The Fastest-Growing Sector in Vietnam: International Report Cites $140 Billion

Vietnam’s AI economy is projected to reach a scale of $120-130 billion by 2040, according to a report by the National Innovation Center (NIC), Japan International Cooperation Agency (JICA), and Boston Consulting Group Vietnam (BCG). This report, titled “Vietnam’s AI Economy: Seizing the Opportunity and Shaping the Development Orientation,” was released on June 12 in Hanoi and offers a comprehensive overview of the country’s AI landscape.

AI – THE CATALYST FOR VIETNAM’S ECONOMIC SOARING

By 2030, AI is expected to contribute $5 trillion to the global economy, and it will be the main driver of the 4th Industrial Revolution. Governments and leading businesses worldwide prioritize AI in their digital transformation agendas.

In Vietnam, data from 2024 shows that the country ranks 2nd in Southeast Asia for the number of startups and investment capital focused on AI. Vietnam is actively embracing the digital revolution and is recognized as the fastest-growing digital economy in the region, with an impressive annual growth rate of 20%. AI is expected to be the main driver of sustainable economic growth.

BCG forecasts that Vietnam’s AI economy will reach a scale of $120-130 billion by 2040. This growth will be driven by two main factors: First, consumption revenue growth of $45-55 billion due to increased demand for AI-powered products and services. Second, cost savings of $60-75 billion through increased productivity, automation, predictive analytics, and improved efficiency enabled by AI technology.

By 2040, the contribution of AI to the economy by sector is as follows: Manufacturing $25-30 billion, consumer products $15-20 billion, financial services $10-15 billion, telecommunications $10-14 billion, education $10-15 billion, environment and agriculture $7-10 billion, and other sectors $35-40 billion.

3 PILLARS DRIVING AI DEVELOPMENT IN VIETNAM

The report also identifies three direct drivers of Vietnam’s AI economy: The expansion of AI applications in both the public and private sectors, the development of an AI ecosystem, and the cultivation of a specialized AI workforce that meets international standards.

In addition to these pillars, there are supporting factors for AI development, including enhancing general knowledge and awareness about AI, improving access to high-quality computing infrastructure and data, and establishing clear policies for sustainable AI development.

Enablers of Vietnam’s AI economy include: AI awareness, governance, and safety; AI talent and R&D; AI computing and data infrastructure; AI startup ecosystem; and AI applications in the public and private sectors. A critical enabler is Vietnam’s growing IT and digital workforce, with over 150 universities offering IT-related courses and over 60,000 graduates annually.

AI has already been deeply integrated into various sectors of Vietnam’s economy. In agriculture, for example, AI is used for crop monitoring, pest detection, disease prediction, and timely response suggestions. In healthcare, AI enables personalized healthcare services for vulnerable communities with limited access to medical facilities.

In the field of information and communication, AI systems detect harmful online content and prevent cyber threats to ensure cybersecurity. However, the report also acknowledges that AI implementation in government and public services is still in its early stages, and nationwide expansion faces challenges related to sustainable financial models, inter-sectoral collaboration, and improved access to AI solutions with clear applicability and high cost-effectiveness.

In the private sector, AI has been gradually adopted since 2019, especially in banking, logistics, consumer goods, and healthcare. Banking leads the way in AI integration, and experts anticipate that administrative services, healthcare, and education will increasingly embrace AI, becoming key sectors in Vietnam’s AI economy.