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28th August 2026

Double-digit growth: When capital and labor no longer the main drivers

Experts say Vietnam cannot achieve double-digit economic growth by relying solely on capital and labor, but needs new growth engines driven by science, technology, innovation and digital transformation.

The National Institute for Economics and Finance, under the Ministry of Finance, on Tuesday held a workshop in Danang city titled “Establishing a new growth model linked to the double-digit growth target – Renewing Vietnam’s economic development model based on science, technology, innovation and digital transformation for 2026-2030.”

On April 24, the National Assembly - the country's legislature - set a 2026-2030 agenda targeting at least 10% average annual GDP growth.

Changing the model to achieve double-digit growth

Nguyen Quoc Anh, deputy head of the National Institute for Economics and Finance, said Vietnam was entering a new stage of development, with a goal of becoming a developing country with modern industry and upper-middle income by 2030 and a high-income developed country by 2045.

The 2026-2030 period therefore needs to deliver high growth while laying the foundations for rapid and sustainable development over the longer term, he said.

Looking back at 2021-2025, Vietnam’s economy maintained macroeconomic stability, ensured major economic balances, and sustained growth drivers despite multiple external shocks. However, shortcomings in the growth model have become increasingly apparent.

The economy remains heavily reliant on capital, natural resources and labor, while the efficiency of resource allocation and use remains low. Contributions from productivity, science-technology, and innovation have yet to match their potential.

Vietnam needs to shift from a growth model primarily based on capital, labor, natural resources and assembly towards one relying more heavily on science-technology, innovation and digital transformation, while making better use of domestic businesses, Anh added.

Le Mai Lien, head of the macroeconomics and forecasting division at the institute, similarly argued that Vietnam needed to shift during 2026-2030 from “restructuring” to “upgrading the economic structure”, thereby laying the foundation for a new growth model.

The targets set for this period are ambitious, with average annual GDP growth of more than 10% representing a major challenge. “To achieve these targets, new growth drivers must rely more heavily on productivity, science-technology, and innovation,” Lien noted.

Institutions should first become a driver of development by creating a favorable environment for the mobilization and efficient allocation of resources, she added.

Science-technology, innovation and digital transformation should then become the central drivers of growth, while private-sector development should be accelerated to strengthen the capacity and competitiveness of Vietnamese businesses.

Vietnam should also upgrade its processing and manufacturing industries, improve labor productivity and the quality of its workforce, and enhance the quality and efficiency of resource use to lay the foundations for rapid and sustainable growth.

“To achieve double-digit growth, we cannot rely solely on increasing capital, expanding the workforce or boosting investment. The focus must shift to raising productivity, upgrading technology, promoting innovation, developing Vietnamese businesses, and improving the quality of human resources,” Lien said.

No need to follow the old path

Tran Kim Chung, former deputy head of the Central Institute for Economic Management, said the 2026-2045 period presented an opportunity for Vietnam to shorten its development path.

Rapid advances in technology, particularly artificial intelligence, data, automation and the digital space, are fundamentally changing the way economies develop. Vietnam therefore does not necessarily need to replicate the entire path taken by more advanced countries, he said.

“We do not necessarily need to have all the conditions that developed countries had in the past before we can grow. If we make the right choices and take full advantage of technology, Vietnam can shorten its development process,” Chung said.

To achieve double-digit growth, he proposed a growth model based on three layers of drivers.

The first layer involves expanding and improving the efficiency of traditional drivers, including capital, labor, natural resources and markets. These remain important resources for the economy, but they need to be used more efficiently while productivity continues to improve.

The second layer involves creating new growth drivers through emerging forms of economic activity, including the digital economy, data economy, bioeconomy, creative economy, silver economy, night-time economy, low-altitude economy, and space economy.

The third layer is to create breakthrough momentum from science, technology and innovation. This driver has the potential to bring about qualitative changes and shift the economy towards a growth trajectory based on productivity and knowledge.

Vietnam needs to move decisively from management to governance, and from a mindset of “controlling” to one focused on creating conditions, leading, supporting and promoting development, Chung said.

