In an effort to establish itself as a major Asian digital hub, Ho Chi Minh City, the largest city in Vietnam, is strategically investing in cutting-edge technologies like blockchain, artificial intelligence (AI), and 5G.
According to local reports, the city plans to allocate at least 3% of its annual budget to research and development in cutting-edge technologies by 2030. In 2024, the city’s budget stood at 502 trillion VND ($20.5 billion), signaling a significant commitment to digital transformation.
According to Resolution 57-NQ/TW, a framework presented by the Communist Party of Vietnam in December, this project is in line with Vietnam’s larger economic goal. With digital contributions accounting for half of the national economy, the roadmap seeks to establish Vietnam as a high-income country by 2045 and increase the digital economy’s part to at least 30% of GDP by 2030.
Startups and Centers of Excellence
Ho Chi Minh City wants to develop 5,000 companies and create five centers of excellence that specialize in key technology domains as part of its tech-driven growth strategy. Vietnam, which ranked sixth in Southeast Asia and 31st globally last year, has already achieved notable progress in the startup environment. In terms of startup activity, the two biggest cities in the nation—Hanoi and Ho Chi Minh City—were placed 157th and 111th globally, respectively.
Blockchain Leadership and AI Challenges
Vietnam has been a global frontrunner in blockchain adoption, topping the Chainalysis index in 2021 and 2022 before slipping to fifth place in the latest rankings. Businesses across various sectors, including agriculture, have leveraged blockchain for supply chain transparency, with several firms using the technology to certify halal compliance.
However, Vietnam lags behind in AI readiness, ranking fifth in Southeast Asia and 39th globally. To close this gap, Ho Chi Minh City plans to boost semiconductor production—an essential component of AI infrastructure. With ten million residents, the city already hosts Intel’s $1.5 billion semiconductor assembly and test facility, the American tech giant’s largest of its kind globally. Yet, it faces stiff competition from Bac Ninh, a northern Vietnamese city home to Amkor’s $1.6 billion semiconductor plant.
Cashless Economy and Digital Integration
In addition to supporting technological innovations and entrepreneurs, Ho Chi Minh City is concentrating on digitizing its economy. In order to further integrate digital solutions into everyday transactions, authorities are aiming for an 80% adoption rate of cashless payments.
With these ambitious investments, Ho Chi Minh City is positioning itself as a key player in the digital economy, aspiring to become a regional powerhouse in blockchain, AI, and emerging technologies.
