In early 2026, Russell Headlee, senior bureau official for the Bureau of Cyberspace and Digital Policy, led a delegation of US businesses to Vietnam to explore cooperation in AI, digital infrastructure and cybersecurity.
Headlee said AI is now a top priority in US digital policy, reflected in the “America’s AI action plan” announced on July 23, 2025. He praised Vietnam’s ambition, noting the country is positioning itself as a regional leader by being among the first to adopt a law on artificial intelligence.
At the sixth Asean digital ministers’ meeting in Hanoi in mid January, a US delegation including 18 major technology and telecommunications firms such as Google, Meta and Amazon Web Services expressed strong interest in Vietnam’s market. The country was seen as a potential destination for building AI infrastructure, developing services and expanding operations.
Several major projects have recently been announced. Create Capital Vietnam, Haimaker.ai and the Vietnam DataGen joint venture plan to build a 100MW AI data centre in Danang’s high tech park, with total investment of USD 1 billion. Japan’s Meiko Electronics unveiled a JPY 40 billion (approximately USD 255 million) factory project in Hanoi to produce AI integrated printed circuit boards, while Dassault Systemes opened an R&D facility and a centre of excellence for AI and digital twin technologies in the capital.
Competing with regional peers
In its Artificial intelligence in Southeast Asia report, Source of Asia highlighted Vietnam’s growing role as a strategic hub for AI talent and research. While Singapore was described as the “brain” of policy and capital and Malaysia as the “heart” of infrastructure, Vietnam is emerging as a large scale provider of AI research and skilled human resources.
Vietnam was ranked among the “developing AI talent powerhouses”, economies rapidly accelerating training and attracting talent.
The country’s advantage lies in its people. With more than 500,000 engineers and IT professionals, Vietnam has one of Southeast Asia’s largest technology workforces. The number of AI startups rose from about 60 in 2021 to 278 in 2024, signalling a fast evolving ecosystem.
Global perceptions are also shifting. Vietnam is no longer seen solely as a software outsourcing base but increasingly as part of the AI value chain. Qualcomm’s AI R&D centre in Hanoi, its third largest AI hub globally, underscores this trend. Chief executive Cristiano Amon said Vietnam was chosen to serve not only the domestic market but the wider region.
Japan International Cooperation Agency chief representative Kobayashi Yosuke said AI is moving from testing to commercial deployment across multiple sectors. Vietnam’s skilled workforce, innovation mindset and expanding digital economy, he said, provide strong foundations for a competitive startup ecosystem.
Opportunities and challenges
Vietnam is accelerating its digital transformation, with the AI market maintaining an average annual growth rate of about 15.8 per cent, according to ABeam Consulting.
The country has several advantages, including a young population, strong demand for digital services and policies promoting digital transformation.
AI is already creating tangible value. Banks use AI to monitor transactions in real time to prevent fraud, insurers automate claims assessment and settlement, and manufacturers apply predictive maintenance to reduce errors and optimise production lines.
ABeam said the biggest weakness is the lack of a strong data foundation and system architecture. Many companies deploy AI quickly through chatbots, content creation tools and automation, but lack unified data systems. This results in fragmented insights that are difficult to scale beyond small trials.
The consultancy stressed that technology alone is not enough. Many organisations with modern systems still struggle because staff are unfamiliar with new processes, lack training or feel overwhelmed. Digital transformation, it said, requires businesses to build a “DX engine” that combines culture, organisational flexibility, quality data and a ready workforce.
Turning AI into a competitive advantage
Vietnam’s law on artificial intelligence will take effect on March 1, 2026, alongside a national AI strategy through 2030 with a vision to 2045. The country aims to become one of Southeast Asia’s top three AI R&D centres by 2030 and to train at least 50,000 chip and AI engineers.
Deputy minister of science and technology Vu Hai Quan said new science and technology laws taking effect in 2026 offer strong incentives for high tech R&D investment. AI, semiconductors and ICT are among 11 strategic technologies being prioritised.
Experts called for coordinated action. FPT chairman Truong Gia Binh urged Vietnam to safeguard key national data domestically and promote open systems. Nguyen Ai Viet, director of the Institute for Generative Intelligence Technology and Education, highlighted the importance of technology diplomacy and stronger R&D investment. Tran Xuan Tu, director of the Institute of Information Technology, stressed the need for continued state leadership in legal frameworks, infrastructure and financial support.
ABeam said leaders must understand technological trends but also their workforce, develop realistic transformation roadmaps and invest seriously in training and change management.
AI, the firm said, is a powerful partner, but people remain the key to turning technology into a sustainable growth engine rather than a short lived trend.
“Vietnam has the speed, talent and market demand to lead the next wave of AI driven transformation in the region,” said Ryohei Oda, general director of ABeam Consulting Vietnam. “Successful companies will be those that combine rapid execution with solid architecture and effective change management.”