The Role of AI in Vietnam’s Growth

Artificial intelligence (AI) is becoming increasingly crucial for digital progress and economic development in Vietnam. Its capabilities are being utilized across significant industries.

As an example, since 2022, the Supreme People’s Court of Vietnam has introduced a digital legal assistant, designed to assist judges with their heavy workloads.

By June 2024, the AI system had included over 173,000 legal documents, provided 27,610 answers to legal queries, and managed 1.4 million verdicts. This setup allows for 10,000 to 15,000 daily interactions between judges and the system. The virtual assistant is projected to be available for public use by the end of 2025, offering an economical solution for legal education and assistance.

In the agricultural sector, the International Rice Research Institute (IRRI) is employing AI to create rice varieties that are resilient to climate change, aiding Vietnamese farmers in their adaptation efforts.

A report by Google indicates that through AI technologies, businesses in six Southeast Asian countries, including Vietnam, could see economic gains of up to $835 billion by 2030.

These instances underscore AI’s transformative capabilities, signaling a bright future for Vietnam and the surrounding region.

AI as a Competitive Edge

During FPT TechDay 2024, FPT Smart Cloud’s CEO, Le Hong Viet, pointed out that historically, firms competed based on their workforce quality. In contrast, today’s environment requires collaboration with “digital counterparts,” making AI essential.

Do Tien Thinh, Deputy Director of the National Innovation Center (NIC), highlighted Vietnam’s distinctive strengths in the AI sector.

The nation’s youthful and active populace, with 75% below the age of 35, coupled with an 80% internet penetration rate, creates an ideal environment for new technology adoption.

Vietnam ranks second in Southeast Asia for the number of AI startups, representing 27% of the region’s total, trailing behind Singapore’s 44% but outperforming Indonesia and Thailand.

Thinh indicated that Vietnam is strategically positioned to utilize AI across various domains, including agriculture, food processing, education, and consumer services, enhancing both public and private sector productivity and competitiveness.

Nonetheless, realizing this potential necessitates a comprehensive, long-term strategy for AI implementation.

Developing a Thriving AI Ecosystem

To cultivate a strong AI ecosystem, Vietnam needs to focus on public sector applications of AI.

A substantial disparity in AI use exists between public and private entities, with many areas such as taxation, customs, environmental management, and urban planning still lacking AI integration. Closing this gap is crucial.

Data sharing between public and private sectors is another vital aspect that requires attention.

Thinh remarked, “Vietnam currently does not have a national AI oversight committee. It is essential to create a dedicated body to steer AI advancements across the country.” He also stressed the need for well-defined policies and incentives to bolster the AI sector.

Arnaud Ginolin, Managing Director at Boston Consulting Group, noted that the worldwide market for AI in public sectors is projected to reach $1.75 trillion by 2030.

AI technologies, like virtual assistants, can enhance public service delivery, enhance government operations, and aid in policy development.

Ginolin reiterated the importance of governments formulating strategies for AI integration at different time horizons—short, medium, and long-term—to maximize AI’s benefits in public governance through tangible goals and scalable success stories.