Editor’s note: Discover Vietnam Tech is a new series where we dive deep into the vibrant and rapidly growing tech and innovation ecosystem of Vietnam. In this collection of interviews and editorials, we will spotlight key players—entrepreneurs, innovators, and thought leaders—who are driving the country’s emergence as a global tech hub.

Through candid conversations with industry leaders, we aim to explore the opportunities, challenges, and breakthroughs shaping Vietnam’s tech landscape. From emerging technologies like AI and blockchain to the nation’s efforts to nurture homegrown talent and innovation, Discover Vietnam Tech will give you exclusive insights into how Vietnam is positioning itself at the forefront of the global technology scene.

Stay tuned as we highlight the voices and visions of those at the heart of Vietnam’s tech revolution, offering a unique window into the country’s potential as a leader in innovation and digital transformation.

Vietnam has made significant progress in nurturing a tech ecosystem that’s dynamic and growing. But if we want to compete globally, there’s no room for complacency. The groundwork is laid, but what’s needed now is a strategic push to close the gaps in critical areas, allowing Vietnam to move from being a regional player to a global tech leader.

From my perspective, having navigated the Vietnamese tech landscape for the past five years with Genetica and LIFE AI, I believe the government’s role is pivotal—not just in terms of providing support, but in accelerating systemic change where it’s most needed.

1. Streamline regulations and cut bureaucracy — speed is everything

Regulatory reform is the linchpin of progress. The global tech industry moves fast, and slow, cumbersome processes can stifle innovation. While the government has done a good job promoting foreign investment—$27.72 billion in FDI in 2022 (Vietnam General Statistics Office, 2023)—the reality is that the bureaucratic maze surrounding things like IP registration or cross-border investments can create friction, especially for fast-growing tech companies. We simply cannot afford to have startups bogged down by red tape when the tech world is moving at lightning speed.

If Vietnam wants to retain its competitive edge, we need clearer, faster pathways for tech companies to operate and expand. A fast-track process for innovative startups, particularly those working in AI, blockchain, and biotech, should be introduced to make it easier for companies to get off the ground and scale internationally. Being first to market is a key advantage, and every day of regulatory delay costs potential revenue and innovation.

2. Talent is the lifeblood of innovation — and we’re losing it

One of Vietnam’s greatest strengths is its young, ambitious workforce. But as it stands, we’re not doing enough to retain this talent. The brain drain is real—70% of IT companies in Vietnam report significant challenges in hiring skilled professionals, especially in advanced tech fields like AI and blockchain (Navigos Group, 2023). What’s more concerning is that many of our brightest minds are leaving for better opportunities abroad, attracted by more competitive salaries and advanced research environments.

The government must be proactive in addressing this. It’s not just about creating opportunities—it’s about making those opportunities too good to refuse. Offering attractive salary packages, research grants, and global collaboration opportunities can keep talent in Vietnam, where they are needed most. Additionally, public-private partnerships between universities and tech companies are crucial in training the next generation of specialists in AI, cybersecurity, and data science. Without a skilled workforce, Vietnam’s tech industry will struggle to keep pace with global competitors.

3. Build innovation hubs beyond major cities – make innovation inclusive

Right now, most of the country’s innovation efforts are concentrated in Hanoi, Ho Chi Minh City, and Danang. While these cities are thriving, Vietnam’s long-term growth depends on spreading this innovation more broadly across the country. The National Innovation Center is a great start, but we need to think bigger. Creating regional tech hubs and incubators in other cities would ensure that innovation isn’t concentrated in just a few areas, but is accessible to everyone. The country’s 44th position in the Global Innovation Index is impressive (World Intellectual Property Organization, 2023), but we can aim higher by fostering inclusive growth in all regions.

This also ties into digital infrastructure. Expanding high-speed internet access in rural areas would allow startups in these regions to thrive and contribute to the country’s overall growth. It’s not just about giving everyone the tools they need to succeed—it’s about creating a nationwide ecosystem that is resilient and diversified.

4. R&D is non-negotiable — Vietnam must invest more

Research and Development (R&D) is the backbone of tech innovation. Countries like South Korea and Singapore have understood this for years, investing heavily in R&D and reaping the rewards with booming tech sectors. For Vietnam, the government needs to supercharge its R&D funding. Currently, R&D spending in Vietnam is relatively low compared to other nations. If we want to be competitive, there’s no other option but to increase R&D funding, particularly in emerging areas like AI, machine learning, and biotech.

In my experience at Genetica and LIFE AI, investing in R&D has been essential for our growth. It’s allowed us to develop cutting-edge solutions that cater specifically to the needs of the Vietnamese and Southeast Asian markets, while also positioning us as global players. Imagine what the entire tech ecosystem could achieve if more companies had access to similar funding and resources.

In addition, strengthening IP protection will encourage local innovators to take bigger risks, knowing their inventions are safeguarded. Robust IP laws also attract foreign R&D investments, something that will be key for Vietnam’s growth in the coming years.

5. International collaboration — Vietnam needs to be a tech leader, not just a player

Vietnam has the potential to be a global tech leader, not just a regional player. To do this, the government should actively promote international collaboration. Vietnam is already making waves with blockchain and Web3 technologies, top ranking third globally in the 2023 Cryptocurrency Global Adoption Index (Chainalysis, 2023). Now is the time to build on that momentum by creating bilateral agreements with leading tech nations like the U.S., Japan, and Europe.

Encouraging tech exchanges and collaborative R&D projects with global institutions would elevate Vietnam’s standing on the world stage. Being part of these global networks will help Vietnam stay ahead in key industries like blockchain, AI, and precision healthcare.

Conclusion: Aim higher, move faster

Vietnam has the potential to be a world-class tech hub, but realizing this vision will require a sharp focus on the fundamentals: clear regulations, talent retention, R&D investment, and global collaboration. The groundwork is there, but now is the time for bold actions. As someone who has seen firsthand the challenges and opportunities that exist in Vietnam’s tech ecosystem, I believe the government has a crucial role to play in accelerating growth. The question isn’t whether Vietnam can become a global tech leader the question is, how fast can we get there?

#VietnamTech #InnovationEcosystem #AI #Blockchain #TechLeadership #Ifvex