Cloud computing and AI: Is Vietnam ready?

October 11, 2024 | 04:15 pm GMT+7

Cloud computing and AI (artificial intelligence) are creating great opportunities for Vietnam in economic growth, but there is still a big gap in the digital workforce that Vietnam needs to fill.

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Cloud computing and AI play an important role in promoting economic growth and innovation. McKinsey in 2023 predicted that the global data center market would grow by 10 percent per annum from now to 2030, with total expenses of $49 billion.

Not only cloud computing, but AI, and especially Generative AI, has been witnessing hot growth. It takes most technologies 2-4 years to become more popular, while Generative AI just needs 12 months.

In Vietnam, a report publicized in early 2024 showed that the cloud computing service market may be valued at $1.2 billion by 2030, with an expected growth rate of 11-12 percent per annum.

Though having the highest growth rate in Southeast Asia and ranked third in Asia in 2023 (19 percent growth rate), the Vietnamese cloud computing market’s scale is just 1/15 of Singaporean and 1/5 of Indonesian and Malaysian markets. This means that Vietnam needs to do a lot to catch up with other regional countries.

One of the digital gaps that needs to be narrowed is the lack of a qualified workforce in cloud computing and AI. In order to improve its human resources in the industry, Vietnam needs to focus on improving workers’ skills.

A digital workforce is also a common problem of many Asian countries. Jeff Johnson, CEO of Amazon Web Services (AWS) ASEAN, said Generative AI has the potential to reform many enterprises, and 10 percent of organizations and businesses to make investment commitments.

However, while setting the goal of improving the capability in AI, 70 percent of companies in Asia Pacific said they lack qualified workers in the field.

Emmanuel Pillai from AWS said a gap in the skilled workforce exists in cloud computing and AI in Vietnam. What Vietnam needs to do is improve workers’ skills and cooperate with employers in both private and public sectors to heighten digital skills.

Nguyen Huy Dinh, a cloud computing engineer at a joint stock bank, said the pay for cloud computing engineers in Vietnam is 10-20 percent lower than other Southeast Asian countries, which is attributed to the gap in living standards among countries.

He stressed that self-learning, openness and quick adaptability to new jobs are important factors that help Vietnamese engineers compete in the international market.

Developing talent

The workforce gap in cloud computing and AI is a great challenge, but it is also a great opportunity for Vietnam to shape its digital future.

At AWS Cloud Day Vietnam on September 18, Ho Duc Thang, acting director of the National Digital Transformation Agency, said digital transformation is re-shaping the world. Governments, enterprises and societies are becoming increasingly dependent on cloud computing and data infrastructure in boosting economic growth, optimizing services and innovation.

He said the agency considers cloud computing and AI as the indispensable factors in its mission. By applying cloud computing and AI, Vietnam is heightening the capability of state agencies to manage and use data more effectively, thus speeding up the process towards the digital future.

According to Thang, cloud computing now plays a key role in the digital transformation process, providing systems which can be expanded, and be more adaptable and effective. By applying cloud solutions, organizations can reform more rapidly and quickly react to market demand.

AI also plays an important role in digital transformation. In addition to the automation of processes and improve operation efficiency, AI is also capable of revolutionizing public services and optimizing the government’s functions.

Vietnam has begun integrating AI into the public sector, with smart city apps, and providing virtual assistants to civil servants and people. Vietnam is prioritizing digital and AI skills for its labor force. Meanwhile, digital talents will help make sure that the technologies such as AI and Generative AI will promote creativity, efficiency and sustainability.

The Post and Telecommunications Institute of Technology (PTIT) has announced the resolution on the establishment of an AI Faculty. This is the first AI faculty at the higher education level in Vietnam.


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