According to Mr. An Ngoc Thao, Deputy Secretary General of Vinasa, AI can help Vietnamese IT businesses upgrade from vendors to partners with international clients.
The recent development of AI raises questions about the fate of the software and IT services sector – which accounts for a high proportion of major technology companies in Vietnam. Following the annual meeting of members, held at the end of March, Mr. An Ngoc Thao, Deputy Secretary General of the Vietnam Software and IT Services Association (Vinasa), shared real-world stories from domestic software companies and discussed development directions and new human resource requirements in the field.
Mr. An Ngoc Thao, Deputy Secretary General of the Vietnam Software and IT Services Association. Photo: Tuan Bui
AI can perform a large portion of programming tasks, raising concerns that it will replace engineers and even impact IT businesses. Based on your interactions with many domestic businesses, what is your assessment of this reality?
This perception largely stems from hearing about cases around the world where AI can write code, or where AI agents automatically perform certain processes instead of programmers. While this is true, it doesn't fully reflect the picture.
Since the beginning of 2026, the Association has worked with many Vietnamese technology companies of various sizes. The general sentiment is that most are embracing new technologies and are not overly concerned about "AI taking jobs," simply because their job needs are increasing rapidly. A survey by Vinasa of nearly 160 businesses shows that industry-wide revenue growth is strong, commonly at 20-30%, with many reaching 40-50%, and only 9 businesses reporting a decline.
Companies aren't downsizing either. On the contrary, as software becomes smarter thanks to AI, the demand for system upgrades from customers, especially in the global market, is increasing sharply. A programmer who knows how to use AI can work 3-5 times more efficiently than before, meaning that the opportunities for them are also greater.
The pressure businesses face now is not to cut staff, but to enhance their capabilities to meet the increasing demand in the context of more widespread AI applications.
AI programming poses a risk of "job poaching" for IT businesses, yet he believes the opportunities are growing. Could you elaborate?
Let me share a real-life case. There was a large project, previously estimated to take 10 years to complete, but the partner refused to sign because it exceeded their term. However, when AI was applied, the Vietnamese company announced that it would shorten the timeline to just months. Subsequently, the project was signed.
The above story shows that AI doesn't cause customers to abandon technology partners; on the contrary, they need partners who know how to use AI to solve bigger problems faster. Vietnamese technology companies don't view AI as a threat, but rather as a real leverage.
This, in my opinion, can be explained by the "Jevons paradox": when technology increases efficiency, demand also increases. AI drastically reduces the cost and time of software development, thereby driving digital transformation and the application of technology on a larger scale. Gartner forecasts global IT spending to reach $6.15 trillion in 2026, a 10.8% increase, with IT services experiencing double-digit growth.
To clearly see the future of Vietnam's IT sector, let's look at the world's leading IT outsourcing companies. Revenue from AI is no longer just "potential" but has become a huge, tangible figure. For example, Tata Consultancy Services recorded revenue of between $1.5 billion and $1.8 billion directly from AI services. Similarly, Infosys reported that AI is involved in many projects and contributes up to 5.5% of their total revenue. A clear trend has emerged: AI is becoming an essential foundation in large-scale digital transformation contracts.
Previously, IT service revenue primarily came from maintaining legacy systems or a time-based pricing model based on the number of personnel. Now, however, there's a strong shift in funding towards services with higher intellectual content. The largest contracts are now focused on building AI platforms, data cleaning, and system modernization. Thanks to their ability to solve these complex problems, IT companies can move to a "pay-per-results" model, yielding significantly higher profit margins. Some Vietnamese companies, such as FPT, report revenue from AI services growing by up to 40% in the past year.
So, are many businesses actually laying off employees because of AI?
We can read a lot of news about layoffs "because of AI" around the world. But we need to look closely at the real reasons and also see if they are recruiting for other positions.
In reality, based on my experience in the industry, I haven't seen Vietnamese IT companies choose to lay off staff to optimize costs. Instead, they are "restructuring value." This means they are using AI to handle manual tasks, freeing up programmers to focus on areas AI can't yet reach: system architecture design, providing in-depth business solution consulting to clients, and integrating complex AI models. We are shifting from selling "cheap labor" to selling "the capacity to co-create products."
Imagine AI-generated code as the "bricks." Building a complete software system still requires "architects"—individuals who understand the problem, the industry, and the ability to connect multiple systems. This is precisely the advantage of Vietnamese engineers in this new era.
In Vietnam's information technology sector, we are witnessing a shortage of positions such as AI systems development engineers, machine learning model operators, AI integration engineers, data architects, and AI security specialists.
According to statistics from the Ministry of Science and Technology, Vietnam currently has 74,000 businesses operating in the information technology sector with over 1.2 million employees. This number is projected to increase to three million by 2030, as Vietnam's digital economy is expected to reach a value of $74 billion. More broadly, AI is not reducing overall job demand but rather redistributing it. The World Economic Forum predicts that AI could eliminate 92 million jobs but simultaneously create 170 million new jobs by 2030.
This shows that the issue isn't "whether or not there's a job," but whether the skills are still relevant in a rapidly changing market.
He talked about the opportunities for IT businesses with AI, but what about the challenges?
