nvidia strengthens ai presence with new vietnam r&d center
Hanoi, Friday, 6 December 2024.
NVIDIA is set to expand its global reach in artificial intelligence by opening its first research and development center in Vietnam. This strategic initiative is a testament to NVIDIA’s commitment to leveraging Vietnam’s emerging tech talent. The center will focus on AI software development and is poised to accelerate innovation across various sectors, including healthcare, education, transportation, and finance. By partnering with the Vietnamese government, NVIDIA aligns with the country’s digital transformation strategy, aiming to foster a robust AI ecosystem. This move is not only expected to create job opportunities but also to enhance NVIDIA’s influence in Southeast Asia’s growing tech landscape. With prior collaborations with over 100 AI startups and 65 universities in Vietnam, NVIDIA’s investment highlights its strategic shift to new markets and positions it as a leader in AI innovation in the region.
Market performance and financial impact
NVIDIA’s expansion into Vietnam comes amid exceptional financial performance, with the company reporting a 93.61% year-over-year revenue increase in Q3 2024 [4]. This growth significantly outpaces competitors’ average growth of 37.94% [4]. The company’s net margin reached 55.04% with a remarkable 108.9% surge in net income [4]. These strong financials provide a solid foundation for NVIDIA’s strategic investment in Vietnam’s AI ecosystem.
Strategic partnerships and local ecosystem
The company’s collaboration with FPT Smart Cloud as its first Vietnamese cloud partner in 2023 [1][2] has paved the way for broader initiatives. In April 2024, FPT announced a $200 million AI factory utilizing NVIDIA’s technology [3]. The new R&D center will build upon NVIDIA’s existing partnerships with over 100 AI startups and 65 universities in Vietnam [1][2], strengthening its position in Southeast Asia’s tech landscape.
Government support and future prospects
Vietnam’s Prime Minister Pham Minh Chinh emphasized innovation as a key element in the country’s development strategy [1]. The government has been actively promoting AI development since 2021 [2], creating a supportive environment for NVIDIA’s growth. The partnership aims to harness AI for various sectors, including environmental and energy applications, particularly in solar, wind, and ocean energy development [3].