Opportunity for Vietnam to identify right competitive edge for breakthroughs in AI

However, turning this opportunity into a real competitive advantage will require a coordinated strategy covering talent, data, digital infrastructure and a clear positioning within the global technology ecosystem.

According to Assoc. Prof. Dr. Nguyen Thanh Phuong of the Department of Information Engineering, Computer Science and Mathematics (DISIM) at the University of L’Aquila, Italy, Vietnam is unlikely to compete directly with leading technology hubs such as Silicon Valley or Singapore in the global race for STEM talent, particularly in terms of compensation.

However, the country possesses a unique asset in its network of Vietnamese intellectuals and experts working at universities, research institutes and major technology corporations around the world.

Rather than focusing solely on full-time repatriation programs, Vietnam should develop a “borderless national intellectual network,” enabling overseas experts to contribute as visiting professors, strategic advisers, remote research team leaders or co-directors of key laboratories, Phuong stressed.

This flexible model will allow Vietnam to tap into global knowledge without requiring experts to give up their international careers.

Many leading scientists are motivated not only by income but also by the desire to create tangible impact for their home country, help train the next generation and contribute to Vietnam’s long-term development. The opportunity to contribute to Vietnam’s development is itself a unique competitive advantage that no other country can replicate.

Beyond human resources, data is becoming a strategic resource in the AI era, the expert added.

However, making use of global technology infrastructure while safeguarding national data sovereignty remains a complex challenge.

Nguyen Thanh Phuong said Vietnam should avoid framing this as a choice between international technology and domestic infrastructure, and instead build a multilayered data sovereignty model.

The first layer is physical sovereignty, under which highly sensitive data is stored on infrastructure located within Vietnam’s territory. The second is legal sovereignty, ensuring governance, access and use of data remain in Vietnamese hands.

The third is cryptographic sovereignty, under which encryption and decryption keys must be fully managed by domestic agencies and organizations.

Nguyen Thanh Phuong stated that the core issue in digital sovereignty lies not in where servers are located, but in who truly controls the data and systems.

Assessing Vietnam’s role in global technology value chains, Nguyen Thanh Phuong said one common mistake among many countries is attempting to build products solely for domestic markets or creating substitutes for technology products already successful elsewhere.

In today’s knowledge economy, no country can fully master the entire technology value chain on its own. To build globally competitive products, Vietnam must focus on areas where it holds distinct advantages, master core technologies in niche segments with strong global demand, and position itself as an indispensable link in the technology ecosystem.

Potential areas include data infrastructure for Southeast Asia, digital identity, cybersecurity for the Internet of Things (IoT), and highly secure public data governance platforms.

In AI, Nguyen Thanh Phuong said Vietnam needs to adopt a strategy in line with its current resources.

Rather than competing to develop large-scale foundation models such as GPT or Gemini, Vietnam should focus on applied AI, using advanced open-source models such as Llama, Mistral, Qwen and DeepSeek to develop solutions tailored to specific needs in education, healthcare, agriculture, public administration and manufacturing.

Another priority is the development of small language models (SLMs). Compared with large-scale models, SLMs are more cost-efficient, require less computing infrastructure and can be deployed directly within internal systems of businesses or government agencies, thereby strengthening data protection.

Applications such as public administration assistants, legal chatbots and support tools for hospitals or schools could operate effectively on such platforms.

He also proposed promoting an “AI plus sector” strategy, applying AI in areas where Vietnam already has advantages in data availability and practical demand, including healthcare, education, agriculture, digital government and software industries.

These are highly localized sectors where domestic companies enjoy clear advantages over global technology corporations, he said, adding thatVietnam should also pay close attention to safe and trustworthy AI.

As countries place greater emphasis on managing AI-related risks, demand for technologies that test, monitor and ensure AI system safety is expected to rise sharply in the coming years.

This is seen as a market with considerable growth potential, offering Vietnam an opportunity to participate at an early stage.

To realize these goals, Nguyen Thanh Phuong stressed the importance of stronger links between research institutions and businesses. At present, the gap between universities and research institutes and the business sector remains considerable.

The State should therefore play an enabling role by investing in shared infrastructure such as national GPU server clusters, standardized open data repositories, and joint laboratories linking universities with technology enterprises.

According to him, in the AI era, competitive advantage does not necessarily come from having the largest capital base or the most expensive technology.

What matters more is the ability to identify the right position in global value chains, make effective use of available human and data resources, and develop products that address real societal needs.

With a focused strategy and the right priorities, Vietnam can turn AI and digital technology into new growth drivers and strengthen national competitiveness in the years ahead.

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