AI Set to Contribute up to US$130B to the Vietnamese Economy by 2040

The artificial intelligence (AI) economy in Vietnam is projected to reach between US$120 billion and 130 billion by 2040. This remarkable growth attributed to a significant boost in productivity and a surge in consumption-driven revenue, according a new report by the Vietnam National Innovation Centre (NIC), the Japan International Cooperation Agency (JICA), and Boston Consulting [...]..

The launch arrives as Singapore-based enterprises accelerate their AI adoption, with the market projected to expand significantly over the next three years. The report underscores how the capital intensity of AI is reshaping cost structures and headcount decisions across the technology sector.

This development comes at a time when Singapore is doubling down on its AI ambitions, with significant investments in compute infrastructure, talent development, and cross-border collaboration. For enterprises in the city-state, the practical question is how quickly these changes translate into new capabilities, cost structures, and competitive dynamics.

Singapore's AI ecosystem continues to grow as the city-state positions itself as a leading hub for artificial intelligence innovation in Southeast Asia. Local players — from government agencies to startups and established enterprises — are watching closely, because moves like this tend to reshape expectations across the entire ecosystem rather than in isolation.

Why it matters for Singapore: For Singapore's tech ecosystem, every new tool release represents an opportunity to build, innovate, and compete on a global stage. The city-state's infrastructure and business environment make it an ideal testing ground for AI products targeting Asian markets.