Artificial Intelligence (AI) is transforming industries worldwide, and Vietnam is emerging as a leading AI hub in Southeast Asia. Driven by Industry 4.0 initiatives, a skilled tech workforce, and rapid innovation, Vietnam offers advanced AI solutions at highly competitive costs.

For Singapore businesses, this creates a unique opportunity to access top AI talent nearby, accelerate digital transformation, and stay ahead in a fast-changing market.

This guide explores Vietnam Artificial Intelligence, key market trends, real-world applications, and why outsourcing AI projects to Vietnam is a smart move for Singapore companies.

Table of Contents

• Vietnam’s AI Landscape and Industry 4.0 Vision
  • Government Initiatives and Policies
  • Thriving Tech Ecosystem
  • Increasing Foreign Investment
  • Industry 4.0 Vision
• Vietnam Artificial Intelligence Market Trends, Growth, and Offshore Opportunities
• Applications of Artificial Intelligence Across Industries
  • Healthcare: AI-Powered Diagnostics and Telemedicine
  • Manufacturing: Predictive Maintenance and Smart Factories
  • Retail & E-commerce: Personalization and Demand Forecasting
  • Finance & Banking: Fraud Detection and Risk Management
  • Education: Adaptive Learning and AI-Driven LMS
• Why Singapore Businesses Should Outsource AI to Vietnam
  • Cost Advantages
  • Skilled Developers and AI Engineers
  • Language Proficiency and Communication
  • Flexible Engagement Models
  • Cultural Compatibility and Time Zone Advantages
  • Growing AI Ecosystem and Innovation Culture
• How to Choose the Right Offshore AI Development Partner
• Which Offshore AI Development Company in Vietnam is Best for Singapore Businesses?
  • Top AI Development Companies in Vietnam
  • Why Kaopiz Is a Trusted AI Development Partner for Singapore Businesses
    • Proven Experience and Global Reach
    • Deep Expertise in AI Solutions
    • Flexible Engagement and Agile Delivery
    • Strong Regional Understanding
    • Successful Case Studies
• Future of AI in Vietnam and Offshore Development Trends (2025 and Beyond)
• Conclusion
• FAQs

Vietnam’s AI Landscape and Industry 4.0 Vision

Over the past few years, Vietnam has emerged as one of the fastest-growing AI hubs in Southeast Asia, driven by strong government support and a thriving tech ecosystem. The Vietnamese government has made AI a core pillar of its Industry 4.0 strategy, aiming to transform the country into a regional leader in digital innovation by 2030.

Government Initiatives and Policies

In 2021, Vietnam launched its National Strategy on AI to 2030, which focuses on:

• Building world-class AI research centers and innovation hubs.

• Developing highly skilled AI talent, with programs to train 50,000+ engineers.

• Attracting foreign investment and fostering collaboration with global technology companies.

• Implementing AI solutions across priority sectors such as healthcare, manufacturing, finance, and education.

These initiatives are designed to integrate AI deeply into Vietnam’s economy and boost global competitiveness.

Thriving Tech Ecosystem

Vietnam is home to a young, tech-savvy workforce, with 70% of its population under 35. Each year, universities produce thousands of STEM graduates, many specializing in AI, machine learning, and data science. This talent pool fuels a vibrant ecosystem of startups, research institutions, and outsourcing companies, making Vietnam a prime location for AI development and innovation.

Key innovation hubs include:

• Hanoi – home to top universities and research centers.

• Ho Chi Minh City – the heart of Vietnam’s startup scene.

• Da Nang – emerging as a smart city and tech hub.

Increasing Foreign Investment

Global tech companies and venture capitalists are investing heavily in Vietnam’s AI ecosystem.

• Establishment of R&D centers by multinational corporations.

• Partnerships between Vietnamese startups and international firms.

• Rising number of AI-focused accelerators and incubators, boosting innovation.

Industry 4.0 Vision

Vietnam Industry 4.0 focuses on integrating advanced technologies such as AI, IoT, robotics, and cloud computing to modernize industries and enhance productivity.

