Vietnam is planning to establish a national artificial intelligence (AI) development fund, with the State budget funding at least VND30,000 billion ($1.14 billion), according to the Ministry of Science and Technology’s draft decree for the fund.

According to the draft, the fund will operate as a non-profit state financial entity with an initial funding of VND1,000 billion. The fund will operate so that its funding will remain at least VND1,000 billion at the start of any fiscal year. In addition to public funding, the fund will mobilize voluntary contributions, donations, and non-refundable aid from domestic and international organizations and individuals, and other sources.

The Ministry of Science and Technology said similar funds of the EU can mobilize €200 billion, China with $8.2 billion, Canada with $2.4 billion, and the United States with $10.6 billion.

The fund is designed to distribute capital through a mix of non-refundable grants, partial financial support, and public investment. Grants will cover up to 70 percent of project costs, focusing on research and development of core AI technologies such as large language models and semiconductor chips. Support programs will provide up to 50 percent of projects related to data infrastructure, personnel training, and commercialization. The fund will also invest directly in shared infrastructure such as sandbox, data centers, and supercomputing systems, though these investments will not be profit-driven.

The fund will accept “losses” such as failure to reach the targets or inabilities to recover the investments, as long as the projects are carried out in line with the legal framework.

The ministry plans to submit the draft to the government for checking and issuance in 2026.

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