Vietnam

Vietnam’s sovereign AI relies heavily on open-weight models developed in the United States. However, as Washington and Beijing are moving to restrict access to these technologies, Hanoi’s bamboo diplomacy offers little protection to its AI ambitions.

In mid-July, Vietnam approved its National Digital Transformation Strategy for 2026-2030 under Decision 1266/QD-TTg, and the National Data Strategy under Decision 1308/QD-TTg. Both strategies aim for national digital sovereignty, domestic self-reliance and state-level data governance on the assumption that artificial intelligence (AI) models would remain a public good. Within days, the United States (U.S.) and China signalled their readiness to restrict access to those models.

Made in America

Vietnam’s current AI systems are modified versions of foreign tech. On the ground, Viettel, the state military telecom giant spearheading Vietnam’s AI goals, announced its VT-Super-120B-A12B Vietnamese language model had matched the accuracy of major global models of similar size. It was built by adapting Nemotron, Nvidia’s freely downloadable model family, to Vietnamese data. Viettel’s earlier model was also built on Meta’s Llama 3, trained with Nvidia tooling, and run on a cluster of 22 DGX B200 supercomputers at its Hoa Lac centre.

Moreover, VNG’s GreenNode subsidiary introduced GreenMind-Medium-14B-R1, the first open-source Vietnamese reasoning model built to run on Nvidia’s software and a single Nvidia H100 graphics chip. Meanwhile, FPT Corporation committed $200 million to build its AI factory powered by Nvidia hardware.

At the state level, Vietnam’s Ministry of Science and Technology met with senior executives from Qualcomm in Hanoi on July 17. Deputy Minister of Science and Technology Hoang Minh and Qualcomm’s Executive Vice President Durga Malladi discussed expanding cooperation in AI semiconductors, research and development, and workforce training.

While Vietnam has made its bets on the U.S. for its AI ambitions, other Southeast Asian countries are leaning towards China. Indonesia’s Indosat Ooredoo Hutchison partnered with AIonOS on DeepSeek-powered services, and Malaysia’s Communications Ministry launched a sovereign full-stack AI ecosystem running on Huawei hardware.

Outside Two Blocs

AI governance is dividing into two blocs. One bloc is the U.S.-led Pax Silica initiative, which coordinates trusted supply chains for semiconductors, critical minerals and AI infrastructure with 24 signatories. Singapore, the Philippines, India, Japan and South Korea are among them. The Philippines converted membership into commitments by agreeing in April 2026 to a 4,000-acre economic security zone in the Luzon economic corridor designated as the initiative’s first AI-native industrial hub.

The other is the Chinese-backed World Artificial Intelligence Cooperation Organization, signed into existence in Shanghai on July 16 by 29 governments. The membership also includes Russia, Belarus, Cuba, Venezuela and most of Central Asia, alongside Vietnam’s neighbours Laos, Cambodia and Myanmar.

Membership in either bloc could offer access to supply chains, technical assistance and software distribution during a diplomatic crisis.

However, Vietnam belongs to neither group because of its long-standing bamboo diplomacy, a policy of balancing relations between Washington and Beijing without taking sides. This leaves Hanoi in an awkward position. Vietnam depends heavily on American technology, but enjoys none of the guarantees or protections of one.

Weaponising Access

Export controls on chips work because processors are physical goods, subject to customs enforcement. On May 31, the Bureau of Industry and Security extended licensing requirements to any China-parented buyer worldwide, closing loopholes in Singapore and Malaysia.

AI models do not behave the same way. Access to a closed system can be revoked instantly by flipping an application programming interface (API) key. For example, on June 12, Anthropic suspended access to its Fable and Mythos models to comply with U.S. Commerce Department export controls, restoring access only on July 1 after those controls were lifted. Such events largely explain why governments prefer AI models they can host locally.

In contrast, an open-weight model, once downloaded, cannot be recalled by any foreign regulator. Instead, global superpowers exert control by forcing major tech companies and code-sharing platforms to block downloads from specific regions or countries. They can also pressure developers to restrict future model updates to dodge penalties from Washington or Beijing.

