HANO — US chip giant Nvidia signed an agreement on Thursday to establish an artificial intelligence (AI) center in Vietnam.

Jensen Huang, chairman and CEO of the Silicon Valley chip giant, met with Vietnamese Prime Minister Pham Minh Chinh during a visit to Hanoi, where the two agreed to open an AI research and development center .

“Vietnam’s data is a national and natural resource. Vietnam’s AI must be processed here, built here, operated here, for Vietnam’s people and industry,” Huang said.

DEAL Vietnamese Prime Minister Pham Minh Chinh (seated right) and Nvidia CEO and founder Jensen Huang (seated left) drink beers in Hanoi on December 5, 2024. The Nvidia chief executive signed a deal with the Vietnamese government to build an artificial intelligence center. in the country. AFP PHOTO

Huang said Nvidia is helping Vietnam build its “first AI cloud,” as well as advancing AI-powered robotics and smart cities in the country.

Chinh called the agreement “an important step for Vietnam to become a leading research and development center in Asia.”

Huang’s visit to Vietnam follows a trip to Bangkok, where he said he would support the development of AI in Thailand and signed a partnership with Thai technology company SIAM.AI to build the first “sovereign cloud » of the country.

Nvidia has already invested more than $250 million in Vietnam, according to Huang, and the American chip designer is working with some of Vietnam’s biggest tech companies to deploy AI in the cloud, automotive and healthcare sectors .

Huang also announced that Nvidia had acquired VinBrain, an AI startup owned by Vingroup, one of Vietnam’s largest technology and real estate conglomerates.

During a previous visit, Huang said he wanted to establish a base in the country.

Shocks to the global supply chain and fears over U.S. dependence on China for strategic resources are spurring investment in Vietnam’s growing semiconductor industry.

Across the region, governments are competing for U.S. dollars in the technology sector, with Vietnam working to move up the value chain from a manufacturing hub of shoes, clothing and furniture.