Vietnam is entering a new growth phase where innovation, science, and technology are central to the nation's future, according to the Vietnam Innovation and Technology Investment Report by the NIC. From an emerging market, Vietnam is becoming a strategic destination for technology investment.
The report highlights key sectors poised for growth. First is energy. Vietnam's electricity demand was 290 TWh in 2024 and is projected to reach 471 TWh by 2030, a compound annual growth rate (CAGR) of 8.4%. By 2050, demand is expected to quadruple to 1,116 TWh. Renewable energy, currently at 26.7%, is projected to exceed 61% by 2050, demonstrating significant growth potential.
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A wind power project in Binh Thuan province. Photo: Viet Quoc |
A wind power project in Binh Thuan province. Photo: Viet Quoc
The NIC attributes the rising electricity demand to steady GDP growth driven by energy-intensive industries. Global supply chains are shifting production to Vietnam, further increasing electricity needs. Green and renewable energy present substantial opportunities for businesses.
Growth in green energy will be spurred by new direct/corporate power purchase agreements (PPAs), which facilitate faster deployment of renewable energy projects by enabling direct sales to large customers. "This mechanism is crucial for Vietnam's energy sector in transitioning to a free market with direct access for energy consumers," the report states.
Beyond renewable energy, green technologies (electric vehicles, carbon credits, energy storage systems) are also expected to flourish, driven by Vietnam's commitment to net-zero emissions by 2050 and growing environmental awareness among businesses.
Vertical AI is another promising sector, with the potential to contribute $130 billion to the economy by 2050. This growth is fueled by the national strategy for AI research, development, and application (2021-2030). Major companies like FPT, Vingroup, and Viettel are investing hundreds of millions of USD in infrastructure, data, and talent development.
The new generation of AI, led by large language models (LLMs), is tailored for vertical markets and can efficiently process specialized data. Examples include AI for finance (Misa, AkaBot), law (Legback, Viettel AI), and marketing content creation (PixelML, Mindpal).
The NIC predicts success for vertical AI models due to their ability to generate real value for users and businesses by leveraging proprietary data. "The challenge and opportunity lie in transforming general AI models into specialized, deployable solutions that create tangible value," NIC experts say.
While Vietnam's agricultural sector lags behind regional counterparts, with a projected CAGR of -0.66% from 2025 to 2029, agricultural technology holds promise. Smart harvesting is a market expected to grow steadily, reaching $390 million by 2029.
Agricultural technology is well-positioned for success, supported by government modernization policies and technological advancements. Technologies like AI, IoT, and blockchain are enhancing productivity and traceability. Businesses are pioneering new approaches to create optimal applications, and the sector is attracting investment, creating long-term growth opportunities.
The NIC also identifies education, healthcare, cross-border trade, and consumer lending as sectors with strong potential due to technological innovation and foreign investment.
The report maintains a positive long-term outlook for Vietnam, with the economy transitioning towards a growth model prioritizing the digital economy, green economy, and high-tech economy. This shift moves Vietnam from a labor-intensive, resource-dependent model to one based on innovation, human capital, and sustainability.
"By enhancing infrastructure, promoting scientific and technological advancements, and developing economic corridors, Vietnam aims to become a leading economy in the region, with a strong commitment to green and sustainable growth," the report concludes.
Hoi Phuong
