Vietnam Unveils Landmark Draft AI Law to Strengthen Digital Sovereignty and Attract Global Investment
Vietnam has released a sweeping Draft AI Law that positions the country among the world’s earliest adopters of comprehensive AI regulation. Designed to balance innovation with risk control, the law establishes a clear governance framework that applies to both domestic and foreign AI providers whose systems impact users or national interests in Vietnam. Built on seven core principles—including human-centric development, safety, transparency, and national technological autonomy—the law introduces a four-tier risk classification model similar to the EU AI Act, with strict bans on unacceptable-risk systems and mandatory approval for high-risk applications in sectors such as finance, healthcare, and infrastructure. A National AI Commission, scheduled for launch in mid-2026, will oversee enforcement, manage a national AI database, and set technical standards.
Alongside strict oversight, Vietnam is offering strong incentives to accelerate AI adoption and attract high-quality investment. The draft introduces AI clusters, regulatory sandboxes, PPP-supported national infrastructure, and recognition of AI models and data as capital contributions—an unprecedented move aimed at fostering innovation. The law also outlines a phased implementation timeline beginning in 2026, giving businesses time to classify AI systems, build compliance mechanisms, and establish local partnerships. By formalizing AI governance while creating pathways for innovation, Vietnam signals its ambition to become a competitive AI hub in Asia, offering early-moving investors a strategic advantage in a rapidly evolving digital economy.
Editor’s Note: Vietnam’s Draft AI Law establishes a robust regulatory framework balancing innovation and risk, with a four-tier classification system, bans on unacceptable-risk systems, and mandatory approvals for high-risk applications, overseen by a National AI Commission from 2026. To attract global investment and foster innovation, it introduces incentives like AI clusters, regulatory sandboxes, PPP-backed infrastructure, and recognition of AI models and data as capital contributions, positioning Vietnam as a rising AI hub in Asia.
Vietnam’s Renewable Energy Expansion Gains Traction but Faces Regulatory Roadblocks
Vietnam’s push toward renewable energy is accelerating as the country positions green power as a foundation for sustainable development, energy security, and its 2050 net-zero commitment. Supported by major policies—including Politburo Resolution 70, Decree 57 on direct power purchase agreements (DPPA), and Decree 58 under the revised Electricity Law—the nation is encouraging rapid deployment of solar, wind, biomass, and waste-to-energy projects. Ho Chi Minh City is targeting at least 20% annual growth in renewables, leveraging strong solar irradiation and coastal wind conditions, while industrial hubs like Dong Nai are seeing soaring demand from manufacturers aiming to cut costs and meet ESG goals. Rooftop solar, in particular, is attracting strong corporate and household interest as energy needs increase.
Despite this momentum, the renewable sector continues to struggle with regulatory bottlenecks and slow policy enforcement. Investors and businesses face lengthy administrative procedures, unclear DPPA rules, and practical challenges integrating rooftop solar into the national grid. Industry leaders emphasize that Vietnam must finalize legal frameworks, streamline approvals, and issue clear implementation guidelines—especially for industrial zones—if it hopes to accelerate clean energy adoption and maintain global competitiveness. While the demand for green power is rising sharply, the pace of the transition ultimately depends on how swiftly authorities address these structural obstacles.Top of Form
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Editor’s Note: Vietnam is rapidly expanding renewable energy—driven by strong policy support, rising industrial demand, and growing interest in rooftop solar—to meet its 2050 net-zero goals. However, regulatory bottlenecks, unclear DPPA rules, and slow policy enforcement threaten to stall progress unless legal frameworks and grid integration challenges are swiftly resolved.
EuroCham Honours Vietnam’s Leaders in Sustainability and Innovation at 2025 Gala
EuroCham celebrated the nation’s rising champions of sustainable development at its 2025 Gala Dinner & Business Awards held in Ho Chi Minh City on October 30. Under the theme “Wings of Change,” the event spotlighted companies whose innovations are shaping Vietnam’s next phase of green, resilient growth. With support from EuroCham’s business associations and L’Oréal as diamond sponsor, this year’s awards introduced dual categories for large enterprises and SMEs, recognising impactful contributions across sectors. De Heus Vietnam and Turn Green won Green Business of the Year for LEs and SMEs respectively, while Becamex and Many Touches JSC took home the Business Innovation Awards for their advancements in smart cities, eco-industrial parks, and digital solutions. Carlsberg Vietnam and Cicor Vietnam were awarded the Community Impact titles for their strong commitments to social responsibility and sustainable manufacturing.