At the same time, the country needs to mobilize resources to the fullest while improving the efficiency of their allocation and use; develop new forms of economic activity; promote science, technology and innovation; develop high-quality human resources; and reform governance methods.

To establish a new growth model, Vietnam needs to “expand, open up new avenues and create breakthroughs”: expand traditional growth drivers, open up new development spaces and drivers, and create breakthroughs based on science-technology, innovation and human resources, he added.

Source: Thanh Van, Nguyen Quang

Photo: Photo by The Investor/Thanh Van.

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Qualcomm aims to make Vietnam its third-largest global AI R&D hub

30th August 2026

During a meeting with Vietnam's top leader, President and CEO of Qualcomm affirmed that the Group regards Vietnam as an increasingly important market and technology hub in Asia, and aims to establish Vietnam as its third-largest AI research and development hub globally.

General Secretary and President To Lam has called on Qualcomm to expand its investment in artificial intelligence (AI), semiconductors, robotics, 5G/6G, and next-generation connectivity technologies during a meeting with the tech giant's top leadership.

The Vietnamese top leader made the request while receiving Mr. Cristiano Amon, President and CEO of Qualcomm, on August 27 during his working visit to Vietnam.

General Secretary and President Lam emphasized that Vietnam prioritizes attracting investments that are coupled with technology transfer and the development of high-quality human resources. He reaffirmed that Vietnam will continue to create favorable conditions for leading global technology corporations, particularly those from the United States, to invest, research, and establish long-term partnerships in the country.

Acknowledging Qualcomm’s contributions over the past 20 years, the leader highly valued the Group’s expansion of its research and development (R&D) activities and its support for innovation and the growth of Vietnam’s technology ecosystem. He specifically noted the establishment of Qualcomm’s R&D center in Hanoi and its successful collaborations with major Vietnamese tech firms such as Viettel and VinSmart.

Mr. Lam welcomed Qualcomm’s strategy to position Vietnam as a high-priority location in its Asian development plan, moving toward making the country a vital R&D hub within its global network. He noted that this direction is perfectly aligned with the strengthening of cooperation in science, technology, and innovation under the Vietnam-US Comprehensive Strategic Partnership.

Furthermore, he urged Qualcomm to increase technology transfer, share management expertise, and expand cooperation with domestic enterprises, universities, and research institutes. These efforts, he noted, should focus on helping Vietnamese businesses enhance their technological capabilities and participate more deeply in global technology value chains and supply chains.

Vietnam as its third-largest AI R&D global hub

For his part, Mr. Amon stated that his visit comes at a time when Qualcomm is accelerating its strategy to develop emerging technologies, particularly AI, semiconductors, and connected computing, while simultaneously expanding its R&D footprint in Vietnam.

The Qualcomm leader highly commended Vietnam’s vision, determination, and robust policies aimed at driving growth, science and technology development, innovation, digital transformation, and the semiconductor and AI industries.

Expressing his impression of Vietnam’s recent developmental milestones, Mr. Amon remarked that these achievements demonstrate the country's growing appeal to the international business community. He added that this progress provides a solid foundation for Vietnam to emerge as an increasingly vital regional hub for high-tech manufacturing, R&D, innovation, and the digital economy.

Notably, Mr. Amon affirmed that Qualcomm regards Vietnam as an increasingly important market and technology hub in Asia. He revealed that the Group aims to establish Vietnam as its third-largest AI research and development hub globally.

With over $100 billion already invested in R&D worldwide, Qualcomm seeks to leverage its core technological capabilities, global research network, and international partner ecosystem to expand cooperation in Vietnam. Key focus areas include AI, semiconductors, 5G/6G, connected computing, and next-generation technological infrastructure.

Qualcomm also expressed its desire to strengthen coordination with Vietnamese government agencies, enterprises, research institutes, and universities. This collaboration will focus on research, high-quality human resource training, technology transfer, and the development of next-generation technologies. The Group remains committed to expanding its investment and long-term presence in Vietnam, contributing to the nation's burgeoning semiconductor, AI, and innovation ecosystems.

