Expansion to Vietnam Follows Indonesia DC Project
MOU Signed with Vietnam Posts and Telecommunications Group
Comprehensive Collaboration for AI Infrastructure Development
LG CNS is expanding its artificial intelligence (AI) data center business to Vietnam, following its entry into Indonesia, as part of its efforts to broaden its presence in the global market.
Hyun Shinkyun, President of LG CNS, Tao Win, Chairman of VNPT, Ngo Dien Hy, Vice President of VNPT, and Kim Yongsik, CEO of Korea Investment Real Asset Management, are taking a commemorative photo after signing a business agreement. Photo by LG CNS
On August 12, at the Lotte Hotel Seoul, LG CNS signed a memorandum of understanding (MOU) for "Cooperation in the Development of Data Centers in Vietnam" with Vietnam Posts and Telecommunications Group (VNPT), the country's largest state-owned telecommunications company, and Korea Investment Real Asset Management, during the Korea-Vietnam Business Forum.
This forum was held to promote investment cooperation between the two countries and explore opportunities for market entry. Key participants included Hyun Shinkyun, President of LG CNS; Duong Thai, Chairman of VNPT; and Kim Yongsik, CEO of Korea Investment Real Asset Management.
VNPT is leading Vietnam’s digital transformation (DX) initiatives in areas such as telecommunications services, data centers, cloud, and smart cities. To accelerate its business, VNPT has selected LG CNS?a company actively pursuing DX projects in both Korea and Vietnam based on its cloud and AI technologies?as its strategic partner.
The day before the forum, VNPT and Korea Investment Real Asset Management visited the Hanam Data Center, which is built and operated by LG CNS, to examine LG CNS’s technological capabilities and business expertise that will serve as the foundation for the three-party collaboration. Through this MOU, the three companies will work together to develop a hyperscale AI data center in Vietnam.
To this end, each company will form a dedicated working group of experts. They will collaborate comprehensively to build AI infrastructure, covering not only data center facilities but also hardware equipment such as servers and storage, as well as network areas including telecommunications and circuits.
The data center market in Southeast Asia, including Vietnam, is growing rapidly due to the expansion of AI- and cloud-based DX and increased government investment in digital infrastructure. According to U.S. market research firm Arizton, the Southeast Asian data center market is expected to grow at an average annual rate of about 14%, from $13.7 billion (approximately KRW 19 trillion) in 2024 to $30.5 billion (approximately KRW 42 trillion) by 2030.
LG CNS recently became the first Korean company to win a contract for building AI data center infrastructure in Indonesia. Now, by pursuing data center projects in Vietnam as well, it is strengthening its leadership in the Southeast Asian market. LG CNS is recognized as Korea’s leading player in data center design, build, and operate (DBO) projects. Over the past 30 years, it has carried out DBO projects and currently builds and operates a total of nine data centers in Korea, including both company-owned and managed centers.
The Vietnamese government has designated digital transformation and digital economic development as national priorities, promoting initiatives such as factory automation and the establishment of smart logistics infrastructure. LG CNS and VNPT plan to strengthen their cooperation by leveraging their accumulated technological capabilities and references to develop smart engineering business models optimized for the Vietnamese market.
President Hyun stated, "This agreement will serve as a turning point to further accelerate Vietnam’s digital transformation, going beyond the data center business," adding, "We will continue to evolve as a ‘global AX partner’ that drives business innovation for our clients, based on our outstanding capabilities in AI, cloud, and other advanced technologies."
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