AI will become a core driver for sustainable economic growth of Vietnam and could contribute $120-130 billion to the country’s economy by 2040, according to a report released by the National Innovation Centre (NIC) on June 12.

The figure is equivalent to 25% of the country’s current GDP.

The Vietnam AI Economy 2025 report was compiled by the NIC under the Ministry of Finance in coordination with the Japan International Cooperation Agency (JICA) and the Boston Consulting Group (BCG).

The growth of AI in Vietnam will mainly be promoted by consumption revenue of AI-powered products and services, estimated at $45-55 billion, and costs saved due to increased productivity, estimated at $60-75 billion, according to the report.

The report analyses in depth the current state of Vietnam's AI economy, and generalizes into models and details for each field. It also points out the AI strategy and roadmap, areas of AI application, the startup ecosystem, human resources, and resources for the field. In particular, it provides important and practical strategic recommendations as well as a vision for Vietnam's AI ecosystem.

The report notes that AI development in Vietnam is an early stage but ramping up fast, with initial use cases deployed, AI ecosystem forming, and talent pool fundamentals.