Vietnam Faces Costly AI Bargain with US Tech Giants

Southeast Asian nations, including Vietnam, may be facing a costly bargain with US tech giants for AI development and adoption. According to East Asia Forum Vietnam, these countries could encounter challenges such as limitations on data sovereignty and impacts on economic independence as the price for acquiring AI technologies. Vietnam has been focusing on promoting its digital economy and technological innovation in recent years, with AI being positioned as one of its core technologies. However, much of the cutting-edge AI technology is currently monopolized by a few US tech giants. While partnerships with these companies may offer short-term benefits in terms of technology transfer and infrastructure development, they also carry the risk of Vietnam losing control over its own data and algorithms in the long run. The Vietnamese government, under its one-party system, has made economic growth and technological advancement one of its top national strategic priorities. Especially against the backdrop of geopolitical tensions with China, technological self-reliance and supply chain diversification are urgent issues. Dependence on US companies in the AI sector could become an obstacle to achieving these strategic goals. Vietnam is compelled to strike a careful balance between the cost of acquiring AI technology and the associated risks to data sovereignty, economic impact, and national security.