In the high-octane world of technology, where hype cycles often outpace actual utility, Le Hong Minh, the visionary founder and CEO of VNG —Vietnam's first tech 'unicorn'— offers a grounding perspective. In a recent discourse that has resonated across the industry, Minh argued that while Artificial Intelligence (AI) dominates every boardroom conversation, its substantive integration into the global economy is still in its infancy. For Minh, we are not at the peak of the AI era, but rather at 'Year Zero' of a transformation that will span decades.
From Spectacle to Substantial Utility
Minh’s analysis centers on a vital distinction: the difference between 'demonstrative potential' and 'operational value.' Over the past two years, the world has been captivated by Large Language Models (LLMs) like ChatGPT. However, the transition from an impressive chatbot to an infrastructure that restructures entire production sectors is a process that requires time, massive capital, and, most importantly, a fundamental shift in organizational mindset. Minh likens the current state of AI to the early days of the internet in the mid-1990s. Back then, everyone knew the web would change the world, but few could accurately predict the rise of social media conglomerates or the platform economy.
According to the VNG chief, the current phase is characterized by intense experimentation. Companies are grappling with where AI can deliver genuine Return on Investment (ROI) beyond simple customer service automation. The challenge is no longer just accessing the technology—as open-source models have democratized knowledge—but rather the ability of organizations to fuel these models with high-quality, localized data that produces specialized solutions.
The Strategic Imperative of Localization
One of the most compelling points in Minh’s argument concerns the need for 'data sovereignty' and locally adapted models. While American giants like OpenAI and Google lead the race, there is a significant void in understanding local nuances, linguistic idioms, and regulatory frameworks in regions like Southeast Asia or Southern Europe. VNG is systematically investing in developing models that comprehend the Vietnamese language and culture in ways that global models simply cannot.
This approach has direct parallels with the European reality. Countries with smaller linguistic footprints face the risk of 'digital colonialism' if they rely exclusively on foreign models. Minh emphasizes that the true use of AI begins when the technology becomes 'invisible' and perfectly aligned with the needs of the local user—whether it’s a farmer in the Mekong Delta or a financial analyst in Athens. For AI to be effective, it must speak the language of the people it serves, not just literally, but culturally and contextually.
Infrastructure and the Cost of Innovation
Moving from rhetoric to reality requires substantial physical infrastructure. VNG has made significant strides in investing in GPU clusters, which serve as the 'fuel' for AI development. Minh points out that the barrier to entry is now exceptionally high, creating a new divide between companies that possess the raw computational power and those that merely consume services from the former. However, he warns that hoarding hardware without a clear application strategy is a recipe for financial disaster.
The future, according to Minh, belongs to 'AI-first' companies that won't just slap an AI plugin onto their existing products but will redesign their services from the ground up with machine intelligence as the core logic. This implies radical shifts in how financial systems, healthcare, and education function. His statement that 'use is only just beginning' is a call for long-term thinking and patience in an era obsessed with quarterly returns and quick wins.
Implications for the Global Tech Ecosystem
Le Hong Minh’s perspective highlights a critical truth: AI is not just another 'feature'; it is a new operating system for civilization. Success will not be judged by who releases the flashiest demo, but by who successfully embeds this technology into the most mundane yet essential functions of society. Vietnam, through VNG, aspires to be a blueprint for how an emerging economy can play a leading role in the AI era by avoiding the traps of passive consumption and investing in indigenous value production. As we move forward, the focus must shift from what AI *can* do to what AI *is* doing to solve real-world problems.
- AI is currently in an experimental phase, reminiscent of the 1995 internet era.
- Localizing models is the key to capturing and dominating regional markets.
- GPU infrastructure is a necessary but insufficient condition for success without strategy.
- The real revolution occurs when AI becomes an invisible utility in daily life.
- Emerging markets must prioritize data sovereignty to avoid digital dependency.
