The rapid growth of artificial intelligence and global supply chain restructuring are reshaping infrastructure demand throughout Southeast Asia. According to Kristy Hsu, Director of the Taiwan ASEAN Studies Center (TASC) at the Chung-Hua Institution for Economic Research (CIER), the Philippines and Vietnam have recently expanded their capabilities in AI, data centers, semiconductors, and digital infrastructure. While traditional transportation and energy infrastructure will continue to develop, high-tech production facilities, data centers, green energy, and smart infrastructure are expected to generate additional engineering demand in the coming years. As Taiwanese electronics and semiconductor companies expand operations in the Philippines and Vietnam, Taiwanese engineering firms are likely to encounter increased opportunities in international markets.
Philippines Launches AI Strategy, Opening a Three-Year Window for Major Infrastructure Development
Yun-Hsi Chung, Associate Analyst at the TASC of the CIER, noted that the Philippines has traditionally relied on the business process outsourcing industry but has recently begun leveraging its electronics sector to promote industrial upgrading. The government introduced an AI development plan in June 2026. Broader adoption of AI is expected to increase demand for data centers and related infrastructure.
As the Philippines transitions to upper-middle-income status, access to concessional financing is expected to decline. Consequently, the next three years represent a critical period for major infrastructure development. Beyond AI and digital infrastructure, the Philippines requires significant investment in railways, energy, and water resources. Taiwanese companies are advised to monitor these emerging projects.
Vietnam Enters an Era of Large-Scale Infrastructure Development as Semiconductor and Digital Demand Expands
Vietnam is actively advancing its AI, semiconductor, and digital infrastructure sectors. Hsu stated that the government plans to establish a national data center, promote data localization, and develop green data centers as well as large-scale AI computing hubs. In the semiconductor industry, Vietnam aims to establish 100 integrated circuit design companies and 10 packaging and testing facilities by 2030.
As these industries expand, demand for high-tech facilities and supporting infrastructure, such as production plants, cleanrooms, power systems, and water treatment facilities, will also increase. Taiwanese engineering companies possess extensive experience and competitive advantages in these areas.
Hsu indicated that Vietnam considers the 2026–2030 period a crucial stage for economic advancement and significant progress. Government legislation, budget allocations, and major development plans suggest that the country is entering an era of large-scale infrastructure development. In addition to the planned 1,541-kilometer North-South high-speed railway, Vietnam continues to invest in expressways, urban mass rapid transit systems, airports, and other infrastructure projects.
From Traditional Engineering to High-Tech Infrastructure: Taiwanese Companies’ Overseas Expansion Provides an Entry Point
Chung observed that infrastructure demand in the Philippines and Vietnam is expanding beyond traditional transportation, energy, and water projects to include AI, semiconductors, data centers, and the energy transition. Since AI, semiconductor production, and data centers are highly energy-intensive, demand for green electricity, energy storage, microgrids, and related infrastructure is also expected to rise.
Taiwanese companies have previously engaged in railway and other infrastructure projects in the Philippines and Vietnam through partnerships with Japanese and other third-country firms. Moving forward, they can capitalize on the local investments of Taiwanese electronics and semiconductor manufacturers. By leveraging established industrial supply chains, Taiwanese engineering companies can access markets for high-tech production facilities, energy systems, and digital infrastructure. This approach would transform overseas expansion into opportunities for exporting engineering services.
Hsu noted that infrastructure markets in the Philippines and Vietnam are positioned at the intersection of industrial upgrading and supply chain restructuring. In addition to major public infrastructure projects, Taiwanese companies should monitor demand for production facilities, energy systems, and digital infrastructure generated by the electronics manufacturing and semiconductor industries. Enhanced cross-industry integration could improve their capacity to participate in overseas engineering markets.
Author: CIER Editorial Team
Date: September 22, 2026