How economy is transformed by ESG and AI agents

Many forums have been held to discuss in-depth the applicability of ESG and AI, the potential that each trend brings to the mission of bringing sustainable development and prosperity to the Vietnamese economy in the future.

In past years, investors’ attention to such considerations has boomed and Vietnam is no exception, driven by the Vietnamese government’s strong signal to encourage ESG-related practices, especially with a strong commitment to the transition to a carbon-neutral economy by 2050. For Vietnam, ESG is a game-changer because it directly impacts profitability, risk management, and long-term growth - key factors that international investors and trade partners care about deeply.

Vietnam’s ESG adoption is primarily led by large enterprises, such as foreign-led businesses, public companies, and export-oriented enterprises. In contrast, the number of small businesses that commit to ESG is low because they lack understanding of related reporting and limited capitals as well as personnel.

The World Trade Organization previously allowed the free movement of goods and capital between countries, but now, developed countries have established new rules of the trade game. The movement of goods, services, capital, and labourers now depends on ESG criteria as countries require multinational companies to provide reports.

Notably, the EU will officially apply the Carbon Border Adjustment Mechanism in early 2026 that imposes a carbon tax on all goods imported into EU markets. Consequently, Vietnamese businesses aiming to export to the EU or integrate into EU-bound supply chains must align with new sustainability requirements. Additionally, emerging issues such as industrial pollution and air quality concerns highlight the urgent need for businesses to prioritise ESG criteria.

Meanwhile, AI is rapidly transforming industries and economies around the globe, and Vietnam is no exception. With significant investments and a growing market, AI presents immense opportunities for Vietnam’s economic development, especially the digital economy.

Based on the 2024 Government AI Readiness Index, developed by Oxford Insights, Vietnam ranks 51st out of 193 countries globally, and fifth among the 10 ASEAN member countries, reflecting its proactive approach to AI adoption. Aiming to establish AI as a key technological domain in Vietnam, the nation launched a national strategy on AI research, development, and application in 2021. The strategy seeks to position Vietnam as a leading hub for AI innovation and solution development within the ASEAN region by the end of this decade.

On the ground, adoption is picking up. Companies like FPT Software are pouring millions into AI research, partnering with global giants like Nvidia. Recently, Qualcomm acquired startup VinAI, illustrating that international firms see value here.

AI is revolutionising several key industries in Vietnam, with finance, retail, and healthcare leading the charge. Taking finance as an example, AI-driven systems are also enhancing fraud detection, credit assessment, and customer support. The healthcare sector in Vietnam is also increasingly adopting AI and robotics to improve patient care outcomes.

AI tech, such as text mining and machine learning, are being utilised to analyse medical data and support clinical decision making. For instance, VinBrain, a technology company in Vietnam acquired by Nvidia last year, developed DrAid, an AI pathology prediction platform that has demonstrated its effectiveness in over 150 hospitals.

In short, Vietnam’s transformation is about more than numbers. It is about building an economy that is clean and modern enough to compete anywhere. With ESG and AI as its tools, Vietnam’s not just chasing the future, it’s shaping the whole economy. AI enhances ESG practices by improving data accuracy and streamlining reporting.

Conversely, ESG considerations drive responsible and sustainable AI development. And for a country that’s come so far in terms of global trade in the 20th century, that’s a story worth watching.