This fight over AI access is now an open battle. On July 16, Chinese startup Moonshot AI unveiled Kimi K3, a 2.8-trillion-parameter model that independent evaluators say matches top American models at a fraction of their operating cost. On July 21, Treasury Secretary Scott Bessent signalled that Washington could sanction Chinese tech firms, citing American-model watermarks found inside Chinese ones. Days later, China’s Ministry of Commerce called the investigations groundless, threatened countermeasures, and began consulting Alibaba, ByteDance and Z.ai on export controls covering model weights, training data and chip designs.

Why It Matters

For years, nations have built digital capacity cheaply and quickly by customising open-weight AI models. Kimi K3 seemed to promise that era would continue. Instead, the geopolitical fallout exposed the fragility of relying on superpower goodwill.

For Vietnam, the real threat is getting left behind. Washington or Beijing cannot delete the AI models already sitting on Vietnamese servers. What they can block is future releases. If both superpowers restrict open-weight models, Vietnam’s AI ecosystem gets stuck using today’s tools while the rest of the world moves forward. A national tech stack built on frozen updates decays one generation at a time. States that have not localised model weights face an even harsher reality. Their access relies on live connections and downloads that can vanish overnight with a new policy.

At its core, this is a problem of time. Vietnam’s bamboo diplomacy relies on having time to adapt. Trade deals and defence agreements move slowly, giving Hanoi room to bend without breaking. AI access, however, moves instantly as access disappears with a revoked key or a blocked download link.

Diplomatically, Vietnam tries to stay neutral at all costs. However, its technology does not try to do so. All of its major AI models are built on American weights, run on American chips, and improve when American companies release new ones. Vietnam acts as if it can delay picking a side, but with every new AI update or blocked release, the cost of delay becomes more expensive. In the past, diplomatic pressure moved slowly through international summits. Today, that pressure speeds up with every new model release.

July 30 (Asia Today) — The nuclear-powered aircraft carrier USS George Washington arrived in the central Vietnamese city of Da Nang on Thursday, one day after a Russian naval group completed a visit to Cam Ranh International Port.

The five-day port call is the fourth visit by a U.S. aircraft carrier to Vietnam since the two countries normalized diplomatic relations in 1995. It comes as the U.S. Navy has concentrated some of its carrier forces in the Middle East during the conflict with Iran.

The George Washington, flagship of Carrier Strike Group 5, arrived with the guided-missile cruiser USS Robert Smalls and the guided-missile destroyer USS Shoup. The ships are scheduled to remain in Da Nang through Monday.

The Nimitz-class carrier is based in Yokosuka, Japan, and is the U.S. Navy’s only forward-deployed aircraft carrier.

Its air wing includes F-35C Lightning II stealth fighters, F/A-18E/F Super Hornets, EA-18G Growlers, E-2D Hawkeyes, CMV-22 Ospreys and MH-60 helicopters.

The visit is the first by the George Washington to a Vietnamese port. The carrier previously hosted Vietnamese delegations at sea in 2010, 2011 and 2012.

The USS Carl Vinson became the first U.S. aircraft carrier to visit Vietnam after the war when it called at Da Nang in 2018. The USS Theodore Roosevelt followed in 2020 and the USS Ronald Reagan visited in 2023.

Vietnam’s Defense Ministry said the latest visit would contribute to maintaining and developing relations between Hanoi and Washington.

The U.S. Consulate General in Ho Chi Minh City said the visit reaffirmed the U.S. Navy’s commitment to a shared vision of a free and open Indo-Pacific.

The United States and Vietnam elevated their relationship to a comprehensive strategic partnership in September 2023, Vietnam’s highest diplomatic classification.

The two countries have since expanded defense discussions, including maritime security, information sharing, defense trade and efforts to address the consequences of the Vietnam War.

The ships’ scheduled activities include public tours, performances by a U.S. Navy band and sporting and cultural exchanges with Vietnamese participants.

Visit follows Russian naval stop

The U.S. carrier arrived one day after a Russian Pacific Fleet group completed a four-day visit to Cam Ranh International Port in south-central Vietnam.

The Russian vessels, including the Kilo-class submarine Ufa, visited from Sunday through Wednesday and participated in submarine rescue training with the Vietnamese Navy.

