Vietnam News Today (Aug. 31): Google Considers Building Large Data Center in Vietnam

	Vietnam News Today (Aug. 29): Vietnam, RoK Promote Measures Boost Trade
	Vietnam News Today (Aug. 30): Vietnam - Key Player in Semiconductor Industry

Photo: VOV

Google considers building large data center in Vietnam

Google is considering building a large data center in Vietnam, in what would be the first such investment made by a major United States technology company in Vietnam, according to Reuters.

The newswire points out that Google is weighing setting up a "hyperscale" data center close to Ho Chi Minh City, the country’s southern economic hub.

The investment, the size of which the source did not specify, would serve as a shot in the arm for Vietnam, which has so far failed to attract major overseas capital in data centers due to its patchy infrastructure, with large tech companies instead preferring to house their centers in rival nations around the region.

It is not clear how quickly Google would reach a decision on any investment, but internal talks were taking place and the data center could be ready by 2027, cited VOV.

A hyperscale data center with a power consumption capacity of 50 megawatts (MW) could cost between US$300 million and US$650 million, according to estimates based on data published by real estate consultant Jones Lang LaSalle in a report this year on data centers in Vietnam.

Google's move was largely motivated by the large number of its domestic and foreign cloud services clients in Vietnam, as well as the country's expanding digital economy, said the media outlet, noting that the nation was one of the fastest-growing markets for YouTube, Google's popular online video sharing platform.

Currently, the top data center operators in the country, based on computing space, are industrial investment firm IDC Becamex and telecommunications company VNPT, both Vietnamese state-owned enterprises, according to an internal market report by an industrial park in Vietnam seen by Reuters.

This comes following Nikkei reporting in May that Chinese e-commerce company Alibaba was considering building a data center in Vietnam.

Quang Binh, Laos' Savannakhet province step up cooperation

Vietnam's central province of Quang Binh and Savannakhet province of Laos agreed to boost cooperation in various areas during talks between Secretary of the Quang Binh Party Committee Vu Dai Thang and Bounchom Oubonpaseuth, Governor of the Lao province on August 29.

The two sides informed each other about the socioeconomic situation as well as national defense and security, and Party building; reviewed outcomes of their cooperation in the past time; and set forth orientations for future collaboration.

The leaders of the two provinces will continue to direct competent agencies to support localities and enterprises to expand cooperation in the field of economy and create conditions for businesses and investors to invest in the fields of renewable energy, trade, tourism, services and goods production, in line with the capabilities and strengths of each province.

They will further cooperate in promoting tourism, improving the quality of tourism human resources, and tapping tourism potential between the two localities. They pledged to coordinate in organizing and participating in trade fairs and exhibitions, strengthening trade promotion between the two localities and effectively exploiting the Dong Hoi-Savannakhet passenger transport route.

The two provinces will continue to conduct communication work to raise awareness among residents in border areas to implement the protocol on the Vietnam-Laos borderline and national border markers, and the Vietnam-Laos agreement on land border and border gate management regulations, according to VNA.

At the event (Photo: VNA)

Relevant forces were asked to regularly exchange information, coordinate in conducting bilateral patrols, protect the border and border markers as well as join hands in the fight against cross-border crimes, especially drug crimes, smuggling, illegal exploitation of resources and minerals, illegal trading and transportation of weapons and explosives, disease prevention, and rescue and relief.

Every year, Quang Binh province will help Savannakhet province train 20 university and college students at its training facilities. In return, Savannakhet province will assist its Vietnamese counterpart in training the Lao language for over two years.

At the end of the talks, Secretary of the Quang Binh Party Committee Thang presented 200 million VND (8,000 USD) to Savannakhet.

Vietnam learns from Australia’s leadership and governance experience

A high-level delegation from Vietnam consisting of 23 members from ministries, sectors, and localities, led by Assoc. Prof., Dr. Hoang Phuc Lam, deputy director of the Ho Chi Minh National Academy of Politics (HCMA), is engaging in a research exchange program on sharing leadership and governance experience in Australia from August 26 to September 1.

The course, part of a training program for the country’s strategic and key officials, is being organized by the Australian Department of Foreign Affairs and Trade (DFAT) in collaboration with the HCMA and comes under the Vietnam-Australia Centre project.

Welcoming the delegation in its visit to the University of Melbourne on August 26, Assistant Minister for Foreign Affairs Tim Watts said that the nation represents a key and high-priority partner in Australia's overall foreign policy.

The upgrade of bilateral relations to that of a comprehensive strategic partnership has created crucial opportunities for the two countries to undertake more strategic steps, including enhancing development co-operation, as well as collaboration in areas such as economics, defense and security, digital transformation, circular economy, and innovation, reported VOV.

The Vietnamese delegation pose for a group photo.

Receiving the delegation in Canberra on August 28, Deputy Secretary of the Department of Foreign Affairs and Trade Michelle Chan briefed them on the outcomes of the ninth Vietnam-Australia diplomacy-defense dialogue, which took place in Hanoi on August 26.

The two sides emphasized that both countries share many similarities and have high levels of strategic trust, which in turn provides a solid foundation for further enhancing cooperation across various fields.

In the context of the two nations, as well as other countries in the region, facing significant challenges amid rising geopolitical tensions, they agreed on the need to further promote closer and more strategic cooperation within the framework of the new relationship. This is being done in order to respond to common challenges, strengthen exchanges and consultations to further concretise high-level agreements, whilst also expanding into new areas of collaboration which better align with their needs, potential, and interests.

