GenAI Set to Transform Work in Viet Nam, With 11.5 Million Jobs Exposed but Limited Automation Risk: ILO

A new report by the International Labour Organization (ILO) has revealed that generative artificial intelligence (GenAI) could reshape the nature of work for millions in Viet Nam, with around 11.5 million workers—equivalent to one in five jobs—potentially exposed to the technology.

However, the findings challenge widespread fears of mass unemployment, suggesting instead that the primary impact of GenAI will be the transformation of tasks within existing roles rather than large-scale job displacement.

Transformation, Not Replacement

The ILO brief, "Generative AI and Jobs in Viet Nam: Labour Market Exposure and Policy Considerations," highlights that only a relatively small segment of the workforce faces a high risk of full automation.

Approximately one million workers—less than two per cent of total employment—are in roles where tasks are both highly susceptible to GenAI and sufficiently routine to be fully automated. This proportion is notably lower than in regional peers such as Indonesia, the Philippines, and Thailand.

The report suggests that GenAI will more likely augment human work, improving efficiency and productivity, rather than replacing workers outright.

Uneven Impact Across Sectors and Cities

Exposure to GenAI is not evenly distributed across Viet Nam's labour market. Clerical support workers are the most vulnerable, with nearly two-thirds employed in occupations highly susceptible to automation of routine, documentation-heavy tasks.

Key sectors with the highest exposure include:

• Financial and insurance services

• Wholesale and retail trade

• Information and communication

Geographically, the impact is concentrated in major urban centres. Workers in Ha Noi, Ho Chi Minh City, and Da Nang together account for more than one-third of all potentially affected jobs, reflecting the concentration of service-sector employment in these cities.

Gender Gap Raises Equity Concerns

One of the most striking findings of the report is the gender disparity in exposure to GenAI.

Women face a significantly higher exposure rate at 24.1 per cent, compared to 17.8 per cent for men. Even after adjusting for factors such as education and occupation, women remain disproportionately affected.

This gap is largely driven by the concentration of women in clerical, administrative, and service roles—jobs that rely heavily on standardized processes and documentation, making them more susceptible to AI-driven task automation.

The implications are complex. In sectors such as sales—where women represent around two-thirds of the workforce—GenAI could enhance productivity and improve job quality. However, in routine clerical roles, the risk of task displacement is more pronounced, potentially affecting a segment of employment that has traditionally offered stability and formal working conditions for women.

Labour Market Remains Resilient

Despite growing global concerns about AI-driven job losses, the report finds no clear evidence of declining employment opportunities in highly exposed sectors in Viet Nam between 2022 and 2024.

On the contrary, employment in service industries with high GenAI exposure has continued to expand, indicating that labour demand remains strong as AI adoption is still in its early stages.

This trend suggests that the integration of GenAI is currently complementing rather than displacing human labour, offering a window of opportunity for policymakers to shape its long-term impact.

Policy Roadmap for a Fair Transition

The ILO is calling for coordinated, forward-looking action to ensure that the benefits of GenAI are widely shared while mitigating potential risks.

Key policy priorities include:

• Strengthening AI governance frameworks and institutional capacity, with a focus on gender equality and non-discrimination

• Enhancing labour market data systems to monitor evolving impacts of AI

• Promoting responsible AI adoption through workplace-level social dialogue

• Supporting small and medium enterprises (SMEs) to balance productivity gains with decent work standards

• Investing in skills development and active labour market programmes, particularly for vulnerable and highly exposed groups

ILO Country Director for Viet Nam, Sinwon Park, emphasised the urgency of proactive policymaking.

"Viet Nam has a significant opportunity to harness generative AI as a driver of productivity and decent work. However, the benefits and risks will not be evenly distributed, with women facing higher levels of exposure than men," she said.

"Getting this transition right requires deliberate action now—reinforcing AI governance in line with labour standards, investing in people's skills, ensuring workers have a voice in how AI is introduced, and putting in place protections to ensure technological change is fair and inclusive."

A Defining Moment for Viet Nam's Digital Future

As Viet Nam accelerates its digital transformation agenda, the report underscores a critical moment for shaping the future of work. With the right mix of policies, investments, and social dialogue, GenAI could become a powerful tool for economic growth and improved job quality.

But without careful planning, existing inequalities—particularly gender disparities—risk being deepened.

The challenge now lies in ensuring that technological progress translates into inclusive and sustainable development, leaving no worker behind.