Billion-dollar opportunity from a partnership with NVIDIA.

The government and tech giant NVIDIA have just signed an agreement to cooperate in establishing a research and development center for artificial intelligence (AI) in Vietnam, opening up opportunities for the development of the multi-billion dollar AI technology industry in the coming years.

Prime Minister Pham Minh Chinh worked with Mr. Jensen Huang, founder and CEO of NVIDIA Corporation (USA), and witnessed the signing ceremony of a cooperation agreement between the Vietnamese Government and NVIDIA Corporation - Photo: VNA

Mr. Vo Xuan Hoai, Deputy Director of the National Innovation Center (NIC), made the above statement in an interview with Tuoi Tre newspaper. Mr. Hoai said: "On the surface, NVIDIA's project doesn't seem as cumbersome as the investment projects of Samsung, Amkor, and Intel, but the economic value it will bring in the coming years will be much greater. Much information about the investment cooperation between the Government and NVIDIA has not yet been allowed to be disclosed. Vietnam is the third location where NVIDIA has invested in an AI research and development (R&D) center, after the US where NVIDIA has its headquarters and Taiwan, the homeland of Mr. Jensen Huang."

Part of the production chain has been moved to Vietnam.

* Specifically, what opportunities will NVIDIA's decision to "set up shop" bring to the economy? - NVIDIA is the world's largest semiconductor chip design and manufacturing corporation. The collaboration between the two sides focuses on the highest segment of NVIDIA's supply chain: establishing an AI R&D center in Vietnam. This is the core of the ecosystem. This will attract many businesses providing AI data center equipment to follow suit. This center will act as a magnet, attracting surrounding satellites to invest, such as Supermicro. For a long time, we have attracted global technology giants like Samsung, Intel, Foxconn, etc., to invest, but this has only resulted in attracting factories and production complexes that simply utilize cheap labor, bringing low added value. Attracting NVIDIA to invest in an AI R&D center in our country will bring much greater added value. NVIDIA currently has 27,000 engineers and staff, with a market capitalization of approximately $3.6 trillion, making it the largest in the world. It is expected that in the near future, more than 100 engineers and staff will work at NVIDIA's AI R&D center in Vietnam. The corporation is committed to increasing the number of engineers and staff at the center to over 1,000 within the next five years. NVIDIA highly appreciates the support of the Government and the Prime Minister over the past year. In fact, before deciding to establish an AI R&D center in Vietnam, NVIDIA had already shifted a portion of its multi-billion dollar production value chain to Vietnam. Another noteworthy point is that when investing in Vietnam, NVIDIA did not start from scratch but chose to spend a significant amount of money to acquire a start-up – VinBrain Company – as the basis for establishing NVIDIA's AI R&D center in Vietnam. This shows that NVIDIA has made very sound assessments of the investment potential, bringing great value to both NVIDIA and Vietnam.

8 reasons why NVIDIA chose Vietnam

* According to you, why did many countries like Indonesia and Japan offer NVIDIA significant investment incentives, yet they chose Vietnam to invest in an AI R&D center at this time? - NVIDIA chose Vietnam for the following reasons: Firstly, Vietnam's workforce is young, dynamic, and highly capable of learning STEM (science, technology, engineering, and mathematics). NVIDIA thoroughly researched this before deciding to invest in Vietnam. Furthermore, the cost of hiring high-quality engineers when establishing an AI R&D center in Vietnam is lower than in the US, while maintaining the same quality. Secondly, NVIDIA highly values ​​Vietnam's potential for technological development. Currently, the government is focusing on developing the information technology sector, semiconductor chip manufacturing, and AI technology, and has made significant progress in creating policies to promote innovation, R&D, and the development of high-quality human resources. In fact, over the past few years, several domestic technology unicorns and AI startups have emerged. Thirdly, Vietnam is strategically located in Southeast Asia, close to the world's largest markets, China and India. This makes it easier for NVIDIA to connect with potential markets when investing in Vietnam. Fourthly, there is political and economic stability. In particular, the high-ranking leaders of the Party and State warmly welcomed Mr. Jensen Huang, which instilled greater confidence in the investor. Fifthly, Vietnam's FDI attraction policies have been very effective; in recent years, the National Assembly, the Government, and various ministries have issued many preferential investment policies, especially for high-tech sectors. Sixthly, Vietnam is a relatively large market with a population of 100 million, experiencing strong technological development, and has significant potential for consuming technology products in the future. Seventh, our country's digital infrastructure has initially met the needs of investors, such as internet connectivity, the formation of high-tech zones, national innovation centers, and AI data centers, facilitating the development of AI technology. Eighth, the government's strong determination in developing the digital economy and applying high technology is crucial. It is predicted that in the coming years, AI technology will spread globally, into every corner of society. One of the products we are currently using is GPT chat. Vietnam's cooperation with NVIDIA to promote the development of AI technology is in line with this development trend. It is expected that NVIDIA's AI R&D center will be located at VinBrain's headquarters in Hanoi and Ho Chi Minh City.

* Mr. Vo Xuan Hoai:

Vietnam has the opportunity to take the lead in AI development in Asia.

Among the global tech giants currently investing in Vietnam, only Samsung and NVIDIA have decided to invest in large-scale R&D centers. In the field of AI specifically, NVIDIA is the first corporation to establish an R&D center. This stems from the fact that AI technology development is a new field with great potential, and Vietnam has the opportunity to be a leading country in AI technology development in Asia.

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Source: https://tuoitre.vn/co-hoi-ti-do-tu-hop-tac-voi-nvidia-20241208224537856.htm