Billion Dollar Opportunity from Cooperation with NVIDIA

The government and technology giant NVIDIA have just signed an agreement to cooperate in establishing the corporation's Artificial Intelligence (AI) Research and Development Center in Vietnam, opening up opportunities to develop the billion-dollar technology industry - AI technology in the coming years.

Prime Minister Pham Minh Chinh worked with Mr. Jensen Huang, founder and CEO of NVIDIA Corporation (USA) and witnessed the signing ceremony of a cooperation agreement between the Vietnamese Government and NVIDIA Corporation - Photo: VNA

Mr. Vo Xuan Hoai, Deputy Director of the National Innovation Center (NIC), commented as above in an interview with Tuoi Tre. Mr. Hoai said: - On the surface, NVIDIA's project is not as cumbersome as the investment projects of Samsung, Amkor, Intel, but the economic value from NVIDIA's project in the coming years will be much greater. Much information about investment cooperation between the Government and NVIDIA has not been allowed to be published yet. Vietnam is the third location where NVIDIA has invested in an AI research and development (R&D) center, after the US where NVIDIA is headquartered and Taiwan, the hometown of Mr. Jensen Huang.

Part of the production chain has been moved to Vietnam.

* Specifically, what opportunities will NVIDIA's decision to "nest" bring to the economy? - NVIDIA is the world's largest semiconductor chip design and manufacturing corporation. The cooperation between the two sides also focuses on the highest segment in NVIDIA's supply chain, which is to establish an AI R&D center in Vietnam. This is the core of the ecosystem. This will attract many businesses that provide AI data center equipment to come in. This center will be like a magnet attracting surrounding satellites to invest, such as Supermicro. For a long time, we have attracted global technology "giants" such as Samsung, Intel, Foxconn... to invest, but still stop at the level of attracting factories and production complexes simply to take advantage of the cheap labor force, bringing low added value. Attracting NVIDIA to our country to invest in an AI R&D center will bring much greater added value. Currently, NVIDIA has 27,000 engineers and staff, with a market capitalization of about 3,600 billion USD, the largest in the world today. It is expected that in the near future, there will be more than 100 engineers and staff working in NVIDIA's AI R&D center in Vietnam. The group commits that in the next 5 years, the number of engineers and staff working in the center will increase to more than 1,000 people. NVIDIA highly appreciates the Government and the Prime Minister's support for them over the past year. In fact, before deciding to establish an AI R&D center in Vietnam, NVIDIA had moved part of its billion-dollar production value chain to Vietnam. Another notable point is that when investing in Vietnam, NVIDIA did not start from scratch but chose to spend a lot of money to buy a start-up - VinBrain Company - as the basis for establishing NVIDIA's AI R&D center in Vietnam. This shows that NVIDIA has made very strong assessments of the investment potential, bringing great value to both NVIDIA and Vietnam.

8 reasons why NVIDIA chose Vietnam

* In your opinion, why do many countries such as Indonesia and Japan have invited NVIDIA to invest with great incentives but they choose Vietnam to invest in an AI R&D center at this time? - NVIDIA chose Vietnam for the following reasons: First, Vietnam's human resources are young, dynamic, and have the ability to study STEM (science, technology, engineering, mathematics) very well. NVIDIA carefully surveyed this before deciding to invest in Vietnam. Moreover, the cost of hiring a team of high-quality engineers when setting up an AI R&D center in Vietnam is lower than in the US, while still maintaining quality. Second, NVIDIA highly appreciates Vietnam's potential for technology development. Currently, the Government is focusing on developing the fields of information technology, semiconductor chip manufacturing, AI technology and has made significant progress in creating policies to promote innovation, R&D, and developing high-quality human resources. In fact, in recent years, domestic technology unicorns and startups in the field of AI have emerged. Third, our country is located in a strategic geographical position in Southeast Asia, close to the world's largest markets such as China and India. This makes it easy for NVIDIA to connect with potential markets when investing in Vietnam. Fourth, political and economic stability. In particular, senior leaders of the Party and State warmly welcomed Mr. Jensen Huang, helping investors feel more confident. Fifth, Vietnam's FDI attraction policy, in recent years the National Assembly, the Government, and ministries have issued many special investment incentives for the high-tech sector. Sixth, Vietnam is a relatively large market, with a population of 100 million, developing strongly in technology, and is a market with potential for consuming technology products in the future. Seventh, our country's digital infrastructure has initially met the needs of investors such as Internet connection, the formation of high-tech zones, national innovation centers, AI data centers to facilitate the development of AI technology. Eighth is the Government's strong determination in developing the digital economy and applying high technology. According to forecasts, in the coming years, AI technology will cover the globe, in every corner of society. One of the products we are currently using is Chat GPT. Vietnam's cooperation with NVIDIA to promote the development of AI technology is in line with the development trend. It is expected that NVIDIA's AI R&D center will be located at VinBrain's headquarters in Hanoi and Ho Chi Minh City.

* Mr. Vo Xuan Hoai:

Vietnam has the opportunity to take the lead in AI development in Asia.

Among the global technology "eagles" investing in Vietnam today, only Samsung and NVIDIA have decided to invest in large R&D centers. In the field of AI, NVIDIA is the first corporation to establish an R&D center. This comes from the fact that AI technology development is a new field with many prospects, and Vietnam has the opportunity to be a leading country in AI technology development in Asia.

Tuoitre.vn

Source: https://tuoitre.vn/co-hoi-ti-do-tu-hop-tac-voi-nvidia-20241208224537856.htm