>> Partnership with NVIDIA, catalyst for Vietnam’s technological growth
>>Vietnam strives to boost semiconductor industry growth
>> Develop the semiconductor industry by “standing on the shoulders of giants”
>> Vietnam’s ambitious vision for the semiconductor industry
>> Policy perspectives for the development of the semiconductor sector
| Le Premier ministre Pham Minh Chinh (2e right) and Nvidia founder and CEO Jensen Huang (2e on the left), attended the signing of a cooperation agreement on December 5. |
| Photo : VNA/CVN |
A recent agreement between Vietnam and US chipmaker Nvidia to establish an AI research and development center in the country marks a significant step forward in Vietnam’s plan to transform itself into a regional technology hub. The deal will involve the expansion of an AI data center owned by Vietnamese military group Viettel, which already uses Nvidia technology. Nvidia also said it had acquired healthcare startup VinBrain, a unit of leading Vietnamese conglomerate Vingroup.
A lever for technological growth
Among investments in artificial intelligence (AI) and cloud infrastructure in Southeast Asia, the development of Nvidia’s research and development (R&D) center is particularly important as Vietnam transitions from low-cost manufacturing level to connect to global innovation networks. This development will strengthen Vietnam’s position in global supply chains, creating distinct competitive advantages for companies operating in and from Vietnam.
Vietnam is positioning itself as an AI leader in Southeast Asia. According to Statista forecasts, the Vietnamese AI market is expected to generate USD 753.4 million in 2024, with an annual growth of 28.36% over the period 2024-2030. This growth rate, very close to the regional average (28.53%), demonstrates Vietnam’s ability to keep pace with global technological transformation driven by foreign investment.
A study conducted by Oxford Insights (based in the United Kingdom) on AI readiness, which assesses government digital capacity, technological capabilities and data infrastructure, reveals that Vietnam ranks 39e ranked out of 139 countries, rising 19 places compared to last year. In Southeast Asia, Vietnam ranks among the top five nations, with more than 5,000 engineers, 7,000 AI experts and some 500 startups in this sector.
-Vietnam’s technological dynamism can be explained by several factors: a cost-competitive, young and dynamic workforce; the emergence of local technology startups; a strategic geographical position; government efforts to maintain economic growth and a business environment conducive to innovation.
Nvidia’s strategic investment in Vietnam marks a transformative shift in the country’s emergence as Southeast Asia’s future AI innovation hub. The establishment of two AI centers, as well as partnerships with key local players such as VinBrain and FPT Corporation, demonstrate Vietnam’s growing importance in the global AI ecosystem. The convergence of Vietnam’s strategic advantages – including its young and skilled workforce, vibrant startup ecosystem, geographic location and supportive government policies – creates an ideal environment for continued technological advancement and foreign investment.
| In the company Samsung Electronics Vietnam, based in the industrial zone of Yên Phong, province of Bac Ninh (North). |
| Photo : VNA/CVN |
As Vietnam seeks to transition from low-level manufacturing to high-value, innovation-based production, these developments signal a bright future for domestic AI players or international
An environment conducive to innovation
Vietnam has actively prepared conditions for cooperation with US companies and investors in the semiconductor industry supply chain, said Nguyen Chi Dung, Minister of Planning and Investment. “This involves perfecting the one-stop shop mechanism, developing a human resources development project in the semiconductor industry to reach 30,000 engineers by 2030 and establishing the National Innovation Center (NIC) to be ready to receive investment projects with foreign partners”, a indiqué Nguyen Chi Dung.
Head of the Semiconductor Industry Association (SIA) of the United States John Neuffer spoke about cooperative activities between Vietnam and the United States to promote this industry. SIA member companies, many of which are present at this seminar, have significant investments in Vietnam, including Intel, Marvell, Synopsys, Qualcomm, Ampere, Infineon… And many companies are doubling their investments. These investments demonstrate Vietnam’s key and growing role in the global supply chain. “SIA sees incredible opportunities for Vietnam to increase its presence in the global semiconductor supply chain”said John Neuffer.
According to Deputy Minister of Education and Training Nguyen Van Phuc, Vietnam has abundant human resources. Currently, around 200,000 Vietnamese students study abroad. Vietnam has around 40 universities offering training in semiconductor-related fields. If demand increases in the semiconductor chip industry, students will become more interested in it and Vietnam will be able to fully meet human resource needs.
“Vietnam really wants American companies to cooperate closely with universities, develop training programs, support students in their internships and help universities build laboratories,” ajouté Nguyen Van Phuc.
The Linh/CVN
