Developing trustworthy AI solutions is essential for senior leaders to successfully navigate the risks of rapid AI adoption and fully embrace and integrate this transformative technology. write Deloitte analysts.
Illustration on the cover of Deloitte’s new report named “AI at a crossroads: Building trust as the path to scale.
A new report co-developed by Deloitte Access Economics and Deloitte AI Institute reveals critical insights for C-suite and technology leaders on how they can develop effective artificial intelligence (AI) governance amidst accelerating adoption and growing risk managementchallenges.
The report, named “AI at a crossroads: Building trust as the path to scale”, is based on a survey of nearly 900 senior leaders across 13 Asia Pacific geographies, including six Southeast Asia geographies – namely, Indonesia, Malaysia, Philippines,Singapore, Thailand, and Vietnam – whose responses were assessed against Deloitte’s AI Governance Maturity Index to identify what good AI governance looks like in practice.
With investments in AI projected to reach $110 billion by 2028 in the Asia Pacific regionalone, it emphasizes the need for robust governance frameworks to enable businesses to adopt AI more effectively, build customer trust, and create paths to value and scale.
Commenting on the report, Dr. Elea Wurth, lead partner, trustworthy AI strategy, risk & transactions, Deloitte Asia Pacific and Australia, said, “Effective AI governance is not just acompliance issue; it is essential for unlocking the full potential of AI technologies.”
Wurth noted that Deloitte’s findings reveal that organizations with robust governance frameworks are not only better equipped to manage risks but also experience greater trust in their AI outputs, increased operational efficiency and ultimately greater value and scale.
Navigating risks from AI adoption
Amongst Southeast Asia geographies covered in the survey, security vulnerabilities, including cyber or hacking risks, were most commonly cited as top concerns associated with the risk of using AI.
Other top concerns include those pertaining to privacy, such as confidential or personal data breaches and the invasion of privacy due to pervasive surveillance.
This is a trend that was especially pronounced for Singapore, with nearly all respondents indicating security vulnerabilities (96%) and privacy breaches (94%) as areas of concern – and tracks closely with the finding that 35% of Singapore respondents also reported an increase in incidents at their organizations in the last financial year, the highest amongst all Southeast Asia geographies.
Chris Lewin, AI & data capability leader, Deloitte Asia Pacific and Southeast Asia, said, “The rapid pace and scale of AI adoption has meant that organizations are encountering AI-related risks in real-time as they experiment and roll out the technology. Given that Southeast Asia and the wider Asia Pacific region are hotbeds for cyberattacks, business leaders are understandably most concerned about security vulnerabilities, which can arise from the AI solutions themselves, the vast amount of data used by these solutions, or a combination of both.
“What we have found, however, is that organizations who have implemented incident responses and remediation plans are less likely to be concerned about such risks. This highlights the critical importance of effective governance to address concerns about AI use.”
Building trustworthy AI
Developing trustworthy AI solutions is essential for senior leaders to successfully navigate the risks of rapid AI adoption and fully embrace and integrate this transformative technology.
Deloitte’s Trustworthy AI Framework outlines seven dimensions that are necessary to build trust in AI solutions which are transparent and explainable, fair and impartial, robust and reliable, respectful of privacy, safe and secure, responsible, and accountable.
This framework and criteria should be applied to AI solutions from ideation through to design, development, procurement, and deployment.
The survey reveals that across Asia Pacific, organizations with mature AI governance frameworks report a 28% increase in staff using AI solutions, and have deployed AI in three additional areas of the business.
These businesses achieve nearly 5 percentage points higher revenue growth compared to those with less established governance.
Key recommendations from the report include:
– Prioritize AI governance to realize returns from AI
Continuous evaluation of AI governance is required across the organization’s policies, principles, procedures, and controls. This includes monitoring changing regulations for specific locations and industries to remain at the forefront of AI governance standards.
– Understand and leverage the broader AI supply chain
Organizations need to understand their own use of AI as well as interactions with the broader ‘AI supply chain’ − including developers, deployers, regulators, platform providers, end users, and customers − and perform regular audits throughout the AI solution lifecycle.
– Build risk managers, not risk avoiders
Developing employees’ skills and capabilities can help organizations better identify, assess, and manage potential risks, thereby preventing or mitigating issues rather than avoiding them altogether.
– Communicate and ensure AI transformation readiness across the business
Organizations should be transparent about their long-term AI strategy, the associated benefits and risks, and provide training for teams on using AI models while reskilling those whose roles may be affected by AI.
Deloitte Asia Pacific’s consulting businesses leader Rob Hillard said: “The erosion of consumer confidence and damage to brand reputation can have lasting effects, making it essential for businesses to effectively manage AI and cybersecurity. Consumers prefer companies that align AI use with ethical standards like transparency, with 45% of those surveyed believing strong governance enhances their organization’s reputation.
