Mastering AI key to Vietnam’s leap beyond middle-income trap: FPT chairman

Mastering and innovating technology is no longer optional but the sole path for Vietnam to escape the middle-income trap and rise alongside global powers, said tech giant FPT Corporation chairman Truong Gia Binh.

“Whenever Vietnamese people start any task, we must consider how to use AI to boost productivity 10-fold, equivalent to a 1,000% increase,” he told Nhan dan (People), a newspaper under the Communist Party of Vietnam.

“Merely applying technology may yield some results, but moving beyond application to creating and mastering technology - driven by the mindset of Vietnamese youth and intellectuals - can propel the country to prosperity on par with the world’s leading nations.”

The Fourth Industrial Revolution, powered by AI, semiconductors, and strategic technologies, is reshaping the global order, he said, noting that the world is entering a pivotal moment marked by unprecedented change.

According to the executive, countries are now seeking hubs that can provide skilled human resources in strategic sectors, including semiconductors, AI, and unmanned aerial vehicles (UAVs).

Vietnam has been chosen as few countries can match its combination of talent and scale. Amid a global shortage of millions of workers in cybersecurity, semiconductors, and AI, Vietnamese youth carry a burning ambition to rise and reshape their destiny - a drive rarely seen in many developed nations, he continued.

“If Vietnam fails to seize this opportunity, we could grow old yet remain poor,” Binh said, describing it as a “once-in-a-millennium chance.”

He stressed that to escape the middle-income trap, science and technology require a specific structure, exemplified by the linkage model between universities, research institutes, and enterprises.

FPT announces investment in strategic technologies

FPT, present in 30 countries and territories and collaborating with major global tech and industrial corporations, has decided to shift its strategy toward heavy investment in science and technology to achieve mastery of core technologies.

“We have committed to collaborating with universities and students nationwide, as well as leading research centers around the world,” Binh said.

The corporation recently announced the establishment of its Strategic Technology Steering Committee, comprising five units: Quantum AI and Cybersecurity Institute (QACI), FPT UAV, FPT Railway Mobility Technology (FMT), FPT Cyber Security, and Digital Conglomerate 5.0 (DC5).

Binh said FPT’s top priority is the establishment of the QACI, which will focus on research, solution development, doctoral and advanced expert training, and international collaboration. The institute is also among the first quantum research institutes founded by a Vietnamese enterprise, with FPT committing an investment of $100 million.

Alongside QACI, FPT continues to treat AI as a strategic pillar. The company has formed the Au Lac AI Alliance in June with the goal of building Vietnam’s autonomous AI foundation.

AI has been integrated into education from primary school through university, and in 2025-2026, it is set to transform FPT’s entire student training approach, the chairman said. Additionally, FPT aims to apply AI to semiconductors (AI chips) and integrate AI across its entire ecosystem of products and services.

On December 19, FPT broke ground on an 11.13-hectare AI Research Center in Gia Lai province, central Vietnam, with a total investment of VND613 billion ($23.3 million).

The center comprises three core functional zones – one for AI research and digital technology services, a research and testing zone for UAVs, and a data infrastructure zone.

In April 2024, FPT announced a strategic partnership with U.S. chipmaker Nvidia to build an AI Factory in Vietnam, in parallel with a similar facility in Japan.

Binh said in the past, FPT spent years going it alone to prove that Vietnamese talent could leave its mark on the global digital map. At this stage, however, FPT has determined that the path forward must be one of open collaboration, closely linking with other enterprises and universities.