Mooncake orders double ahead of Vietnam's Mid-Autumn Festival

30th August 2026

Mooncake orders on Shopee doubled in the two months before this year's Mid-Autumn Festival, while orders for other festival-related products rose nearly 50 percent year on year, pointing to an early start to seasonal shopping in Vietnam.

Vietnam's Mid-Autumn Festival, known locally as Tet Trung Thu, is a traditional festival held on the 15th day of the eighth month of the lunar calendar, usually falling in September or early October.

The festival is associated with family gatherings, children carrying lanterns and lion dances, while mooncakes are traditionally eaten and given as gifts to relatives, friends, and business partners.

Although the festival falls in late September this year, consumers have already begun shopping for mooncakes, lanterns, gift boxes, and other seasonal products.

According to internal data from Shopee, Mid-Autumn-related products recorded nearly one million searches in August.

Mooncakes were the most searched item, followed by lanterns, gift boxes, and baking supplies.

The strong interest has translated into higher sales, with orders for Mid-Autumn-festival-related products rising nearly 50 percent from the same period last year.

Mooncake orders alone doubled in the two months leading up to this year's festival compared with the same period in 2025.

The figures show that consumers are preparing for the festival earlier and looking for more options, ranging from traditional mooncakes and gifts to decorations.

Brands including Mondelez Kinh Do and Lam Thuy said consumers are increasingly concerned about product quality and the overall value they receive.

As a result, brands are paying greater attention to how they present products online and how quickly they respond to changing consumer demand.

Lam Thuy turns to live streams, videos

Lam Thuy, a traditional mooncake brand that has expanded its e-commerce business in recent years, has been using Shopee's digital content tools to reach more customers.

Through live streams, the brand can showcase the appearance and characteristics of different mooncakes while answering customers' questions in real time.

Shopee Video also allows the brand to provide product information in different formats and direct users to its online store.

Ngo Thi Thuy Linh, brand director of Lam Thuy, said the company develops new mooncake designs every year to match changing tastes and attract younger consumers.

Videos and live streams are useful for introducing new products and reaching shoppers looking for new choices for the Mid-Autumn Festival, she said.

Lam Thuy has also worked with Shopee to launch promotional programs since early August.

The brand plans to increase live-streaming and promote its key products during the September 9 sales event.

To prepare for higher demand, Lam Thuy has tripled the number of workers involved in production, packaging, and customer service.

It expects mooncake orders on Shopee during this year's Mid-Autumn season to increase around 20 percent from last year.

Kinh Do uses data to adjust product range

For Mondelez Kinh Do, which already has a large-scale e-commerce operation, data analysis is being used to adjust its product range, content, inventory, and resources.

Duong Uy Trong Phuc, e-commerce channel manager at Kinh Do, said the mooncake business has a short selling season, while consumer preferences for flavors, designs, and gifting purposes can change quickly.

The company therefore needs to prepare its product range early while continuously monitoring market demand, he said.

Analytics tools help Kinh Do identify products attracting consumer attention, while customer feedback and interactions through digital content provide additional insight into their preferences.

The company has introduced several new products this year, including Mini Lava and Snowy Mooncakes, as well as the four-mooncake 'Ma Dao Doan Vien' gift box and the two-mooncake 'Trang Slay' box.

The new products are aimed at offering more choices and attracting younger consumers.

Kinh Do also plans to increase activities on Shopee Live and Shopee Video during the September 9 sales event.

The experiences of Lam Thuy and Kinh Do show how brands are using e-commerce differently.

However, both brands are moving to identify consumer demand earlier and prepare their products and sales strategies ahead of the peak Mid-Autumn shopping season.

Vietnam’s data centre race draws multibillion-dollar investment

29th August 2026

Ho Chi Minh City currently has 20 operational data centres and nine proposed projects, according to the municipal Department of Science and Technology. New projects are moving beyond traditional data centres toward large complexes integrating AI and other digital infrastructure.

