The Impact of Digital Transformation and Artificial Intelligence on Vietnam’s Labor Market

• #Recruitment
• #Labor market
• #AI

In recent years, Vietnam has demonstrated rapid growth in its digital economy and active adoption of artificial intelligence (AI) technologies, significantly transforming the structure and dynamics of the country’s labor market. By 2025, Vietnam’s digital economy is projected to reach approximately USD 52 billion, becoming a powerful driver of economic development and employment transformation.

Digital Transformation as a Key Factor in Economic and Labor Market Development

The rapid growth of e-commerce, which in 2024 outpaced the overall retail market by 4.2 times, is a vivid example of the impact of digital technologies on the economy. It is expected that by 2025, e-commerce sales will reach 387.5 trillion Vietnamese dong, with the number of product listings totaling 4.2 million. This growth demands new competencies and a large-scale influx of specialists in IT, marketing, and logistics.

Vietnam’s government actively supports digital transformation. The National Industrialization Strategy through 2030 prioritizes the development of the digital economy as a means to increase labor productivity and ensure sustainable economic growth. Specifically, the government aims to raise the digital economy’s share of GDP to 20% by 2025 and 30% by 2030.

The Impact of Artificial Intelligence on the Labor Market

AI is becoming an essential tool for improving business efficiency and optimizing processes. In e-commerce and digital marketing, AI is used for big data analysis, personalized offers, and customer service automation, requiring workers to acquire new skills in data handling and digital technologies.

On the other hand, automation and AI implementation pose challenges to the labor market, particularly the need for reskilling and upskilling workers, especially in traditional industries. The Vietnamese government and business community have already launched training programs to develop digital skills and prepare the workforce for new demands.

New Opportunities and Challenges for Professionals

• Growing demand for IT specialists and digital experts: Software developers, data analysts, cybersecurity experts, and AI specialists are among the most sought-after professions.

• Emergence of new forms of employment: Remote work, digital platforms, and flexible schedules are becoming the norm, expanding opportunities for youth and entrepreneurs.

• Need for continuous learning: Rapid technological changes require workers to constantly update their knowledge and skills.

• Impact on labor productivity: Digital transformation contributes to increased productivity, which is crucial for overcoming the “middle-income trap” and achieving sustainable development goals.

Digital transformation and artificial intelligence are fundamentally reshaping Vietnam’s labor market, creating new opportunities while imposing high demands on workers’ qualifications. The successful development of the digital economy depends on the country’s ability to adapt to these changes through investments in education, infrastructure, and innovative technologies. With its young population and government support, Vietnam has strong potential to become a leader in the digital economy in Southeast Asia.