Within the framework of the program, the Vietnamese delegation is scheduled to have meetings with representatives from the Department of Finance; the Department of Climate Change, Energy, the Environment and Water (DCCEEW); the Digital Transformation Agency; and several other agencies; as well as visit some green and sustainable development models.

Dak Nong, Cambodia's Mondulkiri bolster cooperation in border management

The Border Guard Command of the Central Highlands province of Dak Nong and the Police Department of Cambodia's Mondulkiri province held talks in Dak Nong's Gia Nghia city on August 30 to review their cooperation in protecting security and order along the shared border so far this year and sketch out orientations for 2025.

The two sides agreed to carry forward cooperation achievements and continue their coordination and the exchange of information on criminals' activities and international terrorist organizations, while working together to prevent plots of hostile forces intending to undermine the solidarity and friendship between the two countries, and effectively combat all types of crimes.

They will strengthen cooperation in border management and protection, maintain joint border patrols, and continue facilitating the border demarcation and marker planting work, cited VNA.

At the signing of the cooperation agreement between the two sides (Photo: VNA)

In 2024, the two sides have regularly exchanged information on cooperation in maintaining border security and order, as well as the operations of terrorist organizations.

They have proactively grasped the border situation to ensure effective coordination in preventing and combating all types of crimes, while organizing coincidental border patrols. In addition, they have exchanged visits on holidays, New Year, and each other's traditional days to enhance mutual understanding and trust.

Priorities in bilateral cooperation include strengthening communications and education among border residents, encouraging them to seriously follow treaties and protocols on land border demarcation and marker planting signed between the two Governments, and raising their awareness of crime prevention and control as well as the management of border markers, thus contributing to maintaining border security and order.

Da Nang unveils attractive incentives to boost semiconductor industry

Da Nang is focusing on three strategic breakthroughs - policy, human resources, and infrastructure - to develop its semiconductor industry.

Speaking at the Danang Semiconductor Investment Promotion Conference 2024 on the morning of August 30, Ho Ky Minh, Vice Chairman of the Danang People's Committee, emphasized that the semiconductor industry is recognized as a vital new driver for the city’s socio-economic development. This focus is particularly significant following the recent upgrade in the comprehensive strategic partnership between Vietnam and the United States.

Vice Chairman Ho Ky Minh outlined that Danang's strategy for developing the semiconductor industry centers on three key areas: policy, human resources, and infrastructure. On June 26, the National Assembly passed Resolution 136, which includes special mechanisms and policies for Danang’s urban governance, aimed at attracting strategic investors and partners in the semiconductor industry.

Regarding investment policies, strategic investors will be offered land leases without the need for land use rights auctions or bidding processes. They can opt for one-time land lease payments for the entire lease period, and 150% of actual research and development (R&D) costs can be deducted when calculating corporate income tax.

Enterprises will also benefit from preferential customs procedures and tax regulations, along with support covering up to 5% of total costs for purchasing production support equipment, relocating assets, machinery, technology, and costs associated with new investment projects.

Strategic partners will be directly leased information infrastructure assets without undergoing auctions and will be awarded contracts for purchasing specialized equipment. They will also receive support for up to 5% of total costs for purchasing production support equipment and costs associated with new investment projects, as well as partial funding for hiring highly qualified personnel.

To qualify for these strategic investor and partner incentives, businesses must not only meet capital, revenue, and technology requirements but also commit to long-term cooperation with the city in areas such as human resource training, technology transfer, and expanding investments in Danang.

For semiconductor, artificial intelligence, information and communication technology, and innovation investments, Danang will offer a five-year corporate income tax exemption from the time taxable income is generated.

Enterprises will also be exempt from personal income tax and corporate income tax for organizations with income from share transfers, capital contributions, and rights contributions in innovative startups and semiconductor activities, provided these have not yet been publicly offered. This tax exemption will last for five years from the time of capital contributions.

Individuals will also be exempt from personal income tax for five years on income earned from innovative startup activities, and work in semiconductor design, manufacturing, packaging, and testing within Danang-based enterprises, VNN reported.

The Software Park No. 2 project in Da Nang, with a total investment of nearly VND 1,000 billion, will focus on the development of the semiconductor sector. Photo: Ho Giap

Vice Chairman Ho Ky Minh also highlighted that Danang is committed to supporting those studying and working in the semiconductor industry. The city will cover training costs for students specializing in semiconductors and provide allowances for living expenses and other benefits.

Recognizing that human resources are the "core nucleus" of the semiconductor industry, Danang is prioritizing the training of university, master's, and doctoral graduates in semiconductor fields. The city is also focusing on retraining and transitioning engineers and faculty from related disciplines into semiconductor specialties.

Regarding infrastructure, Minh stated that Danang considers it the "backbone" of semiconductor industry development.

In preparation for short-term semiconductor design infrastructure, Danang is focusing on attracting investment in its high-tech zone and three existing concentrated IT zones. By the end of 2024, the city plans to bring the second phase of the Software Park 2 project into operation, providing space for over 6,000 personnel.

Additionally, Danang is exploring the second phase expansion of the Software Park 2 project, which will cover 2.5 hectares, and is creating favorable conditions for strategic investors to invest in new software parks and IT zones across the city, totaling approximately 22 hectares.

The city is also expediting procedures to select investors for developing specialized semiconductor production infrastructure within the Free Trade Zone, aiming to attract investments in testing, packaging, materials, components, and equipment manufacturing within the semiconductor supply chain.

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