Vietnam’s AI breakthrough: New ‘golden land’ in global race

From decisive policy momentum to bold moves by technology conglomerates, enterprises and start-ups, the ‘Made in Vietnam’ AI movement is carving out a distinct national identity in an increasingly competitive field.

In October 2025, AI Hay, an AI-powered Q&A social network developed by Vietnamese engineers, became the only Southeast Asian representative to enter the Top 5 global AI applications by active users and downloads, according to the ‘State of AI – Report 2025’ released by research firm Sensor Tower.

In Vietnam, during the first half of 2025, AI Hay surpassed global names such as Google Gemini and DeepSeek in real user numbers, after only ChatGPT.

With more than 15 million downloads, it is currently the leading application in the education category on both the App Store and Google Play in Vietnam.

AI Hay is also the country’s first and largest purely Vietnamese AI Q&A social network.

Despite the achievement, Nguyen Hoang Hiep, AI Hay’s operation director, remained measured.

“The milestone is not a final destination, but proof that focusing on the real needs of Vietnamese users is the right path,” he said.

Rather than attempting to compete head-on with global giants across every front, AI Hay has chosen to deeply understand and serve local users, from students seeking the latest information about university admissions to civil servants requiring up-to-date policy and legal documents.

“The game is long and full of challenges, but there are also many opportunities to do better,” Hiep stressed.

Tech giants step up

While start-ups generate headlines, Vietnam’s leading technology corporations are embedding AI into their internal operations and developing ‘Made in Vietnam’ platforms that deliver tangible results.

At FPT, the FPT.AI platform integrates Vietnamese natural language processing, text-to-speech capabilities and chatbot tools.

The company has rolled out a suite of generative AI applications for enterprises, helping automate content creation, enhance customer service and boost productivity for thousands of businesses.

Meanwhile, Vietnam's military-run telecom company Viettel is building a comprehensive AI ecosystem spanning internal governance, big data analytics, digital simulation and automation.

Its AI solutions are applied in critical areas such as cybersecurity, national defense and smart urban management, optimizing resources while strengthening system security.

Vingroup, through its subsidiary VinAI, stands among the few Vietnamese firms capable of conducting AI research at international standards.

VinAI focuses on advanced applications, including computer vision for autonomous vehicles and intelligent traffic systems.

Its AI-powered facial recognition, behavior detection and traffic monitoring technologies are already deployed in real-world settings, addressing complex transportation challenges in Vietnam’s major cities.

Spectacular growth trajectory

Several international reports show that Vietnam’s AI sector is expanding at one of the fastest rates in the region.

Vietnam’s AI market was estimated to reach US$932 million in 2025 and was forecast to surge to $6.91 billion by 2031, with a projected compound annual growth rate of 38.97 percent over the 2025-31 period, according to Statista.

The strong growth was fueled by adoption among enterprises.

A study titled ‘Unlocking Vietnam’s AI Potential,’ conducted by Amazon Web Services in collaboration with Strand Partners, showed that around 170,000 Vietnamese businesses have implemented AI solutions, up 13 percent year on year.

In 2024 alone, AI adoption grew 39 percent year on year, with an average of five Vietnamese companies beginning their AI journey every hour.

Government readiness is also improving.

Vietnam was recently placed for the first time in the ‘Very High’ category of the United Nations E-Government Development Index, ranking 71st globally and fifth in Southeast Asia.

The country’s ambition to become a leading AI hub in the region by 2030 has been formalized through its National Strategy on Research, Development and Application of AI.

The newly enacted AI law includes provisions for a National AI Development Fund, a state financial mechanism operating on a non-profit basis to accelerate innovation.

At a forum during the 2025 VinFuture Sci-Tech Week, Deputy Minister of Science and Technology Bui The Duy announced plans to establish a national AI supercomputing center, expand open data ecosystems and develop AI infrastructure.

The goal is to position AI as an intelligent assistant accessible to every citizen, boosting social productivity and broadening access to knowledge.

Nguyen Van Khoa, CEO of FPT, underlined that Vietnamese companies can compete globally through three breakthroughs: human capital, science and data capabilities, and business model innovation.

“If we seize science and technology and master digital transformation, Vietnam can rise to the leading group in the new era,” Khoa said.

Despite its rapid ascent, Vietnam’s AI journey faces formidable challenges, including a shortage of high-quality AI specialists, gaps in infrastructure and limited investment capital.