NVIDIA deal – catalyst for Vietnam’s tech growth: investment site

PM Pham Minh Chinh (second from right) and NVIDIA President and CEO Jensen Huang (third from right) witness the signing ceremony of the agreement between the Vietnamese Government and the US giant tech. (Photo: VNA)

Hanoi – Vietnam’s partnership with US tech giant NVIDIA has reflected the Southeast Asia country’s proactive technology development strategy as well as its significant economic potential, according to Vietnam-briefing.com, an investment site of legal tax and operational advisory provider Dezan Shira & Associate.

According to its recent writing, among the investments in Southeast Asia’s AI and cloud computing infrastructure, the building of NVIDIA’s research and research centre has an important role to play in Vietnam’s economic trajectory, marking a shift from low-tier manufacturing to integration with global innovation networks. The bold step is set to solidify Vietnam’s position in global supply chain and create unique competitive edge for both domestic and foreign firms.

Vietnam has emerged as a prominent play in the region’s AI landscape. According to Statista, a global data and business intelligence platform, the country's AI market is projected to reach 753.4 million USD in 2024, with a compelling compound annual growth rate of 28.36% from 2024 to 2030. This growth rate closely mirrors the regional average of 28.53%, demonstrating Vietnam's capacity to rapidly adapt to global technological transitions, propelled by foreign investment.

The UK-based Oxford Insights’ research on AI readiness showed that Vietnam ranked 39th out of 139 countries, moving up 19 places from the previous year. In Southeast Asia, Vietnam ranks among the top five nations, boasting over 5,000 engineers, 7,000 AI specialists, and some 500 AI-focused startups.

Several factors have contributed to Vietnam's technological ascendancy, with a young and dynamic workforce with competitive labour cost providing a strong foundation. Vietnam ranks third in Southeast Asia for startup investment deals and total venture capital. In recent years, numerous tech unicorns and domestic startups have successfully navigated the AI landscape. Besides, the country's strategic geographical location, proximate to China and India, facilitates connections with key potential markets. Furthermore, the Government's consistent efforts to maintain economic growth and cultivate an innovation-friendly business environment have been instrumental.

The writing highlighted NVIDIA’s strategic investment in Vietnam that marks a transformative shift in the country’s emergence as Southeast Asia’s future AI innovation hub. The establishment of two AI centres, alongside partnerships with key local players like VinBrain and FPT Corporation, demonstrates Vietnam’s growing prominence in the global AI ecosystem. The convergence of Vietnam’s strategic advantages—including its young, skilled workforce, thriving startup ecosystem, location, and supportive government policies—creates an ideal environment for continued technological advancement and foreign investment.

As Vietnam is seeking to transition from low-value manufacturing to high-value, innovation-driven production, these recent developments herald a promising future for both domestic and international stakeholders in the country's AI sector./.