City officials and European business leaders emphasised the importance of collaboration in sustaining Vietnam’s green transition. EuroCham chairman Bruno Jaspaert highlighted the resilience and shared purpose driving the country’s transformation, while HCMC Vice Chairman Nguyen Van Dung reaffirmed the city’s commitment to fostering a transparent, investor-friendly environment. With projects ranging from renewable energy adoption and circular production to smart-city development and community resilience, the winners collectively reflect Vietnam’s rapidly evolving economic landscape—one increasingly shaped by sustainability, innovation, and global partnerships.
https://vir.com.vn/eurocham-honours-pioneers-of-sustainable-growth-in-vietnam-139808.html
Editor’s Note: At its 2025 Gala in Ho Chi Minh City, EuroCham honored Vietnamese companies driving sustainable development and innovation, with awards recognizing leaders in green business, smart cities, and community impact across both large enterprises and SMEs. The event underscored Vietnam’s growing role in the global green economy, with officials and business leaders emphasizing collaboration, transparency, and investment in projects spanning renewable energy, circular production, and digital transformation.
Vietnam Outlines Vision for Smart, Green and Inclusive Cities at 2025 Urban Sustainability Summit
The Ministry of Construction, together with the Central Commission for Policy and Strategy, hosted the Vietnam Urban Sustainability Summit 2025 in Hanoi on November 5, gathering more than 500 government leaders, international organisations, and urban development experts. Marking Vietnam Urban Day and Vietnam Law Day, the summit highlighted 2025 as a pivotal year, with Deputy Minister Nguyen Tuong Van emphasising reforms under the two-tier local government model and a decade of progress on the UN’s Sustainable Development Goal 11. Speakers from EuroCham, the World Bank, and the Swiss Embassy underscored that sustainable urbanisation requires strong governance, climate resilience, and cross-sector cooperation. They called for disciplined planning, greener infrastructure, improved housing policies, and strengthened environmental protections.
The conference featured 37 papers, 22 presentations, and three thematic workshops, focusing on innovation, green growth, and modern governance. Delegates stressed that technologies such as IoT, AI, big data, and digital twins are transforming Vietnamese cities, citing Danang, Hue, and Binh Duong as leading examples. Experts warned of worsening climate challenges—including flooding, subsidence, and salinity in coastal regions—and urged integrating climate resilience into planning, finance, and infrastructure. The summit concluded with consensus on developing a national smart-city criteria framework, a unified urban data platform, and an innovation ecosystem linking government, businesses, researchers, and citizens to drive Vietnam’s transition toward smart, green, and inclusive cities.
https://vir.com.vn/vietnam-charts-path-towards-smart-green-and-inclusive-cities-140274.html
Editor’s Note: At the 2025 Urban Sustainability Summit in Hanoi, Vietnam unveiled its vision for smart, green, and inclusive cities, emphasizing governance reforms, climate resilience, and cross-sector collaboration to advance Sustainable Development Goal 11. With over 500 delegates, the summit highlighted the transformative role of technologies like AI and digital twins, and concluded with plans for a national smart-city framework, unified data platforms, and innovation ecosystems to address urban and climate challenges.
Vietnam Accelerates Semiconductor Ambitions as Global Tech Giants Expand Investments
Vietnam is rapidly strengthening its position on the global semiconductor map, driven by coordinated government action, major foreign investment, and rising domestic capabilities. Speaking at SEMIExpo Vietnam 2025, Deputy Minister of Finance Nguyen Duc Tam highlighted the country’s thriving semiconductor ecosystem, now comprising over 50 chip design firms with 7,000 engineers and more than 10,000 workers in packaging, testing, and manufacturing. International giants such as Samsung, Intel, Amkor, Foxconn, and Hana Micron continue expanding operations in Vietnam, while R&D leaders like NVIDIA, Qualcomm, Coherent, and Marvell have selected Vietnam as a strategic base. Key milestones include the construction of Viettel’s first chip manufacturing plant and the rollout of the National Strategy for Semiconductor Industry Development, reinforced by the Law on the Digital Technology Industry—offering unprecedented tax, land, and visa incentives for high-value semiconductor projects.
