Vietnam stands out in human development amid global slowdown: UNDP

By Vietnam News Agency
Tue, May 13, 2025 | 3:26 pm GMT+7

As the world enters the age of artificial intelligence (AI), Vietnam continues to maintain a strong standing in human development, defying a global slowdown, according to the United Nations Development Programme's (UNDP) 2025 Human Development Report.

Children at a kindergarten in Vietnam. Photo courtesy of Apple Pie.

Children at a kindergarten in Vietnam. Photo courtesy of Apple Pie.

The Human Development Index (HDI) is a composite indicator that measures a country's progress in health, education, and material well-being.

According to the report, released on Monday in Hanoi, Vietnam remains in the High Human Development category, with an HDI score of 0.766 in 2023, ranking 93rd out of 193 countries and territories.

Since 1990, Vietnam's HDI has surged by 53.5%, one of the most impressive increases in East Asia and the Pacific.

“This is a remarkable achievement that reflects Vietnam’s sustained investment in health, education, and income growth,” said Ramla Khalidi, UNDP Resident Representative in Vietnam.

“It demonstrates the country's long-term commitment to inclusive development.”

However, the report warns that development progress is not evenly distributed. When adjusted for inequality, Vietnam’s HDI drops to 0.641, reflecting a 16.3% loss due to unequal access to healthcare, education and income.

Within the country, disparities are evident. Hanoi and Ho Chi Minh City posted the highest HDI scores at 0.799 and 0.795, respectively. In contrast, mountainous provinces such as Lai Chau and Ha Giang recorded HDI scores below 0.6.

At the global level, the report delivers a sobering message. The projected increase in global HDI for 2024 is the lowest since 1990, excluding the crisis years of 2020-2021, threatening progress toward achieving very high human development by 2030.

“This deceleration signals a very real threat to global progress,” warned Achim Steiner, UNDP administrator.

“If 2024’s sluggish growth becomes the new normal, the world will become more divided, more fragile, and less resilient.”

For the fourth consecutive year, the gap between high and low HDI countries has widened, driven by rising debt burdens, trade tensions, and a form of industrialisation that fails to generate enough decent jobs.

AI for human development

Amid these challenges, the report identifies AI as both a transformative opportunity and a potential risk, especially in countries like Việt Nam, where digital transformation is advancing rapidly.

“The country’s digital transformation is accelerating. Its development vision is bold. And AI is now at the heart of national debates on Việt Nam’s future,” Khalidi added.

She pointed to key policy commitments, including Decision 127, Resolution 57, and Prime Minister Phạm Minh Chính’s pledge to train 100,000 AI engineers, as indicators of the country’s forward-looking approach.

“This is a bold move and the Prime Minister’s message that AI must be safe, ethical, and inclusive sets the right tone for the region,” she said.

Still, the report warns of an emerging global “AI equity gap,” especially in developing countries, that could exacerbate existing inequalities if left unaddressed.

“Việt Nam must act now to avoid falling into that gap,” Khalidi emphasised.

A global survey released alongside the report reflects growing optimism about AI. While 50 per cent of respondents worry their current jobs could be automated, 60 per cent believe AI will create new job opportunities. Only 13 per cent fear job losses.

Among respondents in low- and middle-HDI countries (groups with which Việt Nam shares many socio-economic characteristics ), 70 per cent expect AI to increase their productivity, and two-thirds anticipate using AI in education, healthcare or work within the next year.

Vũ Thị Thanh from the Institute for Human, Family and Gender Studies, noted that women, the elderly, ethnic people and those with disabilities are among the most vulnerable to being left behind in a digital society. Closing the digital divide and promoting digital inclusion are urgent priorities to ensure that science, technology and AI contribute meaningfully to human development.

As AI reshapes economies and institutions, the report calls for the Government to centre people in all innovation strategies. It outlines three urgent policy priorities, including building economies where people work with AI, not against it; ensuring human agency throughout the AI lifecycle, from design to deployment; and modernising education and healthcare systems to meet the demands of the 21st century.

For Việt Nam, the positive signals from its HDI performance and the public’s openness to AI highlight an urgent need to build inclusive digital infrastructure that ensures equitable access to electricity, the Internet, digital devices, and AI-related skills for all citizens.

Without such measures, the digital divide could quickly evolve into a broader human development gap, especially in rural, mountainous, and ethnic minority areas.

Comments (0)
  • Read More
Vietnam’s army-backed construction firm proposes 14 offshore wind power projects

Vietnam’s army-backed construction firm proposes 14 offshore wind power projects

Lung Lo Construction Corporation (LLC), under the Ministry of National Defense, has submitted investment proposals for 14 offshore wind power projects with a combined capacity of 9,000 MW.

Energy - Thu, August 7, 2025 | 5:07 pm GMT+7

Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure

Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure

Vietnam's agri major Hoang Anh Gia Lai JSC has been fined VND92.5 million ($3,528) for failing to disclose bond-related information as required by law.

