ASEAN’s Rising ‘AI Talent Powerhouse’ Attracts Major Global Tech Giants for R&D Centers
Vietnam is rapidly becoming a premier destination for artificial intelligence investment, attracting global interest across AI infrastructure, platforms, and applications. With over 500,000 engineers and IT professionals, the country is transforming from a software outsourcing base into a critical player in the AI value chain.
Market Valuation: AI Startup Ecosystem Surges with 15.8% Annual Growth
Vietnam’s AI market is expanding at an impressive average growth rate of 15.8% annually. The number of AI startups has skyrocketed from approximately 60 in 2021 to 278 in 2024, signaling a rapidly evolving innovation ecosystem.
In early 2026, Russell Headlee, Senior Bureau Official for the U.S. Bureau of Cyberspace and Digital Policy, led a delegation of American businesses to Vietnam to explore cooperation opportunities in AI, digital infrastructure, and cybersecurity. Headlee emphasized that AI is now a top priority in U.S. digital policy, as 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 comprehensive AI legislation.
At the 6th ASEAN Digital Ministers’ Meeting in Hanoi mid-January, a U.S. delegation including 18 major technology and telecommunications firms such as Google, Meta, and Amazon Web Services expressed strong interest in Vietnam’s market. These companies view Vietnam as a potential destination for building AI infrastructure, developing services, and expanding regional operations.
Growth Strategy: Large-Scale Infrastructure Investment and Global Partnerships
Recently announced major projects are solidifying Vietnam’s position as an AI hub. Create Capital Vietnam, Haimaker.ai, and the Vietnam DataGen joint venture are planning to build a 100MW AI data center in Da Nang’s High-Tech Park with a total investment of $1 billion. Japanese firm Meiko Electronics has unveiled a ¥40 billion ($255 million) factory project in Hanoi to produce AI-integrated printed circuit boards, while Dassault Systèmes has opened an R&D center and Center of Excellence for AI and Digital Twin in the capital.
Source of Asia’s “Artificial Intelligence in Southeast Asia” report clearly defines Vietnam’s strategic role. While Singapore serves as the “brain” of policy and capital and Malaysia functions as the “heart” of infrastructure, Vietnam is emerging as a large-scale provider of AI research and skilled human resources. The report categorizes Vietnam as a “Developing AI Talent Powerhouse,” highlighting the country’s rapid acceleration in training and attracting talent.
Qualcomm’s AI R&D center in Hanoi—the company’s third-largest AI hub globally—underscores this trend. CEO Cristiano Amon stated that Vietnam was chosen to serve not just the domestic market but the broader region.
Competitive Advantage: Young Population and Strong Digital Transformation Policies
Vietnam’s greatest strength lies in its human resources. With over 500,000 engineers and IT professionals, the country has Southeast Asia’s largest technology workforce. Its competitive advantages include a young population, high demand for digital services, and robust policies promoting digital transformation.
Kobayashi Yosuke, Chief Representative of the Japan International Cooperation Agency (JICA), noted that AI is transitioning from testing to commercial deployment across multiple sectors. He emphasized that Vietnam’s skilled workforce, innovation spirit, and expanding digital economy provide strong foundations for a competitive startup ecosystem.
AI is already creating tangible value across various industries. Banks use AI to monitor transactions in real time to prevent fraud, insurance companies automate claims assessment and settlement, and manufacturers apply predictive maintenance to reduce errors and optimize production lines.
Investment Outlook: Targeting Top 3 AI R&D Hub in Southeast Asia by 2030
Vietnam’s Law on AI will take effect on March 1, 2026, alongside a national AI strategy through 2030 with a vision extending to 2045. The country aims to become one of the top three AI R&D centers in Southeast Asia by 2030 and train at least 50,000 chip and AI engineers.
Deputy Minister of Science and Technology Vu Hai Quan stated that new science and technology laws effective from 2026 offer strong incentives for high-tech R&D investment. AI, semiconductors, and ICT are among 11 strategic technologies being prioritized.
However, ABeam Consulting’s report identifies the lack of data foundation and system architecture as the biggest weakness. Many businesses deploy AI very quickly through chatbots, content creation tools, and automation but lack unified data architecture. This leads to fragmented insights that cannot be scaled beyond small trials.
Ryohei Oda, General Director of ABeam Consulting Vietnam, stated: “Vietnam has the speed, talent, and market demand to lead the next wave of AI-driven transformation in the region. Successful companies will be those that combine rapid execution capabilities with well-structured architecture and effective change management.”
Experts stressed the need for coordinated action. FPT Chairman Truong Gia Binh urged Vietnam to safeguard key national data domestically and promote open systems. Professor Nguyen Ai Viet, Director of the Institute for Generative Intelligence Technology and Education (IGNITE), highlighted “technology diplomacy” and stronger R&D investment, while Professor Tran Xuan Tu, Director of the Institute of Information Technology, called for continued state leadership in legal frameworks, infrastructure, and financial support.
ABeam emphasized that while leaders need to be sensitive to technological trends, more importantly, they need to understand their employees, have realistic transformation roadmaps, and invest seriously in training and change management. AI is a powerful partner, but people are the key to transforming technology into a sustainable growth engine rather than a fleeting trend.
