In a significant move aimed at bolstering its strategic presence in Southeast Asia, NVIDIA's CEO, Jensen Huang, announced the establishment of an artificial intelligence (AI) research and development center in VietnamThis initiative underscores NVIDIA's commitment to expanding its influence in one of the world's fastest-growing tech regions.

During a signing ceremony held on Thursday in Hanoi, the capital of Vietnam, Minister of Planning and Investment Nguyen Chi Dung marked the occasion by expressing the shared vision of NVIDIA and Vietnam's state-owned telecommunications giant, Viettel GroupTogether, they will promote the development of advanced AI technologies tailored to the local contextNotably, Prime Minister Pham Minh Chinh was also present at this pivotal event.

Viettel Group has long dominated Vietnam’s telecommunications and mobile operations landscape, continuously exploring cutting-edge technology collaborations to foster innovation

Back in mid-2022, Viettel became a strategic partner with NVIDIA, a move seen as groundbreaking and positioned the company as a leader among local enterprises in fostering technology cooperation within the industry.

At the briefing, Huang elaborated on NVIDIA's future plans in Vietnam, emphasizing the need for foundational AI infrastructure, training a new wave of AI experts in the country, and supporting startups in the AI sector"NVIDIA will drive the growth of the AI industry here in Vietnam," he stated, articulating a roadmap that is expected to shape the future of AI applications and innovations in the region.

This announcement came as a notable boost for NVIDIA’s stock, which saw an uptick of nearly 1% during trading hours on Thursday.

The ceremonial signing not only marked the beginning of a major chapter for NVIDIA in Vietnam but was also dubbed "NVIDIA's birthday in Vietnam" by Huang, symbolizing the official launch of its operations in the country.

In addition to establishing the research center, Huang disclosed that NVIDIA would acquire the AI unit of Vietnam's Vingroup, specifically its VinBrain division

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He characterized this acquisition as the "starting point for a large design center in the future." However, the financial details of the acquisition remain undisclosed for nowAccording to VinBrain's official website, the company is a startup focused on applying AI solutions in the healthcare arena, thus reflecting a growing trend of technological innovation intersecting with public well-being.

Minister Nguyen Chi Dung noted that the support from NVIDIA in the AI sector would not only aid Vietnam in reaching its broader goals within the high-tech industry but also serve to elevate Southeast Asia into a significant innovation hub.

Last year, Huang had discussions with Vietnamese leaders about NVIDIA's plans to invest approximately $250 million in Vietnam, which included the contemplation of establishing a semiconductor centerAs reported, the Vietnamese government indicated back in April that NVIDIA was assessing three potential locations—Ho Chi Minh City, Da Nang, and Hanoi—as possible sites for the AI center.

Vietnam has laid out ambitious plans in the tech arena, particularly focused on making substantial advancements in the semiconductor industry, with hopes to surpass the $100 billion revenue mark by 2050. The Vietnamese government rolled out a strategic national blueprint back in 2021, which set out clear objectives to build three major data centers and three AI centers by 2030, highlighting a strong commitment to fostering a robust technological ecosystem.

Huang reiterated the concept that a country’s data should be viewed as a national resource: "Vietnam should manage its own data and transform it into AI that is uniquely Vietnamese, serving the nation's industries and society."

This push towards enhancing local AI capabilities reflects a larger trend across Southeast Asia, where countries are vying to attract significant tech investments, especially within the realms of data centers and AI technologies

Huang’s visit to Hanoi followed a meeting earlier that week with Thailand's Paetongtarn Shinawatra, where they agreed to enhance cooperation on AI infrastructure development, illustrating the collaborative approach being fostered within the region.

Amid this burgeoning trend, NVIDIA stands alongside numerous other tech giants eager to establish footholds in Southeast Asia’s data center landscapeFor example, the Damac Group, under the leadership of billionaire developer Hussain Sajwani, has announced plans to invest around $3 billion over the next three to five years in data center projects spanning Malaysia, Indonesia, and Thailand.

This consistent influx of interest from major enterprises signifies Southeast Asia's emergence as a pivotal center for technological investment, especially in the data-driven sectors that underpin the region's growth in the digitized economy.