Nvidia, a leading developer in the artificial intelligence (AI) chip industry, recently announced its plan to strengthen its presence in Vietnam. This strategic move includes forming new partnerships and establishing a base in the country. This decision follows a visit by Nvidia’s CEO, Jensen Huang, signaling the company’s commitment to enhancing its operations in Vietnam.
Vietnam already plays a significant role in Nvidia’s global operations, hosting millions of its customers. The tech giant has invested over $250 million in the country, demonstrating its long-term interest and commitment. Nvidia aims to deepen its relationship with existing Vietnamese partners such as Viettel, FPT, Vingroup, and VNG. Additionally, the company is set to bolster local AI training and infrastructure, reinforcing its foothold in the region.
Government Initiatives and Incentives
The Vietnamese government, represented by the Minister of Planning and Investment Nguyen Chi Dzung, is actively working to attract foreign investments in the AI and semiconductor sectors. The government has been preparing various incentives and schemes to make Vietnam an appealing destination for global tech companies. In line with this, Nvidia has expressed plans to establish a center in Vietnam. This center will not only contribute to Vietnam’s semiconductor ecosystem but also aid in the country’s digitalization efforts by attracting global talent.
The backdrop of Nvidia’s announcement is the recent visit of U.S. President Joe Biden to Vietnam. This visit marked significant progress in AI, semiconductor, and cloud computing industries, with several billion-dollar business deals and partnerships being finalized. The meeting witnessed the participation of leading companies in AI development, including giants like Nvidia, Google, Intel, Boeing, Amkor, and Microsoft.
Nvidia’s Market Resilience and Future Prospects
Nvidia remains a central player in the U.S. AI manufacturing and development scene, despite challenges arising from U.S. sanctions in the semiconductor chip market. The company has shown resilience and growth, reporting a record-breaking $18 billion revenue in the third quarter, largely attributed to advancements in generative AI.
This development is especially relevant in the context of the Vietnamese cryptocurrency sector, where 76% of crypto holders base their investments on referrals. Nvidia’s expansion in Vietnam could potentially influence investment patterns in the local cryptocurrency market, given the increasing intersection of AI and blockchain technologies.