The loosening of foreign ownership restrictions is a positive step in the right direction for Vietnam’s regulated data center industry, according to Dr. Glen Duncan, Head of Data Center Research, Asia Pacific, JLL.

“In terms of data center capacity, Vietnam is still a developing market compared to the regional hubs,” says Duncan. “Foreign operators will bring additional skills and capabilities to build large-scale data centers in the country, accelerating its digital economy.”

Unlike Vietnam, China's primary goal of opening up restrictions is to attract investment that will level up its competitiveness, a common aim of its economic reforms in recent years.

“The policy move is a game-changer,” says Ben Teh, Senior Director, Capital Markets, East China, JLL. “While many foreign operators are already active in China through strategic alliances, the relaxed regulations signal a more open market that inspires confidence among investors, potentially encouraging new entrants and facilitating market exits.”

The regulatory change aligns with the country’s broader ambitions to become a global artificial intelligence (AI) leader capable of attracting capital, talent, and ultimately increasing its market share.

“International operators have sophisticated business models, connectivity, cloud ecosystems, AI capabilities, and operational efficiencies, which can lead to lower costs and greater sustainability,” Duncan says.

However, he believes Vietnam can enhance its competitiveness by building up its existing capabilities with global expertise.

“By collaborating with international partners and adopting best practices, the country can eventually position itself as a sub-regional data center hub for neighboring countries like Cambodia, Laos, and Myanmar," he says.