Vietnam Launches Direct Land Cable to Singapore: A Push for Digital Economy

Vietnam has launched the Vietnam-Singapore Terrestrial Network (VSTN), a 3,900‑kilometer land cable from Da Nang to Singapore through Laos, Thailand, and Malaysia. This project is set to bring a high-capacity alternative to undersea routes and help boost Vietnam’s data center ambitions.

On August 4, 2025, Vietnam inaugurated the VSTN, the country’s first wholly owned direct international land cable. It is owned and operated entirely by the Vietnam Posts and Telecommunications Group (VNPT).

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Stretching 3,900 kilometers from Da Nang to Singapore on land, the cable line marks the first time Vietnam has complete end-to-end control over an international cable system. This terrestrial route offers an alternative to the country’s undersea cables, which have long been the backbone of international connectivity but have suffered from frequent disruptions.

Many expect VSTN to strengthen Vietnam’s telecom resilience and accelerate its ambitions as a digital economy and data hub in Southeast Asia.

What is VSTN?

The VSTN uses Dense Wavelength Division Multiplexing (DWDM) transmission technology, with each wavelength supporting a minimum capacity of 300 gigabits per second. The total designed capacity is four terabits per second, expandable to 12 terabits per second or more to meet future data demand.

With the establishment of VSTN, VNPT’s technical center in Da Nang is now directly linked to major regional data hubs like:

• IDC Telehouse in Thailand;
• MY01 Cyberjaya and Equinix JH01 Johor Bahru in Malaysia; and
• Equinix and Global Switch in Singapore.

These connections provide high-capacity, low-latency routing for cloud platforms and fintech operators.

See more: Vietnam Passes First-Ever Law on Digital Technology Industry

Emerging alternative to undersea cables

Before VSTN, Vietnam relied almost entirely on five undersea cable systems. Since 2022, these networks have suffered nearly 40 incidents, with an average of more than 10 incidents per year. Occasionally, four of them experienced disruptions at once, cutting over 73 percent of the country’s bandwidth. Repairing these can be time-consuming, stretching from two to 12 months.

The land-based VSTN mitigates these risks in three critical ways:

• Land cables can be repaired more quickly than sea lines, which require specialized repair vessels and favorable sea conditions;
• Full ownership gives VNPT direct control, and thereby enabling rapid troubleshooting without depending on foreign partners; and
• Wholly Vietnamese ownership supports Vietnam’s data localization laws and data protection requirements.

Puts Vietnam’s digital economy on wheels

Vietnam has set a target for the digital economy to contribute 20 percent of Gross Domestic Product (GDP) by 2025. In 2022, the sector grew by 28 percent to reach a value of US$23 billion. Achieving this level of growth requires infrastructure that can handle rising internet traffic and provide businesses with stable cross-border connectivity.

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The VSTN advances this goal by creating a direct land-based route to major ASEAN hubs. This could act as a force multiplier for industries in cloud services, fintech, and e-commerce, where uninterrupted access is essential.

The Information and Communication Technology (ICT) sector already employs more than 1.26 million people across 27,600 companies. Government targets call for increasing this to 60,000 digital enterprises by 2025, with younger generations, particularly Gen Z and millennials, expected to drive 40 percent of consumption by 2030.

The project is part of a wider digital strategy that aims to expand internet coverage, roll out nationwide 5G by 2030, and develop smart city projects in Ho Chi Minh City (HCMC), Hanoi, and other economic hubs. Vietnam now hosts more than 72 million internet users, about 73 percent of the population, so the need for fast, dependable connections is increasing rapidly.

Direct lift for data center growth

Data centers depend on uninterrupted, high-capacity links to global network hubs. The VSTN strengthens this foundation by providing low-latency access to Singapore, Malaysia, and Thailand, where much of the region’s cloud and content delivery infrastructure is located.

Vietnam’s data center industry is expanding rapidly. HCMC and Hanoi host the largest concentration of facilities, while Da Nang and Binh Duong are emerging as secondary hubs attracting new investment.

Vietnam’s main data infrastructure is concentrated in two major hubs, with secondary growth centers emerging.

Market share in this sector is concentrated among a small group of operators. Viettel IDC and VNPT each hold about 21 percent, followed by FPT Telecom at 12 percent, CMC Telecom at 9 percent, and VNZ at 6 percent. Together, these companies control roughly 70 percent of the market.

Several global players are also entering the market. Google is planning a hyperscale facility for 2027, and NTT Data, Epsilon, Gaw Capital, and Infracrowd Capital are expanding their regional footprints to include Vietnam.

Outlook

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The VSTN is expected to encourage further private-sector investment in data centers and fintech ventures in Vietnam. Singapore is a central internet exchange point for Southeast Asia,  as it hosts several data centers and acts as a gateway to global digital traffic. The VSTN strengthens Vietnam’s access to this network and expands opportunities for cross-border trade in digital services.

Demand for high-speed, stable connections will grow as Vietnam expands internet coverage, rolls out nationwide 5G, and develops smart city projects. The VSTN strengthens the foundation for these plans and helps Vietnam move closer to its 2025 goal of having the digital economy contribute 20 percent of GDP.

Read more: Vietnam Introduces National Blockchain Platform: Enhancing Data Protection

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