Vietnam's 2025 AI Law Update Aims to Boost Long-Term Growth
Vietnam is set to update its AI law and strategy this year, aiming to accelerate AI adoption and boost long-term growth. The Ministry of Science and Technology led the revision of the National AI Strategy in 2021, paving the way for these changes.
Vietnam's economic transformation could be significant with AI. Under accelerated technological breakthrough scenarios, its GDP could be 50% higher than the baseline by mid-century and nearly five times higher by the century's end.
However, challenges persist. Vietnam's reliance on low-cost labour and low workforce skills may hinder early AI adoption, with advanced economies like Japan and Singapore expected to adopt AI sooner. Schneider Electric's Innovation Day Hanoi 2025 highlighted the need for AI-ready infrastructure to support this transition.
Once adopted, AI could significantly accelerate Vietnam's growth, with potential initial boosts of 2 to 5 percentage points. Yet, it also presents risks, such as widening wage inequality and job displacement, requiring complementary policies for mitigation.
Vietnam's AI law and strategy update this year signals its commitment to embracing AI for long-term growth. With potential GDP gains and growth acceleration, the country is poised for transformation. However, addressing productivity gaps, workforce skills, and inequality will be crucial for a successful AI-driven future.
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