Vietnam AI Infrastructure Market Outlook to 2030

Vietnam AI Infrastructure Market Overview

• The Vietnam AI Infrastructure Market has experienced notable growth, reaching a valuation of USD 544.3 Million in 2023. This growth is driven primarily by the increasing adoption of AI technologies across various sectors such as healthcare, finance, and manufacturing.
• The key players in the Vietnam AI infrastructure market include FPT Corporation, Viettel Group, VNPT Technology, NVIDIA, and IBM. These companies have established strong footholds in the market by offering comprehensive AI solutions and services.
• The inauguration of a new data center in Hoa Lac Hi-tech Park, Hanoi, which is touted as the largest in Vietnam. This facility, opened in April 2023, is designed to support the growing demands of AI applications and features a capacity that is three times higher than the average data centers in the country.
• Hanoi and Ho Chi Minh City are the dominant cities in the Vietnam AI infrastructure market. These cities are home to major technology hubs and AI research centers, attracting significant investments and talent. Their advanced technological infrastructure and strong governmental support make them key players in driving the AI market's growth in Vietnam.

Vietnam AI Infrastructure Market Segmentation

 Vietnam AI Infrastructure Market is divided into following segments:

• By Application: The Vietnam AI infrastructure market is segmented by application into healthcare, finance, manufacturing, and others. In 2023, the healthcare segment dominated the market, driven by the increasing adoption of AI for diagnostics, treatment planning, and personalized medicine.

• By Component: The market is also segmented by component into hardware, software, and services. The software segment held the largest market share in 2023, as AI algorithms and machine learning models are increasingly being used for data analysis, predictive maintenance, and customer service applications.

• By Region: The regional segmentation of the Vietnam AI infrastructure market includes North, South, East, and West. The North region, particularly Hanoi, held a dominant market share in 2023 due to its robust technological infrastructure and strong governmental support for AI initiatives.

Vietnam AI Infrastructure MarketCompetitive Landscape

• FPT Corporation: In April 2024, FPT announced a comprehensive strategic partnership with NVIDIA, aiming to build a $200 million AI Factory in Vietnam. This facility will focus on AI research and development, utilizing NVIDIA's latest technologies, including AI Enterprise software and H100 Tensor Core GPUs.
• IBM: The announcement of a $500 million Enterprise AI Venture Fund has been made by IBM on November 7, 2023. This fund is intended to support the development and deployment of AI technologies across various sectors, which aligns with Vietnam's growing focus on enhancing its AI capabilities and infrastructure.

Vietnam AI Infrastructure Industry Analysis

Vietnam AI Infrastructure Market Growth Drivers               

• Availability of Big Data: Big data, characterized by its volume, velocity, and variety, serves as the essential input for AI systems to learn and improve. AI technologies are well-equipped to handle the challenges of big data characteristics. For instance, AI can automate the preprocessing of data, including cleaning and normalization, necessary for accurate analysis.
• Rapid Digitization: Tech giants and startups in Vietnam are intensifying AI investments to foster innovative business models that significantly benefit users. For instance, Cho Tot, a secondhand goods platform, is applying AI to develop products and services that provide users with quick and effective convenience.
• Investment in AI Technologies: Financial backing is crucial for developing AI infrastructure and enhancing AI applications. The healthcare sector is experiencing significant investments, with companies like Spring Health and Cyto Reason securing substantial funding to advance AI-driven solutions in mental health and drug discovery.

Vietnam AI Infrastructure Market Challenges

• Shortage of AI Talent: Vietnam currently faces a shortage of AI specialists, with only about 300 in the local workforce. This shortage, coupled with limited access to high-quality training programs, exacerbates the gap between market demand and available human resources.
• Lack of Collaboration Between Stakeholders: Fostering collaboration among government, industry, and academia is essential for driving AI innovation. Current collaborations in higher education often remain confined to elite institutions and lack consistency, leading to a disconnect between market demands and educational outcomes.

Vietnam AI Infrastructure Market Government Initiatives

• National Strategy on AI Development: Launched in 2021, Vietnam's National Strategy on AI Development aims to position the country as an innovation hub in ASEAN and globally by 2030. In 2023, Vietnam established three national centers for AI: the National Innovation Center for AI in Hanoi, the AI Research Center in Ho Chi Minh City, and the AI Research Institute in Da Nang.
• National Digital Transformation Program: Approved by the Vietnamese government in 2020, with a vision towards 2030. It aims to accelerate digital transformation across governance, the economy, and society, to establish Vietnamese tech companies as global competitors by 2025. As of 2023, 90% of work records at ministerial and provincial levels are being processed online, meeting the 2025 target ahead of schedule

Vietnam AI Infrastructure Market Future Outlook

With the right investments in infrastructure, regulatory frameworks, and talent development, Vietnam is set to become a leader in AI applications in the Asia-Pacific region. The combination of government support, market demand, and technological advancements will drive the growth of the AI infrastructure market, making it an attractive landscape for both local and foreign investors.

Future Market Trends                      

• Expansion of AI in Healthcare: By 2028 major hospitals in Vietnam will use AI technologies to enhance patient care and improve operational efficiency. The government’s focus on healthcare modernization and AI integration will play a crucial role in driving this trend.
• Growth of AI Startups and Innovation: By 2028, the number of AI startups in Vietnam will grow, with significant contributions to healthcare, finance, and manufacturing. The government’s supportive policies and funding initiatives will foster a conducive environment for AI innovation and entrepreneurship.