Vietnam Launches $1.14 Billion AI Development Fund
Vietnam's Ministry of Science and Technology has drafted a decree to establish a national AI development fund with initial state budget allocation of at least 30 trillion Vietnamese dong ($1.14 billion). The fund will operate as a non-profit entity, with a minimum balance of 1 trillion dong maintained at the start of each fiscal year.
The fund will accept money beyond government sources. It will mobilize voluntary contributions, donations, and non-refundable aid from domestic and international organizations and individuals.
How the Money Gets Distributed
The fund uses three distribution mechanisms. Non-refundable grants will cover up to 70 percent of project costs, targeting research and development of core AI technologies including large language models and semiconductor chips.
Partial financial support covers up to 50 percent of costs for projects focused on data infrastructure, personnel training, and commercialization. The fund will also make direct investments in shared infrastructure-sandboxes, data centers, and supercomputing systems-without expecting profits.
The fund will absorb losses if projects fail to meet targets or cannot recover investments, provided the work follows legal requirements.
Where It Stands Against Global Peers
Vietnam's fund size places it in a middle tier globally. The EU mobilizes €200 billion for AI initiatives, the United States allocates $10.6 billion, China commits $8.2 billion, and Canada dedicates $2.4 billion. Vietnam's fund falls below these figures but represents a substantial commitment for the country.
The ministry plans to submit the draft decree to the government for approval in 2026.
IT and development professionals should track this fund's rollout, as it will likely create opportunities for infrastructure projects, AI model development, and training programs targeting local talent.
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