Vietnam Accelerates AI and Cloud Sector Growth, Attracting Tech Giants

Vietnam is accelerating investment and fostering growth in advanced technology sectors such as AI, cloud computing, and cybersecurity, positioning digital transformation as a new engine for national economic growth. In the AI sector, partnerships like the one with OpenAI aim to support businesses in developing AI transformation roadmaps, building platforms, strengthening workforce capabilities, and deploying responsible AI solutions. This aligns with Vietnam's strategy to adopt international AI regulatory frameworks early, utilizing a risk-based approach similar to the EU AI Act, imposing different obligations depending on whether an AI system poses "unacceptable," "high," "low" or "minimal" risks. The approach is viewed as a strategic step towards ensuring safe and transparent AI governance. The country is also enhancing infrastructure and improving its investment environment to attract hyperscalers and cloud titans. Da Nang city, for instance, is leveraging new development models and special policy mechanisms to establish itself as a strategic investment destination and a pioneer in Vietnam's economic growth in the new era. Regarding cybersecurity, Vietnam is pushing for the operationalization of a Regional Counter Cybercrime Hub for Asia-Pacific by 2027, preparing a "Cybersecurity Economy" initiative for APEC 2027, strengthening specialized agencies, and expanding its national cybersecurity operations center by the second quarter of 2028. Events like BSides Hanoi, which attracted strong interest from the cybersecurity community, foster connections between Vietnam's cybersecurity community and international networks, contributing to the ecosystem's sustainable development. In the semiconductor industry, the ultimate goal is not merely to establish manufacturing facilities but to gradually master high-value, knowledge-intensive segments of the value chain, serving as a launchpad for strengthening competitiveness in AI, electronics, and the digital economy. Drawing on Israel's experience, advice suggests Vietnam should focus on talent development, scientific research, and chip design capabilities instead of rushing into building fabrication facilities. These initiatives are bolstered by the restructuring of the Central Steering Committee on Science, Technology, Innovation, and Digital Transformation, chaired by Party General Secretary and State President To Lam, and the introduction of new policies, strategies, and technical standards to support the Law on Digital Transformation and speed up implementation nationwide. For citizens, improvements in convenience through digital platforms, such as registering residence, applying for an e-Visa, obtaining an electronic identity account, or completing administrative procedures online, mark significant progress in Vietnam's digital transformation journey.