The close timing of the Russian and U.S. visits reflects Vietnam’s effort to maintain defense relations with multiple major powers without entering a formal military alliance.

Chinese, Indian and Japanese naval vessels have also visited Vietnamese ports in recent months.

Vietnam’s 2019 defense white paper established its “Four No’s” policy: no military alliances, no alignment with one country against another, no foreign military bases or use of Vietnamese territory against another country and no use or threat of force in international relations.

Vietnam has expanded defense cooperation with the United States but continues to purchase and operate large amounts of Russian-designed military equipment.

Differences in cost, maintenance systems and compatibility have limited Vietnam’s purchases of U.S. weapons.

China likely to monitor visit

The George Washington entered the South China Sea after passing through the Luzon Strait on July 22, following two recent confrontations between Chinese and Philippine vessels in disputed waters.

Carl Thayer, emeritus professor at the University of New South Wales in Australia, said the visit signals that U.S.-Vietnam engagement is continuing despite the transfer of some American military assets to the Middle East.

He said China would likely monitor the carrier strike group with ships and aircraft but avoid the sharp public criticism it often directs at the Philippines.

Beijing has generally sought to avoid pushing Vietnam into a closer military relationship with Washington, despite disputes between China and Vietnam in the South China Sea.

The port call illustrates Hanoi’s broader strategy of welcoming military vessels from competing powers while maintaining its formal policy of strategic independence.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260730010011465

IF you’re yet to book your holiday this summer, then there are a bunch of islands that are set to be the next big thing.

Expedia has launched its 2026 Island Hot List list – not based on their temperatures, but the ones that are trending right now.

Expedia created its Island Hot List from the spots around the world that have seen the biggest increase in traveller interest between September 2025 and March of this year.

At the very top of that list, is beautiful St Lucia in the Caribbean.

Over the past year, the island has seen a huge 125 per cent increase in searches.

It’s no surprise really, as St Lucia is a tropical paradise with stunning scenery from jungles to volcanoes and its mix of white and black sand beaches.

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One Sun Writer who visited a few years ago hiked through its rainforests and sunbathed on the golden sands of Reduit Beach.

He added: “With beautiful scenery, indulgent food and plenty of adventure, it’s not hard to see why St Lucia has stolen the hearts of the young and old as well as families and honeymooners.”

For anyone who wants to visit, the best time to visit is between February to May – and there are some affordable winter packages.

It’s not just far-flung islands that topped the list – plenty in Europe did well too.

Second on the list is Porto Santo, a small Portuguese island in Madeira.

Expedia said it’s “a quieter alternative to Funchal and mainland Europe’s busiest beach destinations, known for its golden sands and relaxed pace.”

It’s been called a ‘golden oasis‘ by Visit Madeira and has enormous sandy beaches – despite being the smallest inhabited island on the archipelago.

It also has sea coves and the waters are great for diving and snorkelling.

To get to Porto Santo, Brits will have to fly directly to Funchal and then it’s a quick 25-minute flight to the neighbouring island.

Also in the top 10 is Syros, a Greek island that’s much lesser-known than its neighbour, Mykonos.

There’s lots to do there from exploring its main town of Ermoupoli, to the village of Kini, which is known for its seafood restaurants.

Of course there are plenty of beautiful beaches too.

It might not be the hot escape that’s usually associated with islands around the world, but the Lofoten Islands are a trip worth considering.

The Lofoten Islands is an archipelago consisting of roughly 80 islands in Norway.

The main islands include Austvågøya, Gimsøya, Vestvågøya, Flakstadøya, and Moskenesøya.

In fact the Lofoten Islands are so beautiful that with its frozen backdrop, colourful fishing villages, and craggy mountains that it’s said to have inspired the landscape for Disney‘s film Frozen.

From mid-May to the end of July, the sun doesn’t set there – it’s called Midnight Sun, when the sun doesn’t drop below the horizon.

Other islands soaring in demand include Praslin which is the second-largest island in the Seychelles.

Here, interest has increased by a whopping 80 per cent.

