TY - RPRT AU - Rashidghalam, Masoomeh AU - Heshmati-Kim, Jieun AU - Heshmati, Almas TI - Applications of Artificial Intelligence in the Vietnamese Economy PY - 2026/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 18825 UR - https://www.iza.org/publications/dp18825 AB - AI is becoming a driving force in Vietnam’s economic transformation. The country is moving beyond a growth model based on low-cost labour and export-led industries. Adoptions of the widespread generative AI and AI-powered assistants have accelerated the transformation. AI, by reshaping the nature and future of work, redefines the rules and productivity. This research overviews the recent research investigating how AI is transforming work, demand for digital skills, and productivity gains in AI-adopting Vietnamese industries. An optimal blend of AI and human collaboration positively impacts its productivity. Application of AI enables the use of its potential, but it also has significant challenges and risks of skill gaps, training costs, trust, job quality, and distribution of its effects. Focusing on adaptability, lifelong learning, and integration of AI ensures a positive future of work. This study identifies factors determining the adoption of AI and heterogeneity in its productivity and future of work impacts. KW - AI application KW - nature of work KW - future of work KW - economic transformation KW - skill requirements KW - AI productivity impacts KW - Vietnam ER -