Complementing this initiative, Samsung Electro-Mechanics announced a further USD 1.2 billion investment to expand production of Flip-Chip Ball Grid Array (FC-BGA) substrates at its Thai Nguyen facility. FC-BGA is a critical component used in AI accelerators, high-performance processors, advanced servers, and data center infrastructure. The expansion reflects growing global demand for AI computing hardware and positions Vietnam as an increasingly important production base for advanced semiconductor components[5].

Intel Reinforces Long-term Semiconductor Expansion Plans in Vietnam

Working Session Between Deputy Minister of Science and Technology and Intel’s Representative

Source: VnEconomy

In May 2026, Intel reaffirmed its plans to expand semiconductor cooperation and long-term investment activities in Vietnam during a working session with the Ministry of Science and Technology. Rather than announcing a new fabrication facility, Intel emphasized broader strategic priorities including semiconductor ecosystem development, workforce training, packaging and testing expansion, and collaboration on Vietnam’s first semiconductor manufacturing initiatives. The update is significant because Intel Products Vietnam in Ho Chi Minh City already serves as Intel’s largest global assembly and testing facility, positioning Vietnam as a critical back-end semiconductor hub within Intel’s global supply chain diversification strategy amid rising worldwide demand for AI and semiconductor infrastructure[6].

STT GDC and VNG Advance Hyperscale Data Centre Expansion in Vietnam

Following Vietnam’s July 2024 regulatory change permitting full foreign ownership of data centers, ST Telemedia Global Data Centers (STT GDC) and VNG continued the expansion of their joint data center platform in Ho Chi Minh City. While STT VNG Ho Chi Minh City 1 was already operational as a carrier-neutral facility, the new STT VNG Ho Chi Minh City 2 hyperscale project was scheduled for launch in the first half of 2026 with a planned capacity of up to 60 MW. The project reflects rising foreign investor confidence in Vietnam’s AI and cloud infrastructure market amid growing demand for hyperscale computing, AI workloads, and localized data storage services[7].

Policy Updates

The Vietnamese government issued an unusually dense cluster of AI and semiconductor legislation in a single 12-month window, which has effectively compressed years of regulatory groundwork into one legislative cycle and provided the legal certainty that large-scale foreign investors require before committing capital.

Law on Data & AI Governance Effective from Jan 1, 2026

According to Law No. 91/2025/QH15 and Decree No. 356/2025/NĐ-CP, Vietnam has established the first personal data protection framework, broadly aligned with GDPR principles. The framework regulates data collection, processing, storage, and cross-border transfer, while Decree 356 provides implementation details. This legislation is critical for AI companies that train or deploy models using personal or consumer data, particularly relevant for fintech, health-tech, and e-commerce AI applications. As a result, compliance infrastructure is now required for any AI deployment to touch personal data. In addition, cross-border data transfer rules may require legal review before cloud-based AI services are launched.

Law on Digital Technology Industry Effective from Jan 1, 2026

Through Law No. 71/2025/QH15 and Decree No. 353/2025/NĐ-CP, the government has introduced a unified legal framework for the digital technology industry, covering semiconductors, AI, digital assets, and advanced manufacturing. The legislation establishes the legal basis for sector-specific incentives, including preferential CIT (as low as 5% for AI data centers under Resolution 57-NQ/TW), R&D grants and streamlined licensing. Decree 353 further provides for the implementation of mechanics. The single most structurally important law for foreign investors consolidates the incentive architecture for AI, semiconductor, and data center investment in one legal instrument.

Law on Artificial Intelligence Effective from Mar 1, 2026

Under Law No. 134/2025/QH15, Vietnam enacted its first dedicated legal framework governing artificial intelligence. The law introduces a risk-based classification of AI systems, accountability requirements for high-impact applications (healthcare, finance, public administration), and a governance framework for AI development, deployment, and management. Provides the legal certainty required for enterprise AI commercialization at scale. This policy has reduced regulatory ambiguity for B2B AI vendors. Risk-classification creates a compliance layer that favors established players with legal infrastructure over informal competitors.

Conclusion & Recommendations

Up to Q1-2026, Vietnam has moved from aspiration to execution in AI and semiconductors. The quarter’s defining storyline was the simultaneous activation of domestic manufacturing ambition, such as FPT’s OSAT plant, Samsung’s testing facility approval, and the entry into force of the full regulatory framework (AI Law, PDP Law, DTI Law). The convergence of investment momentum and legal clarity creates a narrow window of first-mover advantage for foreign investors who move before the market becomes crowded.

For policymakers: The pace of secondary legislation for the AI Law (implementing decrees, the Prime Minister’s high-risk AI list, the National AI Ethics Framework) will determine whether the law’s clarity creates investor confidence or compliance uncertainty. Fast-tracking these instruments in Q2–Q3 2026 is critical.

For businesses: The AI Law’s grace periods (12–18 months) provide a compliance runway, but organizations should begin risk classification of their AI systems now rather than at the deadline. The PDP Law’s cross-border data transfer rules require immediate review for any cloud-based AI service.

For foreign investors: The most actionable opportunity in Q1 2026 is data center and AI infrastructure, where legal openness (100% FDI permitted) meets strong demand pull (AI workloads growing from 8% to 15–20% of data center energy by 2028)[8]. The FPT OSAT plant and Samsung’s testing facility create a domestic supply chain anchor that makes Vietnam more viable for chip design and advanced packaging investment. Engage the Ministry of Planning and Investment early to structure investment to qualify under Decision 1018 and Decree 182’s 50% R&D cost support.

Read more

Vietnam’s Data Center boom: The infrastructure race behind AI growth

Vietnam Semiconductor market: Key updates & investment activities in H1 2025

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[1] FPT announces semiconductor testing, packaging plant

[2] FPT announces the establishment of an Advanced Semiconductor Testing and Packaging plant, accelerating the integration of Vietnam’s Semiconductor value chain

[3] Samsung is building a $1.5 billion chip testing plant in Vietnam.

[4] Over $4.4 billion has been committed to investing in Thai Nguyen.

[5] Samsung Electro-Mechanics to Invest 1.8 Trillion Won in Vietnam for Substrate Expansion < Supply Chain < 기사본문 – The Elec Inc.

[6] Intel plans to expand semiconductor investment in Vietnam – VnEconomy

[7] ST Telemedia Global Data Centres Expands into Vietnam through a Joint Venture with VNG to Build and Operate Data Centres | STT GDC

[8] Vietnam’s Data Center boom: The infrastructure race behind AI growth – B-Company