Hanoi (VNA)– Vietnam’s data centre market is entering a new phase as a wave of large-scale projects worth billions of US dollars is being proposed and rolled out, driven by rising demand for artificial intelligence (AI), cloud computing and large-scale data processing.

Among the most notable is the SGI-HCM Campus data centre and AI complex at Tan Phu Trung Industrial Park, invested in by Kinh Bac City Development Holding Corporation (KBC) in partnership with Accelerated Infrastructure Capital (AIC) and VietinBank. The project has an estimated investment of about 2.1 billion USD and received its investment registration certificate on July 21.

Another major proposal is a 2-billion-USD AI super data centre by UAE-based G42, Microsoft, FPT Corporation, Viet Thai Group and VinaCapital. The project is expected to contribute to economic growth and strengthen Vietnam’s appeal to foreign investors.

In late July, Ho Chi Minh City authorities and an inter-agency working group met with G42, Microsoft and other investors to discuss the Trusted Data Agreement and related legal issues. Investors are continuing to refine the project and study potential locations.

Several other large projects are also being carried out or proposed at the Saigon Hi-Tech Park, including those involving BW Industrial Development, Warburg Pincus and Digital Realty; Sembcorp-BB Holding; NTT Global Data Centers; and CMC Corporation. Their investment values range from 250 million USD to 850 million USD.

The surge comes as demand for data infrastructure grows rapidly. Savills Vietnam forecasts that the country’s data center capacity could reach around 950 MW by 2030, up from about 524.7 MW in 2025. Market revenue is projected to exceed 3 billion USD by 2031, with annual growth of more than 20%.

John Campbell, Director of Industrial Services at Savills Vietnam, said Vietnam was at the beginning of a significant data centre development cycle. He noted that demand had existed for years, supported by the country’s young population, high technology adoption and rapid digitalisation.

Large cloud service providers have also been showing interest in Vietnam for the past four to five years, indicating that demand is not new but that the market is becoming increasingly ready for faster growth.

Regulatory changes are providing additional momentum. Since 2025, foreign investors have been allowed to own 100% of companies providing data centre services, removing one of the barriers that previously limited international investment in the sector.

The race is about more than land

Unlike conventional industrial real estate, where land, location and infrastructure access are key considerations, data centres require a much more complex combination of conditions.

Power supply is the most critical factor. Large data centres consume huge amounts of electricity and require a stable, uninterrupted supply, with sufficient backup capacity and an increasing focus on clean energy.

Andrew Green, Head of Data Centre Group, Asia Pacific at Cushman & Wakefield, said data centre development was shifting from locations with good connectivity to markets capable of supplying electricity on a large scale. This trend is creating new growth corridors and pushing investment beyond traditional data centre hubs.

Data connectivity is another essential factor. Large data centres need reliable international Internet connections, particularly submarine cables and stable landing stations. As cloud computing, AI and cross-border data services expand, connectivity is becoming an increasingly important part of a data centre’s value.

This is encouraging projects to cluster around areas where different layers of infrastructure converge, including hi-tech and industrial parks, logistics hubs and major cities.

Data regulations and information security are also becoming increasingly important. According to Savills, tighter personal data protection rules are likely to encourage businesses to store and process more data in Vietnam, increasing demand for facilities that meet international standards.

For banks, financial institutions and government agencies, requirements are even higher, with data centres needing advanced information security standards. As a result, the value of a data centre cannot be measured simply by land area or power capacity, but also by its security, reliability and operating standards.

Savills Vietnam said improvements in the legal framework and progress in resolving land, approval and project implementation issues at hi-tech parks were creating tangible changes in the market.

From a real estate perspective, data centers are emerging as a distinct segment from factories and logistics warehouses. They require large capital investment, lengthy preparation and strict technical assessments. Land leases of 10-30 years are becoming common as investors seek long-term stability for assets with long operating lives.

This is also creating opportunities for industrial property developers. Rather than simply providing land, developers need to offer integrated infrastructure covering electricity, connectivity, security, cooling, telecommunications and long-term capacity expansion.

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