Episode 87: Embracing AI and Innovation in Vietnam

Tram Nguyen09/26/2024

According to the Microsoft Work Trend Index, 88% of knowledge workers in Vietnam use generative AI, higher than the global average of 75%. Vietnam has long been known for its young, open-minded, and tech-savvy population, which has contributed to its fast-paced technological transformation.

In this episode of the #shifthappens podcast, hosts Mario Carvajal, AvePoint Chief Marketing and Strategy Officer, and Dux Raymond Sy, AvePoint Chief Brand Officer, are joined by Tram Nguyen, General Director of Microsoft Vietnam, delving into the unique cultural aspects influencing AI adoption, the challenges faced by leaders in implementing AI, and the thriving partner ecosystem in Vietnam.

The country’s journey offers valuable lessons for the rest of the world as it continues to “ride the bike” of AI innovation — falling, learning, and advancing rapidly — showing its willingness to experiment and jump ahead of the global technology landscape.

The Cultural Factor: AI Adoption Across Generations

Vietnam’s energy and openness to innovation show that 93% of workers start their day with AI, and 94% end their day with AI. Tram explains, "People are open to tech. They want to try [it]. They have no legacy so it's not like they have a system, then they need to build on this system.” The numbers demonstrate not only a willingness to adopt new technologies but also an eagerness to integrate AI into daily life and work.

Contrary to what many might expect, AI adoption in Vietnam is not limited to the younger generations. Tram shares that the trend spans age groups with the cultural trait where families live together. We see the younger generation teaching the older generation to be tech-savvy, which in other more developed economies faces the resistance of not wanting to change or not adopting new technology.

Even the boomers (58+ years old) are open to learning and leveraging AI, with 73% of them bringing their own AI tools to work and personally training themselves through tutorials and online resources. This cross-generational embrace of AI suggests a broader cultural advantage to innovation that could give Vietnam a competitive edge.

Balancing Innovation with Responsibility

While the enthusiasm for AI adoption in Vietnam is commendable, it also presents challenges particularly when it comes to data security and responsible use. Tram highlights this double-edged sword, "While it's good that people bring their own AI tools to the workplace, it's not really good from an organization viewpoint. Because you can have leakage, security problems, and information that should not go into the personal tool."

This trend of employees bringing their own AI tools to work, which we might call "Bring Your Own AI" (BYOA), mirrors the BYOD (Bring Your Own Device) trend that many organizations have grappled with in recent years. While it can drive innovation and productivity, it also introduces significant risks. Key concerns for business leaders include:

• Data leakage: Employees using personal AI tools may inadvertently input sensitive company data into public AI models, potentially exposing confidential information.

• Security vulnerabilities: Personal AI tools may not have the same level of security as enterprise-grade solutions, potentially creating weak points in an organization's cybersecurity defenses.

• Compliance issues: In regulated industries, the use of unauthorized AI tools could lead to compliance violations, particularly concerning data privacy and protection laws.

• Lack of oversight: Organizations may struggle to monitor and control how AI is being used within their operations when employees are using personal tools.

Addressing the Challenges of Bring-Your-Own-AI Trend

Vietnam lacks a structured, leadership-driven approach to AI adoption. Although business leaders recognize the importance of AI skills with 78% saying they prefer to hire a less experienced person with AI skills over a more senior person without them, only 45% of CEOs actively inspire their teams to integrate AI into daily work. Therefore, employees are often left to explore AI independently, leading to fragmented efforts and potential security risks.

Business leaders need to develop comprehensive AI governance strategies to address BYOA challenges. These strategies should include:

• Clear policies on the use of AI tools in the workplace.

• Education programs to help employees understand the risks associated with using personal AI tools for work tasks.

• Implementation of enterprise-grade AI solutions that offer the convenience that employees seek while maintaining necessary security and compliance measures.

• Regular audits and assessments of AI use within the organization.

By addressing these concerns head-on, organizations can ensure that AI's benefits are realized while potential risks are mitigated. This balanced approach will be crucial for bridging the gap between eager adopters and cautious leadership.

A Thriving Ecosystem of Technology Partners

One striking aspect of Vietnam's technological drive is the partner ecosystem that has developed around it. For example, Tram shares that Microsoft has 1,200 partners in Vietnam, which employ around 100,000 people, and 70% of them are small and medium-sized businesses (SMBs). This paints a picture of a dynamic and agile landscape that underscores a significant economic impact.

Having a diverse range of partners — system integrators, industry solutions partners, and consulting partners — allows for a comprehensive approach to technology adoption and innovation. It enables businesses of all sizes to access the expertise and solutions they need to modernize and compete in an increasingly digital economy.

This collaborative approach involving technology providers like Microsoft, local businesses, and individual users will be key to navigating the complex landscape of AI adoption and ensuring that Vietnam's evolution continues on a sustainable and effective AI implementation across various sectors.

The Developer Community: A Key Driver

At the heart of Vietnam's technology ecosystem is a strong developer community. Tram notes, "There are more than 400,000 developers in Vietnam…. And if you count everyone working in the ICT sectors and related fields, it would be 1.5 million people." This robust developer base is crucial for sustaining innovation and adapting global technologies to local needs.

This developer ecosystem creates a virtuous cycle of innovation, with startups, established companies, and global tech giants all playing fundamental roles. Vietnam’s AI adoption is not only broad but also deep, with innovations happening in specific sectors. Tram highlighted two Microsoft partnerships that leverage AI:

• Healthcare: DrAid, VinBrain’s AI platform, is revolutionizing patient care by reducing initial screening time by 80% and cutting case analysis from 30 minutes to 5 minutes. This helps doctors save time on diagnosis and reporting, allowing them to focus more on building quality data and improving patient experience.
• Financial services: Trusting Social uses AI to analyze non-traditional data points, enabling financial inclusion for individuals who might not qualify under traditional criteria. This is especially impactful for people starting businesses or making significant investments.

These examples demonstrate how AI is not only being adopted but also integrated to solve uniquely Vietnamese challenges, potentially creating solutions that could be applied globally.

A Tech-Savvy Nation Leapfrogging into the Future

Vietnam is at the forefront of a technological evolution driven by a unique combination of cultural factors, a young and enthusiastic workforce, and a rapidly evolving technology ecosystem. Tram's advice for those looking to embrace this AI-driven future is simple yet powerful:

• Do not be afraid to use AI. If you do not try, fail, and move forward with any tool, you will not learn how to use it. You are not alone – there are many free courses to choose from now.

• Start small and scale up. Begin with manageable projects like document management to understand AI's capabilities and limitations. Learn from early trials to refine and expand AI applications gradually.

• Create urgency and experiment. Do not wait for perfect conditions. Most successful innovations arise under pressure. Organizations can quickly identify and scale effective AI solutions by embracing an experimental mindset.

• Share its benefits. Do not keep your experiences to yourself. Have fun with AI and share its benefits with your friends or colleagues.

The shift is indeed happening around us. Vietnam shows that with the right support, the rest of the world can navigate disruptions more successfully and maximize opportunities to innovate and grow.