Vietnam is rapidly emerging as a key player in the Southeast Asian AI revolution, competing with established tech hubs like Singapore, Thailand, and Malaysia.
With strong government support, a growing talent pool, and a thriving startup ecosystem, Vietnam is positioning itself as a serious contender in artificial intelligence (AI), automation, and digital transformation.
But can Vietnam truly become Southeast Asia’s AI hub, or will it struggle to keep pace with regional leaders? Let’s explore Vietnam’s AI advancements, key challenges, and the top AI startups to watch in 2025.
Vietnam’s AI Boom: What’s Driving It?
Government Support & National AI Strategy
Vietnam’s government has recognized AI as a strategic priority for economic growth. In 2021, the country launched its National AI Strategy, aiming to:
- Make Vietnam a top AI research and innovation center in ASEAN by 2030.
- Increase AI’s contribution to GDP through automation and digital transformation.
- Develop a highly skilled AI workforce, supported by universities and R&D centers.
- Promote AI applications in finance, healthcare, smart cities, and manufacturing.
State-backed AI research institutions and incentives for AI startups have accelerated innovation, putting Vietnam on the global AI map.
Rising AI Startups & Investment Growth
Vietnam’s startup ecosystem is booming, with AI-driven companies leading the way. In 2024, Vietnam attracted over $400 million in AI-related investments, and this number is expected to grow.
AI Adoption Across Industries:
- Banking & Finance: AI-powered fraud detection, credit scoring, and automated customer service.
- Healthcare: AI-assisted medical diagnostics and hospital management systems.
- Smart Cities: AI-powered traffic monitoring, public safety, and urban planning.
- Manufacturing: AI-driven automation, robotics, and predictive maintenance.
These advancements position Vietnam as a major AI player in ASEAN.
Vietnam vs. Southeast Asia: The AI Race
Vietnam is competing with Singapore, Thailand, and Malaysia in AI development. Here’s how it compares:
Country AI Strengths Challenges
Vietnam Thriving AI startup scene, low-cost tech talent, government-backed R&D Limited cloud infrastructure, need for stronger global partnerships
Singapore Southeast Asia’s AI leader, strong government AI funding, top-tier universities High costs, talent shortage
Thailand AI integration in smart cities, e-commerce, and logistics AI research still developing, smaller tech workforce
Malaysia Strong AI investments in finance, healthcare, and e-governance Limited AI startups compared to Vietnam & Singapore
Vietnam stands out for its high-growth AI startup ecosystem and affordability, making it an attractive destination for AI innovation in ASEAN.
Top Vietnamese AI Startups to Watch in 2025
Vietnam is home to some of the region’s most exciting AI companies, driving innovation across multiple sectors.
VinAI Research (A subsidiary of Vingroup)
• Focus: Computer vision, deep learning, AI-powered autonomous driving.
• Why it matters: VinAI is developing Vietnam’s first AI-powered driver assistance system, positioning the country as a player in smart mobility and autonomous technology.
FPT.AI (By FPT Corporation)
• Focus: AI-powered chatbots, automation, voice recognition.
• Why it matters: Leading AI adoption in Vietnam’s banking, telecom, and customer service sectors.
VNLINK AI
• Focus: AI-driven digital marketing and predictive analytics.
• Why it matters: Helping e-commerce businesses optimize ad performance and consumer targeting using AI.
Palexy
• Focus: AI-powered retail analytics, customer behavior tracking.
• Why it matters: Used by major Vietnamese retail brands to boost in-store sales and optimize supply chains.
DeepCare
• Focus: AI-assisted medical diagnostics and telemedicine.
• Why it matters: Revolutionizing Vietnam’s healthcare industry with faster, more accurate medical imaging and AI-driven patient management.
These startups are proving that Vietnam is no longer just a software outsourcing hub—it is now an AI innovation leader.
Challenges Vietnam Must Overcome
While Vietnam is making significant progress, several challenges remain:
- Lack of AI Talent: Vietnam needs more skilled AI engineers and data scientists to compete globally.
- Cloud & Data Infrastructure Limitations: AI relies on big data and cloud computing, areas where Vietnam still lags behind Singapore and Malaysia.
- AI Regulations & Ethics: Clear AI governance policies are needed to ensure responsible AI development.
- Need for Global AI Partnerships: Vietnamese AI firms need stronger collaborations with international tech giants to scale innovation.
Despite these hurdles, Vietnam’s rapid AI progress and government-backed initiatives suggest these challenges will be addressed over time.
Final Verdict: Can Vietnam Become Southeast Asia’s AI Hub?
Yes—Vietnam is on track to becoming a regional AI powerhouse. With strong government investment, a booming startup scene, and growing AI applications across industries, Vietnam is quickly rising as one of Southeast Asia’s top AI players.
Can it surpass Singapore? Not yet—but with continued investment and talent development, Vietnam has the potential to become a serious AI competitor in Asia.
What does this mean for investors and businesses?
- Vietnam is a high-growth market for AI investment.
- Tech companies should tap into Vietnam’s AI talent pool.
- Startups leveraging AI in Vietnam have a unique opportunity to scale in Southeast Asia.
As Vietnam continues its AI-driven transformation, it’s only a matter of time before the country cements its status as Southeast Asia’s next tech hub.
What’s your take? Can Vietnam lead the AI race in Southeast Asia? Drop your thoughts in the comments!
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Source: Vietnam Insider