Vietnam Artificial Intelligence Market Analysis, Size, and Forecast by Type, Deployment Model, Industry, and Organization Size: 2019-2033

Vietnam Artificial Intelligence Market Outlook

Vietnam Artificial Intelligence (AI) market is undergoing a strategic and transformative evolution, expected to exceed USD 7 billion by 2033, driven by bold government initiatives, rising digital adoption, and a growing base of skilled tech professionals. As per David Gomes, Manager – IT, Vietnam’s AI readiness score surged from 55th in 2022 to 39th globally in 2023, highlighting its accelerated capability development and clear strategic ambition. With a score of 54.48, the country now ranks 9th in East Asia, signaling significant upward momentum despite competition from regional peers like Singapore and Malaysia. This rapid climb is rooted in its National Strategy on AI Research, Development, and Application to 2030, aimed at embedding AI into core economic and societal frameworks.

Vietnam’s digital transformation is anchored by Resolution 57 and Decision No. 127/QD-TTg, reflecting top-level political commitment to AI as a pillar of national development. These directives outline objectives like training 100,000 AI engineers, establishing three national computing centers, and integrating AI into key verticals such as agriculture, healthcare, and education. For example, Vietnamese startups are deploying AI in precision agriculture and disease detection, optimizing farming productivity and public health outcomes. Meanwhile, VinAI—an arm of conglomerate Vingroup—has emerged as a regional AI innovator, developing autonomous vehicle technologies and facial recognition systems tailored to Southeast Asian contexts.

The rise of generative AI (GenAI) and small language models (SLMs) in Vietnam exemplifies how the country is localizing global innovations. These smaller, agile models are gaining traction due to their ability to operate efficiently in multilingual and resource-constrained environments—key characteristics that align well with Vietnam’s digital landscape. The Vietnam National Innovation Center (NIC) is working closely with global and local partners to build sovereign AI stacks that reduce dependency on foreign LLMs, a strategic response to the shifting geopolitical dynamics in tech sovereignty.

Public sector digitization has played a critical role in boosting Vietnam’s Human Development Index (HDI), which rose from 0.499 in 1990 to 0.766 in 2023, placing the country in the High Human Development category. The integration of AI into e-governance platforms and public health initiatives is one of the reasons Vietnam outperformed many global peers despite the post-pandemic slowdown. As noted by UNDP Resident Representative Ramla Khalidi, Vietnam’s commitment to human-centric AI offers a model for inclusive growth, though inequality remains a challenge—with a 16.3% HDI loss when adjusted for disparity in healthcare and education access.

Investment momentum is also strong. Venture capital and government-backed funds are supporting emerging AI ventures in chip packaging, smart manufacturing, and logistics. The country’s IT services market, expected to generate over USD XX billion in 2033, is increasingly AI-powered, with software outsourcing and automation as key revenue streams. Furthermore, initiatives like the Artificial Intelligence for Industry Development (AIID) program—led by 17 universities and enterprises—are bridging the talent gap through practical AI skill-building.

Vietnam’s regulatory ecosystem is maturing in tandem with its AI economy. Policymakers are crafting a legal framework to balance innovation with ethical oversight, taking cues from OECD AI principles and ASEAN guidelines. This is especially timely, as the rise of GenAI poses both transformative potential and systemic risks. The government’s consultative approach—engaging academia, private sector leaders, and civil society—enhances the credibility of its governance model and boosts investor confidence.

The strategic alignment between human development and digital innovation has elevated Vietnam’s global standing. However, to solidify its position as an AI hub in Southeast Asia, Vietnam must address lingering challenges: rural digital divides, hardware bottlenecks, and inter-ministerial coordination. If these are resolved, Vietnam could leapfrog into the top four ASEAN countries for AI by 2033, achieving not only economic dividends but also digital sovereignty.

Authors: David Gomes (Manager – IT)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

Vietnam Artificial Intelligence Market Scop