Imagine a morning where modern buildings reflect the bright sunlight inside the chip production lines that are operating at full capacity, but the most special thing is that the entire production line is operated by Vietnamese engineers who are creating tiny yet powerful chips that are changing the entire technology world.
Next to the central research and development center IND of Nvidia in Vietnam is a gathering place for the brightest creative minds. In the meeting rooms, engineers and researchers are discussing how to optimize the performance of the latest chip lines, using Nvidia's supercomputers to run complex simulation algorithms. When the completed chip batch leaves the factory, they are carefully packaged and shipped to data centers in the US, Europe, Japan, and around the world. The chips bearing the label made in Vietnam are a source of pride for Vietnamese engineers, marking the presence of Vietnamese intelligence on the global technology map.
This could very well become a reality in the wave of global artificial intelligence development. Vietnam is gradually becoming a new star attracting the attention of tech giants, and Nvidia is one of them. As a leading global corporation in GPU processing chips and AI platforms, Nvidia is laying the first bricks in a strategic partnership with Vietnam. The CEO of Nvidia in Vietnam has become very close and friendly. Vietnam and Nvidia signed an agreement on December 5 in Hanoi to establish two artificial intelligence centers, marking an important step that demonstrates the strong commitment of both parties to promote AI research and application in Southeast Asia.
The two centers include an artificial intelligence research and development center and an AI data center.
These centers will utilize Nvidia's advanced technology solutions to support research and development of AI applications in various fields. CEO Jensen Wang, regarded as a technology wizard, even stated that he wants Vietnam to become Nvidia's second home in Asia. If this becomes a reality, Vietnam will certainly be a new bright spot on the AI map of the region. Nvidia is not only collaborating with the government but also partnering with major domestic corporations like FPT and Vingroup.
FPT has invested 200 million USD to build an Artificial Intelligence factory with Nvidia, aiming to provide a cloud computing platform for AI research projects. This can be seen as a breeding machine for future AI applications, from self-driving cars to smart healthcare. Another example is Nvidia's acquisition of vinBrain, an AI startup in the healthcare sector of Vingroup, which not only helps Nvidia expand its AI capabilities in Vietnam but also shows that they view our country as a market full of potential.
Not stopping at building centers or partnerships, Nvidia is also committed to training 1 million AI specialists in Vietnam. This is a concrete plan through the provision of powerful GPUs, cloud platforms, and intensive training programs. Nvidia understands that to develop AI in Vietnam, it is necessary to invest in human resources; young Vietnamese engineers are the golden key to bringing AI ideas to new heights, and Nvidia is ready to accompany Vietnam on this journey.
Vietnam is not just a simple production or consumption market but also an important link in the global strategy. The establishment of research and development centers combined with talent training plans shows that Nvidia wants to turn Vietnam into an important base in the Asia region. And perhaps you also understand that AI is no longer a distant concept in science fiction movies; it has become an indispensable part of life, lifting the entire technology sector, and for Nvidia, one of the world's leading technology corporations, AI is the trump card that helps them assert their position. AI is dominating the technology world, and Nvidia is one of the giants behind it. With powerful GPU chips, Nvidia not only makes AI a reality but also elevates itself to new heights.
Vietnam is also attracting many other technology corporations globally. Vietnam is a fertile ground for technology corporations to settle down, strategically located in the heart of Southeast Asia, with a stable economy and a cheap labor force. Vietnam is increasingly appealing to major technology corporations worldwide; this is not just Vietnamese self-praise but is illustrated by the success stories of corporations like Samsung, Intel, and Apple.
We are like an ideal transit station between major economies, just a few hours flight from China, allowing corporations to easily transport raw materials without incurring excessive costs. What makes Vietnam truly attractive is the labor cost; a software engineer in Vietnam earns only about 20-30% of what they would in the US, while their skills are increasingly recognized internationally.
Moreover, the Vietnamese government continuously offers incentives such as corporate income tax reductions and exemptions on imported components, making it hard for large corporations to refuse.
Samsung, for instance, produces about half of its smartphones globally with a total investment of nearly 20 billion USD in Bac Ninh, Thai Nguyen, and Ho Chi Minh City. Samsung's massive factories not only create millions of products but also provide jobs for hundreds of thousands of workers.
Apple is also not to be outdone, having shifted the production lines of AirPods and Apple Watches to Vietnam through major partners, including Foxconn. Google and Microsoft are also moving their hardware production lines, such as Pixel and Surface, from China to Vietnam to minimize risks from the US-China trade war.
The young labor force of Vietnam is once again the golden key.
Every year, over 50,000 IT engineers graduate, ready to work for major corporations. Although the starting salary is still low compared to developed countries, this is a competitive advantage as companies can save costs while having a talented workforce right in Vietnam.
Vietnam, located in the center of Southeast Asia, is a bridge between Asia and major markets like the US and EU. With its long coastline, Vietnam has a port system along the length of the country, facilitating easy import and export of goods, especially close to China, making Vietnam an ideal alternative in the global supply chain. Major corporations like Nvidia, when looking to reduce dependence on China, find Vietnam to be a place they can step into, being geographically close and politically stable. The US-China trade war has prompted many large technology corporations to seek ways to diversify risks, avoiding putting all their eggs in one basket by moving production lines to other countries. This is the China Plus One strategy, and Vietnam is one of the most promising names, being close to China is just one important part.
Vietnam is attractive due to its political stability; while many countries face instability, Vietnam maintains steady growth and a neutral peace diplomacy policy. This is a key factor that gives corporations like Nvidia confidence to invest long-term in our country. We are also one of the few countries with a widespread network of Free Trade Agreements (FTAs). This means that technology products manufactured in Vietnam can be exported to major markets like Europe, Japan, and South Korea with very favorable tax rates, even zero. For Nvidia and other corporations, this is a delicious cake that cannot be missed; they not only produce in Vietnam to serve the domestic market but also easily export globally without facing tax barriers.
So, to be fair, the journey to becoming a major technology center still faces many challenges. The logistics infrastructure in Vietnam, from ports to domestic transportation, while developing, still does not fully meet the needs of large corporations. Additionally, while the quality of the workforce is improving, practical skills and foreign language proficiency remain weaknesses that need further improvement. Regional competition is also a tough challenge, as countries like India and Indonesia are actively improving the investment environment and offering attractive incentives to attract technology corporations. Vietnam has what they strive to possess.
Overall, Vietnam is not just a place for technology corporations to set up manufacturing plants but is gradually becoming an important link in the global supply chain. Samsung, Intel, Apple, and now Nvidia are proof of our country's immense potential.