As one of Southeast Asia’s fastest-growing digital economies, Vietnam has made remarkable progress in harnessing human capital as a foundation for national development. The country’s success is driven by sustained investments in education, a young and dynamic workforce, and increasingly vibrant public–private collaboration across its innovation ecosystem. Vietnam’s digital economy reached USD 30 billion in 2023 and continues to expand rapidly, supported by initiatives such as the National Digital Transformation Programme and ongoing efforts to strengthen digital skills training nationwide.
Yet like many countries in the region, Vietnam faces the uncertainties brought by accelerated technological and AI-driven change. Automation is reshaping tasks across manufacturing, services, and the public sector, raising concerns around job displacement, skills mismatch, and uneven access to new opportunities. There is an urgent need to continue upgrading workforce capabilities while ensuring that digital innovation enhances inclusivity—particularly for SMEs, workers in traditional sectors, and communities vulnerable to rapid economic transformation.
Amidst this context, the Tech for Good Institute (TFGI) in partnership with the Institute of Human Geography and Sustainable Development, convened an in-person New Models of Work roundtable in Hanoi, Vietnam on 6 November 2025. The in-person roundtable brought together senior government officials, policy researchers, academics, and private sector representatives to explore how AI is transforming the Vietnamese workforce. This event formed part of TFGI’s broader New Models of Work Series, comprising four virtual dialogues and six in-person country sessions to situate regional work trends within local contexts and identify actionable insights for governments, businesses, and academia.
The discussion focused on how Vietnam can navigate accelerating technological shifts while managing emerging risks through stronger governance, coordinated partnerships, and continuous investment in workforce development. Participants reflected on how Vietnam’s evolving institutional frameworks—across education, social policy, and digital governance, could adapt to support a future shaped by AI-enabled work.
Participants
- Le Van Hung, Vice Director, Institute of Human Geography and Sustainable Development
- Nguyen Đinh Chuc, Institute of Vietnam and World Economic
- Prof. Bui Quang Tuan, Vietnam Economic Association
- Trinh Thu Nga, Institute of State Organization and Labor Science
- Nguyen Huu Minhi, Vietnam Sociology Association
- Trieu Thanh Quang, Head, Division of Policy and Strategy, Institute of Human Geography and Sustainable Development
- Nguyen Ngoc Trung, Head, Division of Geography and Sociology Sustainable Development, IHS
- Dang Thuy Trang, Head of Public Affairs, Grab Vietnam
- Nguyen The Ha, Vietnam Population Authority
- Luong Van Khoi, Institute for Policy and Strategy Research
- Nguyen Hai Ninh, Institute of State Organization and Labor Science
- Citra Nasruddin, Programme Director, Tech for Good Institute
- Fairoz Ahmad, Fellow, Tech for Good Institute
- Bas Claudio, Associate, Tech for Good Institute
Key Takeaways
1. Increased implementation and coordination is needed to realise the vision of national AI strategies
Vietnam has put forward comprehensive frameworks—spanning the National Digital Transformation Programme, the National Strategy on AI to 2030, and multiple Party resolutions to drive progress across the digital economy, digital society, and digital government. However, opportunities exist to translate these policies into practice by increasing institutional coordination, streamlining administrative requirements, and increasing capacity at both central and provincial levels. Administrative procedures can be made more intuitive, while digital public services can be made more interoperable so that businesses and citizens no longer need to navigate a mix of online and manual processes. At the local level, responsibilities must be clearly defined, and coordination among agencies must become institutionalised rather than done in an ad-hoc manner. These fixes can further bridge the gap between policy intent and measurable outcomes on the ground.
The need for stronger multi-level governance, including national steering mechanisms that ensure coherence across ministries, as well as local implementation models tailored to each province’s economic structure and capacities. More agile regulatory tools, such as regulatory sandboxes, were also identified as essential to ensure that policymaking can keep pace with rapid technological change.
2. Targeted programmes and training can help SMEs and informal workers harness AI potential
While Vietnam’s policy ecosystem is extensive, the groups most critical to inclusive digital transformation such as SMEs and informal workers continue to face structural barriers to adoption. SMEs struggle with limited capital, scarce technological expertise, and low awareness of available government support. There are more opportunities to increase the awareness of SMEs to instruments like the SME Development Fund or credit guarantees. AI technologies if utilised effectively can help SMEs bridge these capacity gaps by maximising productivity and automating resource intensive processes.
The informal labour force, which still makes up a large share of the economy, encounters a distinct set of challenges. Workers often transition between multiple jobs, lack stable employment arrangements, and face low incentives for formal upskilling. Many industrial-zone workers see no perceived need for training once achieving stable incomes, while rural workers juggle seasonal jobs with limited access to vocational programmes. Creating segmented, customised training pathways based on the characteristics of different worker groups is crucial in overcoming these barriers to economic opportunities.
3. Vietnam must strengthen workforce readiness through lifelong learning and stronger education-industry linkages
AI and automation are already reshaping work in Vietnam, not only through job displacement risks but more significantly through changes in the nature of tasks and required skills. Examples such as AI-enabled livestock support tools or petroleum technicians shifting into advisory roles illustrate how roles evolve rather than disappear entirely. This underscores the need for a workforce capable of adapting to fast-changing job profiles. The discussion also underscored how public–private partnerships can strengthen workforce readiness. One example is collaboration with GrabAcademy—Grab’s training and upskilling platform that provides modules on digital literacy, safety, financial skills, and professional development. Such partnerships help broaden access to practical, industry-relevant training.
Stronger education–industry linkages are also essential. Closer collaboration in recruitment, curriculum design, and job placement can ensure training remains aligned with real market needs. For instance, MISA, a technology startup, has engaged in university partnerships and training to connect students with employment pathways, demonstrating the value of cooperation. Across sectors, lifelong learning must become a cultural norm. Vietnam will need adaptive, community-based models that support workers at all stages of life, ensure equitable access to digital skills, and help both SMEs and informal workers transition into new roles shaped by AI-enabled work.
