Artificial intelligence (AI) is no longer a distant concept from science fiction; it has become an integral part of our daily lives, often unnoticed. Over the past few decades, AI has made significant strides globally, embedding itself into various aspects of life and business. While concerns exist about AI potentially replacing human jobs - such as coders being displaced by AI coding engines - it's clear that advanced robotics and AI are not yet capable of fully replacing human intelligence. The debate between AI and human capability continues, but for now, AI serves as a powerful tool rather than a replacement.

The current prevalence of AI is a testament to its transformative impact on everyday life and numerous industries. AI's applications now span sectors such as software development, human resources, education, telecommunications, retail, e-commerce, healthcare, and even criminal justice.

Recognizing AI's vast potential, many countries have invested heavily in AI development strategies, aiming to become leaders in this field and reap substantial economic rewards. According to Tortoise Intelligence, global investment in AI companies surged by 115% since 2020, marking the most significant year-on-year growth in two decades. In 2021 alone, AI investments reached $77.5 billion, with expectations of continued growth. While the U.S., China, and Europe lead the charge, Vietnam is also making strides in the AI race.

Is Vietnam Ready for AI Development?

As of 2019, Vietnam boasted over 30,000 ICT companies, nearly 955,000 IT workers, and more than 80,000 graduates in information and communications technology. Vietnam has emerged as a leading IT hub in Southeast Asia and a top destination for IT outsourcing. This favorable business environment and skilled workforce have enabled significant progress in AI applications across various sectors.

However, Vietnam's AI industry is still in its early stages, especially when compared to global leaders like the U.S. Despite starting from a lower point, Vietnam is making substantial efforts in digital transformation to catch up and compete globally.

Vietnam's AI readiness is on the rise. In 2021, the International Development Research Centre (IDRC) and Oxford Insights ranked Vietnam 62nd globally and 6th in ASEAN on the Government Artificial Intelligence Readiness Score. With a score of 51.82 out of 100, Vietnam surpassed the global average and climbed 14 places from the previous year. This score reflects Vietnam's growing capabilities across three key pillars: government, technology, and data infrastructure.

Government Initiatives

Vietnam's government has long recognized AI's potential and its role in the fourth industrial revolution. In response, the government has heavily invested in AI and other advanced digital technologies like machine learning, blockchain, big data, IoT, and cloud computing. National AI policies and initiatives encourage Vietnamese companies and start-ups to advance AI research, development, and application.

One of the most notable initiatives is the National Digital Transformation Programme, set to run until 2025, with a vision for 2030. This program aims to double the growth of the digital economy by 2025 and lay the groundwork for ongoing digital transformation, positioning Vietnam as a future leader in AI. The country's improved AI Readiness Score is attributed to its proactive approach to technology adoption and the national strategy for AI development.

Technology Advancements

The technology pillar assesses a country's internal digital capabilities, including its tech sector's dynamism and competitiveness. Vietnam has been building a robust digital ecosystem for innovation and has proposed a national innovation center to support technological breakthroughs.

The Ministry of Planning and Investment, along with the Ministry of Science and Technology, has been pivotal in fostering AI communities in Vietnam, encouraging both domestic and international investments in AI development. In 2019, the Vietnam Venture Summit saw commitments of $425 million from local and foreign funds to support Vietnamese start-ups over three years.

Data & Infrastructure Development

The data and infrastructure pillar evaluates the availability of reliable data and secures the digital infrastructure necessary for AI technologies. Vietnam's data and computing infrastructure, while still developing, have seen significant improvements. The country's AI readiness score for data infrastructure reached 51.87, reflecting progress in building the foundation for AI adoption.

Despite these advances, challenges remain, particularly in funding and human resources.

Challenges in AI Development

Vietnam's appearance on the global AI Readiness Chart is just the beginning of its journey toward AI excellence. However, the country faces significant challenges, including funding and a shortage of AI experts.

Funding

AI development requires substantial investment, and Vietnam's government has prioritized securing funding for AI projects. The Ministry of Planning and Investment has been crucial in mobilizing domestic organizations like Viettel, FPT, VinGroup, and VNPT to invest in AI. Efforts to attract foreign investors have also shown promise, with $800 million pledged at the Vietnam Venture Summit 2020 for Vietnam's startup ecosystem over the next three to five years.

Vietnam's successful management of the global pandemic has also made it an attractive destination for investment and business.

Human Resource Challenges

Vietnam's AI industry faces a shortage of specialized human resources. While the country has a large IT workforce, only about 300 of the 1,600 Vietnamese professionals in AI-related fields are considered experts. To address this, the government has prioritized nurturing domestic AI talent and connecting with Vietnamese expatriates working in AI globally.

AI education and training are gradually being integrated into universities, bringing AI knowledge closer to the younger generation. Currently, around 50 universities and academies in Vietnam offer AI-related majors.

Read more: Vietnam's Significant Advancement In Artificial Intelligence

Conclusion

Vietnam is setting ambitious yet realistic goals for AI development. With strong government support and a commitment to AI, Vietnam is poised to become a significant player in the AI industry. The country's journey has just begun, but with continued efforts, Vietnam has the potential to excel in the digital revolution powered by AI. The future of AI in Vietnam looks promising, and the sky is the limit for this nation's AI aspirations.

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