Vietnam’s GDP growth came in at 7.83 per cent year-on-year in the first quarter of 2026, building on the strong 8.02 per cent result in 2025 as a whole and placing the country among the region’s most dynamic economies. Alongside rapid urbanization and rising incomes, demand for transportation that is convenient, safe, and efficient has increased sharply. AI is raising expectations of a fundamental transformation in Vietnam’s transportation, logistics, and urban systems. 

At the “Mobility, Artificial Intelligence (AI) and Society: Strengthening the Future of Transportation in Vietnam” workshop, co-hosted by the Vietnam Economic Association (VEA), Vietnam Economic Times / VnEconomy, and the Tech for Good Institute (TFGI), in coordination with the Institute for Policy and Strategic Studies (IPSS), experts argued that the greatest challenge is no longer technology itself but rather the ability to integrate data, expand energy infrastructure, and prepare a workforce capable of adapting to an entirely new transportation landscape.

Data comes first

In every smart transportation system, from traffic signal optimization and freight management to urban planning and emissions control, data forms the operational foundation.

Mr. Truong Manh Tuan, Deputy Head of the Environmental Quality Management Division at the Department of Environment under the Ministry of Agriculture and Environment, said transportation remains one of the largest sources of emissions in major cities such as Hanoi and Ho Chi Minh City, alongside construction and industrial activities. Air pollution in large urban centers has persisted for years and exceeded regulatory thresholds over extended periods.

As a result, resolving urban environmental problems requires comprehensive rather than piecemeal approaches, with transportation emissions control playing a central role.

Under the current roadmap, Vietnam has begun tightening emissions standards for motor vehicles. Notably, mandatory motorcycle emissions inspections are scheduled to take effect on July 1, 2027. However, according to Mr. Tuan, the objective is not to eliminate vehicles but rather to foster regular maintenance habits and emissions monitoring. Studies suggest that many motorcycles can reduce emissions by 70-90 per cent after proper servicing.

Experts also agreed that AI ambitions will remain limited unless the country first addresses its data challenge. Without sufficiently large environmental and transportation datasets, emissions inventories, real-time monitoring, and accurate policy design become difficult to implement.

Dr. Tran Tien Dung from the Urban Development Agency at the Ministry of Construction said AI and the Internet of Things (IoT) are fundamentally reshaping how cities organize transportation systems. While transportation planning once relied largely on periodic surveys and static snapshots in time, AI now makes it possible to build real-time “mobility maps” using continuous data collected year-round.

This enables cities to better identify travel demand, congestion hotspots, and residents’ access to services. More importantly, AI is helping shift planning philosophy from “organizing transportation for mobility” to “designing cities to reduce the need for travel.” The concept of the “15-minute city,” where essential services are accessible within short distances, is increasingly viewed as a promising model for data-driven urban planning.

Beyond planning, AI is also expected to support traffic flow management, signal optimization, enforcement, and real-time urban operations. However, despite these technological ambitions, Vietnam still lacks an interoperable data platform connecting sectors and levels of government, widely seen as the biggest “soft bottleneck” to smart transportation development.

Infrastructure gaps

Alongside AI, the transition to new-energy vehicles is becoming another major force reshaping urban transportation in Vietnam. But as electric vehicle (EV) adoption expands beyond early adopters to mainstream consumers, shortcomings in infrastructure and technical standards are becoming increasingly visible.

Ms. Nguyen Thi Nhat Ha from Voltality Pte Ltd said early adopters may tolerate inconveniences such as limited charging stations or the need to use multiple apps to operate EVs, but mainstream users expect a level of convenience comparable to gasoline-powered vehicles. “Vehicles must fit consumers’ existing lifestyles, rather than forcing them to completely change their lifestyles for EVs,” she said.

According to experts, Vietnam’s EV market remains largely confined within relatively closed ecosystems. What is missing is an open ecosystem in which users can access shared charging infrastructure across different vehicle brands.

The issue extends beyond technology and is closely tied to regulatory frameworks and technical standards. Vietnam currently lacks unified standards for charging stations, connectors, electrical safety, and fire prevention systems for EV infrastructure. This uncertainty has made many international investors cautious despite strong market potential.

Dr. Dung suggested Vietnam could draw lessons from the mobile phone industry’s transition toward standardized Type-C charging ports in designing a common EV charging framework. Only with harmonized standards, he argued, can the market develop openly and foster genuine competition.

At the same time, EV growth is creating new pressure on energy infrastructure. AI is expected to help optimize electricity demand, allocate charging networks, and coordinate energy loads across regions. But operating a large-scale EV ecosystem efficiently will require far closer coordination between urban planning, energy systems, and transportation policy.

Inclusive transition

While AI and smart transportation are reshaping cities, they are also transforming labor markets. Ms. Trinh Thu Nga of the Institute of State Organizational and Labor Sciences at the Ministry of Home Affairs said the transition toward green and intelligent transportation is creating new employment opportunities in areas such as EV charging infrastructure operations, AI-powered logistics coordination, and digital transport platform management.

Yet those opportunities come alongside significant adaptation pressures for traditional workers, from motorcycle drivers and gig delivery workers to informal logistics laborers. While technology evolves monthly, retraining workers can take years.

Vietnam’s current paradox is that the country not only lacks AI specialists but also faces shortages of mid-level technical workers, broad-based digital skills, and flexible retraining mechanisms for adult workers. Without adequate preparation, digital transformation risks widening skills gaps and increasing the likelihood that parts of the workforce will fall behind.

As a result, many experts believe smart transportation development must be accompanied by comprehensive workforce and skills strategies. Investment in technology must go hand-in-hand with investment in people.

At the same time, smart transportation should be viewed as an integral component of a modern labor market. Beyond mobility, transportation determines workers’ access to jobs, labor mobility, and ultimately economic productivity.

As green and digital transitions accelerate simultaneously, calls are growing for stronger “transition safety nets” for workers, including retraining programs, social insurance protections, and career transition support.

Ultimately, the success of smart transportation will not be measured by the number of technologies deployed, but by whether people can travel more conveniently, workers have access to better opportunities, and society becomes more inclusive.