Investing
AI can boost Vietnam’s international tourist revisit rate
From real-time translation to culturally aware digital assistants and personalized tourism experiences, AI technologies can make Vietnam more accessible, engaging, and memorable for international visitors, writes Dr. Nuno Ribeiro, a senior lecturerin tourism and hospitality management at RMIT University Vietnam.
Dr. Nuno F. Ribeiro, a senior lecturer in tourism and hospitality management at RMIT University Vietnam. Photo courtesy of RMIT.
Vietnam’s tourism industry has made remarkable strides since Covid-19, with international arrivals near pre-pandemic levels. However, a critical challenge persists: the country’s international tourist revisit rate remains low, hovering below 10%, in contrast with countries such as Malaysia and Thailand.
More than a quarter (28%) of travellers who visited Thailand in 2023 said they intend to return over the next 12 months. For cultural tourists (a market segment that Vietnam aims to attract), intention to revisit is even greater, at 59.42%.
The reasons for this disparity are complex. They can include anything from the attractiveness of destinations to the convenience of transportation, human resource training, cultural and language barriers, the quality of accommodation, and the availability of tourism infrastructure.
Among the factors, there are four important areas where AI can emerge as a powerful tool to address existing challenges: tackle language barriers, bridge cultural gaps, enhance service quality, and elevate the tourist experience.
Overcoming the language barrier with AI-powered translation
The Vietnamese language, with its complex tonal system, unique script, and distinct grammar, presents a challenge for most international visitors. Outside of major tourist hubs, tourists might have trouble communicating or navigating without a command of the local language. This linguistic hurdle extends beyond mere communication difficulties, leading to cultural misunderstandings and a sense of disconnect from local experiences.
Advanced AI translation tools can significantly reduce language barriers via utilizing deep learning models, these systems can provide near-instantaneous, context-aware translations between Vietnamese and numerous languages. This technology can be integrated into mobile apps, wearable devices, and even augmented reality (AR) glasses, allowing for seamless communication in various settings.
AI systems that combine visual and audio inputs can translate not just spoken language, but also text on signs, menus, and documents. This helps tourists navigate and understand their surroundings more effectively.
Advanced AI models can be trained to recognize and explain cultural nuances in language, helping tourists understand subtle meanings, idioms, and context-dependent expressions that are crucial for deeper cultural engagement.
Some of these AI tools are already under development in Vietnam. For example, the Information Technology Institute under the Vietnam Academy of Science and Technology has developed AI-based advanced machine translation technology that translates from Vietnamese to regional languages including Lao, Khmer, Thai, Malay and Indonesian, and vice versa, as well as English.
In another example, Samsung Research & Development Institute Vietnam (SRV) has successfully trained its AI model to recognize even the most subtle differences in the Vietnamese language, with great potential for tourism development.
Foreigners cycle in the ancient town of Hoi An, Quang Nam province, central Vietnam. Photo courtesy of Tuoi Tre (Youth) newspaper.
Navigating cultural complexity with personalized cultural intelligence assistants
Recent research conducted in Binh Thuan province showed that cultural contact directly impacts both satisfaction and revisit intention among international tourists.
Vietnamese culture can be intricate and sometimes perplexing for foreign tourists. Navigating social norms, etiquettes, and cultural nuances can be overwhelming, potentially leading to misunderstandings or missed opportunities for deeper engagement.
AI-driven digital companions can serve as cultural guides, offering personalized insights and recommendations. These assistants can learn from user interactions and preferences, providing increasingly relevant cultural information and advice over time.
By integrating GPS data, calendar information, and real-time event updates, these AI assistants can offer timely and location-specific cultural insights, enhancing the tourist’s understanding and appreciation of their surroundings.
Virtual cultural mentors: Using natural language processing and generation, these AI systems can engage in dialogue about Vietnamese culture, history, and customs, offering a more interactive and engaging learning experience.
