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Vietnam unicorn VNG opens data center to cash in on storage law

Startup eyeing U.S. IPO benefits from rule blasted by global tech groups

Gaming and messaging startup VNG inaugurates a data center in Ho Chi Minh City, Vietnam, where controversial rules on storing data domestically are pushing up demand. (Photo by Lien Hoang)

HO CHI MINH CITY -- Vietnam's first technology unicorn has unveiled a data center to capture the demand triggered by new government rules aimed at forcing companies to store information within the one-party state.

VNG, a games-to-payments startup aiming to list on the Nasdaq, debuted the server farm last week, doubling its capacity to serve cloud clients, which range from Spanish fashion brand Mango to Russia's Rosneft. The data center opened after Hanoi abruptly enacted a data localization law -- even though doing so violates its pledges in the trade deal known as CPTPP and has been widely criticized by lobbyists representing Amazon, Facebook and other tech giants.

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