Young Vietnamese workers proactively apply AI to work
Source: ICT Vietnam

Vietnam is also an open and forward-thinking market in adopting artificial intelligence (AI) to enhance productivity. Vietnamese workers are quick to adopt technology to keep up with global developments. Key indicators include:

– 70% have used AI tools at work³.

– 54% report AI boosts productivity and idea generation⁴.

– 90% express a desire to delegate as much work as possible to AI in order to reduce their workload⁵.

Development Outlook

– According to the Ministry of Information and Communications, Vietnam’s ICT sector aims to reach USD 170 billion in revenue by 2025, accounting for over 12% of national GDP.

– The AI market is valued at around US$547.1 million in 2023 and is expected to reach US$2.06 billion by 2032, with a compound annual growth rate (CAGR) of 15.8% during this period⁶.

– Vietnam is well-positioned to become the regional hub for AI innovation, driven by growing demand for digital services and smart technologies.

Notable domestic AI startups include ZaloAI, Trusting Social, VinAI, Utop, and RADA, which are leading the innovation race in Vietnam.

Government Incentives

Recognizing the immense potential of ICT and AI, the Vietnamese government has issued several key policies to accelerate growth. Decision No. 127/QD-TTg – The National AI Strategy (2021–2030) includes:

– Tax holidays for AI startups for up to 4 years.

– Matching grants for international R&D collaboration.

– Public-private partnerships to develop AI universities and tech zones.

The government has also digitized public services like social security, healthcare records, and education platforms—creating huge B2G (Business-to-Government) opportunities.

Key Investment Case

Signing ceremony between Nvidia and FPT in Hanoi
Source: Vnexpress

– Hana Micron (South Korea) plans to invest approximately USD 930 million by 2026 to expand chip packaging operations in Vietnam.

– Google is considering building a large data center near Ho Chi Minh City, marking its first significant investment in Vietnam by a U.S. tech company⁷.

– FPT x NVIDIA: Joint USD 200 million investment to build Vietnam’s first “AI Factory”.

– VinAI, a domestic AI startup, has raised USD 50 million to apply AI in retail, logistics, and security.

2. Renewable Energy & Green Infrastructure

Current Landscape

– Rising electricity demand: Vietnam’s electricity demand is forecast to increase by 12%–13% in 2025, driven by rapid industrialization and urbanization.

– As of the end of 2023, renewable energy accounted for 27% of the total installed power generation capacity in Vietnam⁸. Solar and wind power projects are booming; however, infrastructure constraints are slowing down their progress.

Renewable Energy & Green Infrastructure: A New Direction Promising Vietnam’s Future Development
Source: hdll.vn

Development Outlook

The Vietnamese government is investing in the modernization and expansion of the national power grid to meet the growing demand and effectively integrate renewable energy sources.

– Country’s target of 30.4 GW of solar and 6 GW of offshore wind by 2030⁹.

– Renewable energy demand is rising due to rapid urbanization and industrial growth.

Government Policies

– Decree 80/2024/NĐ-CP enables Direct Power Purchase Agreements (DPPA), supporting energy diversification, reducing fossil fuel dependence, and strengthening energy security. It reflects Vietnam’s push to ease power sector monopolies

– Feed-in-Tariff (FIT) revisions,  especially by promoting subsidies for renewable energy sectors, to strengthen long-term investor confidence in wind, solar, and biomass projects, which remain largely untapped in Vietnam

Key Investment Cases

– At the end of 2021, the Adani Group (India) invested in two renewable energy projects in Vietnam, including a wind power project operated by Adani Phuoc Minh Wind Power Co., Ltd. with a capacity of 27.3 MW in Phuoc Minh commune, Thuan Nam district, Ninh Thuan province; and a 50 MW solar power project also located in Ninh Thuan

– PNE AG (Germany) proposed a $4.6 billion offshore wind power project in Vietnam back in 2019. After six years of development, the project has recently shown some positive progress

– On March 5, 2025, Japanese Ambassador to Vietnam Ito Naoki affirmed that the Japan Bank for International Cooperation (JBIC) and Japanese enterprises will jointly invest in 14 projects in Vietnam, including wind power plants, with total capital reaching up to USD 20 billion

3. Healthcare & Medical Innovation

Current Landscape

– Vietnam’s total healthcare expenditure increased from USD 16.1 billion to USD 22 billion during the period from 2017 to 2022. In addition, Vietnam’s healthcare expenditure as a percentage of GDP rose from 4.52% in 2016 to approximately 6.5% in 2022¹⁰.

