Hanoi (VNA) - The rapid advance of digital technologies, particularly generative artificial intelligence (GenAI), is reshaping Vietnam’s employment structure. As millions face changes in job content, the labour market is undergoing sectoral shifts while demanding urgent upgrades in skills, job quality and policy adaptation.
Digital wave drives structural transformation
Vietnam’s labour market is entering an accelerated transition under digitalisation and AI. According to the International Labour Organization (ILO), about 11.5 million workers - one in five - are in jobs potentially affected by GenAI.
Rather than mass job losses, the dominant trend is job transformation. Routine tasks are increasingly automated, while workers move towards roles requiring higher cognitive, creative and interactive skills.
Only around one million workers (under 2%) are at risk of full automation, lower than in many regional peers, indicating a shift towards restructuring rather than displacement. Still, the scale of change underscores the urgency of reskilling and job transition.
Impacts vary across sectors. Finance and insurance, wholesale and retail, and information and communications are among the most affected, while administrative roles face particularly high exposure, with nearly two-thirds of positions at risk of partial automation.
Proactive governance to harness AI
Sinwon Park, Country Director of the ILO in Vietnam, noted that the country stands at a critical juncture to leverage generative AI as a driver of productivity and decent work. To ensure a positive transition, she stressed the need to strengthen AI governance in line with labour standards, invest in workforce skills, ensure workers’ participation in AI adoption, support responsible AI use among small and medium-sized enterprises, and establish safeguards to ensure an inclusive and equitable transformation.
Geographically, major economic hubs such as Hanoi, Ho Chi Minh City and Da Nang are experiencing the most pronounced impacts. This reflects a key feature of the digital economy, where fast-growing service centres are also the earliest to feel the effects of technological change.
Gender disparities are notable, with women more exposed to affected roles (24.1% versus 17.8%), highlighting the need to integrate gender considerations into policy. At the same time, AI can enhance productivity and create new job models, particularly in sectors like retail.
Job quality challenges and policy response
Beyond technology, structural issues persist. The ILO’s World Employment and Social Outlook 2026 notes stable global unemployment at 4.9%, but stagnant job quality, with many workers in insecure or low-paid roles.
Informal employment remains a major concern, with 2.1 billion workers globally projected in this sector by 2026 - a challenge also relevant to Vietnam.
Youth face rising pressure, with global unemployment at 12.4% and 260 million not in employment, education or training. AI may intensify competition, especially for standardised high-skill roles.
Vietnam’s challenge is not just job creation, but ensuring quality, productivity and adaptability. Progress towards high-value sectors such as digital technology, green energy and the circular economy remains uneven.
A coordinated policy response is essential, including stronger investment in education, digital skills and lifelong learning, improved labour market data systems, and close monitoring of AI impacts.
Experts also emphasise responsible AI adoption, stronger workplace dialogue, and targeted protection for vulnerable groups such as women, youth and informal workers.
Vietnam’s labour market transformation is inevitable. While technology offers opportunities for growth and productivity, it also raises challenges around skills, job quality and inequality. How the country manages this transition will determine whether it drives inclusive development or widens existing gaps, requiring a proactive, people-centred approach./.
