Vietnam commits 3% budget to turbocharge AI and data economy

THE HANOI TIMES — Prime Minister Pham Minh Chinh has ordered ministries to reserve at least 3% of annual state budget spending for digital transformation, sharpening Vietnam’s push to make data and artificial intelligence core growth drivers.

He set the direction for 2026 at a February 25 meeting of the Government Steering Committee on science and technology development, innovation, digital transformation and Project 06.

According to the Ministry of Finance, science and technology spending accounted for 1.4% of total state budget expenditure in 2021, 1.7% in 2022, 1.4% in 2023 and 2% in 2024, before reaching 3% in 2025.

In November 2025, the National Assembly approved total state budget spending of VND3.1 quadrillion (US$121 billion) for 2026. The same month, Chinh announced that VND95 trillion ($3.6 billion) would go to science, technology, innovation and digital transformation in 2026.

He tasked the finance ministry with completing a review and concentrating funding on key missions in the first quarter of 2026.

For other ministries and ministerial-level agencies, the Ministry of Science and Technology will finalize the selection and assignment of priority strategic technology products, focusing on artificial intelligence, unmanned aerial vehicles, nuclear energy, digital transformation, green transition, the creative economy, the low-altitude economy and high-speed rail.

The ministry must coordinate with relevant agencies to draft guiding documents for laws on digital transformation, AI, cybersecurity and e-commerce to close legal gaps.

The Ministry of Public Security has been tasked with submitting, in the first quarter of 2026, a decree proposing breakthrough mechanisms for the Innovation and Data Exploitation Center under the National Data Center.

It must propose an operational framework for a data exchange platform in the second quarter and policies to develop the data economy in the third quarter.

The ministry will complete a national database on administrative violations in the fourth quarter of 2026 and launch National Data Center No. 1 within the year. It will work with enterprises to label data to support the development of an autonomous AI platform.

The Prime Minister has tasked the Ministry of Public Security with coordinating with the Ministry of Finance to finalize by June 2026 a legal framework on data valuation, fees and pricing for the exploitation of data from the National Data Center, as well as tax and capital incentives for data-driven enterprises.

All ministries and ministerial-level agencies must accelerate data connectivity and sharing. They must build a national database on officials and civil servants and strengthen social security databases, including information on assets and income.

Chinh urged early commercialization of low-Earth-orbit satellite internet services in 2026 and called on telecom firms to speed up 5G deployment to ensure nationwide coverage this year.

Authorities must streamline administrative procedures and stop requiring citizens and businesses to resubmit information already available in national databases or integrated into the VNeID digital identity platform.

The Government Office and the ministry will develop a real-time performance index to monitor ministries’ implementation of assigned tasks.

Chinh approved the 2026 theme: “Breakthrough in the Digital Economy – positioning the data economy and artificial intelligence as new pillars of sustainable and smart development.”

He said achieving double-digit growth and sustaining rapid development required science, technology, innovation and digital transformation, closely linked with Project 06.

“Data must serve as a strategic resource and core platform for the digital economy,” he said.

He outlined a clear approach in which the State facilitates, businesses take the lead, officials set the example, public–private partnerships move forward together, the nation develops and the people benefit.

“In 2026, we must create breakthroughs and accelerate decisively, shifting from passive administration to proactive development and service to the people,” Chinh said.