TLDR: A recent report reveals Vietnam’s strong position in the Southeast Asian generative AI ecosystem, ranking second only to Singapore in the number of GenAI startups. The country’s growth is attributed to its abundant human resources and favorable operating costs, with projections indicating further expansion in its GenAI sector.
Hanoi, Vietnam – Vietnam has emerged as a significant force in the rapidly expanding field of Generative Artificial Intelligence (GenAI), securing the second position in ASEAN for the number of GenAI startups. This insight comes from the ‘ASEAN GenAI Startup Report 2024’, released by the GenAI Fund, a leading innovative AI fund in Southeast Asia.
The comprehensive report, based on a database of 700 GenAI startups, a survey of 250 companies, and in-depth interviews with 25 prominent startups, highlights the dynamic AI ecosystem across the region. According to the findings, Vietnam accounts for 27 percent of the surveyed GenAI companies, placing it firmly behind Singapore, which leads with 44 percent. Indonesia follows in third place with 13 percent, with Thailand, Malaysia, and the Philippines making up smaller proportions.
Denning Tan, Partner at GenAI Fund, emphasized Vietnam’s growing importance, stating, ‘Việt Nam is becoming an important GenAI Development hub in ASEAN.’ He added, ‘Our research indicates that Việt Nam is well-positioned in the GenAI space.’ The report attributes Vietnam’s notable rise to several key factors, including its abundant human resources, competitive operating costs, and an increasing number of startups choosing the country as a GenAI development hub. The nation’s skilled technical talent and a culture of rapid product development further bolster its appeal.
The report predicts that Vietnam’s share of GenAI startups in the region is expected to increase to 35 percent, narrowing the gap with Singapore. This momentum underscores Vietnam’s growing reputation as a hub for high-quality, cost-effective GenAI development, particularly with its diverse talent pool.
The ‘ASEAN GenAI Startup Report 2024’ was officially launched at an event in Hanoi, co-hosted by the GenAI Fund, in partnership with Amazon Web Services (AWS), Databricks, and Vietnam’s National Innovation Center (NIC). Do Tien Thinh, Deputy Director of NIC, highlighted the broader significance of AI, stating that it is a foundational technology of the Fourth Industrial Revolution, crucial for boosting productivity, enhancing national competitiveness, and fostering sustainable economic growth. He noted that Generative AI is driving unprecedented breakthroughs, opening limitless possibilities across sectors such as healthcare, education, and agriculture.
Vietnamese GenAI startups are already making strides, with examples like Reforged Labs, which offers GenAI solutions for game marketers; Lex Engine, providing legal industry tools; and Laka.ai, an AI-powered travel planning platform, showcasing the diverse applications emerging from the country.
Also Read:
- Nasscom Report Highlights Critical Funding and Infrastructure Deficiencies in India’s Expanding Generative AI Startup Sector
- Southeast Asia’s Financial Sector Embraces AI for Transformative Growth and Efficiency
In support of this burgeoning sector, the Vietnamese government has implemented policies to promote AI research, development, and application. The Ministry of Planning and Investment has proposed training 5,000 engineers specializing in AI for the semiconductor sector by 2030. Additionally, plans are underway for a specialized AI Training, Research, and Application Center aimed at fostering startups and advanced research, with a target of training 7,000 AI experts and incubating 500 AI startups. Amazon Web Services has also contributed significantly, having trained 50,000 Vietnamese individuals in AI and cloud computing.