AI-generated tourism assistants have already been developed in Vietnam. For example, in Can Tho, a major city in the Mekong Delta, researchers and authorities have developed and implemented an AI-powered website and app to provide tourist recommendations since 2019. This system offers suggestions for attractions, accommodations, and activities based on user preferences.
Elevating hospitality staff quality though AI-enhanced training
Recent studies show that whereas approximately 20,000 students graduate from travel, tourism, and hospitality programs in Vietnam annually, the industry requires a minimum of 40,000 trained professionals each year to meet its growing needs.
This shortage has direct implications on service quality and consistency, which are crucial factors in producing memorable tourist experiences, which in turn encourage repeat visits.
Addressing this shortage, AI can revolutionize training programs for tourism and hospitality professionals. AI algorithms can analyze individual staff members’ strengths and weaknesses, creating tailored training programs that focus on areas needing improvement, particularly in cross-cultural communication and understanding.
AI-powered VR scenarios can provide immersive training experiences, allowing staff to practice handling diverse cultural situations and improving their intercultural competence. Continuous assessment and feedback: AI systems can monitor staff-guest interactions, providing real-time feedback and suggestions for improvement, ensuring consistent high-quality service across the industry.
Curating personalized cultural experience through predictive analytics
Researchers from RMIT campuses in Vietnam and Australia have recently secured funding to develop augmented reality (AR) experiences aimed at enhancing tourism experiences along the Kenh Te canal in HCMC.
These innovations include AI-powered guided walking tours along the canal banks in Districts 4 and 7. This is just an example of how AI can help create more satisfying and culturally rich experiences.
Dynamic experience recommendations: AI systems can continuously update their recommendations based on real-time data, such as weather conditions, local events, and crowd levels, ensuring tourists always have access to optimal cultural experiences. By analyzing online reviews, social media posts, and direct feedback, AI can help identify areas where cultural experiences can be enhanced, allowing for rapid iteration and improvement of tourism offerings. By analyzing vast amounts of user data, AI can identify patterns in tourist preferences, allowing for the creation of highly personalized itineraries that align with individual cultural interests and learning styles.
The integration of AI technologies in Vietnam’s tourism sector goes beyond merely addressing current challenges; it positions Vietnam at the forefront of innovation in Southeast Asian tourism. This tech-forward approach could elevate Vietnam from a one-time destination to a world-class tourism hub that visitors return to again and again.
Looking ahead, AI’s potential in Vietnam’s tourism sector can be extended to address critical workforce challenges.
The Ho Chi Minh City Real Estate Association (HoREA) has proposed a pilot mechanism that would allow businesses to invest in and construct worker housing within industrial parks.
In a document submitted to the Prime Minister, contributing feedback on a draft pilot policy aimed at boosting social housing development, HoREA suggested that businesses, cooperatives, and cooperative unions operating within industrial parks be permitted to build accommodation for their workers. It also called for allowing companies to rent housing outside industrial parks for the same purpose.
HoREA emphasized that all costs related to building or renting worker housing should be recognized as legitimate business expenses and be included in the enterprise’s operating costs.
The association further recommended expanding the policy framework to allow companies within industrial parks to lease social housing or worker accommodation built by third-party developers outside the park premises.
According to Mr. Lê Hoàng Châu, Chairman of HoREA, the current Housing Law (2023) only allows companies to rent worker housing inside industrial parks, without clearly defining whether they can rent social housing outside the parks or construct such housing themselves.
With worker housing demand at industrial parks far exceeding supply, HoREA pointed out that current social housing and dormitory offerings are inadequate. Meanwhile, commercial housing remains out of reach for most workers due to high prices. Therefore, the association urges the government to introduce policies enabling manufacturing businesses—despite not operating in real estate—to develop their own accommodation solutions for employees.
HoREA underscored that such policies would create a strong legal foundation, empowering enterprises and cooperatives to proactively resolve housing issues for workers. If allowed to construct their own housing, companies could ensure homes go to those in need, boosting employee retention, improving living standards, and supporting sustainable growth in industrial zones.
