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Applications of Artificial Intelligence in the Vietnamese Economy

Author

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  • Rashidghalam, Masoomeh
  • Heshmati-Kim, Jieun
  • Heshmati, Almas

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, it 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. Optimal blend of AI and human collaboration influence positively its productivity impacts. Application of AI enable use of its potentials, but it has also significance challenges and risks of skill gaps, training costs, trust, job quality and distribution of its effects. Focus on adaptability, lifelong learning, and integration of AI ensures a positive future of work. This study identifies factors determining adoption of AI and heterogeneity in its productivity and future of work impacts.

Suggested Citation

  • Rashidghalam, Masoomeh & Heshmati-Kim, Jieun & Heshmati, Almas, 2026. "Applications of Artificial Intelligence in the Vietnamese Economy," GLO Discussion Paper Series 1796, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1796
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    References listed on IDEAS

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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