According to Deputy Minister of Science and Technology Bui Hoang Phuong, Vietnam has already attracted 170 foreign-invested semiconductor projects worth nearly $11.6 billion, with its supply chain focused on chip design and assembly/testing. The government is also developing a small-scale chip fabrication facility for research and pilot production by 2030. Vietnam’s semiconductor strategy emphasises digital transformation, AI, IoT, talent development, strategic partnerships, and high-value R&D, positioning the nation as a “+1” destination amid global supply chain diversification. With strong political stability, a young STEM workforce, and expanding R&D centres from firms like Samsung and Intel, Vietnam aims to evolve from an attractive investment destination into a regional semiconductor hub. Officials affirmed that SEMIExpo Vietnam 2025 will act as a catalyst for innovation and global cooperation, marking Vietnam’s transition from ambition to decisive action in becoming a technological powerhouse.
https://vir.com.vn/vietnams-semiconductor-leap-turning-vision-into-global-leadership-140270.html
Editor’s Note: Vietnam is fast emerging as a global semiconductor hub, backed by government incentives, foreign investment from tech giants like Samsung and Intel, and a growing domestic talent pool in chip design and manufacturing. With 170 foreign-invested projects worth $11.6 billion and strategic initiatives like SEMIExpo Vietnam 2025 and a national chip strategy, the country is transitioning from ambition to action in digital transformation and supply chain leadership.
Thailand Sharpens Semiconductor Strategy for 2025 as It Positions to Become a Regional Tech Hub
Thailand is moving assertively in 2025 to elevate its standing in the global semiconductor supply chain, shifting from legacy back-end electronics toward higher-value advanced packaging, power electronics, and selective front-end capacity. The Board of Investment (BOI) has fast-tracked a semiconductor strategic roadmap, backed by long tax holidays, tariff exemptions, and accelerated approvals under its 2025 investment-promotion framework. Major data-centre investments—including TikTok’s USD3.76 billion project and USD2.7 billion in cloud infrastructure approvals—are creating strong demand for power devices and advanced modules adjacent to semiconductor manufacturing. Authorities are also courting global chipmakers to anchor wafer, OSAT, materials, and equipment facilities within the Eastern Economic Corridor, aiming to capture supply-chain diversification flows and accelerate ecosystem build-out.
A parallel national effort is underway to solve the talent bottleneck. Thailand’s higher-education and innovation agencies have launched National Semiconductor Training Centres, partnerships with global institutions, and semiconductor “sandbox” engineering programs across five universities to rapidly scale job-ready talent. With analysts projecting the need for tens of thousands of engineers through 2030, the country is prioritising skills for advanced packaging, SiC-based power electronics—aligned with its EV strategy—and supplier localisation in chemicals, gases, and test equipment. While Thailand faces challenges in front-end capacity and design maturity relative to regional peers, its sequenced strategy, strong industrial base, and accelerating investment momentum position it to emerge as a competitive and resilient semiconductor hub in Southeast Asia over the next five years.
https://www.semi.org/sea/blogs/October-2025
Editor’s Note: Thailand is advancing its 2025 semiconductor strategy with tax incentives, fast-tracked approvals, and major investments in advanced packaging, power electronics, and ecosystem development within the Eastern Economic Corridor. To address talent gaps and support its EV-aligned goals, the country is scaling semiconductor training programs and localizing supply chains, aiming to become a competitive Southeast Asian tech hub despite front-end capacity challenges.
Technology Meets Safety: Thailand Smart City Expo & Secutech Thailand 2025 Set to Transform Urban Innovation
Thailand is gearing up for a landmark event in urban technology as the Thailand Smart City Expo 2025 and Secutech Thailand 2025 come together at QSNCC from November 5–7, 2025. Organized by depa, N.C.C. Management & Development Co., Ltd., and Messe Frankfurt (HK) Ltd., the dual expo will showcase over 800 innovations and feature 80 expert-led seminars focused on smart mobility, energy, IoT, smart living, and digital infrastructure. With more than 210 cities preparing smart city proposals and 37 already selected as pilot projects, the event highlights Thailand’s ambitious national push toward intelligent, connected, and sustainable urban development. The expo is expected to attract over 15,000 visitors and generate 1.2 billion baht in economic activity.
Running alongside it, Secutech Thailand 2025 will spotlight the latest advancements in AI-driven surveillance, fire safety systems, emergency communication, and smart mobility solutions, reinforcing the essential role of safety technologies in modern cities. Backed by Thailand 4.0 and the EEC, the event is set to welcome more than 400 global brands and 14,000 attendees. Together, both expos will unite policymakers, innovators, and industry leaders to explore future-ready solutions and strategies, cementing Thailand’s trajectory toward resilient, technology-enabled, and secure urban living.
Editor’s Note: Thailand Smart City Expo 2025 and Secutech Thailand 2025 will convene over 800 innovations, 400 global brands, and 29,000 attendees to showcase cutting-edge solutions in smart mobility, energy, digital infrastructure, and urban safety. Backed by Thailand 4.0 and the EEC, the dual event highlights the country’s push toward intelligent, secure, and sustainable cities, with over 210 smart city proposals and a projected economic impact of 1.2 billion baht.