The association also proposed financial support mechanisms, including tax incentives, access to preferential loans, or government-matching support, to reduce the financial burden on companies participating in worker housing development.
Previously, many businesses had expressed a desire to buy land, build housing, and offer installment-based homeownership plans to workers, whereby employees would pay monthly through salary deductions. While this model helps workers secure long-term housing, legal procedures remain a major hurdle.
Providing accommodation has increasingly become part of corporate strategies to retain labor, alongside other employee welfare policies. For example, Nissei Electric Vietnam (Linh Trung 1 Export Processing Zone, Thu Duc City) has built a dormitory complex with 285 shared rooms, housing up to 2,280 workers. Eternal Prowess Vietnam (District 12) and Thien Phat Company (Linh Trung 2 EPZ) have also invested in on-site worker housing. Thien Phat’s project includes 368 units (35m² each), rented at VND 2.2 million/month, with 80% of the units for families and 20% for shared accommodations.
As of Q2 2024, Ho Chi Minh City has 18 industrial parks with around 1,700 businesses employing approximately 320,000 workers. Citywide, over 1.3 million people are employed in factories. However, there are only 16 official worker housing complexes, accommodating about 22,000 people. The majority of workers rely on rented rooms or stay with acquaintances—often sharing 12m² rooms among 2–3 people, which consumes 15–20% of their monthly income.
From 2021 to the present, Ho Chi Minh City has completed six social housing projects with 2,700 units and is building four more with 3,000 units. By April 30, the city aims to resolve legal hurdles and break ground on 5–6 additional social housing projects, totaling around 8,000 units.
Investing
Billionaire Trần Bá Dương’s VND 2,000 Billion, 200-Hectare Industrial Park in Thái Bình Could Begin Operations This Year
According to Statista Market Insights, the Vietnamese semiconductor market is forecast to see healthy growth with a compound annual growth rate of 9.62 per cent between 2024 and 2027, reaching a market volume of $26.20 billion.
 |
| Le Quan, Senior lecturer Faculty of Engineering Fulbright University Vietnam |
Vietnam also boasts over 30 foreign-led companies in integrated circuit (IC) design, including established players like Renesas, Synopsys, and Cadence alongside innovative startups like Ampere, ADTechnology, Inphi, FingerVina, Dolphin Technology. The sector also encompasses numerous smaller firms with around 100 or fewer employees.
By 2040, Vietnam is poised to become a crucial player in the global semiconductor ecosystem, encompassing all aspects of the industry, from design and manufacturing to assembly, test, and packaging (ATP) and equipment fabrication.
The strategy emphasises the importance of fostering a skilled workforce. Vietnam boasts a strong talent pool in the semiconductor industry, with 50,000 design engineers, 200,000 electronics engineers, 500,000 technical workers, and one million software engineers. To further enhance this workforce, the strategy aims to transition up to 30,000 personnel from the existing pool of 350,000 IT and telecommunications engineers.
The global semiconductor packaging landscape is undergoing a rapid transformation, driven by a surge in new facilities across Asia. The wave of semiconductor investment in Vietnam and the industry’s demand for personnel have driven educational institutions, from top universities to vocational colleges, to launch training programmes related to semiconductors.
Last year, major universities such as Hanoi University of Science and Technology, University of IT – Vietnam National University Ho Chi Minh, and the University of Engineering and Technology announced engineering programmes specialising in semiconductors. Younger universities like FPT and Phenikaa are also making significant investments in this area, not only in training initiatives but also in facilities and equipment.
However, to truly understand the current landscape of semiconductor training in Vietnam, it is essential to look at the regulations and current state of training schemes in this field from 2024 backward.
Firstly, the high costs associated with establishing chip fabrication facilities make it an impractical investment for Vietnam. The country’s resources would be better allocated towards sectors that promise more immediate returns, such as ATP and IC design. Advanced packaging technologies represent a feasible and profitable entry point in the global semiconductor value chain, aligning with Vietnam’s strengths in low-cost, adaptable labour.
