Vietnam finding its spot on the global AI map

[HO CHI MINH CITY] When it comes to artificial intelligence (AI), Vietnam has big ambitions to be the best not just in the region, but in the world too.

Two years ago, the government unveiled an AI master plan with various targets that, if achieved, would rank the country among the top four in South-east Asia and the top 50 in the world by 2030 in terms of AI research, development and application.

The national strategy, introduced by then-prime minister Nguyen Xuan Phuc, noted Vietnam’s goal of establishing at least 10 reputable AI brands or services by the end of the decade.

There are also plans to construct three big data-storage centres, to give companies access to high-performance computing. The document also stressed that bringing in foreign investment and developing local entrepreneurs would be the keys to success.

Since the release of that national strategy, the AI craze has taken the world by storm, especially with the widespread use of OpenAI’s viral text-generating system, ChatGPT.

Industry players in Vietnam say the country – with its relatively young and tech-savvy population of 100 million – can produce a steady pipeline of world-class AI developers that can punch above their weight on the international stage.

“In the next few years, I believe the quality of Vietnamese AI developers can come close to (that of) technology powerhouses (around) the world, if the government provides proper support and the necessary investments into local AI firms,” said Nguyen Van Minh Duc, co-founder and chief executive officer of Hekate.

“Otherwise, we could face a brain drain, as global companies are joining the AI race by vigorously drawing in worldwide talent.”

Hekate is a Da Nang-based startup that focuses on areas such as machine learning, big data analytics and natural language processing.

Founded in 2016, the company has provided solutions for the Vietnamese units of Unicef, Coca-Cola, Toyota Financial Services and the like, based on their specific requests and the available data owned by their clients.

Ho Quoc Tuan, a senior lecturer in finance and accounting at Bristol University in the UK, said that Vietnam is already a latecomer in the AI race. “The only way (for us to make a mark) is by having the support of the government.”

Speaking at a workshop on alternative data and AI in finance in Ho Chi Minh City, he added that the Vietnamese government should allocate more funding to develop the local AI sector, as doing so would open up new job opportunities and growth potential for the country.

According to figures from the World Intellectual Property Organization, there are fewer than 2,000 Vietnamese studying and working in AI-related fields, and fewer than 300 are regarded as AI experts. As at early 2023, there were about 50 universities and academies in Vietnam teaching major subjects related to AI.

Observers say Vietnam has an edge over its competitors due to its large talent pool – in the fields of science, technology, engineering and mathematics – that can provide companies with lower-cost workers for their AI projects.

Data labelling, a key task in training AI algorithms, is just one area that requires plenty of manpower, said Dr Tuan.

In 2019, the Financial Times reported that global IT companies hired thousands of workers in lower-income countries such as Kenya, India and the Philippines via third-party vendors. They were recruited to label data generated in industries such as manufacturing, medical imaging, autonomous driving and retail.

On its part, Hekate recently established an academy to work with developers and academics in the US and South Korea to train AI engineers in Vietnam, with the aim of sending them to work for international companies.

Dr Tuan said that as Vietnam seeks to position itself as a favourable destination for new projects in AI research and development, the government needs to come up with a comprehensive approach to regulate the industry, instead of just focusing on AI-associated fraudulent activities. “If you keep AI regulations too tight, people will go elsewhere with looser policies to start their projects,” he said. “(We should not) focus only on circumventing the negativity, which might in turn kill the whole industry.”

Jason Allen, director of the Singapore Management University’s Centre for AI & Data Governance, echoed this, citing Singapore as a role model for other countries in the region when it comes to AI policies and regulation.

The city-state has developed a reputation for being pro-business and pro-innovation when it comes to regulating areas such as AI and blockchain, he said.

“Countries (should) assess their own situations, policy goals, community values and national priorities and then formulate an AI policy accordingly,” he added.