Technology eagles rush to nest

According to Tech in Asia, foreign direct investment (FDI) flows in Southeast Asia are changing rapidly, with countries like Vietnam and Indonesia becoming important locations in the international technology ecosystem.

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Nvidia makes strategic investments in Vietnam in artificial intelligence. Illustrative photo.

While Indonesia has largely capitalized on its position as the region’s largest consumer market, Vietnam has also made significant strides in its efforts to move beyond its traditional role as a manufacturing hub.

Vietnam has succeeded in attracting Nvidia to invest in building its third research and development (R&D) center globally (after the US and Taiwan - China); an artificial intelligence (AI) data center; and acquiring VinBrain - an AI startup belonging to Vingroup Corporation.

“Artificial intelligence is an extraordinary opportunity for Vietnam. Vietnam’s strong encouragement and support for this field will be a big boost to building an artificial intelligence ecosystem for Vietnam and Nvidia,” Nvidia CEO Jensen Huang said in a statement.

The AI ​​giant's strong investment in Vietnam not only marks an important step, but also creates a strong ripple effect, attracting the attention of international high-tech investors, especially in the fields of AI and semiconductors.

Nvidia's Research and Development (R&D) Center in Vietnam will play an important role in developing the AI ​​ecosystem, attracting the participation of many companies providing equipment for data centers.

Besides Nvidia, Vietnam is also receiving attention from many of the world's leading technology corporations.

In October, Meta (owner of popular social media platforms such as Facebook and Instagram) announced that it would expand production of its Quest 3S mixed reality headset in Vietnam.

The expansion is expected to create up to 1,000 jobs and contribute millions of dollars to the Vietnamese economy , according to Nick Clegg, the group's chairman of global external affairs.

Not only that, as part of the company's global AI strategy, Meta has tested an AI assistant in Vietnamese for users in Vietnam, before the European region.

“All of this demonstrates Meta's confidence in Vietnam's success,” said a Meta representative.

Last December, it was the turn of technology giant Google to officially announce that it had chosen Vietnam as a strategic destination for investment expansion; accordingly, from 2025, Google Vietnam Company will officially start operating, to support domestic businesses and promote the national digital transformation process.

In addition to the three giants mentioned above, up to now, most of the world's technology "talents" such as Qualcomm, Foxconn, SpaceX, Apple, Lam Research, Qorvo... have been and are carrying out large investment projects in Vietnam, showing that Vietnam is on the way to becoming a regional high-tech center, while enhancing the country's position in the global technology supply chain.

Aspiration to rise

Foreign experts assess that the factors that make Vietnam attractive are very diverse, from a young population, technology savvy, government support policies and strategic geographical location.

The recent influx and increased investment of leading technology corporations such as Nvidia, Meta or Google into Vietnam is not only a sign of a change in global strategy, but also reflects Vietnam's development prospects in the high-tech industry.

This is clear evidence that Vietnam is becoming one of the region's emerging technology hubs.

“Vietnam not only has abundant human resources but is also demonstrating a strong commitment to supporting the development of high-tech enterprises. This is why we chose Vietnam as the next destination for strategic projects,” CEO Jensen Huang assessed.

Meanwhile, Sundar Pichai, CEO of Google, said: “Vietnam has great potential to become a center of technological innovation in Southeast Asia. We are committed to accompanying this country in developing digital infrastructure and training human resources.”

International analysts believe that investment in the digital sector will play an important role in Vietnam's economy in the coming years.

Foreign capital flowing into the technology sector in particular and all sectors in general will support Vietnam's target of economic growth of about 7.5% by 2025.

Meanwhile, Bloomberg commented that the presence of Nvidia, Meta, Google and other technology giants not only brings development opportunities for the technology industry, but also creates a spillover effect to other industries such as manufacturing, logistics and services. According to Bloomberg estimates, investments by Nvidia or Google could contribute an additional 1% to Vietnam's annual GDP in the next decade.

In addition, cooperation with leading technology corporations also helps Vietnam enhance its position in the international arena, expand its ability to cooperate with countries and global organizations, reflecting progress in building a strong technology foundation for the future.