Artificial Intelligence (AI) is constantly in the spotlight, attracting massive investments: $67.2 billion from the U.S. alone, with China following at $7.7 billion in 2023. In Vietnam, AI is no longer a work of abstraction; it is all around us. AI has the power to revolutionize economies, and Vietnam is in a good position to develop and apply this technology effectively. Let’s explore AI’s role in Vietnam, its impact on various sectors, and specific real-world applications driving innovation in the country.
AI Revolution
Imagine a world where farmers can identify pest-infested crops without manual inspection, doctors achieve more accurate diagnoses with AI-driven tools, and Vietnamese tech firms develop world-class large language models (LLMs). This isn’t just a vision — it’s the future we want.
AI is a set of technologies that enable computers to perform a variety of advanced functions, including the ability to see, understand, translate spoken and written language, analyze data, make recommendations, etc. AI research began at a workshop in 1956 at Dartmouth College, where attendees envisioned machines as smart as humans within a generation. Initial optimism led to significant funding from the U.S. government, but the challenges of achieving this vision became apparent. By the late 1970s, funding for AI waned following government criticism, leading to a period known as “AI winter.” However, the 1980s saw a resurgence in interest due to the success of expert systems and renewed investments. The early 2000s marked a turning point with the rise of machine learning and deep learning, culminating in the breakthrough transformer architecture in 2017. This innovation sparked a new boom in AI investment, especially with large language models like ChatGPT emerging in the 2020s.
In Vietnam, AI real-world applications are becoming popular. Google Translate has been widely used for language processing. Chatbots have also gained traction in customer service automation. Additionally, self-driving cars (developments from VinFast) showcase the country’s commitment to innovation, even though it is still in the development phase.
AI’s Impact on Vietnam’s Economy
Vietnam stands at the forefront of a significant AI transformation as it plays a pivotal role in reshaping our economy. The integration of AI across various sectors is driving efficiency, fostering innovation, and creating new job opportunities that are essential for the homeland’s growth in a competitive global landscape.
Manufacturing
One of the most notable impacts of AI can be seen in the manufacturing sector, where automation and predictive analytics are streamlining processes and enhancing productivity. By leveraging AI, Vietnamese manufacturers can optimize supply chains, reduce waste, and improve quality control, ultimately leading to increased competitiveness in international markets. In August 2024, the Government set ambitious targets, aiming for manufacturing to contribute 30% to the nation’s GDP.
Healthcare
Vietnam is currently pursuing digital transformation in the healthcare sector, with a doctor-to-population ratio of 1.25 per 1,000 residents. To overcome challenges and improve efficiency in the industry, AI technologies could be instrumental. Various tools like data mining and machine learning are being utilized to analyze medical data and diagnose, while robotics is assisting with service tasks such as elderly care and rehabilitation.
Currently, there are 16 AI in Healthcare in Vietnam startups making notable contributions to the field.
💡 In December 2023, DrAid released an AI-powered copilot for medical professionals.
💡 In February 2024, VinBrain developed more than 300 AI models specifically designed for processing medical images.
💡 In July 2024, Fujifilm Holdings introduced AI-assisted medical screenings in Vietnam, providing cancer screenings.
These ongoing initiatives are propelling Vietnam’s AI healthcare market towards a projected compound annual growth rate from $0.03 billion in 2022 to $0.69 billion by 2030.
Agriculture
Also through the integration of AI, one of the most promising avenues for growth lies within the agricultural sector. With agriculture contributing approximately 21% to the nation’s GDP, the potential for AI to enhance productivity and streamline operations is immense.
AI offers solutions to some pressing issues like climate change and fluctuating market demands. In rice farming, AI can help monitor and regulate salinization levels, which significantly prevent crop failures. By implementing smart sensors and data analytics, farmers can make informed decisions that optimize crop output and quality. For the cashew nut industry, AI can facilitate the grading and sorting of nuts, enhancing marketability through objectivity and precision. Similarly, AI in coffee farming allows for better monitoring of trees and prompt identification of defects, ultimately improving the end product.
According to recent studies, integrating AI can not only improve efficiency but also reduce food waste and save costs. As the demand for agricultural products continues to grow, embracing AI technologies can ensure that Vietnam remains competitive in the global market. By embracing AI, Vietnam can unlock our agricultural potential, boost the economy, and improve millions of lives. As agriculture and technology merge, our future depends on how far we advance in AI-driven farming.
Education
The applications of AI in education are reshaping how we teach and learn globally. AI is one of the breakthrough techniques for personalizing the learning experience of students, teachers, and teaching assistants.
Schools and educational institutions are increasingly adopting AI to revolutionize how students learn. Hanoi University of Science and Technology has led the charge by announcing the launch of Vietnam’s first specialized engineering program in Generative AI in May 2024. Ho Chi Minh City University of Technology also designed a course to instruct students to train a chatbot to communicate in multiple languages from scratch. Moreover, RMIT University developed Val Chatbot to support their student learning experience, while FPT (all regions) already launched VioEdu, the nation’s first AI-powered smart education assistant in 2019.
As educational institutions continue to innovate with AI, the future of teaching and learning in Vietnam looks increasingly personalized and effective. This transformative journey not only enhances students’ academic experiences but also prepares them for a rapidly evolving workforce.
How Vietnam Can Leverage AI for the Future
As Vietnam stands on the threshold of a new global era, the question of how to effectively leverage AI for sustainable growth becomes paramount. With our burgeoning tech scene and strong agricultural foundations, Vietnam has a unique chance to position ourselves as a leader in AI adoption across various sectors.
First, education and workforce development are critical. Vietnam has a young population eager to innovate, but there is a pressing need for targeted training programs to equip individuals with the necessary skills to thrive in an AI-driven economy. Universities have been doing their great jobs! They can further collaborate with tech companies to develop curricula that emphasize data science, machine learning, and robotics. This initiative would not only foster a robust talent pipeline but also encourage entrepreneurship in the tech sector.
Secondly, in the agricultural sector, AI presents a goldmine of opportunities. By investing in smart farming like precision agriculture, drone monitoring, and AI-driven data analytics, Vietnam can enhance productivity and sustainability. These technologies can provide farmers with real-time insights into soil health, weather pattern, and crop condition, allowing them to make informed decisions that maximize yields while minimizing resource usage.
Furthermore, sectors like healthcare, transportation, and manufacturing also stand to benefit from AI integration as mentioned above. For instance, AI algorithms can optimize logistics and supply chain management, ensuring that products reach consumers more efficiently. In healthcare, AI can enable predictive analytics that improve patient outcomes and streamline services.
Finally, embracing a culture of innovation is also vital. The government can play an influential role by regulating favorable policies that promote research and development in AI. By providing incentives for startups and established companies to innovate, we can create a vibrant ecosystem that attracts investment and nurtures home-grown technologies.
Challenges Vietnam Needs to Overcome
While the potential for AI integration in Vietnam is promising, several challenges must be addressed to fully realize our benefits. One significant barrier is the lack of digital infrastructure in rural areas, where many agricultural activities take place. Insufficient internet connectivity and access to advanced technologies can hinder smallholder farmers from utilizing AI-driven tools that could enhance their productivity. Additionally, there is a pressing need for regulatory frameworks that ensure ethical AI deployment while protecting data privacy and security. Ensuring that the workforce is equipped with the necessary skills to adapt to AI technologies is also crucial; without targeted training programs, there is a risk of exacerbating existing inequalities. Addressing these challenges will be important for Vietnam to harness the transformative power of AI and secure our position as a leader in the global economy.
Author: Trường Đặng