Unleashing Vietnam's AI Potential: A Roadmap to Success

Vietnam's AI strategy: How to build a competitive edge in AI

Young Singaporeans are increasingly enrolling in AI education programs. Vietnam has identified artificial intelligence (AI) as a critical strategic technology, as emphasized in Resolution 57 issued by the Politburo. The resolution underscores the urgent need for Vietnam to gain technological independence in AI to avoid being digitally dependent on global tech powers. However, with AI evolving at an unprecedented pace, many experts question whether Vietnam’s 2021 National AI Strategy remains effective. Should Vietnam adjust its approach to AI development to stay competitive in the global race?

Adapting to AI’s rapid evolution

When Vietnam launched its national AI strategy in 2021, only 45 countries worldwide had similar strategies. However, the rise of generative AI models like ChatGPT, Claude, and Grok has dramatically changed the landscape, prompting many countries to revise their AI policies. For example, Singapore, which first introduced its AI strategy in 2019, released AI Strategy 2.0 in December 2023, with a goal of tripling its AI workforce within 3–5 years. Russia updated its national AI strategy in early 2024, extending its AI development roadmap until 2030. According to Assoc. Prof. Dr. Nguyen Ai Viet, former director of the Vietnam National University’s Institute of Information Technology, global AI strategies generally follow two models:

• Leading strategy – pursued by major powers like the U.S., China, and Japan, which invest heavily in AI breakthroughs.
• Adaptive strategy – adopted by smaller economies, focusing on applying AI to solve local challenges.

Vietnam, he argues, should follow an adaptive AI strategy, aligning with global trends while concentrating on practical applications. Rather than competing in costly AI research fields such as large language models (LLMs), Vietnam should prioritize industry-specific AI solutions that directly benefit its economy.

AI specialization: Vietnam’s opportunity in niche markets

Vietnam can carve out a competitive edge by focusing on AI applications in sectors where global AI giants have limited presence but where Vietnam has a strong demand, such as:

• Agriculture – Smart farming technologies for yield optimization.
• Manufacturing – AI-driven automation and predictive maintenance.
• Healthcare – AI-assisted diagnostics and medical imaging.

One notable example is computer vision AI. Currently, Western facial recognition systems often struggle to accurately identify Asian facial features, due to differences in face shape, clothing, and makeup styles. If Vietnam invests in AI-driven computer vision tailored for Asian markets, it could establish itself as a leader in this domain.

Building a robust data infrastructure

Another crucial factor in Vietnam’s AI development is data sovereignty. According to Prof. Tran Thanh Long of the University of Warwick (UK), the 21st-century technological race is no longer about territory or resources, but about data and AI supremacy. “If Vietnam does not take control of its core AI technologies, it risks becoming a digital colony, dependent on foreign innovations,” he warned.

However, technological independence does not mean Vietnam must develop everything from scratch. Instead, Vietnam needs to:

• Identify core technologies that must be domestically developed.
• Determine which AI technologies can be imported or co-developed through strategic partnerships.

Currently, Vietnam’s biggest AI weakness is its data infrastructure. AI cannot thrive without high-quality, structured datasets that comply with data security regulations. Therefore, Vietnam’s AI strategy must include:

• Developing a national data governance framework.
• Ensuring data interoperability across sectors.
• Implementing stricter data protection laws.

A new approach to AI policymaking

Experts suggest Vietnam should rethink how it formulates AI policies. Instead of relying solely on top-down government directives, Vietnam could:

• Encourage collaboration between research institutions, businesses, and policymakers.
• Create an open AI strategy, allowing industry and academic experts to provide continuous feedback.

According to Assoc. Prof. Dr. Nguyen Xuan Hoai, Director of the Vietnam Institute of Artificial Intelligence, AI cannot be isolated from national science and technology policies. AI should be integrated into Vietnam’s broader innovation ecosystem, including:

• National digital transformation initiatives.
• Scientific research funding programs.
• Technology commercialization efforts.

Vietnam stands at a crucial crossroads in its AI journey. To stay competitive, the country must:

• Adopt an adaptive AI strategy, focusing on industry-specific applications rather than chasing expensive global trends.
• Invest in AI infrastructure, particularly data governance and security.
• Encourage multi-stakeholder participation in AI policymaking.
• Integrate AI with national science and technology strategies.

By leveraging its strengths and focusing on practical AI applications, Vietnam can maximize the benefits of AI while safeguarding its technological sovereignty.