– Statistics from the Ministry of Health show that, over the past decade, Vietnam’s per capita healthcare spending has grown by an average of 11% annually. The average number of hospital visits per person per year increased from 1.89 visits in 2010 to 2.95 visits in 2020. However, this figure remains significantly lower than in other countries in the region, such as Thailand (3.5 visits/year) and China (4.9 visits/year). Therefore, there remains substantial room for growth in healthcare services in the coming years.

Source: Statista

Development Outlook

– Medical device market set to reach $2.1 billion by 2026¹¹.

– In 2020, the Ministry of Health launched 1,000 Telehealth sites connected to over 30 major hospitals, supporting consultations and treatment of complex cases

Government Policies

The 2024 Law on Medical Examination and Treatment simplifies FDI procedures:

– No requirement for foreign investors to partner with state hospitals.

– 100% foreign-owned clinics and hospitals are allowed.

– Tax cuts, import duty waivers, and faster licensing timelines.

Key Investment Cases

– Thomson Medical acquired FV Hospital for $381 million.

– Fujifilm Vietnam launched an AI-assisted diagnostic system in partnership with public hospitals.

– Siemens Healthier, GE Healthcare, and Medtronic continue expanding footprints.

Conclusion: Vietnam’s Emerging Sectors Are Ready for Global Investment

Vietnam is no longer a frontier market—it’s a strategic hub for foreign investors seeking sustainable, high-growth opportunities in Asia.

From AI-driven IT solutions and cutting-edge semiconductors to clean energy and digital healthcare, each industry presents scalable opportunities supported by strong policy frameworks.

For foreign investors, Vietnam presents a rare combination of youthful energy, policy-driven progress, and untapped market segments.

¹ https://vietnamreport.net.vn/Bao-cao-thuong-nien-Tang-truong-Kinh-te-Viet-Nam-2024-Tai-thiet-nang-luc-canh-tranh-tim-kiem-co-hoi-tang-truong-1227/Product/Du-lieu–Bao-cao.html

² BC’s synthesis from online articles

³ https://www.cisco.com/c/dam/m/en_us/solutions/ai/readiness-index/2024-m11/documents/cisco-ai-readiness-index-vn.pdf

⁴ https://vneconomy.vn/techconnect/con-duong-tro-thanh-quoc-gia-dan-dau-khu-vuc-ve-ai.htm

⁵ https://ictvietnam.vn/tac-dong-cua-ai-den-cach-lam-viec-tai-viet-nam-57322.html

⁶ https://vneconomy.vn/viet-nam-nguoc-chieu-con-khat-nhan-luc-cong-nghe-tai-dong-nama.htm

⁷ https://www.reuters.com/technology/google-weighs-large-data-centre-vietnam-source-says-nations-first-by-us-big-tech-2024-08-29/

⁸ https://www.spglobal.com/commodity-insights/en/news-research/latest-news/energy-transition/111524-vietnams-2025-energy-demand-spike-fuels-renewable-investment-boom?utm

⁹ BC’s synthesis from online articles

¹⁰  https://kirincapital.vn/wp-content/uploads/2023/03/Bao-cao-nganh-thang-02.2023-Nganh-cham-soc-suc-khoe.pdf

¹¹ https://cafef.vn/linh-vuc-dac-biet-cua-viet-nam-se-som-dat-21-ty-usd-my-ra-khuyen-nghi-dau-tu-188240312142546351.chn

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