• In manufacturing, AI-driven predictive maintenance and smart factories are reducing costs and increasing efficiency.

• In healthcare, AI is transforming diagnostics and patient care.

• In finance, AI is being deployed to fight fraud and improve risk management.

By aligning with this vision, Vietnam is positioning itself as a regional leader in AI and digital transformation, offering Singapore businesses a nearby partner for innovation and growth.

Vietnam Artificial Intelligence Market Trends, Growth, and Offshore Opportunities

Vietnam Artificial Intelligence market is entering a high-growth phase, becoming a regional center for innovation and offshore development. In 2025, the AI market size in Vietnam is projected to reach $932 million, with an impressive annual growth rate (CAGR 2025–2031) of 26.27%, driving the market to $3.78 billion by 2031.

This rapid growth is driven by widespread AI adoption across industries, government-backed initiatives, and rising foreign investment.

Moreover, Vietnam Artificial Intelligence solutions and unique advantages make it one of the top offshore destinations, especially for Singapore businesses looking to scale efficiently:

• Cost Efficiency: Hiring AI engineers in Vietnam can be up to 40–60% cheaper than in Singapore while maintaining high quality.

• Time Zone Alignment: Similar working hours enable real-time collaboration.

• Language Skills: Strong English proficiency among engineers supports seamless communication.

For Singapore companies, this means access to cutting-edge AI technology and talent without the high overhead costs of local hiring, making Vietnam a strategic partner for digital transformation and innovation.

Applications of Artificial Intelligence Across Industries

The rapid growth of Vietnam’s artificial intelligence ecosystem is being driven by its diverse applications across multiple sectors. From healthcare to manufacturing, Vietnamese companies are embracing AI to streamline operations, reduce costs, and deliver more personalized services.

Healthcare: AI-Powered Diagnostics and Telemedicine

AI is transforming Vietnam’s healthcare sector, making medical services more accessible, efficient, and accurate.

• AI diagnostics assist doctors in detecting diseases like cancer and heart conditions at earlier stages.

• Telemedicine platforms powered by AI connect patients in remote areas to specialists, reducing healthcare disparities.

• Predictive analytics help hospitals manage resources and forecast patient demand.

Example: Hospitals are implementing AI-driven imaging analysis to speed up diagnosis and reduce human error, a growing trend especially after the COVID-19 pandemic.

Manufacturing: Predictive Maintenance and Smart Factories

Manufacturing is a core pillar of Vietnam’s economy, and AI plays a key role in driving Industry 4.0 transformation.

• Predictive maintenance uses AI to analyze machine data, preventing breakdowns and reducing downtime.

• Robotics and automation optimize production lines for higher efficiency and consistency.

• Quality control systems powered by computer vision detect defects in real time.

For Singapore companies sourcing or producing in Vietnam, these advancements translate to lower production costs and more reliable supply chains.

Retail & E-commerce: Personalization and Demand Forecasting

The booming e-commerce market in Vietnam is leveraging AI to improve customer experience and boost sales.

• Recommendation engines deliver personalized product suggestions to increase conversion rates.

• AI-driven demand forecasting helps retailers optimize inventory and reduce waste.

• Chatbots and virtual assistants provide 24/7 customer service at scale.

Example: Local e-commerce platforms are integrating AI-powered marketing analytics to design targeted campaigns and maximize ROI.

Finance & Banking: Fraud Detection and Risk Management

The financial sector is one of the earliest adopters of Vietnam Artificial Intelligence.

• Fraud detection algorithms analyze transactions in real time to prevent cybercrime.

• AI-driven credit scoring improves lending decisions for banks and fintech startups.

• Predictive analytics enhances portfolio management and investment strategies.

These innovations align with Singapore’s strict regulatory standards, making Vietnam an ideal AI outsourcing hub for financial technology solutions.

Education: Adaptive Learning and AI-Driven LMS

Vietnam’s education sector is rapidly digitizing, with AI enabling personalized learning experiences.

• Adaptive learning platforms adjust content to each student’s pace and performance.

• AI-driven Learning Management Systems (LMS) streamline administration for schools and training providers.

