artificial intelligence drives digital transformation and economic growth in vietnam

Vietnam is on the verge of a significant transformation driven by artificial intelligence (AI), with projections indicating that AI could generate nearly $11 billion in sales for telecommunications companies by 2025. This growth is part of a broader trend where AI applications are becoming integral to various sectors, fostering rapid and comprehensive changes across the socio-economic landscape.

The Impact of AI on the Vietnamese Telecommunications Sector

The Vietnamese telecommunications sector is responding to this shift by heavily investing in data center infrastructure, which currently comprises 44 data centers with an installed capacity of 181 MW. This investment is crucial as the country prepares to harness the full potential of AI and related technologies.

Leaders in the telecommunications sector, like MobiFone, emphasize that this transformation is about establishing advanced production methods that can enhance efficiency and productivity. As companies increasingly recognize the importance of these technologies, partnerships with global tech giants like Amazon Web Services (AWS) are becoming commonplace, facilitating training in critical areas such as 5G, AI, and data science.

Training and Collaboration for AI Adoption

The collaboration between Vietnamese companies and AWS exemplifies the proactive approach being taken to equip the workforce with necessary skills. For instance, Techcombank has partnered with AWS to deploy large language models, training 250 employees in the process. Similarly, VPBank is adopting a top-down approach to educate its management on emerging technologies like Generative AI. VIB Bank has also engaged in training programs through AWS Skill Builder, ensuring that its employees are well-prepared for the evolving digital economy.

This emphasis on training is vital as Vietnam's digital economy is projected to reach $220 billion, nearly half of the country's current GDP. The rapid growth of Southeast Asia's digital economy, which has surged to a value of $100 billion in just eight years, underscores the potential for AI to drive further expansion. By 2030, this figure is expected to balloon to $835 billion, highlighting the transformative power of AI in the region.

AI's Impact Across Multiple Industries

AI is not only reshaping the telecommunications landscape but is also making profound changes in sectors such as manufacturing, healthcare, and logistics. Industry leaders assert that AI's ability to analyze data in real time is unlocking new opportunities for businesses, from enhancing customer experiences to optimizing supply chain management. As the country embraces these technological advancements, there is a growing recognition of the need for a robust legal framework to support digital transformation. This approach is essential for ensuring that Vietnam can effectively integrate AI into its economic fabric while addressing potential regulatory challenges.

The Importance of Legal Regulations and Government Support

To fully leverage the benefits of AI, Vietnam must develop appropriate legal regulations that promote the nationwide application of the technology. This includes policies focused on AI training and human resource development, as well as the construction of digital infrastructures and ecosystems. By creating a conducive environment for AI development, Vietnam can attract global tech companies and foster innovation within its borders.

The government’s role in this transformation is crucial, as it must implement preferential policies that encourage investment in AI and related technologies. As the country stands at the crossroads of a digital revolution, the strategic development of AI will not only enhance economic growth but also position Vietnam as a competitive player in the global digital economy. The ongoing investments and partnerships in AI signify a commitment to embracing the future, ensuring that Vietnam remains at the forefront of technological advancement in Southeast Asia.

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