“However, our research shows that organizations are tending to overestimate their readiness in terms of AI governance. Urgent action is required by senior leaders to enhance their current AI governance practices to unlock the benefits of AI, as well being prepared for emerging AI regulations which will impact future business success.”
Human judgement as fundamental to trustworthy AI
Given that the rapid pace of AI adoption is driven by employees, who often outpace their leaders – a previous Deloitte study on Generation AI 3 found that more than 70% of young employees and students in Southeast Asia have already adopted the use of generative AI – the report also highlights the critical role of human judgement and action (or reaction) in successful AI governance.
Employees – whether they are designing, deploying, or using the AI solutions – have valuable insights about the functionality and potential risks related to using AI solutions. However, fewer than two-thirds of Southeast Asia respondents – and in the case of Singapore, only half (50%) – believe that employees in their organizations have the required level of skills and capabilities to use AI solutions responsibly.
“At its core, good AI governance is required at all stages of the AI solution lifecycle, and should be embedded across technology, processes, as well as talent. Based on our findings, however, the people and skills pillar is an area where organizations consistently score the lowest onaverage,” said Chris.
“Training is, of course, a powerful tool to bridge this gap, and we have observed thatmore than three-quarters of Southeast Asia respondents are investing in employee upskilling. The onlyexception is Singapore, where the skills gap is the widest and nearly seven in 10 organizations have needed to close the gap through hiring, possibly due to the market’s demand for highlyspecialised and technical roles,” he added.
Lindström, a family-owned textile service company with more than 170 years of history in Finland, marked the beginning of its journey in Vietnam by opening of a new service centre in Dong Nai province on March 20.
Finland Lindström opens first service centre in Vietnam
This represents a significant milestone as Lindström is the first company to introduce a workwear rental solution in the Vietnamese market.
Tallking with VIR at the opening ceremony, Juha Laurio, president and CEO, cited that although the initial centre was relatively small, more investment would be poured in step by step to seize the potential of the Vietnamese market.
“As well as the development we have achieved in the Chinese and Indian markets, we expect the Vietnamese market to grow very quickly. As a pioneering investor in this field and seeing famous global brands and manufacturers who are operating in Vietnam, we see the high potential of the Vietnamese market,” said Laurio.
This centre has the capacity to handle thousands of workwear sets daily. The facility is designed using a modular model, allowing for rapid scaling as market demand grows. The laundering and maintenance processes will adhere to international standards, ensuring that every workwear set meets maximum safety and hygiene conditions before being delivered to businesses.
Workwear rental service reduces upfront investment costs and eliminates the burden of managing laundry, repairs, and replacements. These services are a growing global trend, especially in industries requiring high standards such as manufacturing, food processing, electronics, and chemicals.
The workwear rental service provides a comprehensive solution, including industry-specific workwear design, maintenance and washing, product replacement when necessary, and scheduled delivery to businesses for a weekly rental fee.
Unlike the traditional method of purchasing and managing protective clothing in-house, the rental model helps businesses optimise costs, ensure hygiene and safety, and enhance their professional image. Notably, by extending product lifecycles and committing to 100 per cent textile waste recycling, Lindström minimises environmental impacts.
In addition to focusing on business activities, Lindström is also expanding community initiatives, contributing to building a clean and prosperous community in Vietnam, through a cooperation project with ActionAid Vietnam.
This project aims to improve access to clean water and raise awareness about sanitation and climate change, directly supporting 5,000 children in six schools in Tra Vinh city, an area heavily affected by climate change and saltwater intrusion.
In 2024, Lindström’s turnover reached $562 million with 21 million textile products in circulation globally. The company also achieved a recycling rate of over 70 per cent and holds many prestigious certifications for quality, environmental management, hygiene and safety, and health.
Lindström is a family-owned textiles company, founded in 1848 in Finland. With more than 4,700 employees in 24 countries, the unit serves 88,000 customers in many fields, from manufacturing and healthcare to hotels and restaurants.
Foreign investors are showing growing interest in Vietnam’s logistics sector by developing new facilities to tap into rising demand.
Manufacturers are expanding into Vietnam to complement existing logistics operations, Photo: Shutterstock
In early March, Sembcorp Infra Services, a subsidiary of Sembcorp Development, broke ground on its logistics park in Dinh Vu in the northern port city of Haiphong to support manufacturing demand, growing domestic consumption and e-commerce in the country. It is Sembcorp’s fifth modern ready-built warehouse and factory (RBWF) facility in Haiphong.
Sembcorp Logistics Park Dinh Vu boasts six single-storey blocks and 21 units in total. It will have a total gross floor area of over 90,000 square metres, with the first phase to be completed in the next quarter, and the remaining 80,000sq.m to be completed in 2026.
The project caters to companies large and small in industries like electronics, automotives, and high-tech manufacturing. The RBWFs will offer a quick, cost-effective, asset-light market entry, Sembcorp leaders said.
