Vietnamese AI for Vietnamese people

Artificial intelligence (AI) has become one of the key technologies of the fourth industrial revolution and is playing a crucial role in transforming the world and human life.
Photo: Vietnam’s AI industry currently has many advantages in terms of human resources and policies. (Source: FPT)
Photo: Vietnam’s AI industry currently has many advantages in terms of human resources and policies. (Source: FPT)

In Vietnam, AI has made breakthrough developments in recent years. Particularly noteworthy is the strong wave of generative AI, with potential applications across many different fields and industries.

A conducive environment needed

Thanks to advances in machine learning and deep learning, AI — especially generative AI — has achieved significant progress in areas such as image recognition and natural language processing, attracting interest from technology corporations and investors.

In Vietnam, AI has become one of the primary application trends among recent startups. At the Qualcomm Vietnam Innovation Challenge 2024 (QVIC 2024), AI was incorporated into 70% of total solutions across various fields, such as the Internet of Things (IoT), automation, medical technology, and smart cities. More than half of the projects in the competition’s top 10 utilised AI.

Nguyen Thanh Thao, Senior Manager of Business Development at Qualcomm Vietnam and a QVIC 2024 judge, stated that startups are leveraging AI to optimise solutions and increase product competitiveness. This demonstrates that Vietnamese startups have caught up with trends and are ready for the international arena.

Startups are not implementing AI merely to follow trends but rather recognise market application needs and attract investors. Eight out of ten Vietnamese enterprises surveyed reported using AI within the past 12 months, higher than the regional average of 69%. While AI is primarily used at specific times, usage is forecast to increase in the next 12 months as businesses grow more confident.

Many recent technology startups have chosen AI to meet market demands and attract investment. Founded in 2018, Vbee specialises in developing natural language processing (NLP) and conversational AI solutions. Their AI virtual assistant can listen, understand, and respond through voice (callbot) or text (chatbot). This startup now has over 2 million end users and more than 300 businesses using their products. At the QVIC 2024 finals, Vbee emerged as the champion, receiving a prize of 100,000 USD.

According to the Statista database (Germany), as of May 2024, OKXE, Mfast, Teky, Infoplus, and Jobhopin are the five Vietnamese AI startups that have received the most venture capital, with funding ranging from 8-15 million USD per project.

Statistics show that while Vietnam recorded only about 60 startups operating in AI in 2021, by 2024 this number had increased to 278 — approximately 4.5 times higher in just three years. Experts suggest that Vietnam’s AI industry and AI startup ecosystem benefit from advantages in human resources and policy support.

However, for genuine development, more practical enabling policies are needed, such as supporting startups with affordable office rentals and facilitating their access to advanced IT infrastructure at reasonable costs. The failure rate of AI startups worldwide is very high. While startups cannot make guarantees, their entrepreneurial passion needs support. When successful, the benefits they bring to society will certainly exceed the initial investment in them.

According to Deputy Minister of Science and Technology Bui The Duy, AI is developing at a remarkable pace and has significant potential for socio-economic development. Recently, many agencies and businesses have witnessed the achievements of this technology. Many businesses in Vietnam are seeking solutions to apply AI in daily life as well as opportunities to connect with international organisations and find suitable technological solutions.

Recently, the Ministry of Science and Technology, along with related ministries and agencies, has worked to develop a legal framework for AI. The emergence of AI has opened many management challenges, such as AI ethics. The national strategy for AI research has been issued, opening many development directions. “In implementing this direction, the ministry has issued many documents guiding responsible AI development, recommending units, organisations, and individuals to reference during AI research,” said Deputy Minister Bui The Duy.

Localisation of AI technology

The national strategy for research, development and application of AI until 2030, issued by the Prime Minister in January 2021, aims to make AI an important technology field in Vietnam and by 2030, for Vietnam to become an innovation centre for AI solutions and applications in the ASEAN region. To achieve this goal, mastering and localising AI technology plays a decisive role.

Le Hong Viet, General Director of FPT Smart Cloud (FPT’s main AI development arm), assessed that Vietnam has the opportunity to catch up with global AI and create a new AI industry. This is because AI is not a standalone industry. Like the IT industry, AI will transform other sectors. Vietnamese businesses are currently competing with two factors: low-cost labour and labour productivity.

However, in the future, these two factors alone will not be sufficient, and Vietnam will also need to compete through human resources, automation, technology, etc., to create even higher productivity. “We need internal AI capabilities specifically for Vietnam. This not only creates competition within the country but also protects Vietnam’s competitive edge and uniqueness,” emphasised Viet.

To achieve this, firstly, there must be sufficient capability to create AI applications that Vietnamese people can use. Secondly, data must be collected from the Government and Vietnamese people to maintain control of their own data. Thirdly, technological infrastructure must be developed, building platforms for smoother AI integration into businesses.

Fourthly, abundant resources must be created to attract global AI researchers and developers. Finally, the AI market in Vietnam needs to be opened to help businesses understand the value AI brings, how it creates productivity growth and optimises costs.

According to Professor Vu Ha Van, Scientific Director of VinBigdata, to stay ahead of the generative AI wave, Vietnam needs to focus on developing three AI pillars: people, resources, and tools. This involves training highly skilled human resources and encouraging investment in generative AI research and development.

There needs to be exploitation and development of databases for sharing and actively controlling content to ensure national data security. Finally, large Vietnamese language models must be developed, laying the foundation for developing generative AI solutions based on Vietnamese data, controlled by Vietnamese people.

“Vietnam is facing a major opportunity for breakthrough. We shouldn’t be end users of foreign technology, but instead should create our own technology — Vietnamese technology for Vietnamese people,” said Professor Vu Ha Van.

Markets and Data, a Singaporean consulting company, reports that Vietnam’s AI market was valued at 470 million USD in 2022 and is expected to reach 1.52 billion USD by 2030, with an annual growth rate of 15.8% during this period.

NDO