The future of AI in Vietnam is more promising than ever, as the country aims to position itself among the top five nations in the region for AI research, development, and innovation.
Across different sectors, from manufacturing and healthcare to finance and education, AI adoption is accelerating rapidly, with local enterprises and global companies eagerly integrating advanced AI to stay ahead of the competition.
This opens up a great window of opportunity for investors and businesses with innovative AI solutions to leverage and drive significant growth within the country.
AI In Vietnam – Landscape Overview
Vietnam’s AI Subsector Market in 2024
The AI landscape in Vietnam is on an upward trajectory, driven by the country’s growing focus on technological innovation. By 2030, Vietnam’s AI market is projected to reach an impressive US$ 3.4 billion, growing at a robust compound annual growth rate (CAGR) of 28.63%.
AI will play a pivotal role in Vietnam’s digital transformation, contributing significantly to its digital economy, which is expected to reach $43 billion by 2025. As a result, Vietnam has become an attractive destination for global tech leaders and investors, attracting over $7.5 million in AI startup investments in 2023.
NVIDIA, a global leader in AI hardware and software, is also expanding its collaboration with prominent Vietnamese tech companies to foster AI talent and training. On the other hand, Google has just announced it will actively promote the rapid adoption of AI technologies in Vietnam, further enhancing the country’s AI capabilities.
AI In Vietnam – Opportunities
A Thriving AI Ecosystem
Consumer perspective on AI: Vietnam in a global context
A key driver behind the explosive growth of AI in Vietnam is its youthful and tech-savvy population, characterized by high digital literacy, making it one of the most digitally engaged communities in the region.
In fact, 75% of Vietnamese consumers are enthusiastic about adopting AI technologies in their daily lives, with most witnessing the positive impact on the country’s economy.
This widespread enthusiasm for technology has cultivated a robust digital culture, inspiring local investors and entrepreneurs to build AI-driven solutions. As of 2024, Vietnam has over 270 active AI startups.
Additionally, the Vietnamese Minister of Science and Technology has announced their plan to develop a skilled workforce to support AI. The country is set to welcome 80,000 tech graduates each year, bolstering its existing pool of 530,000 skilled IT engineers.
Growing Demand for Automation and Digital Transformation
Rising demand for automation and digital transformation in Vietnam
With over 78.44 million internet users and an internet penetration rate of 79.1%, Vietnam is on its way to becoming a regional digital hub. The rise of e-commerce, online payments, and ride-hailing services has significantly contributed to this growth, with the digital economy projected to reach $43 billion by 2025, positioning Vietnam as the region’s fastest-growing market.
To stay competitive, businesses now see AI-driven automation as essential. Thus, companies are rapidly adopting AI solutions to boost efficiency, streamline operations, and elevate customer experiences.
Currently, over 87% of organizations are either fully or partially prepared for AI integration, with industry leaders like Viettel, FPT, VinAI, CMC, and VNPT at the forefront. The government is also playing a key role, pledging to drive the digital transformation of one million Vietnamese businesses by 2026.
Explore more: Vietnam Startup Ecosystem: Why You Should Be Excited?
Government Initiatives for AI in Vietnam
2024 Vietnam National Digital Transformation Action Plan
To strengthen its position as a global AI leader, Vietnam has introduced two pivotal policies: the National AI Development Strategy and the Decision on the Plan for AI R&D.
The National AI Development Strategy focuses on harnessing AI to transform the Vietnamese economy, including the establishment of a comprehensive legal framework for AI. The strategy envisions that by 2030, Vietnam will become a hub for AI innovation and the development of AI solutions across Southeast Asia and globally.
Meanwhile, the Decision on the Plan for AI R&D aims to accelerate AI research, development, and application, positioning AI as a key technological industry in Vietnam. To attract foreign direct investment (FDI) in the AI and semiconductor sectors, the Vietnamese government is drafting a resolution that offers tax exemptions, R&D incentives, and streamlined procedures for strategic investors.
At the same time, Vietnam is working on a project to integrate artificial general intelligence (AGI) into enterprises by developing 5,000 AI experts. The initiative also includes the creation of an AI training center to prepare 7,000 professionals and foster 500 AI startups by 2030.
In July 2024, the National Innovation Centre (NIC) joined forces with Google to launch the ‘Build for the AI Future‘ initiative, which centers on two key pillars: building talent and supporting startups, with a focus on empowering the workforce, nurturing startups, and accelerating AI adoption.
How AI Is Shaping Vietnam’s Key Sectors
AI in Finance and Banking
AI Developments in Vietnam’s Finance and Banking Sector
Many top applications, such as chatbots and virtual assistants, have been developed in the banking and financial sector to address customer queries, optimize processes, and boost support.
In fact, 94% of financial institutions in Vietnam are keen on the potential of AI, signaling a shift where AI-powered e-banking and e-wallet solutions are gradually becoming the norm.
Following the movement, prominent banks in Vietnam are also investing in AI technologies to enhance their operations.
TPBank, for instance, has launched VoicePay, a feature that allows users to make voice-activated money transfers without manual input. Simultaneously, Cake by VPBank aims to become Vietnam’s leading digital GenAI bank, while the Vietnam Banks Association (VNBA) is progressing in integrating AI to prevent money laundering and financial crimes.
Other institutions, including Techcombank, VietABank, and ACB, have also broadly implemented data analytics and AI, transitioning most major systems to the cloud.
AI in E-commerce
How AI is Transforming Vietnam’s E-commerce Sector
Over the past decade, Vietnam’s e-commerce industry has seen remarkable growth and is now poised for even greater acceleration, driven by the influence of AI.
