nvidia invests in vietnam, boosting ai development
Hanoi, Friday, 13 December 2024.
NVIDIA has announced the opening of its first research and development center in Vietnam, marking a significant step in its global AI expansion strategy. The new center aims to leverage Vietnam’s growing AI market and its pool of talented STEM engineers. NVIDIA’s collaboration with the Vietnamese government underscores a shared commitment to advance AI technology in the region. The center will focus on software development and foster partnerships with industry leaders, startups, and academic institutions. This initiative is part of NVIDIA’s broader efforts to accelerate AI adoption and innovation, particularly in sectors like healthcare, education, and transportation. Vietnam, with its rapid economic growth and increasing integration of AI, is poised to become a key player in the AI landscape. This move also aligns with Vietnam’s digital transformation strategy, which aims to strengthen the country’s position as a leader in AI research and development.
Strategic acquisitions and partnerships
NVIDIA’s expansion in Vietnam includes several strategic moves beyond the R&D center. The company acquired VinBrain, a healthcare AI specialist, on December 4, 2024 [4], and signed a Memorandum of Understanding with Vietnam’s Ministry of Planning and Investment to establish an additional AI Data Center [2]. In April 2024, NVIDIA formed a $200 million partnership with FPT Corporation to create an AI factory in Hanoi [2]. The factory, which began operations in November 2024 [2], demonstrates NVIDIA’s commitment to developing local AI talent and infrastructure.
Market potential and growth prospects
Vietnam’s AI market shows significant growth potential, projected to reach $753.40 million in 2024 with a compound annual growth rate of 28.36% through 2030 [2]. The country’s strong STEM talent pool includes over 5,000 engineers and 7,000 AI experts [2]. NVIDIA has already established connections with more than 100 Vietnamese AI startups through its Inception program and maintains partnerships with 65 universities across the country [1][5].
Government support and regional impact
Vietnam’s Prime Minister Pham Minh Chinh emphasized innovation as a key element in the country’s development strategy [1][5]. The partnership between NVIDIA and the Vietnamese government aims to position the country as a regional leader in AI development [1]. This expansion gains additional significance as Southeast Asian markets attract increased foreign technology investments, particularly as Washington intensifies restrictions on China’s technology sector [2].