Here’s the full list of Expedia’s ‘Island Hot List 2026’…

1. St Lucia
2. Porto Santo, Madeira, Portugal
3. Praslin, Seychelles
4. Syros, Greece
5. Lofoten Islands, Norway
6. Palawan, Philippines
7. Culebra, Puerto Rico
8. Sanibel Island, Florida, USA
9. Phu Quoc, Vietnam
10. Fiji

THE top 10 destinations offering five-star stays on a budget have been revealed – starting from just £70 a night.

They’ve been identified by Hotels.com, which used search data to determine the most appealing locations for Brits.

Despite volatile travel prices, it’s possible to go on a 5-star holiday on a budget – with high-end range accommodation available for as low as £70 in Nha Trang, Vietnam.

You can also enjoy luxury stays in Zagreb, Croatia, for £130 and Tallinn, Estonia, for £140, with the likes of Zaragoza, Spain (£120) and Sofia, Bulgaria (£135) also cheap.

The data was revealed as part of the global marketplace’s 2026 Hotel Price Index.

The report also includes findings from a global study of 11,000 adults who’ve ever stayed in a hotel – covering the UK, USA, Canada, Mexico, Brazil, France, Sweden, Denmark, Norway and South Korea.

It revealed how they define luxury accommodation, with offering great food (31 per cent), a room with a view (30 per cent) and premium in-room amenities (28 per cent) coming top.

Travel expert and spokesperson Melanie Fish said: “Travellers may be feeling the squeeze, but they’re also getting smarter.

“With increasing volatility in travel prices this summer, fuel costs may be dominating the conversation, but hotel prices are where travellers are making real trade-offs.”

The Hotel Price Index also revealed other cheap but luxurious options include nights in Wrocław, Poland (£120), Tirana, Albania (£130) and Riga, Latvia (£130).

Heraklion, Crete (£135) and Santo Domingo, Dominican Republic (£140) are also offering high-end accommodation at a lower cost.

There are five-star offerings available in the UK too – including the likes of Brighton (£115), Cornwall (£135) and Liverpool (£170).

In addition to finding 10 of the cheapest, 10 notable locations which have seen major price drops during the past year were revealed – including Loire, France (down by 32 per cent) and Edmonton, Canada (down 31 per cent).

Further places include St. Thomas, US Virgin Islands (down 30 per cent), Dortmund, Germany (down 21 per cent) and Turin, Italy (also down 21 per cent).

The report also found it pays to book holidays at the last minute, with hotel rates up to 26 per cent lower if booking close to departure.

TEN OF THE CHEAPEST FIVE-STAR STAYS IN THE UK:

1. Brighton (£115)
2. Bristol (£115)
3. Chichester (£120)
4. Llandudno (£125)
5. Worcester (£125)
6. Bournemouth (£130)
7. Cornwall (£135)
8. Leeds (£145)
9. Cardiff (£155)
10. Liverpool (£170)

If you’re looking to keep costs down further still, the data also found prices are 14 per cent lower for Sunday stays – with Saturdays the most expensive.

Getting away in January offers the lowest prices, while the second week of July is the priciest – at least domestically.

Hotels.com’s global study, carried out through OnePoll, also revealed what’s top of everyone’s luxury dream wish list – a hot tub with a view (44 per cent) followed by a penthouse suite (41 per cent).

When asked what they consider a truly luxury hotel to offer, great food at the hotel (31 per cent), a room with a view (30 per cent) and premium in-room amenities (28 per cent) came top.

Hotels.com’s 2026 Hotel Price Index has identified the top 10 destinations where you can enjoy a five-star stay on a budget – with some high-end options available from as little as £70 a night

The top 10 destinations offering five-star stays on a budget have been revealed. Despite unpredictable travel costs, securing a luxury holiday without breaking the bank is entirely achievable – with high-end range accommodation available for as low as £70.

The findings from Hotels.com’s 2026 Hotel Price Index drew on internal booking information and a worldwide survey of 11,000 travellers from the UK, USA, Canada, Mexico, Brazil, France, Sweden, Denmark, Norway and South Korea.

Travel expert and spokesperson Melanie Fish said: “Travellers may be feeling the squeeze, but they’re also getting smarter. “With increasing volatility in travel prices this summer, fuel costs may be dominating the conversation, but hotel prices are where travellers are making real trade-offs.”

