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Vietnam Needs Smart Infrastructure to Boost Competitiveness

Policy2 min read

A World Economic Forum (WEF) expert says Vietnam needs smart infrastructure to become more competitive. He spoke at the Autumn Economic Forum 2026 (AEF 2026) in Ho Chi Minh City on October 28.

What happened

Devendra Jain, head of AI and Frontier Technology at the WEF, advised Vietnam to focus on smart connected economy. The goal is to help factories, seaports and transport work together better. He gave this advice at a panel discussion during AEF 2026 in Ho Chi Minh City.

Why the idea of smart infrastructure matters

Vietnam has grown by making things and has become a major manufacturing hub. Jain says the next step is not just building more roads, ports and factories. Vietnam must also improve how these parts of the economy coordinate. He explains that digital infrastructure lets systems be watched, but smart infrastructure lets systems react. For example, digital traffic lights may be connected but still run on a fixed schedule. A smart traffic system checks real traffic and changes signals across the network to match the cars on the road.

Key facts from the article

  • AEF 2026 was held on the afternoon of October 28 in Ho Chi Minh City.
  • China has more than 4,000 smart factories that use 5G.
  • Saudi Arabia built a national industrial network that uses defense frequency bands for industry.
  • Ho Chi Minh City's draft master plan looks ahead to 2050.

Why it matters

Smart infrastructure could make the economy more productive, more able to handle shocks, and more attractive to investors, according to Jain. Shared data and shared platforms could also help small and medium-sized enterprises (SMEs) use AI, which they often cannot afford to build alone. Jain sees two near-term chances for Ho Chi Minh City: a trusted coordination layer linking factories, logistics firms, ports and dry ports, and a shared layer that helps companies adopt smart manufacturing. He points to the VSM 70 pilot program, launched by the HCMC C4IR center, as a possible starting point.

What to watch

  • Whether Vietnam sets up shared data sources that small companies can use.
  • How the draft Ho Chi Minh City master plan to 2050 treats smart infrastructure.
  • Whether the VSM 70 pilot program grows into a wider shared platform.
  • Progress on common standards for data, connections and AI tools.

Glossary

WEF
World Economic Forum, an international group that holds meetings and studies economic issues.
AEF 2026
The Autumn Economic Forum 2026, a economic conference held in Ho Chi Minh City.
VSM 70
A pilot program that helps businesses switch to smart production and become more competitive.
HCMC C4IR
The Center for the Fourth Industrial Revolution in Ho Chi Minh City, which started the VSM 70 program.
5G
The fifth generation of mobile networks, which is faster and can connect many devices at once.

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