US tech giant Nvidia to build AI research, data centers in Vietnam

Nvidia and the Vietnamese Government on Thursday signed a deal to jointly set up an AI R&D center and an AI data center in Vietnam, which are expected to turn the country into a hub of Asia in this field.

Financial details regarding the planned centers were not mentioned.

The facilities will be foundations to help Nvidia and its Vietnamese partners deploy advanced AI, the government's news portal reported.

The AI R&D center of Nvidia in Vietnam, named the Vietnam Research and Development Center (VRDC), will be one of the giant's three world-class AI R&D centers, along with one in Santa Clara (Silicon Valley) and one in Taiwan, according to ambassador Hoang Anh Tuan, consul general of Vietnam Consulate General in San Francisco.

The agreement is an outcome of work between the two sides for over one year, starting with Prime Minister Pham Minh Chinh’s visit to Nvidia’s headquarters in the U.S. in September last year.

At the signing ceremony in Hanoi, PM Chinh called the deal "an important milestone demonstrating CEO Jensen Huang’s strong determination and commitment to turning Vietnam into Nvidia's second home".

Minister of Planning and Investment Nguyen Chi Dung described the agreement as "a historical turning point for Vietnam". "It marks a strategic step and a new development direction for Nvidia and a milestone for Vietnam to become a leading center of AI research and development in Asia."

He highlighted Vietnam’s young, dynamic and tech-savvy workforce as advantages, adding that the country is emerging as a bright spot in Southeast Asia in terms of innovation and AI.

Dung noted that the Government has identified AI as one of priority areas in the national development strategy, committing to creating a favorable environment for leading technology corporations like Nvidia to invest and develop over the long term.

"The two centers are expected to help Vietnam achieve its development goals in the high-tech industry and the AI field. They will also contribute to promoting the entire Southeast Asia region as a new destination for innovation," he added.

At the event, Nvidia's president and CEO Jensen Huang commented that this is an ideal time for Vietnam to build the future of AI. He said AI’s intelligence is built from data and Vietnam’s data is a national resource.

Vietnam’s AI should be processed here, built here, operated here, for the sake of Vietnam's people and industry, he added.

Speaking at a roundtable in Hanoi in December last year, Huang said Vietnam meets all three criteria to catch up with the emerging AI wave, which are data, software workforce, and infrastructure. He called Vietnam "the future home of Nvidia".

Vietnam has decades of data digitalization, plans to train up to 50,000 highly skilled engineers by the end of this decade, and has a solid foundation of science, technology, engineering, and mathematics (STEM), he said.

Minister Nguyen Chi Dung then proposed the U.S. giant enhance R&D activities, carry out semiconductor and AI projects in Vietnam, and build R&D centers and labs at the National Innovation Center (NIC) and high-tech parks.

In April this year, Vietnamese tech firm FPT said it planned to build a $200 million AI factory using Nvidia's graphic chip and software.