Vietnam at a Turning Point to Become a New Regional Tech Hub: A Vision from Next-Generation FDI Inflows

Vietnam’s Information Technology (IT) market is entering a new developmental cycle, where traditional values of low-cost labor are being replaced by a race for Artificial Intelligence (AI), semiconductors, and large-scale data infrastructure. According to the e-Conomy SEA report, Vietnam’s digital economy is projected to reach $45 billion by 2026, maintaining double-digit growth and positioning the country as one of the fastest-growing digital transformation markets in Southeast Asia. This shift is no longer just a forecast but is evidenced by the digital economy contributing over 15% to the national GDP.

Challenges from Global Minimum Tax and the Changing Playbook

The official implementation of the Global Minimum Tax (GMT) at an effective rate of 15% since 2024 has signaled the end of the era of attracting investment through “tax leverage.” Previously, major tech corporations enjoyed preferential tax rates of 5% to 10%, creating an absolute competitive advantage for Vietnam. However, with the enforcement of the OECD’s Pillar Two rules, multinational enterprises with revenues exceeding 750 million Euro must pay the differential tax in their home jurisdictions if the tax rate in the investment destination falls below the 15% standard.

This reality has forced Vietnam to shift its strategy from “tax reduction” to “investment cost support” and “ecosystem enhancement”. The passage of the Resolution to establish an Investment Support Fund from supplemental tax revenues demonstrates the Government’s flexible policy response. Instead of direct tax exemptions, Vietnam is focusing on supporting costs related to human resource training, Research and Development (R&D), and high-tech infrastructure investment. This is the key factor in retaining “global eagles” like Samsung and Intel, as well as new investors in the semiconductor sector.

Momentum from FDI Inflows into Semiconductors and AI

FDI inflows into Vietnam’s tech sector are converging under unprecedentedly favorable conditions due to geopolitical stability. According to recent statistics, total realized FDI reached a record $28.5 billion last year, with high-tech processing and manufacturing accounting for a dominant share. The semiconductor industry development strategy through 2030 aims for annual revenues exceeding $50 billion, with expectations that Vietnam will become a vital link in the global chip design, packaging, and testing chain.

The presence of corporations such as NVIDIA and Marvell, alongside billion-dollar Hyperscale Data Center projects, clearly demonstrates that investors have looked past tax concerns to focus on strategic value. Vietnam currently possesses over 1 million ICT professionals and expects a need to train at least 50,000 semiconductor engineers by 2030. The ability to supply a young workforce with strong STEM mindsets is the new “tax incentive”—one that holds more sustainable value than any financial waiver.

Infrastructure Bottlenecks and the Green Energy Equation

Despite the optimistic outlook, the race to become a regional tech hub faces fierce internal challenges. A shortage of high-level personnel in core technologies like AI and integrated circuit (IC) design is pushing average specialist salaries to the $2,500 – $4,000 per month range, creating cost pressures for enterprises. Furthermore, next-generation FDI investors always bring stringent ESG (Environmental, Social, and Governance) requirements.

To maintain its appeal, Vietnam is racing against time to ensure green energy infrastructure. Data centers and semiconductor plants require absolute power stability and high renewable energy ratios. If the green energy supply issue is not resolved, Vietnam will face a significant disadvantage against fierce competition from Malaysia—a country already making long strides in building a sustainable semiconductor and energy ecosystem.

Forecast for a Self-Reliant Tech Ecosystem in 2026

Looking ahead, the Vietnamese IT market will witness a deeper convergence between foreign capital and domestic strength. M&A deals between FDI corporations and local tech firms are forecasted to surge in 2026, leveraging the strengths of both sides: international processes and deep local market expertise. Next-generation FDI inflows will not only bring capital but also serve as a catalyst for technology transfer, pushing Vietnamese enterprises deeper into the global value chain.

Vietnam stands before a golden opportunity to establish itself as a new “Tech Hub” in Southeast Asia. Success in the coming period will depend on the speed of realizing non-tax investment support commitments, breakthroughs in high-level human resource training, and the perfection of energy infrastructure. As tax barriers are leveled by international rules, the nation that possesses a stronger innovation ecosystem and more transparent governance will emerge as the winner in the race for elite capital.

Vũ Hồ