NVIDIA, a global leader in AI computing, has shown significant interest in Vietnam, reflecting the country’s economic potential and proactive technology development strategy. Alongside other tech giants expanding into Southeast Asia, NVIDIA's initiatives mark a transformative shift for Vietnam’s tech sector.
NVIDIA’s Commitment to Vietnam’s AI Ecosystem
On December 5, 2024, NVIDIA signed a Memorandum of Understanding (MOU) with the Ministry of Planning and Investment to establish two major AI centers: the Vietnam Research and Development Center (VRDC) and an AI Data Center. This partnership aims to drive technological breakthroughs, enhance infrastructure, and develop Vietnam’s AI talent pool.
NVIDIA’s commitment was further demonstrated by the acquisition of VinBrain, a Vingroup subsidiary specializing in AI-integrated medical solutions. VinBrain’s DrAid, an AI-powered diagnostic tool, is already in use in major hospitals domestically and internationally. This acquisition highlights the integration of AI in Vietnam’s healthcare sector.
In April 2024, NVIDIA also partnered with FPT Corporation to create a $200 million AI factory in Hanoi, focusing on AI-driven solutions and education programs for 30,000 students. The first AI factory began operations in November 2024, with profitability expected by 2025.
NVIDIA’s collaboration with GreenNode, a subsidiary of VNG Corporation, is another milestone. GreenNode offers AI and GPU services using NVIDIA’s technology, enhancing Vietnam’s AI infrastructure through its data hub in the Tan Thuan Export Processing Zone.
Vietnam’s Strategic Role in the Global Tech Landscape
Vietnam’s AI market is projected to reach $753 million in 2024, with a CAGR of 28.36% through 2030. This growth aligns with the regional pace, demonstrating Vietnam’s ability to compete on a global scale. NVIDIA’s investments play a pivotal role in Vietnam’s transition from low-tier manufacturing to a hub for high-tech innovation.
Several factors contribute to this transformation:
Strategic Geopolitical Advantage: Trade tensions and tariffs during the Trump administration accelerated the shift of tech manufacturing from China to Vietnam. This trend continues, positioning Vietnam as a key player in global supply chain realignment.
Increasing Foreign Direct Investment (FDI): Vietnam is attracting significant investments from major technology firms like NVIDIA, Microsoft, Google, AWS, and OpenAI. These investments bolster Vietnam’s infrastructure in AI, cloud computing, and data centers.
Young, Skilled Workforce: Vietnam boasts over 5,000 engineers and 7,000 AI experts, supported by a literacy rate of 96.6%. The country’s average wage remains competitive, making it an attractive destination for high-tech manufacturing and innovation.
Government Support: Proactive policies, strategic trade agreements, and initiatives promoting innovation-friendly environments create fertile ground for AI and tech investments.
NVIDIA’s investments in Vietnam—through AI research hubs, strategic partnerships, and acquisitions—are pivotal in transforming the country into a regional AI innovation hub. Combined with Vietnam’s youthful workforce, thriving startup ecosystem, and supportive government policies, these developments offer a solid foundation for long-term technological growth.
As Vietnam continues to evolve, the convergence of foreign investment, strategic geographical positioning, and technological talent sets the stage for a promising future in the global AI and high-tech sectors.