Huawei Broadens its Market in Vietnam With Data Center-Related Products

Huawei is expanding its offerings to include data center products in Vietnam, where storage laws are driving demand for cloud computing services from Amazon Web Services and local unicorn VNG. Do Van Chung, Huawei Data Center Product Manager, told Nikkei Asia on the sidelines of a recent industry event that growth will come from the "exploding" use of social media and other online services, as well as the government's "digital transformation" goal. In addition to telecommunications, solar energy, and consumer electronics, the tech behemoth is now selling rack cabinets for server systems in Vietnam.

The cloud and data market is attracting a variety of businesses, such as Mitsubishi, which offers backup generators, and Vingroup's VinHMS, which provides edge computing services. The server farms of major players Alibaba and AWS, which cost billions to construct, are located in larger economies such as Indonesia. However, businesses anticipate the Vietnam market to expand due to low costs, energy from Southeast Asia's largest solar producer, and laws requiring businesses to store data locally.

The country has 27 data centers, compared to 70 in Singapore and 38 in Malaysia, as reported by the Singapore Computer Society. Mitsubishi, as per Deputy Sales Manager Nguyen Thi Kim Hoang, Vietnam has been selling power generators since the 1990s, but more recently it has been focusing on clients that utilize a large number of computer servers, such as banks.