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structure with a large proportion of SMEs. This is an important foundation for promoting
AI diffusion if there are appropriate support policies.
3.3.3 Policy implications for Vietnam
Based on the compatibility assessment, Vietnam should focus on building an AI
ecosystem tailored to its specific development conditions rather than mechanically
replicating the Singaporean model. The following recommendations are prioritized based
on Vietnam’s current institutional capacity, economic structure, and strategic goals:
First, establish a centralized National AI strategic coordination mechanism: It is
imperative to establish a national-level AI strategic coordination mechanism with clear
inter-sectoral functions, ensuring alignment between industrial policy, digital
transformation, and human resource training. Currently, Vietnam’s implementation
coordination mechanism for AI and digital transformation is fragmented, which could
diminish the spillover effects of AI across the broader economy (Tilleke & Gibbins, 2025).
A unified body, similar to Singapore’s Smart Nation Group, could streamline efforts and
optimize resource allocation.
Second, prioritize AI Integration in key economic sectors: Priority should be given to
integrating AI into sectors with high potential for value chain upgrading, such as
manufacturing, logistics, and high-tech agriculture. These areas can leverage AI to
enhance productivity and increase domestic value added, aligning with Vietnam’s
economic structure. For instance, applying AI in smart agriculture can optimize crop yields
and supply chains, directly contributing to economic growth and food security (Ministry of
Science and Technology, 2025).
Third, strengthen support for SME AI adoption: Supporting SMEs in accessing AI
must become a policy centerpiece. This includes reducing costs for computing
infrastructure, providing sector-specific transformation consultancy, and building
networks between enterprises and research centers. Singapore’s experience
demonstrates that active SME participation expands productivity spillover effects across
the entire economy, with their AI adoption rate tripling in 2024 (IMDA, 2025b). Vietnam,
with a large proportion of SMEs and a high overall digital adoption rate of 95.1%, has a
strong foundation to foster widespread AI integration, which is crucial for inclusive
growth.
Fourth, develop a context-sensitive AI governance Framework: The development of
an AI governance framework should proceed in tandem with the promotion of innovation.
Vietnam could establish organizational-level best practice guidelines and implement
regulatory sandboxes to manage risks without stifling creativity. The objective is not over-
regulation but rather the cultivation of trust to facilitate large-scale adoption. Given that
Vietnam is expected to introduce its first AI law by the end of 2025, focusing on risk-based
regulation and human-centric principles will be vital to build digital trust and ensure
ethical AI development (Anh Nhi, 2026).
Finally, integrate computing infrastructure investment with sustainable
development: Investment in computing infrastructure must be integrated with energy
and sustainable development strategies. If AI becomes a long-term growth driver, the
demand for computing power and data centers will surge; therefore, digital infrastructure
planning must be synchronized with national energy planning to ensure macroeconomic
stability. Learning from Singapore’s Green Data Centre Roadmap, Vietnam should
prioritize energy-efficient data centers an explore renewable energy sources to support

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