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Instance has weaker internet speed than the host

I am running an Openstack Rocky with openvswitch agent and vxlan tenant networks. VMs are created in a vxlan network and have associated public floating IPs.

For example, the following download test results in dramatic download speed difference:

wget -O /dev/null

VM - 5MB/s

Network node - 30MB/s

I've noticed if I run download tests from my city/country, the download speed in the VM increases (looks like as far the server is / as many hops are in between, the download speed in the VM decreases).

I've tried disabling the offloads using ethtool but no luck.

I can't find a reasonable explanation about this.