Vietnam's AI Strategy: Cultivating Value Through Applications, Not Foundational Race

In an era defined by the breathtaking acceleration of artificial intelligence, nations worldwide are grappling with how to best position themselves in this new technological frontier. While some global superpowers invest colossal sums into building proprietary foundational AI models, Vietnam, a nation with a burgeoning tech sector, is advocating for a more pragmatic and application-driven strategy. This distinct vision, articulated by FPT Chairman Truong Gia Binh, centers on leveraging the power of existing AI advancements to create tangible assets and widespread societal value, rather than engaging in a high-stakes, resource-intensive race to develop core AI platforms.

Quick summary

• Vietnam is strategically focusing on developing practical AI applications and solutions, leveraging existing global foundational models, rather than competing in the costly creation of core AI platforms.
• The rapid emergence of advanced AI agents presents both significant cybersecurity risks and an unprecedented opportunity for individuals and industries to multiply productivity by working alongside AI.
• To fully capitalize on AI, Vietnam must undertake a comprehensive educational reform, shifting from rote learning to developing critical thinking and problem-solving skills, and ensuring AI literacy across all sectors.
• FPT, a leading Vietnamese tech conglomerate, is spearheading this national strategy through strategic international partnerships, a multi-year AI innovation prize, and the integration of AI-powered learning across educational institutions.

Why it matters

Vietnam's strategic pivot in AI development holds profound implications for its economic future, digital sovereignty, and global competitive standing. By consciously avoiding the multi-billion dollar investment required for foundational AI models, the country can direct its resources towards immediate, high-impact applications that can stimulate job growth, enhance productivity across industries, and address specific national challenges in sectors like healthcare and education. This approach promises to democratize access to AI's benefits, fostering a workforce that can adapt and thrive alongside intelligent systems, rather than being displaced by them. Furthermore, it allows Vietnam to assert its digital autonomy by focusing on value creation within its borders, contributing to the global AI ecosystem through practical innovation.

Background

The global AI landscape has undergone a seismic shift in recent years, marked by unprecedented leaps in computational power, algorithmic sophistication, and data availability. This period has seen the rise of immensely powerful foundational models, primarily developed by a handful of giant technology corporations in the United States and China. These models, costing billions to develop and maintain, underpin a vast array of AI applications, from natural language processing to image recognition.

For nations like Vietnam, with developing economies and finite resources, the challenge has been to navigate this rapidly evolving environment without being left behind. The country already boasts a strong human capital foundation in technology, exemplified by Vietnamese talents like Le Viet Quoc and Luong Minh Thang, who have made significant contributions at leading global AI research institutions such as Google. This demonstrated capability, however, doesn't negate the immense financial and infrastructure hurdles of competing directly in foundational model development.

Historically, Vietnam has focused on digital transformation, aiming to integrate technology into various sectors. With AI's accelerating capabilities, the conversation has now shifted from mere digitalization to 'AI transformation.' The current strategic direction represents a maturation of this focus, recognizing the need for a targeted approach that maximizes national strengths and addresses resource limitations while still aiming for technological leadership in specific, high-value domains. This contextual backdrop sets the stage for the pragmatic strategy now being championed by industry leaders.

Qnews24h insight

Vietnam's strategic decision to prioritize practical AI applications over the development of foundational models reflects a shrewd understanding of its unique position within the global technology hierarchy. Rather than engaging in a financially exhaustive and potentially futile arms race with established tech behemoths, the nation is choosing a path of agile adaptation and value creation. This approach leverages existing global AI infrastructure as a utility, freeing up domestic resources to focus on sector-specific innovations that can directly contribute to economic growth, job security, and digital sovereignty. It is an insight born from economic pragmatism and a clear-eyed assessment of comparative advantage, positioning Vietnam not as a core AI architect, but as a sophisticated and efficient builder of AI-powered solutions, thereby cultivating a distinct niche in the international AI ecosystem.

The Dual Edge of AI: Progress and Peril

The global ascent of AI continues to redefine the boundaries of what machines can achieve, prompting both awe and apprehension. FPT Chairman Truong Gia Binh highlighted a particularly stark example: Claude Mythos, a model developed by Anthropic, which uncovered thousands of security vulnerabilities across numerous information systems. This alarming discovery underscored a critical concern for cybersecurity professionals globally, demonstrating that no digital system, regardless of its sophistication, can be considered absolutely impervious. Such advancements, while showcasing AI's immense analytical power, also ring an alarm bell for digital sovereignty and national security, urging countries to enhance their capabilities in mastering and securing these transformative technologies.

Beyond security, these rapid strides open up unprecedented opportunities. Companies like FPT are already demonstrating this potential through significant collaborations, including an AI factory initiative with Nvidia, AI transformation projects for clients with Microsoft, and automotive chip development alongside Qualcomm. These multi-million-dollar contracts signal a strong confidence in Vietnam's technological prowess and its capacity to engage at a high level with global leaders.

Vietnam's Distinct AI Path: From Foundation to Application

A central tenet of Vietnam's proposed AI strategy is a pragmatic refusal to chase the foundational model race. Truong Gia Binh firmly stated that such endeavors demand investments reaching billions of dollars, a domain currently dominated by a handful of colossal corporations in the US and China. He noted that even advanced economies like Japan, South Korea, and European nations have largely opted against direct competition in this ultra-high-stakes segment.

