Applications of Artificial Intelligence in the Vietnamese Economy

Masoomeh Rashidghalam (), Jieun Heshmati-Kim () and Almas Heshmati
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Masoomeh Rashidghalam: University of Tabriz, Tabriz, Iran
Jieun Heshmati-Kim: Seoul National University, Seoul, South Korea

No 18825, IZA Discussion Papers from IZA Network @ LISER

Abstract: AI is becoming a driving force in Vietnam’s economic transformation. The country is moving beyond a growth model based on low-cost labour and export-led industries. Adoptions of the widespread generative AI and AI-powered assistants have accelerated the transformation. AI, by reshaping the nature and future of work, redefines the rules and productivity. This research overviews the recent research investigating how AI is transforming work, demand for digital skills, and productivity gains in AI-adopting Vietnamese industries. An optimal blend of AI and human collaboration positively impacts its productivity. Application of AI enables the use of its potential, but it also has significant challenges and risks of skill gaps, training costs, trust, job quality, and distribution of its effects. Focusing on adaptability, lifelong learning, and integration of AI ensures a positive future of work. This study identifies factors determining the adoption of AI and heterogeneity in its productivity and future of work impacts.

Keywords: AI application; nature of work; future of work; economic transformation; skill requirements; AI productivity impacts; Vietnam (search for similar items in EconPapers)
JEL-codes: D24 E24 F63 J24 L52 O33 (search for similar items in EconPapers)
Date: 2026-07
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