Companies - Thu, August 7, 2025 | 4:31 pm GMT+7

Northern Vietnam province accelerates $2.2 bln LNG-to-power project

Northern Vietnam province accelerates $2.2 bln LNG-to-power project

Quang Ninh province will hand over 4.9 hectares of reclaimed land to the Quang Ninh LNG-fuelled power plant project before August 11, local authorities stated at a meeting on Wednesday.

Energy - Thu, August 7, 2025 | 4:17 pm GMT+7

Vietnam's seafood firms ride profit wave ahead of US tariff hike

Vietnam's seafood firms ride profit wave ahead of US tariff hike

Vietnam’s seafood companies reported surging profits in Q2/2025, driven by importers ramping up purchases ahead of new U.S. reciprocal tariffs.

Economy - Thu, August 7, 2025 | 2:21 pm GMT+7

Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC

Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC

Dragon Capital Group, Vietnam's largest asset manager, has appointed Le Anh Tuan as CEO of its arm Dragon Capital Vietfund Management Joint Stock Company (DCVFM), starting from October 1, 2025.

Companies - Thu, August 7, 2025 | 2:01 pm GMT+7

Indonesia, Malaysia, Thailand expand local currency transaction network

Indonesia, Malaysia, Thailand expand local currency transaction network

Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand have added new Appointed Cross Currency Dealer (ACCD) participating banks to broaden services for bilateral transactions in local currencies across the three nations, Bank Indonesia said in a statement on Tuesday.

Southeast Asia - Thu, August 7, 2025 | 12:48 pm GMT+7

ASEAN to sign MoU on regional power grid implementation

ASEAN to sign MoU on regional power grid implementation

ASEAN member states are set to sign an MoU on the implementation of the ASEAN Power Grid during the bloc’s Energy Ministers’ Meeting this October.

Southeast Asia - Thu, August 7, 2025 | 12:43 pm GMT+7

Vietnam overtakes Thailand to become world's second-largest rice exporter

Vietnam overtakes Thailand to become world's second-largest rice exporter

Vietnam has outranked Thailand as the world’s second-largest rice exporter in the first half of 2025, Thai PBS reported on August 3, citing the Thai Rice Exporters Association.

Companies - Thu, August 7, 2025 | 12:41 pm GMT+7

Vietnam posts trade surplus of $10.18 bln in 7 months

Vietnam posts trade surplus of $10.18 bln in 7 months

Vietnam’s export earnings grew by 14.8% to $262.44 billion in the first seven months of this year, while its import turnover rose by 17.9% to $252.26 billion, resulting in a trade surplus of $10.18 billion.

Economy - Thu, August 7, 2025 | 12:19 pm GMT+7

Malaysia pledges big purchases, investments with US

Malaysia pledges big purchases, investments with US

Malaysia has agreed to buy and invest over $240 billion (MYR1.02 trillion) in the U.S. to help reduce the trade gap between the two countries.

Southeast Asia - Thu, August 7, 2025 | 12:08 pm GMT+7

Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt

Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt

Novaland, a major real estate developer in Vietnam, plans to issue nearly 152 million new shares to swap more than VND6 trillion ($228.8 million) worth of bond principal.

Companies - Thu, August 7, 2025 | 10:11 am GMT+7

Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil

Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil

Disbursed foreign direct investment (FDI) capital in Vietnam reached $13.6 billion in Jan-July, up 8.4% year-on-year, despite U.S. tariff concerns.

Economy - Thu, August 7, 2025 | 9:57 am GMT+7

Malaysia steps up efforts to explore nuclear energy potential

Malaysia steps up efforts to explore nuclear energy potential

Malaysia’s Minister of Science, Technology and Innovation Chang Lih Kang on Wednesday reaffirmed his ministry’s commitment to enhancing cooperation with the Ministry of Energy Transition and Water Transformation (PETRA) in exploring the potential of nuclear energy.

Southeast Asia - Thu, August 7, 2025 | 8:10 am GMT+7

Indonesia's economy grows faster than expected

Indonesia's economy grows faster than expected

Indonesia's economy expanded by 5.12% year-on-year in Q2/2025, up from 4.87% in the previous quarter, exceeding the forecasts of many economic organizations, which had previously projected a rate of less than 5%, according to Statistics Indonesia (BPS).

Southeast Asia - Thu, August 7, 2025 | 8:07 am GMT+7

Philippine energy group eyes investment in Vietnam’s power sector

Philippine energy group eyes investment in Vietnam’s power sector

AboitizPower wants to invest in Vietnam’s electricity industry, especially in transmission infrastructure, said Danel Aboitiz, executive director of the corporation.

Energy - Wed, August 6, 2025 | 11:11 pm GMT+7

Vietnam seeks 8.3-8.5% economic expansion for 2025

Vietnam seeks 8.3-8.5% economic expansion for 2025

The Government has requested the State Bank of Vietnam to proactively adjust the credit growth aim for this year in line with a GDP expansion target of 8.3-8.5%.

Economy - Wed, August 6, 2025 | 10:41 pm GMT+7