AI is now embedded in most company digital transformation methods. Yet many companies proceed to face vital limitations to implementation due to excessive funding prices, complicated infrastructure necessities and restricted entry to computing sources.
From digital transformation to nationwide digital functionality
Speaking on the Vietnam National Digital Forum (DIGIFEST) 2026, Deputy Minister of Science and Technology Bui Hoang Phuong harassed that digital transformation isn’t merely about investing in infrastructure, software program or expertise units. More importantly, it should create sensible worth for residents and companies whereas bettering operational effectivity.
“The essence of digital transformation is not purchasing technology. It must begin with solving real-world problems faced daily by local authorities, businesses and citizens. The goal is not to perform existing tasks in a digital environment, but to do them better, faster, simpler, more transparently and more effectively,” Phuong mentioned.
According to Tran Duy Ninh, Director General of the National Digital Transformation Agency, nationwide digital functionality is the power to mobilize, set up, management and successfully make the most of digital sources to create worth for socio-economic improvement. In this framework, the very best layer isn’t infrastructure or knowledge, however the means to grasp strategic applied sciences – an element that can decide a rustic’s future competitiveness.
Pham Quang Hieu, Director General of the Information Technology Department underneath the Ministry of Justice, highlighted the significance of creating a specialised giant language mannequin for Vietnamese authorized providers.
“One of our key priorities is building a large language model tailored to Vietnamese law. Developing domestic AI models helps safeguard data sovereignty, digital sovereignty and national information security. On that foundation, we will develop AI assistants to support legislative drafting, legal review processes and easier public access to legal information,” Hieu mentioned.
Mastering AI is about greater than knowledge
The fast rise of AI is altering how nations outline technological functionality. In the previous, storing knowledge domestically was usually seen because the cornerstone of digital sovereignty. In the AI period, nevertheless, knowledge is just one piece of the equation.
Experts argue that sovereign AI isn’t merely about conserving knowledge inside nationwide borders. It additionally includes controlling your complete AI worth chain, together with computing infrastructure, datasets, AI fashions, engineering expertise and the power to function and advance the expertise.
If knowledge is the uncooked materials of the digital economic system, computing energy is the manufacturing facility of the AI economic system. A rustic could possess huge quantities of information, however with out the power to course of, practice and deploy AI fashions at scale, it is going to wrestle to generate significant worth.
As demand for AI purposes continues to rise, entry to computing infrastructure is turning into one of many largest obstacles going through companies. In Vietnam, demand for AI infrastructure is already rising quickly.
Against this backdrop, a rising variety of home expertise firms have begun investing in AI capabilities as a long-term strategic precedence. Several Vietnamese corporations are pursuing AI improvement throughout three layers – infrastructure, platforms and purposes – with the purpose of constructing sustainable AI capability relatively than remoted AI options.
Solving the largest limitations to AI deployment
Speaking at DIGIFEST 2026, Vu Thanh Tung, Chief Executive Officer of GreenNode, mentioned most companies acknowledge the alternatives created by AI however proceed to face vital implementation challenges.
“The needs of Vietnamese enterprises are not very different from the systems we currently operate. Whether it is e-commerce, digital wallets, online platforms or AI applications, all require infrastructure that is powerful, reliable and scalable,” Tung mentioned.
According to Tung, a single AI server system can price tens of billions of Vietnamese dong, equal to a whole lot of hundreds of US {dollars}. Yet many companies haven’t absolutely outlined the issues they need AI to resolve or how they are going to measure returns on funding.
Investment prices are solely a part of the problem. Companies should additionally tackle points involving knowledge facilities, electrical energy consumption, community connectivity, storage methods, cybersecurity and extremely expert operations groups.
Data sovereignty and regulatory compliance current one other main concern. When knowledge and AI infrastructure are hosted solely abroad, companies face further challenges associated to safety, knowledge governance and compliance necessities, notably in sectors comparable to finance, banking, insurance coverage and public providers.
AI is already delivering measurable worth throughout industries by fixing particular operational challenges. For instance, GreenNode’s Intelligent Document Processing (IDP) resolution has helped monetary establishments, banks and insurance coverage firms course of a whole lot of hundreds of paperwork whereas saving tens of billions of Vietnamese dong.
“We focus on developing AI platforms and solving real-world problems for customers. What matters is not the technology itself, but the value it creates. AI only generates economic value when businesses can use it to improve productivity and operational efficiency,” Tung mentioned.
In the long term, sovereign AI is not going to be measured solely by the place knowledge is saved, however by a rustic’s means to personal the infrastructure, expertise and human sources wanted to rework knowledge into worth. This shall be important if Vietnam is to transfer past being a expertise adopter and turn into a significant contributor to the event of future strategic applied sciences.
Thai Khang