Vietnam is ramping up efforts to position itself as an enticing high-tech manufacturing hub, intensifying business-focused diplomatic initiatives to draw investment and broaden trade avenues.
Presently, US-backed NVIDIA stands out as the world’s most valuable chip manufacturer, boasting a staggering market value of nearly $1.2 trillion. Founded in 1993, the company currently employs 27,000 individuals and generated revenues of $27 billion in the 2023 fiscal year.
Last September, Vietnamese Prime Minister Pham Minh Chinh paid a visit to the corporation’s headquarters in California and extended an invitation to president and CEO Jensen Huang to visit Vietnam for a working session.
Less than three months later, Huang visited Vietnam, where Nvidia had already injected $250 million in investments. He explored further investment prospects and expressed Nvidia’s intent to establish a foothold in Vietnam to foster the nation’s semiconductor industry, viewing the market as pivotal.
“The establishment will serve as a hub for attracting global talent to contribute to Vietnam’s semiconductor ecosystem and digitalization,” Huang remarked.
Nvidia has engaged in discussions with Vietnamese tech firms and authorities regarding cooperation agreements on semiconductor initiatives.
According to the Ministry of Foreign Affairs (MoFA), Vietnam’s efforts to court major projects worth billions of dollars have attracted giants like Nvidia. The emphasis on business-focused diplomacy is instrumental in drawing foreign direct investment (FDI), underscored Tran Anh Vu, deputy general director of MoFA’s Department of General Economic Affairs.
As of December 20, Vietnam has secured 39,140 projects valued at $468.9 billion, with $317.2 billion already disbursed.
With many nations opening their doors to Vietnamese goods and global investors seeking secure and appealing investment destinations, the government has tasked MoFA with expanding business-focused and economic diplomatic endeavors.
“Vietnam’s leaders have engaged with numerous corporations, including Nike, Adidas, and Adani, yielding tangible results,” noted Nguyen Hoang Phuong, a representative from MoFA’s Department of Foreign Policy.
Vietnam benefits from over 50 bilateral and multilateral donors, pledging a total committed ODA exceeding $90 billion.
Additionally, Vietnam attracts substantial overseas remittances, totaling $17.2 billion in 2020, over $18 billion in 2021, and nearly $19 billion in 2022. The figure for 2023 is estimated to surge by 30 percent year-on-year.
