Vietnam Records Southeast Asia's Second-Highest AI Adoption Rate
Vietnam recorded the second-highest AI adoption rate in Southeast Asia in the first quarter of 2026, with 26.5% of its working-age population using AI, according to Microsoft's Global AI Diffusion Report. The country ranked behind only Singapore (63.4%) and ahead of Malaysia (21.8%), the Philippines (20.1%), and Thailand (12.4%). During the quarter, Vietnam also posted the region's largest increase in AI adoption, rising 3% points from the previous period and reinforcing its position as one of Southeast Asia's fastest-growing AI markets.
The rapid pace of adoption reflects Vietnam's growing readiness to embrace AI across both business and society. AI usage increased steadily from 21.2% in the first half of 2025 to 26.5% in Q1 2026, supported by strong engagement from businesses, developers, educational institutions, and public-sector organizations in applying AI to improve productivity and drive innovation.
The report also highlights Asia as a global AI growth engine, with 12 of the world's 15 fastest-growing AI economies located in the region. Against this backdrop, Vietnam is well positioned to benefit from the next wave of AI-driven economic growth, backed by an expanding technology ecosystem and a growing pool of digital talent. As AI adoption continues to accelerate, the country's next challenge will be translating widespread usage into productivity gains, innovation, and globally competitive AI-powered products and businesses.
Green SM Partners RouteMatic To Expand EV Fleet Services In India
Green SM has partnered with RouteMatic, one of India's leading corporate mobility providers, to accelerate the adoption of electric vehicles in enterprise transportation. Under the agreement, Green SM's EV fleet will be integrated into RouteMatic's employee transportation services, giving the Vietnamese mobility company access to a broad enterprise customer base while supporting India's transition toward sustainable transportation.
The partnership builds on Green SM's official entry into the Indian market on June 5, when the company launched operations in the Delhi-NCR region with the VinFast Limo Green electric SUV. RouteMatic currently serves more than 400 enterprises across 24 cities, facilitating over 5 million rides each month and supporting more than 300,000 employees. By leveraging this network, Green SM is expected to strengthen its presence in India's corporate mobility sector through strategic ecosystem partnerships.
The collaboration also aligns with India's broader push to electrify commercial vehicle fleets, particularly under Delhi's proposed EV Policy 2.0. Backed by VinFast's manufacturing footprint in India, including its Tamil Nadu assembly plant with an annual production capacity of 50,000 vehicles, Green SM is well positioned to support long-term expansion in the market while combining local market access with Vietnamese EV technology and manufacturing capabilities.
Da Nang Unveils Incentives To Attract AI And Semiconductor Talent
Da Nang has introduced a new incentive framework to attract high-quality talent and accelerate the development of its semiconductor and artificial intelligence industries. The initiative targets global experts, researchers, strategic business partners, educational institutions, and organizations involved in talent development, reflecting the city's broader strategy to strengthen its position as one of Vietnam's leading technology and innovation hubs while addressing the growing demand for skilled professionals.
Under the policy, qualified experts in semiconductors and AI will receive a one-time incentive of VND100 million after 12 months of employment, along with accommodation support of up to VND20 million per month. Eligibility is based on demonstrated expertise and experience, including research achievements, intellectual property, income level, or advanced academic qualifications. The city also offers incentives for research activities, including support of up to VND50 million for international patents.
Beyond individual talent, the framework extends support to strategic partner companies. Businesses can receive subsidies covering 30% of the cost of hiring highly qualified professionals during their first five years, subject to annual funding caps. Through these measures, Da Nang aims to strengthen its advanced technology capabilities, foster innovation, and capitalize on opportunities arising from the global growth of the semiconductor and AI industries.
LPs Push VC Funds For Earlier Capital Returns
Limited partners (LPs) are placing greater emphasis on early cash distributions, making Distributed to Paid-In Capital (DPI) an increasingly important measure of venture fund performance in a slower exit environment. Several investors said general partners (GPs) should actively pursue opportunities to return capital to LPs, even if that means accepting lower valuations in certain transactions. However, they stressed that short-term liquidity should not come at the expense of venture capital's long-term value creation, which is typically driven by a small number of exceptional portfolio companies.
To balance liquidity with long-term upside, Ascend Vietnam Ventures (AVV) highlighted the importance of a staged secondary strategy that allows funds to generate cash returns while maintaining exposure to high-performing companies. At the same time, growth-stage investing is gaining traction as it offers clearer pathways to capital realization and distributions.
Looking ahead, investors believe Vietnam's greatest venture opportunities will come from startups capable of expanding beyond the domestic market, rather than relying solely on local demand. Strong corporate governance and institutionalization are also becoming increasingly important for fundraising, mergers and acquisitions, and successful exits. As Vietnam's venture ecosystem continues to mature, sustained success will depend on long-term capital, stronger infrastructure, scalable businesses, and clear pathways to liquidity while maintaining a long-term investment perspective.
Genesia Ventures is an early-stage venture capital firm operating in Japan and Southeast Asia, with a strong belief in the long-term potential of Vietnam’s digital economy. Beyond providing capital, the fund actively supports startups through strategic guidance and connections to a broader regional network.