Vietnams Ambition to Become the Asia-Pacific AI Expertise Hub

The declaration of Nguyen Manh Hung Vietnam's Minister of Science and Technology stated that his country is now ready to become the "Asia-Pacific center of expertise in artificial intelligence." While this may sound ambitious to some, considering Vietnam’s current AI technology survey results and development, this vision is increasingly close to reality.

Such statements are not entirely new. Vietnam expressed its commitment to leveraging new technologies for national development five years ago, but this was clearly reaffirmed when the Communist Party of Vietnam issued Resolution 57-NQ/TW on the Revolution in Science, Technology, Innovation, and Digital Transformation of Vietnam, published on 22 Dec 2024 GMT+7. It indicated that Vietnam faces new technology waves such as AI, digital transformation, and green tech, which are essential for national survival and competitiveness.

Therefore, the Communist Party resolved that science, technology, innovation, and digital transformation must be elevated as pillars for the country's modern development, becoming new economic drivers to help Vietnam escape the middle-income trap and transform into a modern industrialized nation.

The resolution sets several strategic goals for 2030, notably in the economic-technology sector: science, technology, and innovation must account for at least 55% of economic growth; high-tech products must comprise no less than 50% of industrial production value; and domestically produced goods must grow and compete regionally.

A key target for the AI era is that research and development budgets must represent at least 2% of GDP, with 60% of this funding coming from the private sector. Notably, the resolution aims to develop human resources to rank among the top three in ASEAN in fields such as AI, biotechnology, and new energy, and to have at least 50 regional-level technology companies.

Although the resolution was issued late last year, past achievements show both Vietnam’s public and private sectors have performed well. A UNESCO report released in October highlighted Vietnam’s outstanding progress in AI research over the past decade, with academic outputs surging from 134 AI studies in 2010 to over 520 per year in 2017–2018, and more than 4,000 AI-related publications by Vietnamese researchers in 2023.

The 2024 Government AI Readiness Index by Oxford Insights, which assesses governments’ preparedness to use AI in public services, gave Vietnam a score of 61.42, ranking it fifth in ASEAN (behind Singapore, Malaysia, Thailand, and Indonesia). Vietnam also ranked third worldwide for AI trust and fifth for AI acceptance, indicating strong public confidence and openness to AI technology.

This index is based on 40 indicators across three main areas: government capability, technology sector, and data and infrastructure. The 2024 report evaluated 188 countries worldwide, with a global average score around 47.6 out of 100 (higher scores indicating greater government AI readiness).

Within ASEAN, other countries have also performed impressively. Singapore leads with 84.25 points, ranking second globally after the U.S., excelling especially in government and data infrastructure, scoring 90.96 and 93.14 respectively—the highest worldwide. Its technology sector score is 68.65, the highest in ASEAN despite being lower than the other two areas.

Malaysia ranks second in ASEAN with 71.40 points, placing it in the global top 25 (23rd in 2023). Thailand is third in ASEAN with 66.17 points, close to Indonesia’s 65.85, ranking fourth in the region for AI readiness.

Globally, Vietnam’s AI readiness ranking has steadily improved over recent years—from 76th in 2020 to 39th in 2023. Although still behind ASEAN leaders in the 2024 report, Vietnam’s rising scores across all dimensions and national AI strategy through 2030 position it as a likely emerging AI hub in the region.

In AI, successful countries require strong collaboration between government—setting policies, building infrastructure, and fostering enabling environments—and the private sector, which drives innovation and implementation.

Vietnam’s private sector has responded to state policies by investing in multiple AI research and development centers. Major corporations such as FPT, Viettel, VNPT, and Vingroup have established AI research units or business divisions to translate research into domestic products.

Notably, FPT Corporation, Vietnam’s largest IT company (market value around $7.7 billion), has heavily invested in AI. In 2024, FPT launched a large AI innovation city in Binh Dinh province, a $174 million project covering 93 hectares (over 230 acres), including a modern AI center, AI education zone, and smart city area supporting a tech ecosystem. This center focuses on research, software development, digital business creation, and cybersecurity to enhance Vietnam’s AI industry capabilities.

Additionally, in April 2024, FPT announced a $200 million investment to build an AI Factory using advanced graphics chips and software from Nvidia, underscoring ongoing private sector investment in cutting-edge technology. The company announced a second AI Factory in June and plans three more within five years.

Other Vietnamese companies are also active in AI. Vingroup, the country’s largest conglomerate, established VinAI Research in 2018 to develop advanced AI for use in its products, such as the intelligent driving system in VinFast cars. VinAI has developed an Automotive AI Suite installed in over 80,000 vehicles, marking a significant commercial success in domestic AI research.

Other notable Vietnamese tech firms include Zalo (a popular chat platform by VNG) which developed an AI Assistant enabling 77 million users to interact naturally and efficiently, and ELSA Speak, an AI-powered English learning app developed by Vietnamese entrepreneurs, with over 50 million downloads worldwide, recognized as a globally successful EdTech startup.

Foreign investment and collaboration are also crucial. Vietnam has attracted leading global tech companies’ interest. During U.S. President Joe Biden’s visit in September 2023, multiple tech partnerships were announced, including semiconductors and AI. Microsoft plans to develop Generative AI solutions tailored for Vietnam and emerging markets, while Nvidia has agreements with Vietnamese giants FPT, Viettel, and Vingroup to support AI applications in cloud business, automotive, and healthcare sectors.

In 2024, Nvidia announced the opening of its first research and development center in Vietnam, focusing on AI software research in cooperation with the Vietnamese government. This center will serve as a platform for researchers, startups, and industry to access advanced resources for AI applications in key fields such as medicine, education, transportation, and finance, reinforcing Nvidia’s confidence in Vietnam’s AI potential.

Another example is Qualcomm, the U.S. chip giant, which previously partnered with Viettel on 5G development. In June 2025, Qualcomm opened an AI research center in Hanoi focused on Generative AI and Agentic AI for smartphones, XR computers, vehicles, and IoT. Qualcomm stated this investment aligns with Vietnam’s AI, semiconductor, and digital transformation strategies, emphasizing technology transfer, ecosystem collaboration, and high-skilled workforce development.

However, Vietnam faces significant challenges, especially a shortage of highly skilled AI personnel in machine learning and natural language processing. Currently, Vietnam has about 300 AI PhDs and postdoctoral researchers, around 5,000 AI engineers, and approximately 7,000 AI specialists, far below market demand.

Furthermore, STEM (science, technology, engineering, mathematics) knowledge is central to the modern world. Although Vietnam’s students have continuously won mathematics and physics olympiad awards, official data show only 28–30% of Vietnamese students choose STEM fields, widening the gap between workforce supply and industry demand. Therefore, Vietnam needs a comprehensive national strategy for new skill development, skill upgrading, and career support to prepare its workforce for an AI-driven economy and realize its vision as a center of AI expertise.