's Ørsted over halted wind farm project