• Automated grading and analytics save teachers time and provide deeper insights into student progress.

For Singapore’s edtech companies, Vietnam offers both a test market and a development hub for cutting-edge educational solutions.

Why Singapore Businesses Should Outsource AI to Vietnam

Outsourcing AI development to Vietnam has become an increasingly popular strategy for Singapore businesses looking to accelerate digital transformation while optimizing costs. Vietnam offers a unique combination of world-class talent, affordability, and cultural alignment, making it a top destination for AI projects in Southeast Asia.

Below are the key reasons why Singapore companies are choosing Vietnam as their preferred AI outsourcing hub.

Cost Advantages

Developing AI solutions in Singapore often comes with high labor costs and limited local talent availability.

• Hiring skilled AI engineers in Vietnam is 40–60% more cost-effective than building an in-house team in Singapore.

• Lower operational costs allow businesses to allocate budgets toward innovation and scaling, rather than overhead expenses.

• Companies can start with small pilot projects, reducing financial risk before committing to larger initiatives.

Skilled Developers and AI Engineers

Vietnam Artificial Intelligence talent pool has grown significantly, supported by strong STEM education programs and government-backed AI initiatives.

• Each year, Vietnamese universities produce thousands of graduates specializing in AI, machine learning, and data science.

• Many developers have international project experience, working with clients from Japan, the US, and Europe.

• A growing number of AI research centers and innovation hubs ensure continuous skill advancement.

For Singapore businesses, this translates to access to highly qualified engineers capable of delivering cutting-edge AI solutions.

Language Proficiency and Communication

Smooth communication is crucial for outsourcing success.

• Many Vietnamese engineers and project managers have strong English proficiency, reducing language barriers.

• Development teams are familiar with global project management tools such as Jira, Trello, and Slack, enabling seamless collaboration.

• Bilingual capabilities (English and Japanese) are an added advantage for companies operating across multiple Asian markets.

This ensures that Singapore businesses can work closely with offshore teams without miscommunication or workflow disruptions.

Flexible Engagement Models

Vietnamese AI outsourcing companies offer customizable engagement models to fit different project needs:

• Dedicated Teams: Best for long-term projects requiring continuous development and scaling.

• Time & Material: Ideal for evolving projects where scope and requirements may change.

• Fixed-Price Projects: Suitable for clearly defined deliverables with predictable timelines.

This flexibility allows Singapore businesses to start small and scale as needed, adapting quickly to market demands.

Cultural Compatibility and Time Zone Advantages

Geographical and cultural proximity make Vietnam an excellent outsourcing partner for Singapore.

• Similar time zones enable real-time collaboration and faster decision-making.

• Shared work ethics and business practices foster smoother partnerships.

• Face-to-face visits and team workshops are easy to arrange due to short travel distances.

This alignment significantly reduces communication delays and strengthens long-term relationships.

Growing AI Ecosystem and Innovation Culture

Vietnam Artificial Intelligence ecosystem is thriving, driven by startups, research institutions, and global investors.

• Rapid growth of AI innovation hubs in cities like Hanoi, Ho Chi Minh City, and Da Nang.

• Increasing venture capital funding and foreign investments are fueling AI-focused startups.

• A strong culture of continuous learning and experimentation, ensuring Vietnamese teams stay ahead of global trends.

For Singapore businesses, partnering with Vietnam means tapping into a vibrant innovation environment that encourages fresh ideas and competitive solutions.

How to Choose the Right Offshore AI Development Partner

Choosing the right offshore AI development partner is essential for delivering high-quality solutions and long-term success. For Singapore businesses, it’s about finding a partner that offers expertise, strong communication, and scalability.

• Industry Expertise & AI Capabilities: Select a partner with proven experience in your industry, whether it’s healthcare, fintech, manufacturing, or retail. Their past projects should show a strong track record of solving complex challenges using AI and advanced technologies like machine learning, deep learning, and NLP.

• Security & Compliance: Ensure the partner complies with PDPA, GDPR, and other global data privacy standards. Certifications such as ISO27001 or AWS Partner status are key indicators of a mature and secure development process.

