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Ho Chi Minh City Commits $485m to AI, 5G and Digital Transformation in 2026
21 Jul 2026
Ho Chi Minh City has earmarked more than $485 million for science, technology, innovation and digital transformation in 2026, as Vietnam's largest city pushes ahead with AI adoption, 5G expansion and a broader push to build out its digital economy.
The allocation of VND12.7 trillion represents 4.16% of the city's total 2026 budget expenditure and was confirmed during a mid-year review of progress under Vietnam's national science, technology and digital transformation programmes. Of the total, more than VND9.5 trillion has been set aside for operational spending, with a further VND3.2 trillion allocated to capital investment.
The figure marks a sharp jump from the roughly $204 million the city invested in the same categories in 2025, more than doubling year-on-year as Ho Chi Minh City positions science, technology and digital transformation as central pillars of its growth strategy rather than standalone initiatives.
Building Out AI, 5G and Data Infrastructure
Ho Chi Minh City is directing much of the new funding toward strategic technologies, including artificial intelligence, semiconductors, robotics, cloud computing, biotechnology and cybersecurity. To support this push, authorities have assembled a network of 80 experts and scientists and are building databases to map research capabilities, workforce skills and technology demand across these sectors.
Connectivity remains a core focus. The city now operates 8,523 5G base stations, close to a quarter of Vietnam's national total, delivering more than 95% population coverage. It is also piloting the country's first private 5G network at Quang Trung Software Park, where the network will support IoT applications, research projects and smart city development.
A further VND3 trillion has been earmarked for upgrading data centres, network infrastructure, shared digital platforms, the city's smart operations centre and cybersecurity capabilities. The city is also developing a citywide camera platform intended to support public safety, transport management and urban operations.
Start-Up Support and Venture Capital
Ho Chi Minh City's innovation ecosystem is now estimated at around $7.5 billion, with the city's Innovation Startup Centre having supported the incubation of 195 projects to date.
To help commercialise research and innovation, the city has launched a venture capital fund with initial capital of VND500 billion, with plans to scale it up to VND5 trillion. Its upgraded technology exchange platform has already facilitated 38 technology transfer contracts worth around VND29 billion.
The city has also attracted more than $1.4 billion in international investment for high-tech projects, including hyperscale data centres being developed by Starmason, Evolution and Viettel. More broadly, high-tech and digital economy projects drew over $1.23 billion in the first half of 2026 alone, accounting for roughly a third of the city's total foreign direct investment.
Digital Government and Workforce Development
Digital government initiatives continue to expand alongside the infrastructure build-out. More than eight million citizens have now received digital identity cards, over seven million electronic identity accounts have been activated, and six of the country's 13 priority government databases have been completed.
Workforce development is also a priority. In the first six months of 2026, more than 10,400 public officials completed digital transformation and digital skills training, while over 2,500 people attended dedicated AI courses. Nearly 6,000 community digital technology groups, comprising around 29,000 members, are supporting digital skills and AI adoption across the city.
What's Next for Ho Chi Minh City
The city is also preparing new policy measures ahead of Vietnam's forthcoming Urban Development Law, including incentives for science and technology districts, start-up businesses, data economy initiatives and venture capital investment.
Closing the mid-year review, Party Secretary Tran Luu Quang instructed agencies to prioritise the completion of a comprehensive citywide land database by the end of 2026 through a new 100-day delivery campaign. He also called for closer collaboration between government, universities and industry, faster deployment of investment funding, and detailed implementation plans to keep science, technology and digital transformation central to the city's long-term growth strategy.
The push forms part of a wider national effort: Vietnam plans to allocate roughly $3.6 billion from the state budget in 2026 for science, technology, innovation and digital transformation, underscoring the government's broader commitment to knowledge- and technology-led growth.
Sources
- Ho Chi Minh City boosts digital investment to $485m — Smart Cities World
- HCMC boosts investment in science, technology, digital transformation — SGGP English Edition
- HCM City earmarks $485mln for science, technology and digital transformation in 2026 — Vietnam Economic Times
- Vietnam: Ho Chi Minh City Pioneers Comprehensive Digital Data Strategy — OpenGov Asia
- Localities ramp up budget spending on science, technology and digital transformation — ITPC Ho Chi Minh City
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Sara Srifi
Sara is a Software Engineering and Business student with a passion for astronomy, cultural studies, and human-centered storytelling. She explores the quiet intersections between science, identity, and imagination, reflecting on how space, art, and society shape the way we understand ourselves and the world around us. Her writing draws on curiosity and lived experience to bridge disciplines and spark dialogue across cultures.
