At the first meeting in 2026 of the Government Steering Committee on science and technology development, innovation, digital transformation and Project 06, Prime Minister Pham Minh Chinh emphasised that: “If 2025 was the year in which we built momentum, foundations and confidence, then 2026 must be the year of breakthroughs, a year to turn the tide, accelerate and surge ahead, shifting from a primarily passive management approach to one that proactively creates and serves the people.”

Policy leading the way for breakthroughs

The Prime Minister’s message is not only a call to action for the administrative apparatus but also a strategic orientation for the entire economy. Achieving double-digit growth cannot rely solely on the three traditional drivers of investment, exports and consumption.

Science, technology, innovation and digital transformation must become new engines, providing the impetus for the economy to accelerate.

In that context, a transparent and pioneering legal framework will serve as a runway for Vietnamese enterprises to take off and participate more deeply in global value chains.

In reality, the growth rate of Viet Nam’s digital economy in recent years has consistently outpaced overall GDP growth. This reflects a structural shift towards modernisation while also underscoring the urgent need to refine institutions to ensure rapid yet sustainable development.

Against this backdrop, drafting and passing the Law on Artificial Intelligence is an inevitable step. Policy cannot lag behind technology. As the Prime Minister has repeatedly stressed, technology waits for no one and no country. If we fall behind, we will miss the golden opportunity presented by the Fourth Industrial Revolution.

Over the past decade, Viet Nam has not seen any additional domestic technology companies launch initial public offerings. Some have even chosen to list abroad.

Chad Ovel, Chief Executive Officer of Mekong Capital, frankly noted that many Vietnamese start-ups choose to establish their headquarters overseas, such as in Singapore, to more easily access international investors.

He said this is because regulations in those countries are already well developed. Procedures for investment, capital withdrawal and labour registration can be completed easily, and funding can be obtained within just 10 days.

This observation highlights a reality: capital flows towards good ideas and favourable, transparent and stable legal environments. If the domestic legal framework is slow to develop, businesses will seek locations with better conditions.

Taking digital payments as an example, Le Hoang Uyen Vy, co-founder and chief executive of Do Ventures, said that many years ago there was no law governing online payments. Later, a sandbox mechanism for digital payments was introduced. Many companies joined the sandbox to test their solutions for several years, demonstrating certain efficiencies while allowing regulators to observe potential risks. On that basis, regulators were then able to grant official licences.

“The sandbox mechanism itself demonstrates the approach of managing for development. With AI, a field characterised by rapid innovation and potential risks related to data and technological ethics, a clear legal framework aligned with international standards will help businesses invest with confidence while protecting the rights of citizens,” Vy said.

Csaba Bundik, chief executive of Ceta Consulting, assessed that Viet Nam’s early issuance of a law on AI is a strategic step to maintain and enhance global competitiveness. Major markets such as the United States and the European Union have already introduced strict regulations on AI, data and technological ethics.

The Law on Artificial Intelligence is not only intended for domestic management but also serves as a passport for Vietnamese enterprises to enter the global arena.

The story of AirCity in Ho Chi Minh City offers a concrete example. With its smart building management solution, the company received a non-refundable grant of 400 million VND from the city’s start-up acceleration policy. This support enabled the company to refine its product, commercialise it quickly and deploy it in multiple buildings.

Le Hoang Nhat, AirCity’s chief executive officer, said that the city’s budget support had helped start-ups accelerate research, complete their products and bring them to market more rapidly.

Beyond financial assistance, Ho Chi Minh City has also implemented a commissioned training mechanism with universities.

Le Tan Cuong, deputy director of the Innovation, Entrepreneurship and Technology Transfer Centre at Ho Chi Minh City University of Technology and Education, observed: “We commission scientists within universities to carry out the work. The assignment is very clear and the resulting products can be applied immediately.”

Such local policies demonstrate that when the State plays a facilitating role, connecting businesses, universities and scientists, the innovation ecosystem can operate more effectively.

800 AI start-ups and the capital challenge

In 2024, the total capital raised by Vietnamese AI start-ups reached around 80 million USD, eight times higher than in 2023. However, if this “pie” is divided among 800 enterprises, each would receive only about 100,000 USD, a rather modest figure compared with the global start-up investment landscape, which totals roughly 150 billion USD.

Tran Van Vien, founder of Filum AI, said that the situation for start-ups has changed significantly. “Previously, start-up founders were like chefs who only needed to make a beautiful cake to raise capital. Now investors want the cake to be delicious and healthy as well. If I had to describe it in one word, it would be real value. You need to demonstrate convincing revenue streams and customer demand,” he said.

The mindset of localising technology can only flourish when the legal environment is flexible enough to encourage experimentation and innovation. If designed with an open approach and risk-based regulation, the Law on Artificial Intelligence will create conditions for Vietnamese AI companies to emerge and grow.

However, at the national level, the human resources challenge remains significant. Each year the market faces a shortage of between 150,000 and 200,000 technology workers, with the most severe deficit in AI specialists. Without a strong talent pool, ambitions for AI will be difficult to realise.

Recognising data as a strategic resource and a core foundation for breakthroughs in the digital economy, the government is promoting a series of synchronised policies, from institutional reforms and digital infrastructure development to human resource training.

If developed with a long-term vision, the Law on Artificial Intelligence will simultaneously address three key requirements: ensuring safety and technological ethics, encouraging innovation and building confidence among domestic and international investors.

As Viet Nam targets high growth, even double-digit expansion in the coming years, innovation in general and AI in particular will become crucial drivers. Yet these drivers can only be effective when there is unified action, from mindset to practice, from the central government to local authorities, and from regulators to businesses.

As directed by the Prime Minister, 2026 must be a year of “breakthroughs and turning the tide”. In this context, the Law on Artificial Intelligence, which took effect on March 1 this year, is not merely a legal document. It represents a declaration of development aspirations and Viet Nam’s commitment to proactively participating in and shaping the global technology landscape.