Instead, Vietnam's opportunity lies in treating these foundational AI models as tools, leveraging them to generate intelligence and create valuable assets for the world. This practical orientation, he argued, is where Vietnam can and must compete. Developing a global foundational model requires hundreds, if not thousands, of top-tier personnel. In contrast, Vietnam's strength lies in applying AI to practical scenarios, fostering applications that can create millions of jobs and tangible wealth for its citizens.

This philosophy emphasizes a shift from theoretical AI development to real-world impact. While not pursuing core technology platforms, Vietnam can lead in transitioning its workforce towards high value-added tasks empowered by AI. The emphasis is squarely on practical application, addressing immediate needs and creating concrete value, a distinct differentiation in its national AI development trajectory.

AI and the Future of Work: Productivity Multipliers, Not Job Killers

The advent of AI has fueled widespread anxieties about job displacement, with many young people fearing that intelligent machines will render their skills obsolete. Truong Gia Binh acknowledged this fear but stressed the imperative to overcome it. He pointed to the emergence of 'AI agents' – AI systems capable of acting autonomously or collaborating closely with humans – as the game-changer.

Working alongside an AI assistant, an individual's capabilities could double, with productivity potentially increasing tenfold. This stark difference, he explained, will create a significant divide between those who embrace and utilize AI and those who resist it. The future will be challenging for individuals who do not understand and integrate AI into their work processes. FPT's chairman expressed a strong desire for all Vietnamese youth to become proficient in using AI for learning, creativity, and business, envisioning a new generation of experts capable of innovating new sovereign models, potentially in collaboration with leading Vietnamese minds abroad.

Revolutionizing Education for the AI Age

Central to Vietnam's AI ambitions is a fundamental overhaul of its education system. Binh argued for the widespread integration of AI education into all universities, not merely as a specialized field but as a tool to enhance learning across all subjects. FPT has already pioneered this approach, implementing AI-powered learning methods across all disciplines since the 2025-2026 academic year, with reported success.

The rapid evolution of AI demands a complete reimagining of teaching, learning, and assessment methods. When students can use AI to access knowledge and solve problems, the focus of education must shift from rote knowledge transfer to developing critical thinking, problem-solving abilities, and the responsible use of technology. Recent breakthroughs, such as the AI model developed by Dr. Luong Minh Thang's team achieving a Gold Medal standard at the International Mathematics Olympiad 2025, highlight AI's growing capacity for high-level reasoning, underscoring the urgency for educational transformation. Moreover, AI agents could also address challenges like the shortage of lecturers needed to teach the nation's 10 strategic technologies, emphasizing that the biggest hurdle remains national resolve and acceptance of AI.

Attracting Talent and Fostering Innovation

For any nation to succeed in the technology sphere, attracting and retaining top talent is paramount. Truong Gia Binh emphasized that the ease of attracting exceptional AI professionals hinges entirely on a nation's willingness to pose sufficiently grand problems and commit to investing in their solutions. He cited FPT's success in attracting doctoral-level experts back to Vietnam for fields like quantum computing, a sector still a decade or more away from widespread practical application, as proof.

This commitment is further exemplified by initiatives like the Au Lac Grand Prize, a USD 1 million award for AI innovation. While the substantial prize is offered to a single winner, Binh stressed that the true reward for participants is the invaluable experience, mentorship, and exposure. The judging panel, comprising leading global AI experts, offers a rare opportunity for contestants to interact, learn, and potentially secure investment or widespread publicity. The prize, envisioned as a three-year program, aims to foster solutions built on open platforms to address Vietnam's unique challenges, particularly in healthcare and education, areas that have already seen significant early interest.

Addressing concerns from small startups about being overshadowed or acquired by larger entities, Binh dismissed such fears as naive. He argued that ideas constitute only a fraction of success; the true work lies in execution. He reiterated that the world offers two types of problems: foundational challenges for big tech and application-level problems – such as food, clothing, medicine, and education for billions – which provide immense opportunities for those who can deliver tangible value. Vietnam's consistent direction is to choose practicality over abstract theory, focusing on real-world outcomes.

Sources

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FAQ

1. Why is Vietnam focusing on AI applications rather than foundational models?
   Vietnam, as articulated by FPT Chairman Truong Gia Binh, views foundational AI model development as an extremely costly endeavor, requiring billions in investment and currently dominated by major global tech giants. Instead, the strategy is to leverage these existing global models as tools to build practical applications, create tangible assets, generate jobs, and address specific national challenges, offering a more resource-efficient and impactful path.
2. How will AI impact the job market in Vietnam?
   While fears of job displacement exist, the prevailing view is that AI, particularly through advanced 'AI agents,' will primarily serve as a productivity multiplier. Individuals who learn to work alongside AI tools can significantly enhance their capabilities and efficiency. The strategy aims to prepare the Vietnamese workforce to adapt to and utilize AI, thereby creating new job opportunities and increasing overall national productivity rather than widespread unemployment.
3. What changes are needed in Vietnam's education system to prepare for the AI era?
   A comprehensive overhaul of the education system is deemed crucial. This involves integrating AI education across all university disciplines, not just as a specialization, and shifting the pedagogical focus from rote knowledge transfer to developing critical thinking, problem-solving skills, and responsible technology usage. Initiatives like FPT's AI-powered learning and the Au Lac Grand Prize aim to foster these new educational paradigms.