Generative AI in Developing Countries: Adoption Dynamics in Vietnamese Local Government

Generative Artificial Intelligence (GenAI) is rapidly reshaping public-sector operations, yet its adoption in developing countries remains poorly understood. Existing research focuses largely on traditional AI in developed contexts, leaving unanswered questions about how GenAI interacts with institutional, organizational, and governance constraints in resource-limited settings. This study examines the organizational factors shaping GenAI adoption in Vietnamese local government using 25 semi-structured interviews analyzed through the Technology–Organization–Environment (TOE) framework. Findings reveal three central dynamics: (1) the emergence of informal, voluntary, and bottom-up experimentation with GenAI among civil servants; (2) significant institutional capacity constraints—including absent strategies, limited budgets, weak integration, and inadequate training—that prevent formal adoption; and (3) an “AI accountability vacuum” characterized by data security concerns, regulatory ambiguity, and unclear responsibility for AI-generated errors. Together, these factors create a state of governance paralysis in which GenAI is simultaneously encouraged and discouraged. The study contributes to theory by extending the TOE framework with an environment-specific construct—the AI accountability vacuum—and by reframing resistance as a rational response to structural gaps rather than technophobia. Practical implications highlight the need for capacity-building, regulatory guidance, accountable governance structures, and leadership-driven institutional support to enable safe and effective GenAI adoption in developing-country public sectors.