Spyware Attacks on Southeast Asian Firms Surge 70%, Over 21,000 Incidents Recorded in Thailand
A sharp escalation in targeted spyware attacks across Southeast Asia has put regional businesses on high alert, according to a new report from global cybersecurity firm Kaspersky. From January to June 2025, enterprises in the region faced 427,265 spyware incidents — a 70.73% jump from the same period last year. Vietnam logged the highest number at 191,976 cases, followed by Malaysia (96,539) and Indonesia (85,560). Thailand ranked fourth with 21,014 attacks on corporate systems, underscoring the growing sophistication and scale of cyber-espionage operations targeting the region’s digital infrastructure.
Kaspersky warned that spyware poses a severe threat due to its stealthy nature, enabling attackers to capture keystrokes, screen activity, login credentials, financial data, and sensitive corporate information without detection. The rise of commercial spyware — tools sold to governments and private actors capable of exploiting zero-click vulnerabilities — further heightens organisational risk. With advanced surveillance tools like Pegasus continuing to circulate, Kaspersky urges companies to adopt multi-layered cybersecurity measures, including regular software updates, VPN use, device rebooting, threat intelligence monitoring, and deployment of robust security solutions to counter the expanding espionage landscape.
More than 21K spyware attacks on Thai businesses in H1 2025
Editor’s Note: Spyware attacks on Southeast Asian firms surged over 70% in early 2025, with Vietnam, Malaysia, Indonesia, and Thailand collectively facing more than 427,000 incidents, highlighting the growing threat to regional digital infrastructure. Kaspersky warns of rising commercial spyware and urges businesses to adopt multi-layered cybersecurity strategies to counter stealthy surveillance tools like Pegasus.
Delta Summit 2025 Spotlights AI-Driven Growth and Sustainability Challenges in Southeast Asia
Delta Electronics (Thailand) CEO Victor Cheng used the Delta Future Industry Summit 2025 to highlight both the momentum and the mounting pressures facing Southeast Asia’s industrial transformation. He noted that rapid growth, powered by AI, digital innovation, and the region’s expanding role in global manufacturing, continues to reshape industrial operations. While AI is boosting productivity, efficiency, and automation—evidenced by Delta’s tripling of revenue with only a modest workforce increase—Cheng warned that infrastructure gaps, workforce readiness, and energy constraints could hinder future gains. He urged governments and businesses to reinforce resilience through infrastructure expansion, market diversification, and accelerated adoption of AI, smart automation, and high-value technologies.
A major focus of the summit was sustainability, with Cheng emphasising that Southeast Asia’s rising industrial and data-centre activity is straining outdated energy systems. He pointed to microgrids and smart energy solutions as vital to supporting the regional shift toward renewable power, projecting strong market growth by 2030. The event also showcased advanced technologies—including smart energy and EV charging systems, digital twins, and building automation—positioning the region at the centre of the transition to green, intelligent industries. Speakers from Thailand’s Ministry of Industry and Delta’s global leadership underscored that the future of industry will depend on integrating AI, automation, and clean energy while strengthening grid resilience and ensuring long-term sustainability.
https://www.nationthailand.com/business/tech/40057913
Editor’s Note: At the Delta Future Industry Summit 2025, leaders spotlighted Southeast Asia’s AI-driven industrial growth and warned of infrastructure, energy, and workforce challenges that could hinder progress. Emphasizing sustainability, the summit showcased smart energy, EV charging, and automation technologies, urging regional collaboration to integrate AI and clean energy for resilient, future-ready industries.
Thailand Faces US$6 Billion Annual Digital-Services Deficit Amid Agreement Not to Tax US Tech Giants
Thailand continues to enjoy a strong trade surplus with the United States in physical goods, but the country is simultaneously incurring a massive annual deficit — over 200 billion baht (around US$6 billion) — in digital-services trade. Analysts attribute this widening gap to the absence of a digital-services tax on major US platforms such as Apple, Google, Netflix, Meta, and Spotify, where Thai consumers and advertisers spend heavily on subscriptions, cloud services, and online advertising. E-commerce specialist Pawoot Pongvitayapanu notes that the outflow is accelerating as digital consumption rises, with social-media advertising and platform-based commerce contributing significantly to the deficit.
