Vietnam, South Korea Deepen Ties in Digital Transformation & AI Development
	Vietnam: A Golden Opportunity for Korean Investors

According to Google Research’s latest forecast, digital transformation could contribute US$74 billion (approximately VND 1,733 trillion) to Vietnam's economy by 2030. In this context, Vietnam aims to become a new technology hub in Asia, attracting businesses and startups from around the globe.

At the forum, Deputy Director of the National Innovation Center (NIC) under the Ministry of Planning and Investment Do Tien Thinh, emphasized Vietnam’s advantages in leveraging artificial intelligence (AI).

“Vietnam’s strengths lie in its young, tech-savvy population with high education levels. Additionally, Vietnam is the second-fastest-growing Internet economy in Southeast Asia. The Vietnamese government has implemented numerous policies to foster the adoption of digital technologies,” he noted. He further explained that Vietnam has substantial room for AI applications in various economic sectors, including agriculture and food, consumer goods, retail and hospitality, education and training, financial services, healthcare, and infrastructure.

Deputy Director of the National Innovation Center - Do Tien Thinh. Photo: Trong Dat/Vietnamnet

For South Korean tech companies exploring Vietnam's market, NIC experts identified transportation and healthcare as high-potential sectors for AI startups.

Explaining why South Korean businesses should consider launching startups in Vietnam, Do Tien Thinh pointed to the country’s advantages in human resources, policies, and the government’s prioritization of data sharing between public and private sectors for business purposes.

“Vietnam ranks second among six surveyed Southeast Asian countries in AI startup potential. Singapore currently hosts 44% of AI startups in the region, while Vietnam accounts for 27%, far surpassing Indonesia and Thailand,” he shared.

Hur Sung Wook, Chairman of the National Information Technology Industry Promotion Agency of Korea (NIPA), hopes the Vietnam—Korea Digital Cooperation Forum will open up the AI ​​era and increase both countries' development potential in applying AI to the digital economy. Photo: Trong Dat/Vietnamnet

To capitalize on its advantages, Vietnam focuses on three pillars to promote AI: developing an AI ecosystem, enhancing AI skills among the workforce, and creating a favorable environment for the “AI generation.”

The country also has mechanisms to encourage investment. South Korean AI and high-tech startups entering Vietnam can benefit from investment incentives under the law, including corporate income tax exemptions for four years and reduced taxes for the following nine years.

In certain sectors, such as AI applications in finance, some localities in Vietnam may implement controlled testing environments (sandbox models). “Over the past two years, Vietnam has enacted two resolutions and one special law allowing Hanoi, Ho Chi Minh City, and Da Nang to pilot sandbox models based on Singapore’s framework,” he stated.

To support startups, Vietnam prioritizes policies for developing AI talent and ecosystems, particularly AI-related platforms. The Ministry of Planning and Investment has collaborated with Google to establish the "AI Space" platform, offering startups free access to cloud computing services and other digital tools.

Startups can save up to $350,000 over two years, a significant boost to encourage investments and ventures in Vietnam.

The 2024 Vietnam–Korea Digital Cooperation Forum was part of the Vietnam International Digital Week, organized by the Ministry of Information and Communications. Through the forum, the Ministry hopes Vietnam can learn from Korea's best practices and innovative approaches to maximizing the role of digital technology, bridging the digital divide, supporting vulnerable groups, and fostering collaboration between businesses from both countries.

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