Vietnam Eyes Deeper Cooperation in AI and Advanced Technologies

Vietnam is poised to strengthen its international cooperation in science and technology, innovation, and digital transformation, aiming to bolster state management efficiency and drive economic growth. This strategic imperative stems from the growing realization that these fields are no longer mere long-term orientations but increasingly vital tools for addressing complex issues across governance, production, business, and social life. In its relationship with Russia, a new chapter of science and technology cooperation is anticipated. This endeavor builds upon decades of traditional friendship, mutual trust, and complementary strengths, with the objective of realizing the aspirations of both nations' leaders and peoples. The focus is on developing a more substantive, selective, and strategically oriented phase of collaboration. Building on the success of the VNREDSat-1 satellite project, Vietnam and France are advancing their cooperation, including a proposal for VNREDSat-2. Discussions have encompassed technological options, resources, and an implementation roadmap, with the goal of not only developing a new-generation satellite but also elevating Vietnam's participation level and technological capabilities. With Japan, Deputy Prime Minister Le Tien Chau has underscored the importance of promoting science and technology, innovation, and digital transformation cooperation through concrete projects. These initiatives include joint research, research and development (R&D), and the development of Vietnam's innovation ecosystem. During his visit to China and Guangxi in April, General Secretary of the Communist Party of Vietnam Central Committee and President To Lam expressed a desire to further expand cooperation between Vietnam, particularly its border localities, and Guangxi, with Artificial Intelligence (AI) being a key area of interest. The Joint Statement on the Technology Connectivity Strategy, issued after the first Vietnam-Singapore Strategic Dialogue, reaffirmed the shared interest in deepening cooperation in science and technology, innovation, connectivity, and the digital economy. Both nations envision becoming leading strategic technology partners in Southeast Asia, fostering greater technological self-reliance through collaboration. Domestically, the government is advised to shift from direct funding to creating an enabling environment by developing essential infrastructure, platforms, standards, and markets, while effectively coordinating the innovation ecosystem. The diffusion of AI, digital, and green technologies to small and medium-sized enterprises (SMEs) and traditional sectors is highlighted as crucial for inclusive growth. Vietnam has set ambitious goals for 2030: 60% of businesses are expected to use AI to improve efficiency, all civil servants will utilize AI in their work weekly, and 60% of administrative decisions will be supported by data and AI. A significant rise in satisfaction rates for AI-supported public services, at least 30%, is also anticipated. Furthermore, the Political Bureau’s Resolution No. 23-NQ/TW elevates overseas Vietnamese to a strategic resource, prompting calls for practical mechanisms to ensure their deeper participation in the country's scientific and technological development, particularly in AI. The strategy pivots Vietnam toward AI R&D tied to economy-wide transformation, treating AI as a core capability from problem identification through operations. The Ministry of Science and Technology is committed to strengthening intellectual property protection and enforcement on a continuous basis, working with other ministries and localities to raise public and business awareness and improve the effectiveness of preventing and dealing with infringements. In the financial sector, AI is transforming banking operations from customer service to risk management. However, as the technological gap narrows, the question of what will define competitive advantage in the AI era is becoming central. The development of a semiconductor industry is also on the horizon, with local engineers and researchers having decades of experience in mastering the technology. A significant IT project with a total load capacity of 200 MW is planned, with the first phase involving a US$3.5 billion investment in a 100MW facility, targeting commercial operation in 2027. The Digital Trust Alliance (DTA) has seen rapid expansion since its establishment, aiming to create Digital Trust Clubs nationwide and bring together a substantial membership base. Ultimately, Vietnam's development model hinges on productivity, knowledge, and technology, requiring long-term capital, a skilled workforce, innovation capacity, and technology absorption. The primary challenge lies in transitioning from cost-based advantages to those driven by productivity, technology, and added value.