AI’s growing impact on Vietnam

Artificial intelligence is becoming a key driver for digital transformation and economic growth in Vietnam. In recent years, AI has demonstrated its potential across critical sectors.

For instance, since 2022, the Supreme People’s Court of Vietnam has implemented a virtual legal assistant to ease judges' workloads.

By June 2024, this AI system had integrated 173,206 legal documents, 27,610 responses to legal inquiries, and 1.4 million verdicts. It facilitates 10,000 to 15,000 interactions daily between judges and the system. By the end of 2025, the virtual legal assistant is expected to be made publicly accessible, becoming a cost-effective tool for legal education and support.

In agriculture, the International Rice Research Institute (IRRI) has applied AI to develop climate-resilient rice varieties, helping Vietnamese farmers better adapt to climate change.

According to a Google-commissioned report, businesses across six Southeast Asian economies, including Vietnam, could benefit economically by up to $835 billion by 2030 through AI-supported solutions.

These examples highlight the transformative potential of AI, heralding a promising future for Vietnam and the region.

Vietnam’s advantages in AI adoption

Speaking at FPT TechDay 2024, Le Hong Viet, CEO of FPT Smart Cloud, noted that in the past, companies primarily competed through the quality of their workforce. However, in today’s era, humans increasingly collaborate with “digital colleagues,” making AI indispensable.

Do Tien Thinh, Deputy Director of the National Innovation Center (NIC), emphasized Vietnam’s unique advantages in the AI race.

Vietnam’s young and dynamic population - 75% under the age of 35 - and high internet penetration rate of around 80% create favorable conditions for adopting new technologies.

Vietnam ranks second in Southeast Asia in the number of AI startups, accounting for 27% of the region’s total, surpassing Indonesia and Thailand, though behind Singapore, which leads with 44%.

Thinh noted that Vietnam is well-positioned to apply AI in agriculture, food processing, education, and consumer services. These inherent advantages enable Vietnamese businesses to enhance their competitiveness and improve productivity in both the public and private sectors.

However, turning potential into reality requires a comprehensive and long-term AI strategy.

Strategies for Vietnam to lead in AI

To foster a robust AI ecosystem, Vietnam must prioritize AI applications in the public sector.

Currently, there is a significant gap in AI adoption between public and private sectors. Many systems in taxation, customs, environment, and urban planning have yet to integrate AI. Bridging this gap will be essential.

Another critical area is data sharing between public and private sectors.

"Vietnam lacks a national AI steering committee. It is time to establish a specialized body to guide AI development nationwide," said Thinh. He also called for clear policies and incentives to support AI development.

According to Arnaud Ginolin, Managing Director at Boston Consulting Group, the global market for AI applications in the public sector is expected to reach $1.75 trillion by 2030.

AI applications such as virtual assistants can improve public services, streamline government operations, and support policy formulation.

Ginolin emphasized that governments need short-, medium-, and long-term strategies for integrating AI. Setting clear goals and aspirations, starting with small-scale use cases, and scaling successful implementations will be vital for realizing the potential of AI in public governance.

Thai Khang