Vietnam needs smart infrastructure to boost competitiveness: WEF expert

Vietnam needs to move beyond expanding physical infrastructure and develop smarter, more connected systems to boost productivity and attract investment, according to Devendra Jain, head of AI and Frontier Technologies at the World Economic Forum (WEF).

Speaking at a discussion on cooperation frameworks for a new era during the 2026 Autumn Economic Forum in HCMC on Oct. 28, Jain said Vietnam had established itself as a major manufacturing hub and investment destination.

Its next stage of development, however, would require better coordination across the economy rather than simply more infrastructure.

Devendra Jain, Head of AI and Frontier Technologies at the World Economic Forum, speaks at the 2026 Autumn Economic Forum. Photo courtesy of AEF 2026

Jain distinguished smart infrastructure from conventional digital infrastructure, saying digital systems primarily allow operators to monitor conditions, while smart systems can respond to changing circumstances.

For example, a digitally connected traffic light network may still follow fixed schedules, while a smart traffic management system can analyze real-time conditions and adjust signals across the network to improve traffic flow.

"Smart infrastructure combines physical infrastructure, connectivity, data, and AI to improve productivity, resilience, and attractiveness to investors," he said.

"Digital infrastructure allows us to observe systems, while smart infrastructure enables them to respond more effectively."

Drawing on international examples, Jain said smart infrastructure requires cooperation among governments, businesses, technology providers, and standards organizations.

Governments provide policies and infrastructure, businesses contribute data, assets, and demand, technology companies develop platforms, and standards bodies establish common rules.

Saudi Arabia, for example, has developed a national industrial network using defense spectrum to provide dedicated connectivity for industrial applications. China has more than 4,000 smart factories using 5G, supported by policies that allow businesses to access private 5G networks.

Jain said countries could develop smart infrastructure in stages, beginning with advanced communications networks, trusted digital and data infrastructure, interoperability standards, and industrial intelligence platforms.

Access to high-quality industrial data remains a major challenge. Unlike consumer data, which is widely available online, industrial data is often held in separate, closed systems.

Shared data resources could help businesses, particularly small and medium-sized enterprises (SMEs), access the information needed to develop and apply AI.

For Vietnam, particularly HCMC, Jain identified two immediate opportunities based on national development priorities and the city's draft master plan through 2050.

The first is to build a trusted coordination system linking factories, logistics providers, inland container depots, and seaports along manufacturing and export corridors.

The second is to develop shared infrastructure to help manufacturers, especially SMEs, adopt and scale up smart manufacturing.

This could build on VSM 70, a pilot program launched by the Ho Chi Minh City Centre for the Fourth Industrial Revolution (HCMC C4IR) to help businesses adopt smart manufacturing and improve their competitiveness in value chains.

"Vietnam can go further," Jain said.

"Common challenges such as connectivity, data standards, digital twins, AI tools, and cybersecurity can be addressed through shared infrastructure, rather than requiring every business to develop its own capabilities."

HCMC proposes technology belt with six specialized hubs

At the forum, Le Quoc Cuong, an associate professor and member of the Science, Technology, Innovation, and Digital Transformation Subcommittee under the HCMC Development Research Board, presented a study proposing a multi-hub technology and innovation belt for the city.

The research draws on experiences from Asian economies and proposes an integrated governance framework connecting research, manufacturing, finance, and commercial activities.

Associate Professor Le Quoc Cuong speaks at the forum. Photo courtesy of AEF 2026

Cuong said HCMC needs to shift from growth driven by expanding manufacturing capacity to a model centered on science, technology, and innovation.

Developing industrial parks, high-tech parks, software parks, and innovation centers separately could limit coordinated growth, he said. These facilities risk becoming fragmented geographically, functionally, and administratively, making it harder to share resources and cooperate.

The study examined six Asian economies — Japan, Taiwan, mainland China, South Korea, Singapore, and Thailand — and found that a technology belt's effectiveness depends not only on investment scale but also on specialization, knowledge absorption, cooperation, and system-wide coordination.

Based on these findings, the study proposes a technology belt in HCMC comprising six specialized hubs linked through a common value chain, from knowledge creation to manufacturing and commercialization in global markets.

The first would be a knowledge hub centered on Vietnam National University-HCMC, focusing on research and high-quality workforce training.

The second would specialize in high technologies, including semiconductors, AI, biotechnology, and advanced materials.

The third would focus on advanced manufacturing, transforming major industrial parks into centers for high-tech and smart manufacturing.

The fourth would connect finance and innovation by linking Vietnam's international financial center with research, startups, and technology commercialization.

The fifth would serve as a global logistics hub, connecting manufacturing activities with supply chains.

The sixth would focus on the green and marine economies.

Beyond physical planning, Cuong said HCMC would need a unified coordination mechanism to ensure the six hubs function as an integrated system.

The proposed governance framework would connect capital, technology, and innovation while establishing cooperation mechanisms among businesses, research institutions, and other stakeholders.

"The value of the model lies in the quality of connections between the hubs, not just the size of each one," he said.

"The level of integration will determine the strength and effectiveness of the network."

The 2026 Autumn Economic Forum took place from Oct. 26 to 29, attracting global science, technology, and innovation organizations, hundreds of international businesses, industry associations, and diplomatic representatives.

It was the second time HCMC had hosted the forum and the first time it had partnered with the WEF to co-brand the event.