If Vietnamese businesses can master AI technology and independently research and develop “Made in Vietnam” products and solutions, they will not only compete on an equal footing but also have the potential to lead in certain fields, according to insiders.
The domestic market, with over 100 million people, is considered a “fertile ground” for AI applications. The increasing demand for digital transformation in key sectors such as finance, banking, e-commerce, healthcare, education, and manufacturing is also driving strong demand for AI solutions. The dynamic transformation of these economic sectors is not only a driver for AI development but also a source of massive data - a crucial “input material” for AI.
However, alongside these potential, the development of AI in Vietnam still faces many challenges. One is the infrastructure issue. Currently, infrastructure remains limited, forcing researchers and businesses to rely on foreign cloud computing services, which is costly and poses data security risks. Another challenge is data availability.
In Vietnam, high-quality, standardised, and publicly usable data sources are still scarce. Fragmented and inconsistent data across sectors and organisations presents a major barrier to developing highly accurate AI models. Additionally, the country faces a severe shortage of highly skilled AI experts capable of leading large projects. The gap between education and practice remains a pressing issue, as academic programmes tend to be theory-heavy, lacking real-world projects and close collaboration with businesses.
In light of the potential and challenges mentioned above, the Government has shown strong determination to establish a legal framework and an ecosystem that supports AI development.
In 2021, the Prime Minister approved the National Strategy on AI Research, Development, and Application by 2030, in which Vietnam aims to become one of the top four leading countries in ASEAN and among the top 50 worldwide in AI research and application. This serves as an important “lodestar,” providing a strategic vision and clear direction for the entire science and technology sector.
Several key pillars need to be focused on during this phase, including building a national AI data infrastructure and computing system, completing the legal framework and specialised policies, and creating a favourable environment for AI research, development, and application. It also emphasises the importance of building and developing a high-quality workforce, promoting AI applications in various socio-economic sectors, and establishing national AI research and development centres.
Dang Thanh Binh, Director of the TCI Industries JSC which specialises in machine detail processing and machine manufacturing, with nearly 20 years of experience, shared that from the perspective of a business actively undergoing digital transformation, TCI recognises that Vietnam has an abundant labour force but there is a significant gap between training programmes and practical needs. TCI spends considerable time and resources retraining personnel after graduation.
Therefore, if the Government encourages universities to collaborate more closely with businesses and develop training programmes aligned with real-world demands, it will be a major step forward. Businesses also need to take an active role, not only in recruiting talent but also in proactively partnering with research institutes to develop new products and solutions, especially AI applications to optimise processes, Binh proposed.
From the perspective of a foreign-invested enterprise, Hamada Shogo, General Director of DAIWA Vietnam Co., Ltd., remarked that Vietnam has strong export capabilities. However, besides focusing on exports, it should also pay attention to research and development of new products domestically, which means enhancing the R&D capacity of Vietnamese businesses for the local market. This will be one of the solid steps forward, he noted.
Vietnam possesses all the essential factors to become an AI hub in the region and the world. A young population, a strong aspiration for advancement, a dynamic market, and especially a strategic vision from the Government will serve as the “golden keys” to unlock a promising future. Along this journey, the Government continues to perfect the legal framework and create special incentive policies, including those related to capital, taxation, land, and particularly support policies for the development of high-performance computing infrastructure.
The establishment of national AI research and development centres, where businesses can lease facilities and access large data resources, is also an idea worthy of implementation. Alongside this is the bridging role of associations to convey the voices of enterprises and grassroots levels to the relevant authorities, according to experts./.