Vietnam should focus on drawing overseas funding into ATP operations, leveraging its lower labour costs to attract foreign companies. The availability of a high-quality but affordable workforce makes Vietnam an attractive destination for packaging, testing, and assembly processes. Prioritising such investment with advanced packaging capabilities will allow Vietnam to build a competitive advantage in this sector.
Meanwhile, the IC design segment represents a high-value opportunity with significant global demand. To capitalise on this, Vietnam should proactively seek partnerships and outsourced projects from international IC design firms. Engaging Vietnamese firms in IC design outsourcing allows for skill transfer, builds local capacity, and positions Vietnam as a reliable partner in the global semiconductor value chain.
Collaboration between industry, educators, and government should be boosted. Building a cohesive semiconductor workforce will require closer partnerships between educational institutions, industry players, and the government.
By integrating real-world projects into academic programmes, Vietnamese graduates will better understand the industry’s practical requirements and be more prepared to transition directly into the workforce. Schemes that bring industry projects to academia will provide students with hands-on experience, making them job-ready upon graduation.
At the same time, establishing specialised training for semiconductor roles, particularly in ATP and IC design, will be essential to reduce the industry’s current reliance on costly in-house training. This should involve upskilling engineers from related fields through short, intensive courses designed to meet industry standards.
Partnerships with international organisations for curriculum development, as well as accreditation for training initiatives, will help elevate Vietnam’s semiconductor workforce to global standards.
Vietnam can also implement “train-the-trainer” programmes. Its academic institutions face a shortage of faculty members with practical experience in semiconductor technologies. By leveraging international partnerships, Vietnam can upskill its instructors, who can then transfer these skills to future generations of engineers.
Notably, several US institutions have expressed willingness to offer training to Vietnamese trainers, a vital step towards creating a sustainable, locally driven semiconductor education ecosystem.
Finally, effective workforce development in the semiconductor industry requires government involvement in fostering a supportive ecosystem. Policies that incentivise partnerships between academia and industry, such as funding for research and development and joint training programmes, are critical.
Top Industrial Park Stocks Drawing Investor Attention Amid Sector Boom
New Nearly 200-Hectare Industrial Park Approved Near Hanoi, Set to Employ 19,600 Workers
Vietnam–Singapore (VSIP) Industrial Parks Expand with Four New Projects Across the Country
HoREA Proposes Allowing Businesses to Build Worker Housing Inside Industrial Parks
Billionaire Trần Bá Dương’s VND 2,000 Billion, 200-Hectare Industrial Park in Thái Bình Could Begin Operations This Year
Carbon labels: a gateway to high-value global markets
Alma Unveils Alma Harmony: Advanced Aesthetic Platform for Next-Level Treatments
Roborock Debuts 2025 Smart Home Cleaner in Australia, Marking a New Era of Smarter Cleaning
Vietnam’s manufacturing revolution: unlocking smart factory potential with ABeam Consulting
Thanh Cong Group opens facility in Quang Ninh to build Skoda models
-
Activities5 months agoBac Giang Adds a New Industrial Park Worth VND 3,700 Billion
-
Activities5 months agoQuang Binh Invites Investment in the Expansion of Bac Dong Hoi Industrial Park
-
Infrastructure4 months agoDa Nang Adds a New 400-Hectare Industrial Park
-
Project4 months agoThai Conglomerate Invests VND 1,200 Billion in Industrial Park
-
Project4 months agoVinh Thanh Industrial Park Approved for Investment of Over VND 7,800 Billion
-
Activities3 months agoBac Ninh Accelerates Land Clearance for Two Industrial Parks
-
Activities3 months agoHo Chi Minh City’s Largest Industrial Park Set to Resolve Land Issues, Hundreds of Hectares Ready for Lease
-
Project3 months agoGood News for Vietnam Rubber Group (GVR): Approval Granted for Bac Dong Phu Industrial Park Phase 2