Is Vietnam Becoming a Global FDI Destination for Artificial Intelligence?

Artificial intelligence (AI) is reshaping how businesses operate, governments govern, and consumers make decisions. As developed countries such as the US, Europe, and China tighten controls on foreign investment in high-tech industries, Vietnam – with its young workforce, competitive costs, and open-door policies – is emerging as a new hotspot for foreign direct investment (FDI), particularly in AI.

Why is Vietnam attracting FDI in AI?

Vietnam is not yet a global leader in AI technology, but it has many fundamental advantages for foreign investors. From human resources to policies and the business environment, the country is making significant improvements to seize the new wave of technology.

High-quality workforce and competitive costs
Vietnam has nearly 100 million people, with more than 50% in the golden working age. According to TopDev and VietnamWorks, about 50,000 students graduate each year in IT and related fields such as computer science, applied mathematics, and software engineering. Many universities have integrated machine learning, AI, and data analytics into their curricula.

Vietnam’s strength lies not only in the number of engineers but also in competitive labor costs – only 30–50% compared to China, South Korea, or Singapore. This is why many technology corporations choose Vietnam for R&D centers or software outsourcing, then expand into deeper AI activities.

National policies supporting AI and technology investment
In 2021, the Government issued the “National Strategy on Research, Development, and Application of Artificial Intelligence by 2030” (Decision 127/QĐ-TTg). The goal is to place Vietnam among the top 4 ASEAN countries and top 50 globally in AI, while developing 3 national data centers and supercomputers for research.

Along with this, incentives for high-tech enterprises, venture capital funds, and simplified licensing procedures for FDI enterprises have been strongly implemented. These legal frameworks provide a stable and transparent environment for international investors.

Shifting production and R&D into Vietnam
Major corporations like Samsung, Intel, and LG have already established billion-dollar manufacturing facilities in Vietnam. While direct investments in AI R&D centers are still modest, the first steps have been made through strategic partnerships with Vietnamese startups, local research centers, and technology funds.

Vietnamese AI startups such as VinAI, FPT.AI, and Zalo AI are also attracting foreign interest due to their strong applications in image recognition, natural language processing, healthcare data, and financial services.

What should investors consider when entering Vietnam’s AI sector?

Despite its potential, investing in AI in Vietnam comes with challenges, particularly regarding legal frameworks, intellectual property, and governance.

Legal framework still in development
Vietnam does not yet have a dedicated AI law. Regulations on data privacy, intellectual property, and technology contracts are scattered across existing laws such as the Cybersecurity Law, the Intellectual Property Law, and the Civil Code. Investors should work with experienced legal advisors to ensure compliance and reduce potential legal risks.

Protecting intellectual property is crucial
AI products are tied to proprietary algorithms, training datasets, and integrated software. Protecting intellectual property through trademarks, software copyrights, and trade secret agreements is vital. Investors should carefully structure technology transfer contracts and NDAs with local staff to avoid IP leakage.

Investment structures must fit AI business models
Depending on business strategy, investors may choose a wholly foreign-owned company, joint venture, or strategic partnership. Each model affects control, profit-sharing, taxation, and licensing. For AI solutions with cross-border services, compliance with data transfer and storage regulations is critical.

Conclusion
Vietnam is not only a promising market for AI adoption but also a strategic destination for AI R&D and innovation in Southeast Asia. However, AI investment is a long-term journey requiring clear strategies and collaboration with partners who understand both technology and law.

📞 Hotline: (+84) 39 969 0012 (WhatsApp, WeChat, Zalo)
🏢 Head Office: 144 Vo Van Tan, District 3, Ho Chi Minh City
🕒 Office Hours: Mon – Fri (8:30 – 18:00)