• Technical Talent & Team Structure: Evaluate the skills of their AI engineers, data scientists, and project managers. A strong team should balance technical expertise with leadership and include continuous training to stay ahead of AI trends.

• Communication & Collaboration: Smooth communication is critical for offshore success. Look for teams with strong English proficiency and the use of modern collaboration tools like Jira, Slack, and GitHub to ensure seamless coordination and real-time updates.

• Flexible Engagement Models: Choose a vendor offering flexible models such as dedicated teams, time & material, or fixed-price projects. This allows you to start small with a pilot project and scale resources as your business grows.

• References & Case Studies: Request client references and review past case studies to understand their performance and problem-solving approach. A history of repeat clients signals reliability and high client satisfaction.

• Cultural Fit & Long-Term Partnership: Ensure the partner understands Singapore’s business culture and values. Look for a vendor focused on co-creating solutions and fostering a long-term strategic partnership rather than just delivering tasks.

Which Offshore AI Development Company in Vietnam is Best for Singapore Businesses?

When deciding on an AI outsourcing partner in Vietnam, Singapore companies should look for vendors with strong technical depth, proven international experience, and a track record in delivering scalable, secure solutions.

Top AI Development Companies in Vietnam

Below are some of the top AI companies in Vietnam, compared by what they offer best and how those strengths align with Singapore’s business needs.

Company	Key Strengths in AI / Outsourcing	What Makes Them a Good Fit for Singapore Businesses
Kaopiz	Top AI company in Vietnam with 10+ years of experience and a team of 600+ skilled professionals. Successfully delivered 1,000+ projects for 200+ global clients across diverse industries. Expertise includes AI development, cloud integration, blockchain solutions, and custom software development.	Offers competitive pricing ($40/hr) with flexible engagement. Strong in small to medium-scale AI initiatives. Ideal for companies needing innovation and agility.
FPT Software	One of Vietnam’s largest ICT firms with multi-industry experience in finance, healthcare, and manufacturing. They have a full-stack AI capability and recently launched “FleziPT” for enterprise digital transformation.	Excellent for large, complex AI projects with high integration requirements. Strong infrastructure, global presence, and reliability. Perfect for mission-critical enterprise AI solutions.
TMA Solutions	Over 4,000 engineers and 28+ years in outsourcing. Expertise in AI-as-a-Service, computer vision, and natural language processing (NLP).	Suitable for mid to large companies needing stable delivery and mature processes. Ideal for ongoing AI maintenance and scaling projects.
CMC Global	Provides AI development, IT outsourcing, cloud migration, and system integration services. Offices located in Vietnam, Japan, and Singapore for cross-border collaboration.	Strong regional coverage and ability to support cross-border projects. Perfect for Singapore companies expanding in Asia-Pacific. Excellent for enterprise-level solutions and systems integration.
Sotatek	Known for expertise in blockchain, AI, and fintech solutions. Strong focus on driving innovation and digital transformation projects.	Best suited for startups and innovation-driven businesses seeking cutting-edge solutions. Particularly strong in fintech and next-gen AI platforms.

Why Kaopiz Is a Trusted AI Development Partner for Singapore Businesses

Choosing the right AI development partner is crucial for achieving innovation, scalability, and long-term success. Kaopiz stands out as a reliable Vietnam IT outsourcing company for Singapore businesses thanks to our proven track record, deep technical expertise, and commitment to delivering measurable results.

Proven Experience and Global Reach

With 10+ years of experience and a team of 600+ skilled professionals, Kaopiz has successfully delivered 1,000+ projects to 200+ clients worldwide, including Singapore, Japan, the U.S., and Europe. Our recognition on Clutch as a top AI company in Vietnam reflects our dedication to quality and client satisfaction.

Deep Expertise in AI Solutions

Kaopiz provides end-to-end AI services, from ideation to deployment.

• Generative AI: Chatbots, virtual assistants, image generation, and custom AI models.

• OCR: High-accuracy solutions for identity verification, invoice processing, and fraud detection.

• Data Analytics: AI-driven insights to support smarter business decisions.

