Vietnam’s AI Ambitions and Human Development Challenges in Focus

Vietnam stands at a critical juncture, balancing remarkable strides in human development with the transformative potential and risks of Artificial Intelligence (AI). According to the United Nations Development Programme (UNDP)’s 2025 Human Development Report, launched on May 13 in Hanoi, the country retains its position in the High Human Development category with an impressive Human Development Index (HDI) score of 0.766, ranking 93rd out of 193 countries. Yet, beneath this achievement lie stark inequalities and looming challenges as Vietnam accelerates its digital transformation, with AI at the forefront of national policy and public discourse.

A Strong Foundation Amid Global Slowdown

The UNDP report paints a picture of resilience for Vietnam, which has seen its HDI soar by 53.5 percent since 1990, marking one of the most significant increases in East Asia and the Pacific. This growth reflects sustained investments in health, education, and income, propelling the nation forward despite a global slowdown in human development progress. “This is a remarkable achievement that reflects Vietnam’s long-term commitment to inclusive development” said Ramla Khalidi, UNDP Resident Representative in Vietnam, during the report’s launch.

However, the global outlook is less optimistic. The projected increase in the global HDI for 2024 is the lowest since 1990, excluding the crisis years of 2020-2021. Achim Steiner, UNDP Administrator, cautioned that such sluggish growth could become the new normal, warning, “The world will become more divided, more fragile, and less resilient” if current trends persist. For Vietnam, maintaining its trajectory will require addressing both internal disparities and external pressures.

Inequality: A Persistent Barrier

While Vietnam’s overall HDI score is a point of pride, the report highlights a significant loss when adjusted for inequality. The adjusted HDI drops to 0.641, a 16.3 percent decline, driven by unequal access to healthcare, education, and income. Regional disparities are particularly pronounced. Urban centers like Hanoi and Ho Chi Minh City boast HDI scores of 0.799 and 0.795, respectively, while mountainous provinces such as Lai Chau and Ha Giang lag behind with scores below 0.6.

These gaps underscore a critical challenge: ensuring that development benefits reach all corners of society. Rural and ethnic minority areas, often isolated from economic and technological advancements, risk being left further behind as Vietnam races toward a digital future. Vu Thi Thanh from the Institute for Human, Family and Gender Studies emphasized the vulnerability of women, the elderly, ethnic minorities, and people with disabilities in this transition. “Closing the digital divide and promoting digital inclusion are urgent priorities” she noted, pointing to the need for equitable access to technology and skills.

AI as Opportunity and Risk

Amid these challenges, AI emerges as both a potential catalyst for progress and a source of concern. Vietnam’s digital transformation is gaining momentum, with national policies reflecting a bold vision for the future. Key initiatives, such as Decision 127 and Resolution 57, alongside Prime Minister Pham Minh Chinh’s commitment to train 100,000 AI engineers, signal the country’s determination to harness technology for development. “AI is now at the heart of national debates on Vietnam’s future” said Khalidi, praising the Prime Minister’s emphasis on safe, ethical, and inclusive AI as a model for the region.

Yet, the UNDP report warns of an emerging global “AI equity gap” that could deepen existing inequalities, particularly in developing nations. If unaddressed, this gap risks excluding vulnerable populations from the benefits of technological innovation. “Vietnam must act now to avoid falling into that gap” Khalidi urged, highlighting the urgency of building inclusive digital infrastructure. Without access to electricity, the internet, and AI-related skills, rural and marginalized communities may find themselves further sidelined.

Public sentiment, however, remains largely optimistic. A global survey accompanying the report found that 60 percent of respondents believe AI will create new job opportunities, while 70 percent in low- and middle-HDI countries—categories aligned with Vietnam’s socio-economic context—expect AI to boost productivity. Two-thirds anticipate using AI in education, healthcare, or work within the next year. This openness offers a window of opportunity for Vietnam to channel AI into human development, provided policies prioritize inclusion over mere technological advancement.

Education and Innovation: Bridging the Divide

At the grassroots level, initiatives to integrate AI into education are already taking shape. In Da Nang, students at FPT Primary and Secondary School recently participated in a workshop titled “Applying AI in Learning,” where they engaged with cutting-edge technology by controlling ball-grabbing robots. Such programs illustrate Vietnam’s push to equip its youth with skills for a digital economy, fostering innovation from an early age.

However, access to such opportunities remains uneven. While urban schools can afford to host AI workshops, rural institutions often lack basic resources. Modernizing education and healthcare systems, as recommended by the UNDP, will be crucial to preparing Vietnam’s population for the demands of the 21st century. The report advocates for economies where people work alongside AI, not against it, and for policies that ensure human agency throughout the AI lifecycle—from design to deployment.

Policy Priorities for an Inclusive Future

The path forward for Vietnam involves aligning its AI ambitions with human development goals. The UNDP outlines three urgent policy priorities: fostering collaboration between humans and AI in the workforce, safeguarding human control over AI technologies, and overhauling education and healthcare to meet future needs. For Vietnam, this means not only training engineers but also ensuring that digital tools reach farmers, teachers, and healthcare workers in remote areas.

Financial commitments will play a role as well. While specific figures for AI investment were not detailed in the report, the scale of Vietnam’s digital initiatives suggests significant funding. For context, smaller programs in neighboring countries often cost millions in local currency—such as 100 million Thai Baht (US$2.8 million) for regional tech hubs in Thailand. Vietnam’s broader vision, including training 100,000 engineers, likely involves a far larger budget, underscoring the need for equitable allocation to prevent urban bias.

Global Context and Vietnam’s Role

Vietnam’s challenges mirror broader global trends. For the fourth consecutive year, the gap between high and low HDI countries has widened, fueled by debt burdens, trade tensions, and industrial models that fail to create decent jobs. AI, while a potential equalizer, could exacerbate these divides if access remains uneven. Vietnam, with its rapid development and proactive policies, has the chance to set an example for middle-income nations navigating this terrain.

Yet, success is not guaranteed. The digital divide, if left unchecked, could evolve into a broader human development gap, particularly in rural and ethnic minority regions. The optimism surrounding AI—evident in both public surveys and national strategies—must be matched by concrete action to ensure that technology serves as a bridge rather than a barrier.

Looking Ahead

As Vietnam charts its course in the age of AI, the stakes are high. Its impressive human development gains offer a strong foundation, but persistent inequalities and the risks of an AI equity gap loom large. With bold policies and a commitment to inclusion, the country has the potential to not only sustain its progress but also inspire others in the region. The question remains: can Vietnam turn its digital vision into a reality that uplifts all its citizens, from the bustling streets of Hanoi to the remote mountains of Ha Giang?