Expert: Vietnam is the epicenter of AI trade in Asia

In a newly released analysis, HSBC Vietnam CEO Tim Evans assessed that “Vietnam has advanced faster and further than any other economy” in trade in goods related to artificial intelligence (AI) such as semiconductor chips, components and equipment for AI technology to operate.

According to a report by HSBC Investment Research, Vietnam’s global trade market share in AI-related equipment has increased from 1.2% in 2015 to 12.4% in 2025, the highest in the world (for a single economy during this period).

In early 2026, Korean exports to Vietnam increased the most in Southeast Asia, showing extensive production links and Vietnam’s growing role in assembling computer hardware, including equipment related to AI servers, according to Mr. Tim.

Meanwhile, Taiwan (China) had its first trade deficit with Vietnam in the first quarter. In the three months to May, this island’s imports from Vietnam skyrocketed 173% over the same period in 2025, mainly machinery, electrical equipment and household appliances.

Mr. Tim said that this development shows a “big shift”. Vietnam is no longer a low-cost assembly base at the end of the supply chain, but has become a link in a multilateral network, importing high-value inputs from Taiwan and Korea, then sophisticated manufacturing and exporting back to Asia and the world.

“Two-way flows are becoming deeper and Vietnam’s position in those flows is also being strengthened,” he said.

According to HSBC data, intra-Asian trade with AI-related goods reached nearly $2,000 billion last year, double before Covid-19. AI-related goods account for 35% of Asia’s total exports, compared with 19% a decade ago.

Vietnam rose thanks to both policy and geographical factors. The Government has set out a national strategy for developing the semiconductor industry and identifies science, technology, and digital transformation as growth drivers.

Global manufacturers responded with major investments in packaging, testing and manufacturing of electronics. Vietnam also cooperates with leading technology corporations to acquire research and design capabilities.

In the first half of the year, the processing and manufacturing industry attracted 17.91 billion USD of FDI capital, accounting for 63% of the total newly registered capital and increased capital, according to the Department of Statistics. Many localities recorded large projects related to electronics and semiconductors.

For example, Thai Nguyen is the leader in attracting FDI with a scale of more than 8 billion USD in the first 6 months, most of which poured into high-tech complexes, semiconductor industry and electronic component production. Hai Phong welcomed 1.83 billion USD thanks to removing procedural obstacles for supporting projects in the semiconductor and electronics industry such as LG Innotek.

In parallel, Vietnam is also starting to have high demand for AI. With a young, tech-savvy population and a dynamic business community, Vietnam is well positioned to become an important consumer market for AI services, according to Mr. Tim.

In April, Ho Chi Minh City awarded investment registration certificates to 4 strategic high-tech projects with a total capital of more than 1.23 billion USD. Of these, the two main projects include the Evolution DC VN HCMC Data Center of a consortium of 3 Singaporean investors, worth more than 508 million USD, and the STARMASON super-large data center complex with an investment of about 480 million USD invested by Starmason.

Benefiting from the AI-related commercial wave comes with risks. According to Mr. Tim, deeper specialization means Vietnam is vulnerable to common shocks, such as cooling capital spending on AI, tightening export controls or sharp fluctuations in semiconductor prices. In addition, rising prices of chips and electronic goods can also increase inflationary pressure throughout the region.

Still, the structural dynamics are good. Supply chains are diversifying across Asia, with agreements like RCEP and CPTPP helping to reduce trade barriers. Vietnam has also demonstrated its ability to absorb large-scale capital.

“In the context of Asia transforming from an export launching pad to its own AI demand center, Vietnam is standing at the center of that transition in terms of both economics and geography,” said HSBC Vietnam General Director.

According to him, if Vietnam can transform its manufacturing growth momentum into a true AI ecosystem, combining hardware scale with skills, infrastructure and application levels in businesses, the benefits will not only be in export turnover but also spread to factory productivity, service areas and in the daily operations of hundreds of thousands of businesses.