DFDL
  April 4, 2022 - Phnom Penh, Cambodia

Vietnam: Foreign Investment in Data Center Business
  by Segolene Leffy

The below is a generic list of the key licenses, permits, declarations generally needed by a foreign investor (alone or in JV) to set up and operate a data center in Vietnam. This is not meant to address any specific situation and does not constitute a legal advice.

Obtaining an IRC and an ERC
Self-declaration of the conformity with regulatory technical standards
Consent of the Personal Data Protection Commission for cross-border transfer of personal data (Potentially)
Approval/Discussion with Electricity of Vietnam (“EVN”) for buying electricity for the operation of the data center

Considering that that the operation of a data center would require excessive usage of electricity, we recommend the local entity to reach out to the EVN entity of the province where the data center is located for a specific guidance on this matter.  We note that Vietnamese law does not specifically require that a special electricity sale agreement be required for this purpose. We have also informally checked this question with EVN but has not yet obtained a meaningful confirmation from EVN.

Key regulatory requirements in relation to the development of a rooftop solar power project for self-consumption

Inclusion in Power Development Plan (for projects with capacity from 1MW or higher)

Pursuant to Decision 13/2020/QD-TTg, on mechanism for encouragement of development of solar power in Vietnam, dated 6 April 2020, in case the capacity of the rooftop solar power project (“Project”) is 1 MW or higher, the developer of the Project is required to obtain this approval. 

Construction Permit

Fire Safety Requirements

Under Vietnamese law, any power plant project (including solar power) having a voltage of 110 kV or higher must obtain approval of the fire safety design of the plant from the relevant local fire fighting and prevention department, prior to commencing installation or construction*.

*Item 18 of Annex V, and Article 15 of Decree 136/2020/ND-CP providing guidelines for a number of articles of Law on Fire Prevention and Fighting and Law on Amendments to Law on Fire Prevention and Fighting dated 24 November 2019 of the Government of Vietnam.

 

The information provided in this article is for information purposes only and is not intended to constitute legal advice should be obtained from qualified legal counsel for all specific situations.

 

Contact
Huynh Dai Thang    

Thang Huynh

Partner & Head of Hanoi Office

[email protected]

   

 

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