• Custom AI Models: Tailored solutions for industries like healthcare, fintech, retail, and manufacturing.

Flexible Engagement and Agile Delivery

Kaopiz offers flexible collaboration models, including dedicated teams, fixed-price projects, and time & material contracts, making it easy for businesses to scale AI initiatives.

• Agile methodologies ensure faster time-to-market and continuous improvement.

• Transparent communication keeps stakeholders informed at every stage.

Strong Regional Understanding

With extensive experience working with Singaporean and Asian clients, Kaopiz understands regional market dynamics, compliance standards (like PDPA), and cultural expectations. This allows us to deliver solutions aligned with your business goals and regulatory requirements.

Successful Case Studies

• OCR for Identity Verification: Automated driver’s license and passport scanning with 98% accuracy, reducing manual verification time.

• AI-Powered Fitness App: Real-time movement tracking using OCR and computer vision for personalized fitness plans.

• AI-Powered Safety System for Construction Sites: Detecting protective gear compliance to reduce safety incidents by 40%.

Future of AI in Vietnam and Offshore Development Trends (2025 and Beyond)

Vietnam is on track to become a leading AI hub in Southeast Asia, offering exciting opportunities for Singapore businesses to innovate and scale through outsourcing.

Here are the key trends shaping the future of offshore AI development in Vietnam:

• Generative & Agentic AI Adoption: Demand for chatbots, content generation, and autonomous AI agents will rise, with localized models tailored for regional languages and markets.

• Focus on Data Privacy & Compliance: Vendors will prioritize PDPA and GDPR compliance, secure infrastructure, and ethical AI practices to build trust in cross-border projects.

• Vietnam as an Offshore Hub: 40–60% cost savings, cultural compatibility, and similar time zones will make Vietnam a top choice for Singapore companies scaling AI teams.

• Integration with Industry 4.0: AI will combine with IoT, robotics, and predictive analytics to power smart factories and optimize supply chains across the region.

• Stronger Singapore-Vietnam Collaboration: Joint ventures will grow in fintech, smart cities, healthcare, and sustainability, leveraging Vietnam’s AI talent pool and Singapore’s global business network.

Conclusion

Vietnam Artificial Intelligence is quickly establishing itself as a top AI development hub in Southeast Asia, combining skilled talent, competitive costs, and a strong innovation-driven ecosystem. For Singapore businesses, partnering with Vietnamese AI companies provides a unique opportunity to accelerate digital transformation, scale operations, and stay competitive in fast-evolving industries.

By choosing the right AI development partner, Singapore companies can tap into Vietnam’s strengths — from cutting-edge generative AI solutions to high-accuracy OCR technologies — while benefiting from flexible engagement models and seamless regional collaboration.

FAQs

What Are the Top Applications of AI in Vietnam?

AI is widely used in healthcare (diagnostics, telemedicine), manufacturing (predictive maintenance, smart factories), finance (fraud detection, credit scoring), retail & e-commerce (personalization, demand forecasting), and education (adaptive learning platforms).

Why Is Vietnam a Cost-Effective Choice for Outsourcing AI Projects for Singapore Businesses?

Vietnam offers 40–60% cost savings compared to hiring locally in Singapore while maintaining high quality. Its skilled workforce, similar time zone, and cultural compatibility ensure smooth collaboration and faster project delivery.

Who Are the Top AI Companies in Vietnam Today?

Some of the leading Vietnam AI outsourcing companies include Kaopiz, FPT Software, TMA Solutions, CMC Global, and Sotatek. These companies specialize in AI development, cloud services, and advanced technology solutions for global clients.

How Big Is the Vietnamese AI Market?

Vietnam’s AI market is projected to reach US$932 million in 2025 and grow to US$3.78 billion by 2031, with an impressive CAGR of 26%, driven by rapid adoption across key industries.

What Does the Future of AI in Vietnam Look Like?

Vietnam AI technology is on track to become a regional powerhouse, with growth driven by Generative AI, Industry 4.0 integration, and strong government support. This creates huge opportunities for Singapore businesses to innovate and expand through strategic partnerships.