Why did Nvidia choose to invest a significant amount in Vietnam?
The news of Nvidia’s investment of over 250 million USD in Vietnam marks a significant step in attracting investments in the technology sector in the country. In this article, let’s explore why the world-leading technology corporation decided to invest in Vietnam and highlight the prominent high-tech office project for tech businesses today.
Nvidia – The Graphics Hardware King
For those who regularly follow technology news, anyone would have heard the name Nvidia (also written as nVIDIA or NVIDIA). It is the most renowned company in the development of graphics processing units (GPUs) for computers, with names like GeForce and Quadro being familiar to those working in graphics-related fields, image rendering, or gaming. Established in 1993, Nvidia remains the king in developing high-performance GPUs for computers.
Nvidia has surpassed Intel, Samsung, and TSMC to become the most profitable processing chip brand in the world in Q3/2023
In addition to its well-known GPU lines like GeForce GTX, RTX, and Quadro K, P, Nvidia also produces processors, chipsets for computers, software, AI, etc. By the end of Q3/2023, Nvidia announced a revenue of up to $18.12 billion, expected to reach $20 billion by the end of the year. This is a tremendous figure that any business would dream of. Despite facing strong competition from its long-time rival AMD in recent years, along with export restrictions from the U.S., Nvidia’s business results remain excellent. The Q3/2023 revenue increased by 206% compared to the same period the previous year.
The Vietnamese technology market recently received explosive news when NVIDIA decided to make a long-term investment in Vietnam, collaborating with Vietnam to build a dream of a new Vietnam, an AI Vietnam. With an investment capital of up to $250 million, Nvidia identifies Vietnam as an important market, potentially becoming Nvidia’s second home.
Why did Nvidia choose to invest in Vietnam?
2.1. Vietnam has potential in the semiconductor and artificial intelligence fields.
Vietnam currently has over 6,000 engineers specializing in the semiconductor industry, working for many domestic and foreign enterprises. Prime Minister Pham Minh Chinh stated that Vietnam aims to have 30,000 engineers in this industry by 2030, prioritizing the training of engineers in semiconductor design. Jensen Huang, Chairman and CEO of Nvidia, highly values Vietnam’s potential, strategic vision, and infrastructure investment in the semiconductor and artificial intelligence sectors, especially the abundant workforce in Vietnam.
Jensen Huang – Co-founder and CEO of Nvidia
2.2. Vietnam has strong software capabilities
Mr. Huang also believes that the Vietnamese people are excellent in mathematics, have strong software capabilities, and are well-positioned to develop the semiconductor and artificial intelligence fields further. This is an important moment in Vietnam’s development. If successful, Vietnam could become a new shining star in the global technology market. High-quality workforce training centers and research centers in high-tech zones nationwide are increasingly developing. The recent launch of the Electronic and Semiconductor Training Center at the Saigon Hi-Tech Park (SHTP) in September 2023 is evidence of the attention and investment in enhancing software capabilities specifically and the quality of the workforce in the high-tech field in general in Vietnam.
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Vietnam has abundant resources and strong software capabilities
2.3. Good infrastructure
High-tech zones in Vietnam are receiving significant investments in infrastructure, along with attractive policies for businesses. Research, development, and high-tech training facilities are being built and operated more efficiently in high-tech zones such as STHP and Hoa Lac. Moreover, these areas prioritize the use of quality and stable power sources, as well as the application of new technologies such as 5G. Additionally, these two high-tech zones are heavily invested in transportation infrastructure, with ring roads, expressways, and public transportation connecting these areas to the central hubs of Ho Chi Minh City and Hanoi easily. Transportation is a prerequisite for attracting investment and workforce to these regions.
Detailed information: Diagram and technical specifications of Tower 1 LEED Silver standard at OneHub Saigon
Vietnam is actively investing in infrastructure in high-tech zones to attract both domestic and foreign businesses
3. Foreign businesses tend to choose high-tech zones in Vietnam for establishing their facilities
Foreign electronics and high-tech companies tend to select high-tech zones to set up their factories, workshops, or offices in Vietnam. Particularly, the Saigon High-Tech Park (SHTP) has become a preferred location, attracting numerous manufacturing facilities of global technology giants in fields such as semiconductor manufacturing, including companies like Intel, Nidec, Samsung, and most recently, the semiconductor company BESI from the Netherlands.
Ho Chi Minh City High-Tech Park – One of the top 3 high-tech zones in the country
There are several reasons why international businesses choose high-tech zones for investment in manufacturing facilities. Among them, the most significant reason, besides infrastructure investment, is likely the attractive investment policies, with taxes and factory rental costs being extremely appealing, possibly at nearly zero if companies meet the criteria for high-tech zone incentives.
Onehub Saigon – The premier choice for businesses in high-tech zones
OneHub Saigon is a business park office space project integrated with various multifunctional facilities. It stands out as the most prominent office space project in the Saigon High-Tech Park, offering superior advantages compared to many other offices in the market.
Built-in a campus style with low construction density, OneHub Saigon features low-rise green office towers along with spacious communal areas, abundant greenery for recreational and relaxation activities, as well as sports facilities for those working here. With a focus on people, the project effectively meets the diverse needs of a workday, providing quality workspaces, entertainment spaces, shopping areas, accommodation, and office integration, all available at OneHub Saigon.
OneHub Saigon pioneers the campus-style office building for lease in the high-tech park in Ho Chi Minh City
Another advantage of this high-tech park office space project is its access to upgraded infrastructure in the area. Ideally situated at the gateway to the Saigon High-Tech Park (SHTP), the project has direct connectivity to Hanoi Highway and the metro station No. 12 of the Ben Thanh – Suoi Tien Metro Line. This is a significant asset, given the project’s excellent and rapid connectivity to the city center via both private and public transportation. In the future, with the completion of Ring Road 3, OneHub Saigon will seamlessly connect to the surrounding highways in HCMC.
The strong connectivity is a major advantage of this high-tech park office space project. Another advantage of OneHub Saigon, when compared to projects in the city center, is the rental cost, as the office spaces in this high-tech zone are highly optimized and attractive compared to those in the city center. Finally, by choosing an office at OneHub Saigon, businesses can benefit from extremely appealing tax incentives in the Saigon High-Tech Park without the need for constructing or renting assembly workshops.
>>> See more: What is the definition of a Tech Hub? Why do businesses choose to set up offices here
Conclusion
Nvidia’s investment in the Vietnamese market marks a milestone in successfully attracting investments in high-tech industries in Vietnam. This is a result of continuous efforts in training, and upgrading infrastructure, especially in Vietnam’s high-tech zones. With high-quality high-tech office rental projects such as OneHub Saigon, businesses both domestic and international will find it increasingly convenient to invest and operate in high-tech zones.
