The Vietnam artificial intelligence market is emerging as innovative hub in Southeast Asia. This growth is driven by rising startup ecosystem, government initiatives, and foreign investments. As of 2024, artificial intelligence sector accounted for nearly 8% of the nation’s economy. The rising startup culture, supported by international collaborations like NVIDIA’s agreement to establish AI R&D and data centers in Vietnam is contributing to the growing artificial intelligence market. In 2024, private investments in the artificial intelligence startups accounted for USD 80 million. Moreover, government’s initiative to foster AI development by training 5,000 AI engineers and establish a national center for AI research is further accelerating the market.
What’s Driving Artificial Intelligence Market in Vietnam?
- The rising advancement in digital infrastructure is driving the country’s artificial intelligence market. As of 2024, over 55% of the public services were processed online. This reflect rising digital transformation. Furthermore, the developments like information and communication infrastructure master plan will be crucial for supporting AI applications that require high-speed connectivity.
- The country is attracting many international partnerships that is accelerating AI capabilities. Vietnam’s Ministry of Finance met with Intel leaders to discuss cooperation in AI and semiconductors, aiming to position Vietnam as a regional tech hub. This Intel’s collaboration includes the ‘AI for All’ initiative which is designed to boost AI knowledge and help train over 10,000 highly skilled professionals in AI and semiconductor technologies.
Market Competition
The Vietnam artificial intelligence market is moderately competitive, with mix of domestic leaders and global entrants. The key players dominating the market includes FPT Corporation, Viettel Group, and VinAI Research. FPT Corporation is known for its AI platform FPT.AI, which supports over 200 million interactions annually across in industries such as finance, retail, and healthcare. The company is expanding globally by partnering with international companies including Aitomatic and Tokyo Electron. Viettel Group is one of the country’s largest technology and telecommunication company and has recently launched AI-powered customer service platform that handles over 2 million interactions per month. The company is also planning to invest USD 100 million in AI research and development over the next five years. Meanwhile, VinAI Research is emerging as a leading AI research institute in the country. The company’s Vietnamese language model VinaGPT provides 95% accuracy in text generation and sentiment analysis.
Acute Shortage of Skilled Professionals
The Vietnam artificial intelligence market is facing a major challenge of acute shortage of skilled labour. As of 2024, country has only 700 engineers specializing in AI from which only 300 are recognised as true AI professionals. The information technology sector is also under pressure as there is shortfall of about 1,50,000 workers in computer science and information technology related sectors. This talent shortage is creating challenge for the businesses in Vietnam. However, the companies are addressing this challenge as more than 50 universities and institutes across country now offer AI-related majors or training programs. Still only some of these institutions provides high-quality and specialized AI education.
Future Outlook
The Vietnam artificial intelligence market is set to undergo significant transformations through 2030. The artificial intelligence sector is expected to contribute 12% of the national GDP by 2030, highlighting AI’s role in driving country’s economic growth. The country’s digital economy is also expected to expand reaching USD 200 billion by 2030. This will make Vietnam as Southeast Asia’s fastest-growing digital economies. The market will also witness rising international partnership. These partnerships will facilitate technology transfer and infrastructure development. Moreover, government is planning to to train 7,000 AI experts to international standards and nurture approximately 500 AI startups by 2030.
Consultant at Nexdigm In their latest publication “Vietnam Artificial Intelligence Market Outlook to 2030: By Component (Hardware, Software, Services), By Technology (Machine Learning, Natural Language Processing, and Others), and By Industry (IT and Telecom, Healthcare, Retail and E-Commerce, Logistics and Transportation, Manufacturing, Consumer Electronics, BFSI, and Others)” believe that by prioritizing industry-specific AI applications and strengthening digital infrastructure for AI growth, businesses can gain competitive advantage in Vietnam artificial intelligence market.