Despite mounting losses, Thailand has agreed — alongside Malaysia and Cambodia — not to tax US-based digital-services providers under a recent framework with the United States, which opposes digital-services taxes that disproportionately affect its tech firms. The stance contrasts sharply with Europe, where regulators impose digital-services taxes and antitrust penalties on major tech companies, including a €797.72 million fine on Meta. Experts say this reflects a broader US strategy: while the country protects its goods market with higher tariffs, it aggressively promotes open global digital-commerce regimes to maintain its dominance and large surplus in cross-border digital services. The stakes are high — the global digitally delivered services market reached US$4.77 trillion last year, growing nearly 10% and outpacing the rest of global trade, with estimates placing the broader digital-services economy at roughly US$33 trillion.
https://www.nationthailand.com/business/tech/40057558
Editor’s Note: Thailand faces a US$6 billion annual deficit in digital-services trade, driven by rising consumer and advertiser spending on US platforms like Apple, Google, and Meta, which remain untaxed under a recent agreement. While Europe imposes digital-services taxes and penalties, Thailand’s stance reflects a broader US strategy to preserve its dominance in the fast-growing global digital economy, now valued at over US$33 trillion.
APAC Leads Global AI Adoption but Workers Face Rising Anxiety Over Job Security
A new Boston Consulting Group (BCG) survey shows Asia Pacific (APAC) at the forefront of global generative AI adoption, with 78% of employees using AI at least weekly — higher than the global average of 72%. Driven largely by frontline, non-managerial workers, APAC’s usage reflects strong grassroots innovation and digital ambition, especially in markets like India, where adoption reaches 92%. Optimism about AI also varies widely across the region, with China, Indonesia, and Malaysia among the most positive, while Japan remains a clear outlier with the lowest adoption and optimism rates. Despite this momentum, AI uptake in APAC often happens informally: 58% of workers use AI without official employer approval, while only 57% say their companies are redesigning workflows to integrate AI effectively. Meanwhile, 77% report exposure to autonomous AI agents, yet just one-third understand how these systems work — highlighting a major governance and education gap.
Alongside this enthusiasm, APAC workers also express some of the world’s highest fears about AI replacing jobs. Over half of frontline workers in the region worry about job loss, compared with lower global averages. Thailand (71%), South Korea (66%), and Singapore (65%) show the highest anxiety, while Japan again stands apart with the lowest concern at 40%. This paradox of high adoption paired with high job insecurity underscores the challenges businesses face in balancing innovation with responsible deployment. BCG leaders warn that without stronger leadership direction, clearer guardrails, and structured upskilling, organisations risk falling into a “gap between experimentation and execution.” To turn APAC’s rapid adoption into sustainable business impact, companies must invest in governance, employee support, and transparent AI strategies that build both capability and confidence.
https://www.nationthailand.com/blogs/business/tech/40057759
Editor’s Note: Asia Pacific leads global generative AI adoption, with 78% of employees using AI weekly—driven by grassroots innovation and strong uptake in markets like India—yet much of this use remains informal and poorly integrated into workflows. Despite the momentum, APAC workers show high anxiety about job security, prompting BCG to urge companies to invest in governance, upskilling, and transparent AI strategies to bridge the gap between experimentation and sustainable impact.
Thailand Confirms US Trade Talks Unaffected by Thailand-Cambodia Conflict
Thailand’s Commerce Minister Suphajee Suthumpun has reaffirmed that trade negotiations with the United States will continue as planned despite ongoing diplomatic tensions between Thailand and Cambodia. She stressed that political disputes will not interfere with economic cooperation, noting that the US—during discussions at the recent APEC summit—made clear its separation of political issues from trade matters. Suphajee also stated that Cambodia had violated the Joint Declaration agreement, causing losses for Thailand, but emphasized that this should not influence ongoing US–Thailand trade discussions. Both nations aim to conclude negotiations by the end of the year, reflecting strong interest from their private sectors for clearer trade and investment frameworks.
On November 11, 2025, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas met with Ted Osius and US business leaders from the US-ASEAN Business Council, who praised Thailand’s growing importance in global supply chains and its proactive push for free trade agreements. Discussions also touched on US tariff issues, with American companies acknowledging both opportunities and challenges, particularly for firms with operations in Thailand. Suphajee reiterated that the US remains a crucial trade partner and that Thailand will continue expanding new markets to reduce reliance on any single economy, protect its export sector, and promote sustainable long-term growth.
https://www.nationthailand.com/business/economy/40058188
Editor’s Note: Thailand has confirmed that its trade talks with the US will proceed unaffected by tensions with Cambodia, emphasizing that political disputes will not hinder economic cooperation. With strong private sector interest and support from US business leaders, both nations aim to finalize negotiations by year-end, as Thailand seeks to diversify markets, strengthen supply chain roles, and ensure sustainable export growth.