AWS targets Vietnam for 2024 expansion

Eric Yeo, country manager for AWS Vietnam

AWS is amplifying its efforts in Vietnam, underlining a strategic mission to facilitate cloud adoption and spur digital transformation across the ASEAN region.

Since inaugurating its legal entities in Ho Chi Minh City in 2017 and Hanoi in 2019, AWS has been a cornerstone for major Vietnamese corporations such as Masan Group and VietJet Air, pioneering the use of cloud services.

Central to AWS's strategy is to invest heavily in three key areas including nurturing local talent, expanding infrastructure, and enhancing skills development.

By cultivating a technically adept local team, AWS stands out in the Vietnamese market, appealing notably to financial giants like VIB, Techcombank, and VPBank. This move is crucial in fast-tracking the digital transition for AWS' clients.

The commitment extends to infrastructure development, with AWS injecting tens of billions of dollars into the Asia Pacific, evidenced by the deployment of AWS Outposts in 2021, establishment of two edge locations in 2022, and the plan to announce a Local Zone, all aimed at strengthening Vietnamese businesses' digital capabilities.

According to Eric Yeo, country manager for AWS Vietnam, the company has been proactive in skills and talent development, launching extensive training and certification programmes in Vietnamese, laying the foundation for the digital transformation journeys of local businesses and professionals.

AWS’ vision for Generative AI and culturally nuanced solutions

Looking to the future, AWS is setting its sights on deepening investments in local talents, infrastructure, and skill-building initiatives, throughout 2024.

“We plan to refine industry-specific support, emphasising sectors like FSI, telecommunications, oil and gas, retail, CPG and manufacturing, to offer services that resonate with local and industry-specific needs,” Yeo said.

Additionally, AWS is poised to significantly invest in generative AI, data analytics, and application modernisation, acknowledging the potential for Vietnam's cloud services market to reach $1.4 billion by 2027.

Moreover, according to Dr. Werner Vogels, CTO at Amazon, AI-powered coding assistants will revolutionise software development, enhancing productivity and fostering innovation among Vietnamese developers and beyond.

This technological advancement, along with AWS's strategic investments, positions the company as a catalyst for Vietnam's ongoing digital and cloud computing evolution, promising a future where technology accelerates business growth and becomes more ingrained in everyday life.

AWS also believes that Femtech, or technology that improves women's lives, is marking a significant culture shift.

"We're witnessing a notable change, where investments and innovations, such as subscription-based birth control deliveries and disposable menstrual cups, are making significant strides in Japan and beyond," said Yeo. “This surge in Femtech enhances the lives of women and elevates the entire healthcare system.”

As technological advances reshape the workforce, the company also anticipates a pivotal shift in higher education to match this rapid pace.

"The era where a college degree guaranteed career success is breaking down," Yeo said.

This evolution is mirrored in collaborations between platforms like Coursera, emphasising the need for continuous learning to close the skill gap between education and industry requirements.

Laura Nguyen, co-founder of Arcanic AI

AWS has contributed to this shift by training 21 million tech learners worldwide in areas like cloud computing and robotics, embodying the principle of “learn and be curious.”

"Our approach validates the necessity for individuals and businesses to adapt continually," he added.

Furthermore, AWS predicts generative AI's progression towards cultural sensitivity.

"Generative AI must develop an understanding of cultural nuances," Yeo said, noting the current Western-centric models. This development aims to make AI more relatable and effective globally.

This vision is brought to life by Arcanic AI, a Vietnamese startup using Amazon SageMaker to create culturally nuanced AI solutions.

"Arcanic AI exemplifies our commitment to innovation that respects local contexts," Yeo said.

Laura Nguyen, co-founder of Arcanic AI said, "Utilising AWS's infrastructure, we've developed an AI platform that's uniquely tailored to the Vietnamese market."

This collaboration underscores AWS's commitment to supporting startups in harnessing the potential of Gen AI to address specific market needs effectively.

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