As a part of its efforts to accelerate its digital transition and artificial intelligence, Vietnam has formally initiated the National Data Development Fund. An initial capital of 1 trillion VND (approx. 38.4 billion USD) to turbocharge the power of artificial intelligence and digital development. Being under the auspices of the Ministry of Public Security. This non-budgetary, non-profit state fund promotes the emergence and implementation of new technologies. Such as AI, big data, machine learning, cloud computing, and blockchain. The fund will specifically target improving data-driven governance and AI-enhanced services, particularly in underserved and remote areas. It also aims to make Vietnam a world destination for ethical, safe, and inclusive AI innovation in the government and industry.
AI-Centric Strategy to Power Digital Transformation Nationwide
The core mission of Vietnam’s National Data Development Fund revolves around the strategic deployment of artificial intelligence. The government aims to use AI and related technologies to overhaul public administration, enhance service delivery, and optimize national digital infrastructure. The fund will back initiatives that integrate AI into rural development, education, agriculture, defense, and urban planning. It is worth noting that the fund focuses more on digital change in economically distressed and remote locations to bridge the digital gap between the urban and rural areas. It will facilitate the application of AI to simplify the operations of the state, control data, and develop smart systems in accordance with the socio-economic objectives of Vietnam.
Vietnam is also interested in developing a strong ecosystem of AI research. Universities, tech startups, and scientific organizations will be enabled by the fund, which will invest in R&D projects. That focuses on applied machine learning, data analytics, and generative AI. The actions will also embrace the cultivation of the expert network. This involves uniting Vietnamese and global AI researchers, policymakers, and technologists. The fund shall also finance projects that entail critical and core data. Such as those relating to the defense of the country, security, and international relations. Vietnam is establishing a precedent in terms of how state-sponsored investment can work to further greater sovereign digital resilience, coupled with the responsible development of AI at scale.
Funding Sources and Governance to Sustain AI Growth
While the Vietnamese government has allocated 1 trillion VND as initial capital. The National Data Development Fund is structured to attract diversified, long-term financial support. It is allowed to operate accounts in both the State Treasury and commercial banks, ensuring flexibility in its financial operations. Non-state capital can be added to the fund through the use of interest earned upon the leverage of funds. In the form of deposits and loans, grants, donations, and partnerships with the private sector. This enables it to access both national and international interest in investing in AI, data infrastructure, and digital public goods in Southeast Asia.
A detailed regulatory framework ensures transparency and accountability in how contributions, monetary or in-kind, are received, managed, and utilized. All contributions are recorded, with non-cash donations processed through mutually agreed-upon terms and documented officially. The fund also accepts entrusted funds in VND or foreign currency for specified development projects. Governance is centralized under the Ministry of Public Security, which will oversee the fund through its data management division. A designated team, including a director, deputy directors, and a chief accountant, will manage fund activities. This structure ensures that AI development is embedded into Vietnam’s national security, economic planning, and public administration frameworks, making AI innovation a state-led, strategically managed priority.
Laying the Groundwork for Vietnam’s AI Future
Vietnam’s National Data Development Fund is more than a financial instrument. It’s a foundational pillar in the country’s AI transformation agenda. The fund will integrate innovations in cutting-edge technology with well-timed state policies and social benefits. This will help make Vietnam one of the global leaders in the field of ethical, scalable, and safe implementation of AI. Infrastructure development for smart cities and rural digitalization will place AI at the center of Vietnam’s growth agenda. Transparent governance, sustainable funding, and the focus on innovation serve as the signs that the country is ready to contribute to the future of AI rather than imitate it. This fund marks Vietnam’s decisive entry into the global AI race.
About The Author