Major platforms like Shopee, Lazada, and TikTok Shop are leveraging artificial intelligence, machine learning, and big data to fine-tune marketing strategies, predict consumer behavior, enhance customer experiences, and boost sales.
At the same time, Vietnamese consumers are increasingly relying on smart payment products. Notably, 86% of users aware of GenAI in retail express their satisfaction with its convenience, benefiting from better pricing suggestions, personalized product options, and quick recommendations.
Given the rapid pace of technological development and the positive consumer attitude towards it, AI will continue to revolutionize the e-commerce sector in Vietnam for the foreseeable future.
Explore more: E-commerce In Vietnam – Top Business Opportunities
AI in Healthcare
AI’s Role in Vietnam’s Healthcare Sector
With ongoing initiatives for digital transformation in healthcare, Vietnam presently has a doctor-to-population ratio of 1.25 per 1,000 individuals, slightly exceeding the recommended 1:1,000 standard. As the country strives to reach the next target of 1.5 per 1,000, AI technologies could play a crucial role in alleviating constraints and enhancing sector efficiency.
Tools such as text mining and machine learning are being used to analyze medical data and refine decision-making, while robotics aids in various healthcare tasks, including elderly care, rehabilitation, and surgical procedures.
At present, there are 14 active AI healthcare startups in Vietnam that have made significant contributions to the sector:
- Vietnam’s FV Hospital has announced the launch of an AI-driven machine for the early detection of myopia risk in children.
- VinBrain offers an AI-based diagnostic tool for healthcare professionals.
- Deepcare provides an online platform for teleconsultation and doctor appointment booking powered by AI.
- In July 2024, Fujifilm Holdings introduced AI-assisted medical screenings in Vietnam, providing cancer screenings and more, with the assistance of AI.
Collectively, such active developments are steering Vietnam’s AI healthcare market toward a projected CAGR of 45.45% for 2030.
AI in Education and Training
The state of AI application in Vietnam’s Education and Training Sector
The surging demand for AI solutions in education highlights a nationwide shift in Vietnam toward integrating advanced technology to transform learning experiences.
Schools and educational institutions are increasingly adopting AI to revolutionize how students learn, with Hanoi University of Science and Technology leading the charge by recently announcing the launch of the nation’s first specialized engineering program in GenAI.
Alongside this, ABAII Academy made a remarkable debut with its goal of training one million residents in AI and blockchain. RMIT University also developed Val Chatbot to assist their own students in learning, while FPT introduced the VioEdu as the nation’s first smart education assistant using AI.
As a further testament to its commitment, Vietnam’s first Faculty of AI has been officially launched with a focus on training and developing talent to address the increasing demand for expertise in the field.
For more insights: Vietnam EdTech – Opportunities For Business
AI in Manufacturing
The impact of AI on Vietnam’s Manufacturing Sector
As Vietnam embraces globalization, the manufacturing sector stands on the brink of a technological revolution. With AI leading the charge, the government has set ambitious targets, aiming for manufacturing to contribute 30% to the nation’s GDP.
Electronics manufacturing, semiconductor chips, and smart manufacturing are now key investment priorities in Vietnam. Additionally, many Vietnam-based enterprises are transitioning toward more efficient operations using cutting-edge technologies.
Among them, Vinfast, an automobile manufacturer, is leading the way by investing in AI-powered robots with smart collaboration features to handle assembly and final finishing tasks. Furthermore, foreign businesses like Novas EZ Co., are eyeing new ventures for AI-driven manufacturing automation solution platform business in Vietnam.
Seize your chance: Top Business Opportunities in Vietnam for Investment
AI in Vietnam – Market Challenges
5 key elements for accelerating AI adoption
While AI in Vietnam presents ample opportunities, as with any other sector, impediments persist for new arrivals that must be informed of and properly handled.
Regulatory Frameworks
Vietnam has experienced significant technological progress and an influx of investment, but given that AI is still a relatively new field, there are critical legal gaps that remain unaddressed.
At present, the country’s legal system has yet to keep pace with emerging regulatory needs, including ownership, intellectual property rights, and concerns regarding personal and copyright issues related to data usage, which in turn hinders the development of this technology.
In response, the National Strategy on R&D and the Application of Artificial Intelligence is still in progress, with several key objectives and directives designed to provide a clearer roadmap. Moreover, ongoing efforts are focused on refining policies and laws to tackle the ethical considerations tied to AI adoption.
AI Workforce Shortage
In terms of the AI engineering workforce, Vietnam is currently grappling with a shortage of skilled labor, despite having drawn considerable attention from global tech giants like Google, Nvidia, and Meta. This talent gap, exacerbated by financial limitations, is a primary factor behind the reduced competitiveness and limited research capabilities in training foundational AI models.
The government is taking active steps to overcome these challenges, with recent milestones including the formation of the first AI faculty, a collaborative AI training program with NIC and Google, and the implementation of the National AI Development Strategy to cultivate a robust workforce by 2030.
For more expert insights: Best Market Entry Strategy For Vietnam
The Future of AI in Vietnam
The future of AI in Vietnam holds immense potential as the country rapidly embraces digital transformation and positions itself as a leader in Southeast Asia’s AI landscape. With the increasing integration of AI across various sectors, opportunities are booming for businesses to tap into this growing demand for AI solutions, paving the way for innovation and competitive advantage in the market.
Datality Lab, a Research & Data Science Consultancy, has been among the first to seize this opportunity. Through the partnership with Launch JDI, the company successfully established Moodie.ai’s local presence and laid the groundwork for future development in Vietnam. Learn more about their journey!
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