The biggest challenge lies with businesses clinging to traditional IT service delivery models, specifically those charging based on time and number of people (Time & Material). Highly repetitive tasks such as BPO, testing, or basic programming are under immense pressure due to the overwhelming automation capabilities of AI. However, opportunities are emerging at a higher level, where customers are willing to pay higher fees for providers who can demonstrate the ability to coordinate and manage complex AI models.
Let's take the manufacturing industry as an example. In a traditional outsourcing model, a client sends a detailed design requesting a basic warehouse management software. A Vietnamese company gathers 10-20 engineers and spends six months diligently writing code. Once the code is complete, they deliver it and receive hourly wages per person. They are only at Tier 1 – Implementation – and do not possess the knowledge, processes, or any valuable core technology.
Now, customers have factory hardware systems but don't know how to make them "smart." Vietnamese IT companies bring in architects, AI, and design and deploy a system connected to cameras and IoT sensors in the factory. The system automatically detects product defects in real time, automatically schedules machine maintenance, and coordinates the supply chain. They then act as the integrator and the digital brain, not just receiving payment but progressing to Levels 3 and 4 on the value ladder: Mastering specialized technology solutions such as production management, co-creating and holding knowledge, assets, and intellectual property together with customers.
We don't compete on cheap labor costs, but on our understanding of business processes and our ability to master core technologies. Many Vietnamese companies are already implementing solutions like this for smart factories.
From the Association's perspective, we see AI as a "fatal challenge" to the low-cost IT outsourcing model, but also a "golden opportunity" for Vietnam's IT industry to shed its vendor status and become a co-innovation partner.
Engineers at a Vietnamese technology company. Photo: Le Nga
Based on your observations, how have Vietnamese businesses changed their IT recruitment trends in the era of AI?
The most noticeable change is the rapid shift away from basic execution roles. Jobs like simple programming and manual testing are declining, while demand for positions such as AI engineers, data specialists, and systems integration engineers is surging.
In Vietnam, the supply-demand imbalance is quite pronounced. Currently, there are approximately 15,000 AI-related positions available, but only around 8,000 candidates meet the requirements. It is predicted that in the next few years, the growth rate of demand for AI engineers will far exceed the growth rate of traditional programmer positions.
One notable point is that the competition for talent is no longer limited to the technology sector. More than 40% of businesses in sectors such as banking, manufacturing, and retail have also incorporated AI into their strategies, meaning they are also competing to recruit technology professionals to build their internal teams. The recruitment market has therefore expanded significantly compared to before.
The way candidates are evaluated is also changing. With machines now capable of writing code correctly, businesses no longer place as much emphasis on testing rote memorization. Instead, they prioritize three factors: problem-solving ability, business understanding, and the ability to use AI tools to improve work efficiency. Studies show that mastering AI and digital skills are becoming more important than ever.
Overall, AI doesn't reduce the demand for IT personnel, but rather redefines the standards of an engineer. Those who only focus on "execution" will face immense pressure, while those who leverage AI will have more opportunities. AI doesn't take programmers' jobs; it simply replaces programmers who refuse to use AI.
In a context where AI can replace, but also elevate, IT professionals, what should industry personnel do to adapt?
Both trends are unfolding simultaneously. AI is primarily causing job losses, impacting those unwilling to adapt. Conversely, for engineers who are open to learning and mastering AI, this is an unprecedented opportunity for their value to increase.
Essentially, AI is a tool for processing and predicting based on past data. It lacks intuition, intrinsic motivation, and empathy. Therefore, there are certain skill sets that AI can hardly replace.
First is the ability to understand business processes and localize solutions. AI can create standard models, but it doesn't understand the very specific characteristics of how businesses operate or local markets. This is a crucial factor for a technology product to truly "survive".
Secondly, there's the architectural thinking and system integration aspect. AI can write individual code snippets, but designing a complete system that ensures security and connectivity across multiple platforms still requires human input. This is also a crucial direction for Vietnam's IT industry.
Thirdly, there's the ability to work in a global business environment, including cultural understanding, communication, and building trust with partners. These factors play a huge role in technology projects, but are beyond the capabilities of AI.
Finally, there's the ability to manage people and emotional intelligence. Digital transformation is essentially the transformation of people, and leading teams, resolving conflicts, or guiding development are things that machines cannot replace.
Therefore, the important thing for IT professionals is not to compete with AI, but to learn how to work with AI, while simultaneously developing higher-level capabilities where human value becomes paramount.
Given these requirements, what skills do IT professionals, especially students about to enter this field, need to prepare?
The most important thing is to understand the underlying principles, rather than just learning how to use them. AI tools like Copilot or ChatGPT change very quickly; if you stop at simply using them proficiently or writing good prompts, you'll soon be left behind. A solid foundation remains applied mathematics, data structures, algorithms, and system architecture.
I often say that IT today is like a "second language," a fundamental skill, no longer a unique advantage. An engineer who only knows how to code is easily replaced. Conversely, someone who is both proficient in technology and has a deep understanding of another field such as finance, manufacturing, or logistics will be highly valuable, because they stand at the "integration layer," connecting technology to real-world problems.
In addition to specialized knowledge, skills such as problem-solving, communication, teamwork, and lifelong learning are becoming increasingly important. As AI takes over much of the logic-based work, humans need to develop stronger critical thinking, empathy, and adaptability.
In short, studying IT today is not just about learning to write code, but about preparing to work in a world where technology is constantly changing.
Luu Quy,
According to Vnexpress