Discovering Vietnam's Tech Landscape: AI, Semiconductors, and Automotive

Vietnam is becoming a digital hub with a vibrant success story fueled by the dynamic collaboration between global investors and local tech innovators.

FPT Expert

June 3, 2024

4 Min Read
City Night in Vietnam
City Night in Vietnam by Khoa Le via Pixabay

We’ve seen significant supply chain disruptions in recent years, leading to problems with manufacturing, transporting, and distributing goods unlike any we’ve seen before. As companies work to realign their people, processes, and technologies, different economies are rising as successful business centers for tech investment.

One of these emerging tech hubs is Vietnam, which is growing fast due to its geopolitical stability, expansive educational system that’s made huge investments in IT training, and a hard-working and resilient workforce. Apple, Samsung, LG, Schaeffler and others have relocated some of their facilities to Vietnam and begun working with local partners. There are exciting possibilities in Vietnam for businesses in AI, semiconductors, and the automotive industry.

Vietnam is a World-Class Digital Hub

Worldwide, Vietnam is ranked the second fastest-growing digital economy. According to the World Bank, Vietnam's digital economy is projected to exceed $43 billion by 2025, driven by its ongoing focus on advancing information and communication technologies, including initiatives integrating AI.

A growing, high-quality workforce is among several factors enabling Vietnam to emerge as an attractive destination for business innovations. The country’s population recently passed 100 million, with around 20% of the country falling between 10 and 24 years of age. The government has introduced a range of initiatives and policies to boost IT education and training, with several Vietnamese universities like FPT University providing IT programs and emphasizing cutting-edge technologies like AI, machine learning, data science, and the blockchain. Vietnam is turning out 57,000 IT graduates each year, among the most anywhere in the world.

Vietnam’s Artificial Intelligence Capabilities

One strong focus in the emerging digital nation is AI. Companies like FPT Software are investing millions to create AI-focused facilities in Vietnam. The plan is to establish specialized factories for AI research and development in the region, expand advanced AI and cloud capabilities on a global scale, and foster a future-ready workforce in technology.

Andrew Ng, founder and CEO of the leading U.S. computer vision platform and AI software company Landing AI, is collaborating with FPT Education to create a comprehensive AI curriculum for students from grade 1 to grade 12.

Vietnamese companies are exploring computer vision solutions for the automotive, manufacturing, healthcare, and education industries, among many others. AI-leader NVIDIA is establishing partnerships with local companies to improve local AI and Cloud capabilities. These partnerships are poised to offer a suite of AI products, GPU infrastructure, and tech expertise for clients in the region and around the world.

The Semiconductor Sector in Vietnam

Semiconductor manufacturing is another area going strong in Vietnam as the rise of AI, smart tech, and overall digital transformation is sending demand for semiconductors to new heights. U.S. investment and deepening ties with large corporations like Microsoft, Nvidia, and Marvell that are “friendshoring” – moving their operations to friendlier nations – have Vietnam poised to play a crucial industry role in the years to come.

Crucially, Vietnam needs a steady supply of engineers to be ready for this new international role. To that end, companies are promoting diverse education and training initiatives to produce the needed labor force. One recent initiative is the newly opened Semiconductor Circuit Faculty at FPT University, part of an overall strategy to train 30,000 to 50,000 new semiconductor professionals in Vietnam.

Vietnam’s Automotive Industry

Vietnam’s automotive industry is another area of promise, with light vehicle sales quadrupling between 2012 and 2022 and significant opportunities in the electric vehicle sector. FPT University has opened an Automotive Software Engineering (ASE) department to help develop high-quality human resources for this high-growth sector on a global scale. International partnerships in the industry are helping to develop Vietnamese firms into international automotive providers. Of special note is a focus on software-defined vehicles, which represent the cutting edge of the automotive industry.

A key part of the success of the Vietnamese automotive industry is the country’s rapidly growing middle class, which both increases local demand and helps power the manufacturing engine that is making the country so important to the world’s shifting supply chains. The country also has extensive nickel reserves, an important element in battery manufacturing for electric vehicles, which makes it especially attractive as a cornerstone of the growing international EV supply chain. And workforce development is happening rapidly in this industry as well, with universities developing curricula to teach automotive engineering skills that meet international standards.

Overall, Vietnam is a nation well positioned to play an important role in changing global supply chains and tech industries. A growing middle class and young, tech-savvy population, increasing investments in education, and lucrative international partnerships are coming together to raise the profile and prominence of Vietnamese tech talent and companies throughout Asia and beyond.

Global technology company FPT aims to solidify Vietnam's position as a global hub for business and innovation. The company is driving these movements through strategic investments and partnerships, world-class technologies and services, leveraging its stature as one of the top 50 IT services companies in Asia.

Never Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.

You May Also Like

More Insights