The opening sentence of Nvidia’s press release about the opening of the Vietnam R&D Center can be seen as a strong testament to Forbes Magazine’s statement more than a year ago: “Vietnam’s AI leadership is blossoming.”

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Mr. Jensen Huang, Chairman of NVIDIA Corporation (holding a sign with the word Vietnam), visited and worked at the National Innovation Center on December 11, 2024. Photo: Minh Chien

Strong commitments from Nvidia and Google in Vietnam

Nvidia, the world leader in AI, has made strong commitments to invest and expand operations in Vietnam. On December 5, the Vietnamese Government and Nvidia signed a cooperation agreement to establish Nvidia's Artificial Intelligence (AI) R&D Center and AI Data Center in Vietnam.

This is an important strategic move for Nvidia, especially in the context of Vietnam gradually becoming a bright spot in the regional AI industry. Nvidia CEO Jensen Huang said the center will “accelerate Vietnam’s AI journey.”

Nvidia also announced the acquisition of VinBrain – Vingroup’s AI startup to start “a major future design center”. Previously, the world’s most valuable semiconductor company joined hands with FPT Corporation to build a $200 million AI factory, providing a cloud computing platform for sovereign AI research and development in Vietnam.

In addition, the company also cooperates with VNG 's GreenNode to provide AI services and software.

Another major technology company, Google, has also pledged to support Vietnam in realizing its ambitions in AI, especially through training human resources and maximizing the benefits of AI in the startup community.

The latest moves from Nvidia and Google show Vietnam's significant economic potential as well as its proactive technology development strategy.

According to Vietnam Briefing Magazine, investments like Nvidia's will contribute to shaping the growth of the technology industry and opportunities for Vietnamese companies amid the development of AI.

“Artificial Intelligence, an extraordinary opportunity for Vietnam”

Nvidia CEO called “artificial intelligence an extraordinary opportunity for Vietnam. The strong encouragement and support of the Government will be a big push to build an AI ecosystem in Vietnam”.

Vietnam is emerging as a prominent player in the Southeast Asian AI landscape. According to research firm Statista, the Vietnamese AI market is forecast to reach US$753.40 million by 2024, with a compound annual growth rate (CAGR) of 28.36% from now until 2030, equivalent to the region’s rate of 28.53%.

This shows that Vietnam can keep up with global technological changes thanks to foreign investment.

According to Google's Economic Impact Report, businesses in six Southeast Asian economies – including Vietnam – could benefit up to 835 billion USD by 2030 if they apply AI products and solutions.

Attracting investment and facilitating innovation in AI will be key to helping Vietnam achieve its goal of the digital economy contributing 30% of GDP by 2030, from 12% in 2023.

Google also commented that if fully utilized, AI has the potential to make Vietnam's ambition of becoming a developed, high-income country by 2045 come true.

Opportunity to become an AI powerhouse

At the meeting between Prime Minister Pham Minh Chinh and Nvidia CEO on December 5, Minister of Planning and Investment Nguyen Chi Dung called the agreement an important milestone for Vietnam to become Asia's leading AI research and development center. The event also demonstrated Vietnam's vision of "catching up, advancing together and surpassing" in the field of AI, an important transitional moment for Vietnam to accelerate digital transformation, entering the "era of national advancement".

According to Oxford Insights' study on AI readiness in 2023, Vietnam ranked 39th out of 139 countries, up 19 places from last year. In Southeast Asia, Vietnam is among the top 5 countries, with more than 5,000 engineers, 7,000 AI experts and about 500 startups in this field.

Some factors that positively impact Vietnam's technological development include: a young, dynamic, competitive workforce with strengths in STEM (science, technology, engineering, mathematics) subjects; investment agreements and startup capital ranking third in Southeast Asia; a strategic geographical location, close to China and India; the Government's efforts to maintain economic growth and an innovation-friendly business environment.

Nvidia's strategic investment marks a landmark shift in positioning Vietnam as a future AI innovation hub in Southeast Asia.

The establishment of two AI centers, along with strategic partnerships with major domestic technology companies, demonstrates Vietnam's increasingly prominent position in the global AI ecosystem.

The convergence of advantages: a young, skilled workforce, a thriving startup ecosystem, location and supportive government policies – creates an ideal environment for continued technological advancement and foreign investment.