Vietnam’s Push for AI in Public Sector Faces Hurdles and Hopes

Vietnam is making bold strides to integrate artificial intelligence (AI) into its public sector, with government agencies increasingly adopting tools like virtual assistants, facial recognition, and intelligent traffic monitoring systems. Yet, as experts highlighted at a recent seminar in Hanoi, significant challenges—ranging from fragmented data systems to a shortage of skilled personnel and unclear legal frameworks—threaten to slow this digital transformation.

The seminar, titled ‘Artificial Intelligence Landscape Assessment (AILA) in the Public Sector in Vietnam’, was co-organised by the United Nations Development Programme (UNDP) and the Institute for Policy Studies and Media Development (IPS) on Tuesday at UN House in Hanoi. It brought together policymakers, technologists, and researchers to assess the state of AI adoption in governance and to chart a path forward for its responsible and effective implementation.

A Digital Ambition with Obstacles

Vietnam’s push for AI in public administration is part of a broader national strategy to modernise governance and improve public service delivery. AI-driven solutions are already being piloted in various agencies, with applications aimed at streamlining bureaucratic processes and enhancing urban management. For instance, intelligent traffic monitoring systems are being tested in major cities like Hanoi and Ho Chi Minh City to tackle chronic congestion, while facial recognition technology is under consideration for identity verification in public services.

However, the road to widespread AI adoption is fraught with hurdles. One of the most pressing issues, as discussed at the seminar, is the lack of data integration across government bodies. Many agencies operate in silos, with incompatible systems that hinder the large-scale deployment of AI tools. Without seamless data sharing, the potential of AI to deliver transformative outcomes remains limited.

Compounding this challenge is a severe shortage of AI expertise within the public sector. Vietnam currently relies heavily on private companies for the development and implementation of AI solutions, raising concerns about cost, control, and long-term dependency. “The state budget remains limited, and current financial mechanisms do not adequately support AI implementation,” noted experts at the event, underscoring the fiscal constraints that further complicate the situation.

Perhaps most critically, Vietnam lacks a comprehensive legal framework to govern AI use. Issues of data privacy, ethical standards, and accountability remain largely unaddressed, creating uncertainty for both developers and users of AI systems. Without clear regulations, there is a risk that AI deployment could inadvertently violate citizens’ rights or fail to meet international standards of responsible innovation.

Strategic Solutions for a Digital Future

Despite these challenges, the seminar offered a sense of optimism through a series of strategic recommendations aimed at overcoming the barriers to AI adoption. Central to these proposals is the need to bolster Vietnam’s digital infrastructure. Investments in high-performance computing systems and AI-ready data platforms were identified as critical steps to enable large-scale AI applications. Equally important is the training of public sector employees to build a workforce capable of managing and innovating with AI technologies.

A robust legal framework was another key focus. Experts called for the establishment of clear regulations on AI accountability, ethical guidelines, and data governance to ensure that AI systems are deployed responsibly. This includes mechanisms for risk management and transparency to build public trust—an essential factor if AI is to be embraced by Vietnam’s population of nearly 100 million.

Public-private partnerships (PPPs) were also highlighted as a vital strategy. By fostering collaboration between government agencies, technology firms, and research institutions, Vietnam could leverage private sector expertise and resources to accelerate AI development. Such partnerships could also help address financial constraints by sharing the burden of investment.

Additionally, the seminar advocated for open data policies to simplify administrative procedures and improve access to computing resources. By making government data more accessible—while ensuring strict privacy protections—Vietnam could create an environment conducive to AI innovation. Monitoring mechanisms and impact assessments were also recommended to ensure ethical AI governance, addressing potential biases or unintended consequences of AI systems.

“Artificial intelligence is transforming the way we live, work, and govern. It offers remarkable opportunities—but only if we choose to use it responsibly,” said Patrick Haverman, UNDP Deputy Resident Representative in Vietnam, during his address at the seminar. “With the right strategies, investment, and ethical safeguards, AI can drive national development and human progress.”

A Tailored Approach to AI Adoption

Rather than adopting AI for the sake of keeping up with global trends, experts at the seminar urged Vietnam to take a selective, needs-based approach. This involves identifying specific challenges within each government agency and prioritising AI solutions that address those issues effectively. For instance, while traffic management may be a priority in urban centres, rural agencies might focus on AI tools for agricultural planning or disaster response.

The proposed roadmap for AI development includes several stages. First, key problems must be identified, followed by the selection of appropriate AI applications tailored to each agency’s needs. These solutions should then be piloted in controlled environments to assess their effectiveness before being scaled up. Once proven successful, broader implementation can occur, supported by the establishment of legal frameworks and international partnerships to enhance expertise and resources.

Nguyễn Quang Đồng, Director of IPS, emphasised the importance of customisation in this process. He argued that each agency must assess its internal readiness—both in terms of technical capacity and organisational culture—before adopting AI solutions. “It’s not just about technology; it’s about solving real problems in a way that fits our context,” he said, reflecting a pragmatic approach to Vietnam’s digital ambitions.

Balancing Innovation with Ethics

As Vietnam accelerates its AI adoption, the balance between innovation and ethics will be crucial. The potential benefits of AI in public administration are immense—from improving efficiency in government services to enabling data-driven policymaking. However, without proper safeguards, there is a risk of exacerbating inequalities or undermining public trust. For example, facial recognition systems, if not regulated, could raise concerns about surveillance and privacy among citizens.

The seminar’s discussions underscored the need for transparency in AI deployment. Public awareness campaigns and stakeholder engagement could help demystify AI and address fears about its misuse. Moreover, ethical guidelines must be embedded into every stage of AI development, from design to implementation, to ensure that these technologies serve the public good.

Looking Ahead: Opportunities and Uncertainties

Vietnam’s journey towards AI-driven governance is emblematic of broader trends across South East Asia, where countries are grappling with the dual imperatives of technological advancement and responsible innovation. If successful, Vietnam’s efforts could position it as a regional leader in digital governance, setting an example for other nations in the Association of Southeast Asian Nations (ASEAN) bloc.

Yet, much depends on the government’s ability to address the challenges outlined at the seminar. Strengthening digital infrastructure, building a skilled workforce, and establishing clear regulations will require sustained political will and significant investment. If these hurdles are not addressed, Vietnam risks falling behind in the global race to harness AI for public benefit.

There is also the question of how AI adoption might impact Vietnam’s socio-political landscape. While AI could enhance government efficiency, it may also raise questions about accountability and oversight, particularly in a one-party state like Vietnam, where the Communist Party of Vietnam (CPV) plays a dominant role in governance. Ensuring that AI systems are transparent and subject to public scrutiny will be essential to maintaining legitimacy.

For now, the recommendations from the Hanoi seminar provide a roadmap for navigating these uncertainties. By adopting a balanced, well-regulated, and ethically guided approach, Vietnam has the opportunity to unlock AI’s full potential for governance and public service delivery. As Patrick Haverman aptly noted, the promise of AI lies not just in its technological capabilities, but in the choices made about how to use it.

With the right strategies in place, Vietnam could transform its public sector into a model of digital innovation—one that prioritises both progress and responsibility in equal measure. The path ahead is complex, but the stakes could not be higher as the country seeks to define its place in the AI-driven future.