Artificial Intelligence (AI) is becoming a center of economic growth globally almost every one of the industries has been impacted in one way or the other. Vietnam is the target for this transition especially with electronics. And also with the influence of NVIDIA and more tech-savvy people hiring in the country, it is set to become the high tech center of Southeast Asia.
A McKinsey report stated that AI in addition to its other tasks could also operate in healthcare, finances and education while creating up to 13 million jobs by 2030. If put into good use, this technology can enable a company to function at its best, make better decisions and come up with effective solutions to hard problems. In the case of Vietnam, it is through the proper utilization of AI that the country will improve the economy and participate competitively in the world market.
Vietnam’s AI Landscape
Within the past few years, Vietnam has become an appealing target for the high-tech industries. Key figures accentuate this development:
- Foreign Direct Investment (FDI) in Vietnam’s high-tech sector has increased by an average of 15% annually over the past five years.
- The country ranks second in Southeast Asia for the number of software engineers, boasting over 500,000 professionals in IT, electronics, and AI.
Major tech hubs such as Hòa Lạc near Hanoi, Saigon Hi-Tech Park in Ho Chi Minh City, and Da Nang’s tech zone have attracted multinational corporations and fostered innovation among local startups. In 2021, the Vietnamese government launched its National AI Strategy with the goal of positioning Vietnam among the top four ASEAN countries in AI research and development by 2030.
NVIDIA’s Strategic Investment in Vietnam
An important step in Vietnam’s technology development was Nvidia’s announcement on December 5 of the establishment of the Vietnam AI Research and Development Center (VRDC) and related AI data center. The investment was announced by Nvidia CEO Jensen Huang in Vietnam, emphasizing the commitment to “NVIDIA’s Second Home” – NVIDIA’s entry brings cutting-edge technology and aims to cultivate local AI talent.
VRDC will focus on applied AI projects in various sectors. including healthcare and smart manufacturing To build a strong ecosystem that drives innovation within the country, Huang highlighted Vietnam’s potential at the signing ceremony: “Vietnamese people have an outstanding history in STEM, with this potential We believe Vietnam is an ideal place for Nvidia to develop an R&D center.”
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A Catalyst for Local Talent and Startups
NVIDIA’s initiative isn’t just about setting up infrastructure, but it also represents an investment in human capital. The company plans to train Vietnamese AI engineers and support local startups with mentorship and funding. This effort aims to position Vietnam as a key player in the global AI landscape, while addressing local challenges with tailored solutions.
Potential in PCB, Chip, and AI Development in Vietnam
Vietnam is becoming increasingly important in the global supply chain of printed circuit boards (PCBs), semiconductors and AI:
- PCB Manufacturing: Companies like Samsung and LG have invested significantly in PCB manufacturing facilities and Vietnam now accounts for 10% of the global PCB market.
- Semiconductors: With NVIDIA’s participation, Vietnam has the potential to develop into an R&D hub for semiconductors. By 2030, the government aims to produce 30% of components locally.
- AI Applications: In healthcare, AI technology is being used to detect early stages of diseases such as cancer. Smart traffic management systems are also being used in major cities.
The Potential of Sourcing Electronics from Vietnam
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Businesses should consider sourcing electronic equipment from Vietnam because it has several strategic advantages:
- Access to Skilled Workforce: With a new generation of the population excelling in STEM fields, companies can leverage a trusted talent pool.
- Competitive Manufacturing Costs: Labor costs are significantly lower than in Taiwan and Thailand while maintaining high quality standards.
- Building Local Supply Chains: Developing local production reduces dependence on imports and increases quality control.
- Favorable Government Policies: The Vietnamese government provides incentives for foreign investment that support technology development.
- Strategic Location: The location is the gateway to Southeast Asia with strong trade agreements. Vietnam offers opportunities for businesses seeking innovation.
For Vietnam, the timing is just right as it gears up to be the high-tech hub in Southeast Asia. The strategic investments by companies such as NVIDIA and heavy government support have placed the nation in a position to build a strong ecosystem for AI and technology. Companies looking for innovative partners find an opportunity to invest in Vietnam at the forefront of the next wave of growth and technological advancement.
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Source: Vietnam Insider