Why Vietnam is the Next Hub for AI Development

When founders think about AI development, they default to Silicon Valley, London, or Bangalore. But a quiet shift has been building: Vietnam, and Ho Chi Minh City in particular, is emerging as a serious hub for AI product development. Not as a cheap outsourcing destination, but as a place where world-class AI products are being designed, built, and shipped to global markets.

At Lucents Technology, we've built our entire operation from Ho Chi Minh City. We've shipped AI products for clients in Vietnam, the US, and Europe: products that serve 33,000+ users worldwide. Here's why Vietnam is becoming the next frontier for AI development.

The Engineering Talent Pipeline

Vietnam's 2025 high-tech workforce plan (Decision 1002/QD-TTg) targets 80,000 ICT graduates and 8,000 AI graduates per year by 2030, according to government reporting. Universities like Bach Khoa (HCMC University of Technology), UIT, and FPT University are central to that pipeline.

Vietnamese engineers have a reputation for strong fundamentals. The math and science education system produces engineers who are genuinely comfortable with the algorithmic thinking that AI development demands. Major tech companies (FPT Software, VNG, Tiki, VPBank) have built large engineering organizations that serve as training grounds.

What's changed in the last two years: the best Vietnamese engineers aren't just writing code for foreign companies. They're founding AI startups, building products, and shipping them globally. The shift from "outsourcing talent" to "product-building talent" is the defining story of Vietnam's tech ecosystem right now.

Operational Efficiency Without Compromise

Let's address the obvious: yes, building in Vietnam can offer budget efficiency compared to some Western hubs. But the nuance matters.

• Engineering delivery is often more efficient than comparable US hiring routes while keeping strong technical depth
• Senior AI engineers in Vietnam have production experience with OpenAI, Anthropic, and Google models (the same tools used globally)
• The efficiency advantage isn't just labor. Office space, infrastructure, and operational costs are typically lower, allowing teams to run lean without feeling lean

The important distinction: operational efficiency means your budget goes further. It does not mean you get a lesser product. The AI products we ship from Ho Chi Minh City are built to compete globally on speed, reliability, and user experience.

The Startup Ecosystem Is Maturing Fast

Vietnam's startup ecosystem has grown rapidly:

• VC funding into Vietnamese tech startups has grown steadily, with investors like Insignia Ventures Partners, Hustle Fund, and 500 Global actively backing local founders
• Accelerators and founder programs like Topica Founder Institute, Antler Vietnam, and VIISA are producing experienced, battle-tested founders
• The government is actively investing in AI and digital transformation, with national strategies targeting Vietnam as a top-25 AI nation

This ecosystem matters because it produces engineers and founders who understand product thinking, not just code execution. When your development team has startup DNA, they build differently. They ship faster. They make product decisions, not just technical ones.

Ho Chi Minh City: The AI Product Capital

Within Vietnam, Ho Chi Minh City (HCMC) is the center of gravity for tech. Here's why it matters for AI development specifically:

• Talent density. HCMC has the highest concentration of tech talent in Vietnam, with major tech companies, startups, and universities all within the city
• Time zone advantage. GMT+7 provides significant overlap with European business hours and workable overlap with US West Coast
• Infrastructure. High-speed internet, modern coworking spaces, and a vibrant tech community make it easy to build world-class products
• Operating environment. Teams can operate efficiently without the burnout that comes from underfunding

What Vietnam Does Differently for AI Projects

Vietnam's AI development ecosystem has a specific advantage for forward-deployed engineering: proximity to Southeast Asian markets combined with global product thinking.

Vietnamese AI teams are building products for:

• Global SaaS markets: English-first products with world-class UX
• Southeast Asian enterprises: Understanding the operational complexity of businesses in emerging markets
• Cross-border clients: US and European companies who want production quality at sustainable cost

The result: teams that can build for any market, with the cultural adaptability to serve diverse clients and the technical chops to ship at the highest level.

Real Products Built from Vietnam for the World

From our own portfolio at Lucents:

• Entertainment Resource (US): End-to-end talent booking platform with agency portal, client portal, and performer app, built from HCMC for the US entertainment industry.
• Plum Village (Europe): Technical partnership with Europe's largest Buddhist monastery: e-commerce transformation, multi-language architecture, continuous maintenance
• Momentum AI (Vietnam): AI operations intelligence for a local creative agency, now expanding to serve agencies across Southeast Asia
• Vo&AI Law (Vietnam): AI legal assistant serving corporate clients with always-on guidance and document collaboration

These aren't outsourced projects built to spec. They're products designed, architected, and shipped by a Vietnamese team with full ownership of the product outcome.

How to Work with AI Teams in Vietnam

If you're considering Vietnam for your AI product, here's what works:

1. Look for product studios, not outsourcing shops. You want a team that builds products, not one that writes code to your specifications. Product studios own the outcome. Outsourcing shops own the hours.
2. Visit Ho Chi Minh City if you can. The energy and talent density of the city sells itself. A week in HCMC will change your perspective on what's possible.
3. Start with a focused engagement. Ship one product, see the quality, then expand. The best relationships are built on delivered results.
4. Choose forward-deployed teams. Teams that embed with your business and understand your context will always outperform remote code-to-spec operations.

FAQ

Is the language barrier a problem?

Not with the right team. Senior Vietnamese engineers in the tech ecosystem are fluent in English, especially in product-focused roles. At Lucents, all client communication is in English, and our founders have international education and work experience.

What about intellectual property protection?

Vietnam has strengthened IP protections significantly, and standard contracts include full IP assignment. Reputable Vietnamese tech companies operate with the same IP standards as US or European firms.

How does the time zone work for US clients?

HCMC is GMT+7. With US West Coast (PST), there's a 3-4 hour overlap in the morning/evening. With US East Coast, it's tighter but workable with async-first communication. Most forward-deployed teams adapt their schedules for key collaboration windows.

Build Your AI Product from Vietnam

Vietnam isn't the future of AI development; it's the present. The talent is here. The ecosystem is mature. And the products being shipped from Ho Chi Minh City are competing globally.

If you're looking for an AI product studio that combines world-class engineering with the speed and efficiency of Vietnam's tech ecosystem, start a conversation with Lucents.