Vietnam chosen to emerge as the region's AI and semiconductor hub

Many of the world's leading companies in AI and semiconductors are viewing Vietnam as a promising new destination with ample opportunities for collaboration. As a "rising star", Vietnam is steadily working towards its ambition of becoming a key player in the global AI and semiconductor ecosystem.

FPT cooperates with NVIDIA to establish an AI factory, creating a boost to help Vietnam develop the semiconductor and AI industry, staying ahead of the world's technology development trend.

Ascending on the Global AI map

Vietnam has not only outpaced the global average for three consecutive years in the Government's Artificial Intelligence (AI) Readiness Index but has also moved up to 5th place among ASEAN countries and climbed three positions to rank 59th out of 193 countries worldwide. This notable ranking reflects data from the past year and is reported by Oxford Insights in the 2023 Government AI Readiness Index.

In 2024, Vietnam is set to make more significant strides on the global AI stage. In early February, the Government approved the National Data Strategy, prompting many ministries, branches, and localities to issue action plans and programs for its implementation. This provides a crucial foundation and data framework to accelerate the development of artificial intelligence in Vietnam.

From a business perspective, numerous programs and substantial investments of hundreds of millions of USD, have been initiated to promote AI development. A notable example is the planned investment of up to 200 million USD to establish an AI Factory, a partnership between NVIDIA and FPT - Vietnam's leading technology group and ranked in Asia's Top 50 IT services companies. This AI factory is expected to significantly boost the economy, foster the growth of Vietnam’s semiconductor and AI industries, and help the country keep pace with global technology trends.

At the signing ceremony, Mr. Keith Strier, Vice President of NVIDIA's Global AI Initiative, affirmed that NVIDIA and FPT would support Vietnamese enterprises in accelerating digital transformation, with the goal of making Vietnam an AI powerhouse.

Discussing the collaboration with NVIDIA, Mr. Truong Gia Binh, FPT Chairman, said, "Twenty-five years ago, FPT dreamed of exporting software. Today, Vietnam boasts 1 million IT professionals serving global clients. Now, we have a new dream: AI Nation. We aim for Vietnam to become the region’s AI and semiconductor hub, with 3-5% of the population working in AI.". 

Mr. Binh outlined three key factors underpinning this dream. First, with 1% of Vietnam’s population currently working in IT, the transition to AI and semiconductor research and development could propel the country forward rapidly. Second, Vietnam has secured a place on the global digital technology map, with its enterprises delivering IT solutions worldwide and forging strategic partnerships with leading AI and semiconductor firms. Third, advanced AI and semiconductor technologies from leading corporations and experts are increasingly flowing into Vietnam, with FPT positioned at the heart of this development.

Before collaborating with NVIDIA, FPT also partnered with the world's leading AI experts, such as Professor Yoshua Bengio - Director of the world's leading AI research institute Mila, and Dr. Andrew Ng, Founder and CEO of Landing AI.

The cooperation between FPT and Landing AI is expected to open a new chapter that will promote AI development in Vietnam, the US, and the world.

FPT currently has its multimillion-dollar project in AI and owns FPT.AI platform, which serves 20 million users and handles 200 million uses/month in 15 countries. Additionally, FPT is integrating AI into its Made-by-FPT solutions and products to help organizations and businesses optimize management, operations and improve operational efficiency. Most recently, FPT’s AI-powered comprehensive pasture management solution has been successfully implemented for over two million farmers in Africa, significantly improving livestock grazing in arid regions.

The cooperation between FPT and Landing AI is expected to open a new chapter that will promote AI development in Vietnam, the US, and the world.

The new destination for semiconductor businesses

Alongside AI, the semiconductor industry is considered a crucial technology duo for the future of global economic growth. By the end of 2024, Vietnam’s semiconductor industry is forecast to surpass US$6.16 billion, establishing the country as a key production hub for global semiconductor companies. Many leading enterprises in the semiconductor manufacturing industry have chosen Vietnam as an investment destination with projects worth billions of USD. Most recently, Amkor's largest semiconductor factory, valued at 1.6 billion USD, was inaugurated in Bac Ninh Province.

Enterprises from semiconductor powerhouses like the US and Japan also have big plans in the semiconductor sector in Vietnam. For instance, at the ASEAN-Japan 50th Anniversary Summit held at the end of last year, SBI Holdings CEO Yoshitaka Kitao stated that the group was considering building semiconductor factories in Japan and other countries, including in Vietnam and the Middle East. Mr. Yoshitaka Kitao also expressed his desire to cooperate with major Vietnamese IT enterprises, such as FPT, to build a semiconductor chip manufacturing technology ecosystem in Vietnam.

In September 2023, in the joint statement on the Vietnam - US Comprehensive Strategic Partnership, both nations recognized Vietnam's significant potential to become a key player in the semiconductor industry. Vietnam is one of the few countries in which the United States signed a Memorandum of Understanding to develop the semiconductor industry ecosystem, emphasizing cooperation in human resources development. Currently, Vietnam aims to train 50,000 semiconductor professionals, with FPT planning to train about 20% of this target, equivalent to about 10,000 professionals by 2030. However, Mr. Binh noted that the current IC design training programs are just the beginning, as FPT has even more ambitious goals. "Our dream is to meet the human resource needs of the whole world. That is our real dream - Vietnam having 1 million semiconductor professionals", he emphasized.

To achieve this ambitious goal, FPT Education has established a university-level semiconductor microchip department and introduced semiconductor chip training programs from India and the UK at the college and associates degree levels. Most recently, FPT has also partnered with financial consulting firm FCC Partners to establish a fund aimed at developing human resources and attracting foreign investment in the semiconductor industry in Vietnam.

FPT - The first Vietnamese company to design and manufacture commercial chips.

Time for Vietnam to thrive

Vietnam is emerging as a new destination for the world's leading technology and semiconductor companies. According to Mr. Binh, "The nation's time has come. Vietnam is the country chosen to fully integrate into the global semiconductor ecosystem.".

Mr. Binh also affirmed, "Vietnam will pioneer the production of next generation chips - AI chips. With these AI chips, Vietnam will spearhead the manufacture of AI electronic devices and drive an AI-powered economy. Vietnam will become an AI nation. AI transformation will be the fulcrum for Vietnam to succeed in digital transformation, green transformation, and building a circular economy. The country's future has never been as bright as today. Vietnam cannot miss the once-in-a-lifetime opportunity that history has placed in its hands. Among them, the semiconductor industry has many special features. I hope there will be more cooperation with foreign enterprises so that Vietnam can become a destination for this industry."

Source The World and Vietnam Report. View article HERE.