These facilities will also support the full integration of warehousing and logistics, with features like higher floor loading and clear height, benefiting enterprises and e-commerce players. Meanwhile, bonded warehouses can help export processing enterprises reduce costs, streamline customs, optimise inventory, and improve fulfilment speed, boosting competitiveness.
James Ng, director of Sembcorp Infra Services Dinh Vu, told VIR, “Vietnam’s favourable business environment and infrastructure improvements are driving the country’s status as a key production hub in Southeast Asia. Strategic initiatives to bolster the industrial and e-commerce sectors are driving demand for RBWFs through 2030. These are backed by strong exports and domestic consumption. These trends present opportunities for Sembcorp to serve our tenants by providing high-quality, modern warehouses and factories.”
In late February, South Korea’s Jeil Group also started construction on the Jeil Logistics 1 project in Nam Dinh Vu Industrial Park (IP), Haiphong with an investment capital of $44.5 million. The logistics centre will feature ambient and refrigerated storage facilities, and will also offer container warehouse services and ready-built complexes. Construction is scheduled to be completed in February 2026.
Lim Sang Hoon, director of Jeil Logistics 1 Co., Ltd. said, “Since the beginning, our goal is to find a strategic and convenient location for building warehousing facilities near seaports. Among many options, Nam Dinh Vu IP in Dinh Vu-Cat Hai Economic Zone is the optimal option for us. There are many key factors contributing to this decision, including attractive tax incentives and strong support from local authorities.”
Japan’s Mitsubishi Estate Co., Ltd. is developing two large-scale logistics facilities, Logicross Nam Thuan in Long An province and Logicross Haiphong, to respond to the growing logistic needs of Vietnam. Construction of Logicross Nam Thuan commenced in October 2024 and is expected to be completed in June, while Logicross Haiphong began construction in November 2024 and will be ready this August. The total cost for both projects is estimated at $90 million.
Dan Martin, international business advisor at Dezan Shira & Associates in Hanoi, said that Vietnam’s logistics sector is expanding rapidly, fuelled by manufacturing diversification, surging e-commerce, and an aggressive infrastructure push. Foreign investors were taking note, with many new logistics and warehouse projects concentrated in industrial hubs such as Dong Nai, Bac Ninh, and Haiphong, as well as strategic sites in and around Hanoi and Ho Chi Minh City.
“Investment opportunities in logistics infrastructure remain strong despite global economic uncertainties. Manufacturers are not simply relocating from China but expanding into Vietnam to complement existing operations. This shift is fuelling demand for cold storage, fulfilment centres, and IPs tailored to high-tech manufacturing and cross-border connectivity,” Martin said.
Foreign investment in Vietnam’s logistics sector is expected to remain robust, Martin added, and the government actively encourages international participation, offering tax incentives and land lease exemptions for priority infrastructure projects.
“Public-private partnerships have become an important funding mechanism, enabling global firms to invest in expressways, terminals, and integrated logistics facilities. While Japan, South Korea, and Singapore remain leading investors, western firms are also increasing their presence in toll roads and port infrastructure,” Martin said.
On March 19, LOTTE Global Logistics, a subsidiary of South Korea’s LOTTE Group, broke ground on a cold chain facility at Nhon Trach Industrial Complex in the southern province of Dong Nai with a total investment of nearly $34 million.
Spanning across an area of 5.5 hectares with a total usable area of over 2.6ha, the Dong Nai Cold Chain Logistics Centre boasts a cold storage warehouse and a conventional storage facility. It is slated to be put into full operation in May 2026.
The facility offers comprehensive logistics services, including import and export, storage, and delivery. It also features cold storage and distribution capabilities for a wide range of product groups, including fresh foods and high-value-added items.
The venture not only enhances the company’s logistics capabilities in Vietnam but also facilitates the expansion of South Korean small and medium-sized enterprises in the country. The initiative follows an MoU signed between LOTTE Global Logistics and Korea Ocean Business Corporation in May 2024 to bolster global logistics supply chains.
In addition, the facility also plans to collaborate with the Korea Trade-Investment Promotion Agency as a logistics support centre. The collaboration will address logistics difficulties faced by helping South Korean companies with tailoring consulting services suitable for local conditions.
A representative from LOTTE Global Logistics said, “We plan to continue expanding our logistics domain centred on this facility to provide services covering all of Vietnam. We aim to elevate it as a central hub leading Vietnamese distribution logistics.”
In Vietnam, LOTTE Global Logistics has built and operated five warehouses in key areas nationwide. In the Mekong Delta region, its cold storage warehouse for rent in Long Hau Industrial Park has been operational since 2008, with a capacity of 25,000 pallets. The Dong Nai Cold Chain Logistics Centre is the latest venture in the key port area of southern Vietnam.
Moving forward, the South Korean company will scale up its operation to other localities, including a 7,400-pallet cold storage facility in Binh Minh Industrial Park, Vinh Long province, with a capacity of 7,400 pallets.