Eric Yeo, Country General Manager, AWS Vietnam shared at the press meeting. Photo courtesy of AWS

HÀ NỘI — Artificial intelligence (AI) adoption continues to accelerate in Việt Nam, with 18 per cent of businesses already adopting AI, but most, 74 per cent, are still only focused on the basic uses of AI.

The information was released in a new research by Amazon Web Services (AWS), an Amazon.com company, on Thursday. Only 35 per cent of start-ups and 11 per cent of large enterprises that have adopted AI are building entirely new AI-driven products with AI.

This presents an opportunity for Việt Nam to unlock greater economic potential by combining the agility and innovation of start-ups with the scale and resources of enterprises to accelerate and deepen Việt Nam’s AI adoption.

To better understand the scope of AI and where companies of different scales might be headed, AWS collaborated with Strand Partners to conduct the AI adoption survey in Việt Nam. The 'Unlocking Việt Nam’s AI Potential' study surveyed 1,000 business leaders, and 1,000 nationally representative members of the public.

Nationwide, around 47,000 businesses adopted AI solutions in 2024 - over five every hour. Almost 170,000, or 18 per cent of Việt Nam’s businesses have already adopted AI, up from 13 per cent last year, showing a year-on-year growth rate of 39 per cent. The productivity and economic potential of AI adoption are promising. 61 per cent of Việt Nam’s businesses that have adopted AI reported an increase in revenue, at an average increase of 16 per cent, while 58 e per cent xpect an average of 20 per cent in cost savings.

While AI adoption is increasingly widespread in Việt Nam, most businesses are not yet harnessing its most advanced uses, underscoring the need to deepen AI adoption to unlock Việt Nam’s full AI potential. 74 per cent of businesses remain focused primarily on basic use cases, like driving efficiencies and streamlining processes using AI – rather than innovation like developing new products or disrupting industries.

Just 17 per cent of businesses have advanced to the intermediate stage of AI adoption, and only 9 per cent have reached the most transformative stage of AI integration, where AI is no longer just a tool but a core part of product development, decision-making, and business models.

Start-ups are particularly enthusiastic and innovative in their use of AI in Việt Nam, adopting AI’s most advanced uses far more rapidly than more established companies. 55 per cent of start-ups iare using AI in some way, of which 35 per cent are building entirely new AI-driven products with AI, leveraging the technology to its full potential. In contrast, 41 per cent of large enterprises use AI, but only 11 per cent of these are delivering a new AI-driven product or service, and only 12 per cent have a comprehensive AI strategy. This difference in AI innovation uncovers a deeper finding that could shape Việt Nam’s economic future.

“It is an interesting phenomenon we are seeing with AI adoption coming out of the study results in Việt Nam. While 18 per cent of businesses reported they have adopted AI, most of the deployments remain basic despite the rapid adoption of the technology over the past year,” said Nick Bonstow, Director at Strand Partners.

“The nimbler, faster-paced start-ups are also pulling ahead of large enterprises in their speed and depth of innovation. The resulting ‘two-tier’ AI economy could have lasting implications on a country’s future economic development. Celebrating AI adoption numbers alone masks the deeper challenges many businesses face across Việt Nam.”

AI skills gap is the main barrier to deeper AI adoption

A lack of skilled personnel is the leading reason that 55 per cent of businesses in Việt Nam say is preventing them from adopting or expanding their use of AI. Many of the businesses reported having the technology and the vision, but are unable to find the people to bring it to life.

This puts Việt Nam’s global competitiveness at risk and restricts economic potential, as AI literacy is expected to be required in 50 per cent of jobs going into the future, and only 24 per cent of businesses feel prepared with their current workforce’s skillset. As a result, businesses say they would be willing to increase a salary offer by 40 per cent to a candidate with strong AI skills.

In considering the impact of potential new AI regulations, the top hope expressed by businesses in Việt Nam is for regulation to provide increased confidence among customers (50 per cent), and a stable regulatory environment (47 per cent). Businesses in Việt Nam also estimate they spent 18 per cent of their budget on compliance-related costs, and 71 per cent expect that figure to increase in the next three years.

The report uncovered three priority actions to overcome these barriers and unlock the full potential of AI across start-ups and large enterprises to avoid the emergence of a ‘two-tier’ economy: Firstly, invest in and build industry-specific digital skills programs to develop a digitally-skilled workforce to drive AI-led innovation and growth. Secondly, establish a clear picture of Vietnam’s pro-growth regulation that is predictable and innovation-friendly, to help drive deeper AI adoption across all businesses. Lastly, with 69 per cent of businesses saying they are more likely to adopt AI if the government leads, it will be critical to accelerate digital transformation in the public sector, especially in healthcare and education, and use public procurement to drive innovation.

Việt Nam is advancing AI innovation with support from AWS through robust infrastructure and talent development. AWS launched Edge locations in HÀ Nội and HCM City in 2022, followed by a planned AWS Local Zone to boost digital transformation. Over 100,000 individuals have been trained in cloud and AI in Việt Nam since 2017. In 2023, AWS rolled out the ‘AI Ready’ initiative, offering free AI and generative AI courses, 30 in Vietnamese to date, to help learners gain in-demand skills and access career opportunities.

" Việt Nam businesses show strong AI innovation adoption, demonstrating significant economic potential. However, our research reveals critical barriers, particularly for larger enterprises looking to deepen AI implementation," said Eric Yeo, Country General Manager, AWS Vietnam.

"To maintain Việt Nam's competitive position globally, government and industry must address these specific challenges. AWS remains committed to accelerating generative AI adoption through our infrastructure investments and skills training initiatives." — VNS