Though Vietnam was an early adopter of 5G technology, as early as mid-2019, the country has been slower than initially expected in commercializing the service. Nevertheless, researchers at Singapore’s Lee Kuan Yew School of Public Policy, in a report entitled “Leveraging 5G to Accelerate AI-Driven Transformation in ASEAN Imperatives, Policy Insights, and Recommendations”, considered Vietnam’s “follower” strategy a smart move.

Rather than rushing in during the early phase, when investment costs were still very high and the technology was not yet mature, Vietnam leveraged the delay to observe and learn from the mistakes and lessons of early-adopting countries, while also benefiting from the sharp drop in 5G infrastructure costs. A 5G base transceiver station (BTS), which cost over $100,000 in 2020, had dropped to under $25,000 by the end of 2024. This provides a clear advantage for late movers like Vietnam, not only in terms of reducing deployment costs but also in gaining access to more flexible and open technological solutions such as Open RAN (O-RAN), which helps optimize hardware and accelerate network rollout.

This approach not only helps Vietnam conserve resources but also lays the foundation for a well-structured, sustainable, and strategically-guided 5G rollout that aligns closely with the country’s national digital transformation goals. The government has set a target for 5G to cover over 99 per cent of the population with around 90 million connections by 2030. To support this goal, various incentive policies have been introduced since early 2025. For example, enterprises that deploy at least 20,000 5G base stations will receive a 15 per cent subsidy on equipment costs.

Synergy grows, but gaps remain

However, according to experts, in order to fully unlock the potential of 5G networks, Vietnam must address a major bottleneck: its application ecosystem and IT platform infrastructure remain underdeveloped. In major urban areas, high-speed FTTH (Fiber to the Home) broadband already meets most individual user needs, making the transition to 5G less urgent. Meanwhile, the sectors expected to benefit most from 5G, such as manufacturing, agriculture, healthcare, and education, still lack end-to-end digital solutions and effective data-driven, AI-enabled business models.

To address this constraint, Vietnam is currently pursuing a three-pronged approach. First, it is accelerating digital transformation in priority sectors such as high-tech agriculture, smart cities, and logistics. Second, it is promoting AI applications in public services, from urban planning and intelligent transportation to preventive healthcare. Third, the government is encouraging domestic tech enterprises to develop AI applications built on 5G infrastructure, such as computer vision, real-time data analytics, and automated monitoring systems.

If leveraged strategically, the combination of 5G and AI can not only enhance operational efficiency across industries but also catalyze new business models, contributing to the development of a modern and sustainable digital economy in Vietnam.

For example, in agriculture, the ultra-low latency of 5G enables instant transmission of data from humidity sensors, crop imagery, or soil conditions to an analysis center. AI then processes this data and provides tailored recommendations for irrigation, fertilization, or pest control based on plant species and growth stage. Farmers would only need a 5G-connected phone to capture images of crop leaves and receive near-instant feedback.

In manufacturing, 5G and AI help synchronize production lines, detect equipment faults early, optimize energy use, and reduce downtime. All of this can be executed at the edge device level, thanks to edge AI, an architecture that processes data locally rather than relying on the cloud.

A prominent example is Tuas Port in Singapore, which is operated entirely autonomously using AI over a 5G network. Within its first three years of operation, the port handled over 10 million TEUs without any direct human intervention, setting a new standard for transforming traditional logistics into a fully intelligent hub.

Currently, to harness the synergy between 5G and AI, Vietnam is making coordinated efforts in both infrastructure and policy. Open data platforms are gradually being rolled out, enabling tech enterprises to access public data for AI model training and analytics. Simultaneously, the presence of major players such as Intel, Foxconn, Pegatron, and especially the 5G Innovation Hub operated by Ericsson, is gradually forming a domestic supply chain for AI and telecom equipment, providing a vital foundation for sustainable development.

On the policy front, Vietnam has issued a National Strategy on R&D and the Application of Artificial Intelligence (AI) until 2030 and is finalizing the Law on Personal Data Protection and regulatory sandbox frameworks for emerging technologies in sectors such as finance, healthcare, transportation, and public administration. These frameworks are critical for piloting, refining, and accelerating the real-world adoption of innovative technologies.

While early signs of AI adoption in Vietnam are promising, Professor Vu Minh Khuong from the Lee Kuan Yew School of Public Policy noted that for AI to truly deliver transformative outcomes, such as precision decision-making, optimized production, and enhanced supply chain efficiency, Vietnam’s 5G infrastructure must be significantly and systematically strengthened.

“The key issue is that I have yet to see a clear 5G strategy from telecom providers,” he emphasized. “While they recognize the economic value, they haven’t invested adequately. This could delay the rollout process. I believe the government should play a more proactive coordinating role, similar to Singapore’s approach, by linking together international tech providers, domestic enterprises, end users, and funding sources. Most importantly, we need concrete application scenarios to create momentum for practical 5G-AI collaboration models.”

AI empowers 5G

AI not only runs on 5G infrastructure, it also makes 5G networks smarter. With its ability to “learn” and analyze in real time, AI can optimize network operations, dynamically allocate resources, anticipate bottlenecks, and reduce latency to ensure service quality in high-density, high-demand environments.

For example, during traffic spikes at sporting events, busy intersections, or peak hours in urban areas, AI can automatically adjust bandwidth allocation, prioritizing critical services such as autonomous vehicle control, remote surgery, or emergency response. AI also enhances network security by detecting abnormal behavior, preemptively mitigating cyberattacks, and minimizing service disruptions, unlike traditional reactive models.

The official sunset of 2G in September 2024, along with smartphone subsidy programs for 4G/5G by Viettel, MobiFone, and Vinaphone, reflects consistent efforts by both government and telecom providers to accelerate infrastructure transition. According to the Authority of Radio Frequency Management at the Ministry of Science and Technology, as of last May, the three major carriers had deployed around 11,000 5G base stations, covering all cities and provinces and reaching about 26 per cent of the population. By the end of 2025, the number of 5G base stations nationwide is projected to reach 68,000, or roughly 57 per cent of the current 4G network scale, and potentially cover up to 90 per cent of the population.

5G is the backbone for the development of next-generation technologies such as edge computing, computer vision, the metaverse, and especially AI. However, for AI to become a true growth driver, experts emphasize the need for continued, synchronized investment in modern digital infrastructure, from high-speed core networks and national data centers to high-performance computing clusters, robust cybersecurity systems, and open data platforms.

In the past, Vietnam made remarkable progress in internet adoption between 2005 and 2015, despite a late start. With 5G and AI, the opportunity to leapfrog development is even greater. Researchers at the Lee Kuan Yew School of Public Policy believe Vietnam shows strong potential not only as a consumer market for emerging technologies but also as a rising innovation hub in the region.