Artificial Intelligence, Skills Mismatch and Inclusive Industrial Transformation: Evidence from Vietnam’s Automotive Sector

Artificial intelligence (AI) and Industry 4.0 technologies are transforming manufacturing systems globally, with significant implications for labour markets in emerging economies. This article examines how AI adoption reshapes employment structures, skills demand, and training effectiveness in the automotive manufacturing sector in Vietnam. Drawing on the frameworks of skill-biased technological change and routine-biased technological change, the study develops an integrated model linking AI adoption to task reconfiguration, skills mismatch, and employment outcomes. Using labour force statistics, the findings show that AI adoption increases demand for high-skilled and hybrid technical workers while reducing demand for others. However, substantial skills mismatches persist, particularly among domestic firms and small and medium-sized enterprises. Training systems play a critical mediating role, with firms investing in workforce development experiencing better productivity and labour retention outcomes. The article argues that, without coordinated policies linking industrial upgrading, skills development, and social protection, AI-driven transformation may exacerbate inequality.