The research revealed that luxury breaks in Croatia, Estonia, Zaragoza, Spain and Bulgaria can also be enjoyed for less than £150 a night.

The Index also uncovered other affordable yet indulgent alternatives destinations, including stays in Wrocław, Poland (£120), Tirana, Albania (£130) and Riga, Latvia (£130). Five-star accommodation can be found in the UK as well – with options in Brighton (£115), Cornwall (£135) and Liverpool (£170).

Alongside identifying 10 of the most budget-friendly destinations, the research highlighted 10 notable locations that have experienced significant price reductions over the past year – including Loire, France (down 32%) and Edmonton, Canada (down 31%).

Additional destinations include St. Thomas, US Virgin Islands (down 30%), Dortmund, Germany (down 21%) and Turin, Italy (also down 21%).

Surprisingly, the findings showed that booking last minute can actually save money, with hotel rates up to 26% cheaper when reserving closer to your departure date. For those seeking to reduce expenses even further, the data revealed prices are 14% lower for Sunday stays – with Saturdays proving the most costly.

Escaping in January delivers the best value, while the second week of July commands the highest rates – domestically at least.

Hotels.com’s global study, conducted through OnePoll, also disclosed what tops everyone’s luxury dream wish list – a hot tub with a view (44%) followed by a penthouse suite (41%).

When questioned about what defines a genuinely luxurious hotel experience, exceptional food at the hotel (31%), a room with a view (30%) and premium in-room amenities (28%) emerged as the top priorities.

TEN OF THE CHEAPEST FIVE-STAR STAYS ABROAD:

1. Nha Trang, Vietnam (£70)
2. Zaragoza, Spain (£120)
3. Wrocław, Poland (£120)
4. Tirana, Albania (£130)
5. Riga, Latvia (£130)
6. Zagreb, Croatia (£130)
7. Sofia, Bulgaria (£135)
8. Heraklion (Crete), Greece (£135)
9. Tallinn, Estonia (£140)
10. Santo Domingo, Dominican Republic (£140)

TEN OF THE BIGGEST INTERNATIONAL PRICE DROPS YEAR-ON-YEAR:

1. Loire, France (-32%)
2. Edmonton, Canada (-31%)
3. St. Thomas, U.S. Virgin Islands (-30%)
4. Dortmund, Germany (-21%)
5. Turin, Italy (-21%)
6. Kassandra (Khalkidhiki) Greece (-21%)
7. Agrigento (Sicily), Italy (-21%)
8. Montego Bay, Jamaica (-18%)
9. Cancun, Mexico (-16%)
10. Dominica (-13%)

BANGKOK — With summer around the corner, soaring prices and other complications from the war with Iran are straining the tourism-dependent economies of Cambodia, Thailand, Vietnam and other countries in Southeast Asia.

The region’s peak tourist summer season is at risk as elevated jet fuel costs coupled with ceasefire uncertainties prompt flight cancellations and higher ticket prices.

Tourism in Asia has yet to fully recover from the COVID-19 pandemic. Now, many countries are coping with the war’s repercussions on global energy supplies and prices, which hit Asia first and hardest. Some families are pulling back on travel as gas and groceries get more expensive worldwide. Crowds have thinned at some places once synonymous with travel.

“With gasoline prices rising and tourism declining, how can we make money?” asked Siv Pech, a 58-year-old rickshaw driver in Siem Reap, home to Cambodia’s centuries-old Angkor Wat temple complex.

Tourism is an economic lifeline for many developing nations. It contributes nearly 13% of gross domestic product in Thailand and nearly 9% in Vietnam, and it underpins millions of jobs in Cambodia. Travelers bring in much-needed foreign currency for import-dependent economies such as the Philippines and Nepal.

Those tourism dollars are more crucial than ever as war-driven spikes in oil prices push up the cost of fuel imports, especially for parts of the world that relied on the Strait of Hormuz off Iran’s coast as a conduit for much of their oil and gas. Iran essentially shut down the strait to commercial traffic after the U.S. and Israel launched the war more than three months ago.

