Nvidia Expands Operations in Vietnam's AI Sector
date
Dec 12, 2024
damn
language
en
status
Published
type
News
image
https://www.ai-damn.com/1733971307167-202010261720420670_6.jpg
slug
nvidia-expands-operations-in-vietnam-s-ai-sector-1733971468997
tags
Nvidia
Vietnam
Artificial Intelligence
Technology Investment
AI Development
summary
Nvidia has announced its entry into Vietnam's burgeoning artificial intelligence market by establishing two AI centers. This move underscores the company's recognition of Vietnam's growth potential in technology and innovation, following partnerships with local firms and significant investments in AI development.
Nvidia Expands Operations in Vietnam's AI Sector
Against the backdrop of a technology boom in East Asia, American artificial intelligence leader Nvidia has recently focused its efforts on Vietnam. This strategic expansion reflects Nvidia's acknowledgment of the Vietnamese government's proactive development policies and highlights the country's significant potential in the economic and technological fields.
On December 5, Nvidia signed a memorandum of understanding with Vietnam's Ministry of Planning and Investment to establish two advanced AI centers in the country: the Vietnam Research and Development Center (VRDC), which is set to become the third largest AI research center globally, and an AI data center. This collaboration aims to enhance technological innovation and strengthen Vietnam's tech infrastructure and talent pool.
This venture is not Nvidia's first engagement with local companies. Recently, the company acquired VinBrain, a subsidiary of Vingroup focused on AI medical solutions. VinBrain's founder, Steven Truong, who previously worked at Microsoft, has developed the AI-driven diagnostic tool DrAid, which has gained traction in major hospitals across Vietnam and internationally, particularly for its participation in Nvidia's Inception program. Additionally, Nvidia has formed a strategic alliance with FPT Corporation, creating a $200 million “one-stop AI factory” in Hanoi. This initiative will include educational programs for 30,000 university and college students aspiring to work in AI. The first FPT AI factory is expected to begin construction in November 2024, with profitability anticipated in 2025.
Furthermore, Nvidia has partnered with GreenNode, an AI GPU provider under VNG Corporation. Since April, GreenNode has been integrating AI and software services with Nvidia technology, and its data center located in the Tan Thuan Export Processing Zone is one of the first facilities equipped with Nvidia graphics processing units. These initiatives represent significant advancements for Vietnam in its technological transformation and the development of future talent, positioning the country as an attractive destination for high-tech foreign investment.
Vietnam is swiftly becoming a key player in Southeast Asia's AI sector. According to Statista, the country's AI market is projected to reach $753.4 million by 2024, with an annual growth rate of 28.36% from 2024 to 2030. This growth rate is comparable to Southeast Asia's 28.53%, showcasing Vietnam's capability to keep pace with global technological advancements.
Nvidia's investments in Southeast Asia are crucial catalysts for advancing Vietnam's technological development. The country is transitioning from low-end manufacturing to a position within a global innovation network, enhancing its standing in the global supply chain and creating unique competitive advantages for companies operating in Vietnam. As the United States tightens restrictions on Chinese tech firms, the Southeast Asian market is poised to attract substantial foreign investment, particularly in the tech sector, intensifying competition among countries like Vietnam, Malaysia, Singapore, and Indonesia in technology manufacturing, data centers, and emerging AI hubs.
Research from the UK’s Oxford Analytica indicates that Vietnam's ranking in AI readiness has significantly improved, now standing at 39th out of 139 countries, rising 19 places from the previous year. In Southeast Asia, Vietnam stands out in the AI field, boasting over 5,000 engineers, 7,000 AI specialists, and approximately 500 related startups.
Several factors contribute to Vietnam's potential for technological growth. Firstly, a young and dynamic workforce is crucial, with a domestic illiteracy rate of only 3.4%, and students actively pursuing STEM (science, technology, engineering, and mathematics) courses. As of June 2023, the average monthly salary in Vietnam was $331, significantly lower than in China, which is 4.2 times higher, and the United States, which is 14.5 times higher. Concurrently, Vietnam's labor productivity has doubled in the past decade, increasing from $4.8 per hour in 2014 to $10.3 per hour in 2023.
Secondly, the rise of local startups and tech unicorns is also propelling technological development. The country ranks third in Southeast Asia for investment deals and total investment volume, with over 3,000 innovative startups, three of which are valued at over $1 billion, and 11 at over $100 million. In recent years, many domestic tech unicorns and startups have achieved significant success in the AI sector.
Key Points
- Nvidia has established AI centers in Vietnam, enhancing local tech capabilities.
- The partnership with local companies like VinBrain and FPT Corporation aims to develop AI talent.
- Vietnam's AI market is projected to grow significantly, positioning it as a key player in Southeast Asia's tech landscape.