Minh-Ngoc Nguyen
Research Expert covering Vietnam
Artificial Intelligence (AI) in Vietnam - statistics and facts
Artificial Intelligence (AI) has been the talk of the technology sector worldwide over the last decade. The application of AI allows computerized systems to perform tasks that until recently required the involvement of human intelligence. Using algorithms, statistics, and machine learning, AI applications of today range from voice control to self-driving cars and more. As a result, this technology is believed to be the key to the development of economies across the globe. Vietnam is not an exception, with the country striving to build its AI-enabled economy in recent years.
On the other hand, in general, investments into AI have not clustered in only a few industries but, instead, been distributed across startups from different fields. For instance, as of March 2023, the most invested AI ventures in Vietnam were OKXE Inc. – an e-commerce platform, Edmicro Education – an online education service provider, and VNPay – a digital payment unicorn. As the startup sector in Vietnam grows, the application of AI is expected to be employed by more firms across even more diverse industry backgrounds.
Vietnam’s AI journey
Vietnam has recently risen as a new IT-outsourcing destination in the Southeast Asian region, and the country has made significant digital transformation progress. Although compared to the global leaders in AI, such as the United States and China, the AI industry in Vietnam is still in its early days. However, the country has been making substantial efforts to catch up with the constant development of AI technology. In 2022, Vietnam ranked 6th out of 10 ASEAN members and 55th globally in the Government AI Readiness Index, surpassing the global average after jumping seven places compared to the previous year. Despite having a late start in the AI race, the Southeast Asian nation has been investing heavily in AI. It is currently pursuing its vision of becoming an important AI player in Asia via its National Digital Transformation Programme by 2025. However, to achieve its ambitious AI development goal, Vietnam has to address several challenges, the biggest one being the shortage of AI talents despite having a solid IT labor force.AI startups in Vietnam
Apart from the government, research institutions, and established technology corporations, startups have been playing a major role in bringing AI into various business areas in Vietnam. The value of investments in AI ventures peaked in 2021, reaching around 23 million U.S. dollars, spread across nine different investment deals. As Vietnam is an increasingly important manufacturing hub for products such as mobile devices, electronics, and textiles, AI-powered processes have particularly been in high demand in the manufacturing sector. Unsurprisingly, business processes and support services were the leading receivers of investments in AI startups in recent years. AI ventures in financial and insurance services followed as the second largest receiver of investments alongside Vietnam’s fast-growing fintech sector.On the other hand, in general, investments into AI have not clustered in only a few industries but, instead, been distributed across startups from different fields. For instance, as of March 2023, the most invested AI ventures in Vietnam were OKXE Inc. – an e-commerce platform, Edmicro Education – an online education service provider, and VNPay – a digital payment unicorn. As the startup sector in Vietnam grows, the application of AI is expected to be employed by more firms across even more diverse industry backgrounds.