The war will determine which tourism businesses can survive long enough to benefit from the eventual return of travelers, said Jitsai Santaputra of the Lantau Group, an energy industry consulting firm. “This, happening within five years of each other, first the pandemic and now the war, is horrible for the tourism industry,” she said.

Travel costs

Jet fuel shortages and surging costs have led Vietnam Airlines, the Malaysia-based AirAsia group, Hong Kong’s Cathay Pacific and other carriers to cut flights or otherwise adjust schedules.

European carriers face a squeeze for similar reasons.

Airspace closures across the Persian Gulf early in the war and the intermittent closures of certain Persian Gulf airports cut off key layover locations for Asia-bound flights or forced commercial airplanes to take longer, costlier routes.

Airfares have jumped, with airlines such as Air India and Cathay Pacific implementing sharp increases in fuel surcharges.

Cathay Pacific’s fuel surcharge for medium-haul flights has jumped to $80, up from $34 before the war. For long-haul flights, it increased to $174, up from $73.

“Jet fuel prices remain at highly elevated levels” and have increased cost pressures, said Lavinia Lau, Cathay’s chief customer and commercial officer. Travelers are booking closer to their departure dates, she said, indicating growing unease.

Sandra Awodele, a freelance travel writer in the Washington area, often plans year-round international trips and hoped this summer would be when she finally crossed off Asia from her bucket list.

In March, she began planning a long-awaited vacation to Thailand, envisioning one to two weeks of exploring. Her plans hit a wall when she checked airfares.

“I looked at flight options and that’s where it ended,” Awodele said.

On the ground, rising fuel costs in tourism-dependent Southeast Asia are squeezing taxi and ride-hailing app drivers.

Pech, the Cambodian rickshaw driver, said he used to earn up to $20 a day toting tourists around Siem Reap. That’s plummeted to about $5 a day.

His gas bill eats half of that. The rest goes to food. “Some days, I don’t earn even a cent,” he said.

Slow summer expected

Tourism is vital for many regional economies, accounting for nearly 11% of economic activity in the Assn. of Southeast Asian Nations in 2019, according to the World Travel and Tourism Council.

An analysis by Moody’s Analytics estimated effects from the war would probably reduce economic growth across the Asia-Pacific region by 0.1 to 0.4 percentage points in 2026.

“The conflict will weigh on growth mainly through higher production costs and consumer prices, along with weaker external demand from trade and tourism,” said Albert Park, chief economist at the Asia Development Bank.

Higher airfares and weaker travel confidence can quickly spill over into household livelihoods and public revenues in economies where visitor arrivals are a major source of jobs, income and foreign exchange, according to a recent report by the United Nations Development Program.

Travel is often the first expense people cut when the economy worsens, said Le Tuyet Lan, who runs bed-and-breakfast properties in Vietnam’s Hanoi and Ho Chi Minh City.

In times of crisis, luxury travelers tend to shift toward mid-range options, mid-range travelers move toward budget hotels, and the cheapest tier of the market becomes the most vulnerable.

“This will disrupt the whole industry,” she said.

‘We are feeling it’

Tourism in Thailand is “a big industry and we are feeling it,” said Santaputra with the Lantau Group in Bangkok, one of Southeast Asia’s most visited cities.

The number of visitors to Thailand fell 7% year-on-year in April, while European arrivals fell almost 16% and Middle Eastern arrivals sank 57%, according to the Ministry of Tourism and Sports.

In neighboring Cambodia, Sokha Sambo, owner of the popular Sambo Khmer & Thai Restaurant in Siem Reap, said the rising price of liquefied petroleum gas used for cooking has strained her budget, hindering her ability to dish out her signature green curries.

“I’m worried about gas and goods inflation. It makes the business less profitable and difficult to cover employees’ salaries,” said Sambo, who has 14 staff members.

In the first four months of 2026, the number of recorded international and domestic visitors to Siem Reap dropped by 37.5% compared with the same period last year, according to the province’s tourism department.

“This has greatly affected all of us,” Sambo said.

Delgado and Chan write for the Associated Press and reported from Bangkok and Hong Kong, respectively. AP writers Aniruddha Ghosal in Hanoi and Rio Yamat in Las Vegas and freelance journalist Sinorn Thang in Phnom Penh, Cambodia, contributed to this report.