Introduction
Vietnam’s tech industry is gaining significant momentum with strategic partnerships that position it at the forefront of innovation. The latest development sees Vietnam’s leading tech firm, VNG, becoming a cloud partner of the U.S. chipmaker Nvidia.
According to Nikkei Asia, GreenNode, a subsidiary of VNG Digital Business that provides AI GPU cloud services, has been offering AI and software solutions using Nvidia products since April. Although the facility was established years ago, it has only been in regular operation since 2023, following the U.S. restrictions on exporting Nvidia GPUs to China.
As a cloud partner, VNG benefits from priority access to Nvidia’s chips and can leverage software architecture and technology that are compatible with the U.S. company’s offerings.
This collaboration is set to revolutionize the AI and cloud computing landscape in Southeast Asia. This blog post delves into the details of this partnership, its implications for the tech industry in Vietnam and beyond, and VNG’s strategic moves in the evolving digital economy.
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VNG and Nvidia: The Partnership Overview
Background and Context
VNG, founded in 2004, has grown to become Vietnam’s first unicorn, with diverse interests spanning online games, payments, cloud services, and the popular messaging app, Zalo. Recently, VNG has been focusing on expanding its cloud services through its subsidiary, GreenNode, an AI GPU cloud provider.
In April 2024, VNG started offering AI and software services with Nvidia products. This move established a key partnership with the American chipmaker. Nvidia is famous for its powerful GPUs. The company is expanding its presence in Vietnam. This market is seeing a growing demand for high-performance computing and AI capabilities.
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Strategic Importance of the Partnership
Access to Cutting-Edge Technology
As a cloud partner, VNG gains priority access to Nvidia’s advanced chips and software architecture. This access allows VNG to offer superior AI and cloud services, leveraging Nvidia’s state-of-the-art technology to enhance performance and efficiency. The priority access also means VNG can stay ahead of the curve, adopting the latest innovations faster than its competitors.
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Expanding AI Capabilities
The partnership is set to expedite the adoption of high-performance AI models for enterprises across Southeast Asia, India, Australia, Japan, and Korea. With Nvidia’s GPUs, VNG can deliver robust AI solutions that cater to the growing needs of businesses in these regions. This development is crucial as more companies seek to integrate AI into their operations to drive efficiency, innovation, and competitive advantage.
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VNG’s Data Infrastructure and Expansion
Enhancing Data Centers
VNG has been proactive in building and expanding its data infrastructure. Its data hub in Bangkok, Thailand, recently equipped with 1,000 Nvidia GPUs, is a testament to this commitment. Although the facility was built years ago, it only saw regular use starting in 2023 after the U.S. restricted exports of Nvidia GPUs to China, redirecting resources to other strategic locations like Thailand.
Collaboration with STT GDC
VNG has also been working closely with data center provider STT GDC on projects in Ho Chi Minh City. Recently, the two companies signed a deal to jointly operate their STT VNG Ho Chi Minh City 1 data center and develop a second one. These state-of-the-art data centers are pivotal for VNG’s cloud and AI services, ensuring that they have the infrastructure to support large-scale deployments and high-demand workloads.
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Implications for the Tech Industry
Boosting Vietnam’s Tech Ecosystem
This partnership with Nvidia positions VNG as a key player in Vietnam’s tech ecosystem, attracting more investments and fostering innovation. It highlights Vietnam’s potential as a hub for tech development and AI research, encouraging other tech firms to consider similar expansions and collaborations in the region.
Last month, Vietnamese IT conglomerate FPT announced a partnership with Nvidia, committing to invest $200 million in building an “AI factory” in the country.
In April, Nvidia revealed a $200 million co-investment with Indonesian telecom company Indosat Ooredoo Hutchison to establish an AI center.
Additionally, earlier today, VNG signed a partnership with STT GDC to develop data center projects in Ho Chi Minh City. As part of this collaboration, STT VNG Ho Chi Minh 1 will be equipped to establish a direct peering connection to VNGGames and VNG Cloud.
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Regional AI Leadership
By leveraging Nvidia’s advanced technology, VNG can establish itself as a leader in AI and cloud services in Southeast Asia. This leadership can drive regional economic growth, enhance technological capabilities, and promote digital transformation across various industries.
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The Road Ahead
Future Prospects
The future looks promising for VNG as it continues to leverage its partnership with Nvidia. The focus will be on expanding its AI and cloud services, exploring new markets, and driving technological innovation. Additionally, VNG’s collaboration with other tech giants and continuous investment in data infrastructure will be crucial in maintaining its competitive edge.
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Challenges and Opportunities
While the partnership offers numerous opportunities, VNG must navigate challenges such as cybersecurity threats, regulatory compliance, and maintaining a competitive advantage in a rapidly evolving tech landscape. However, with strategic planning and continuous innovation, VNG is well-positioned to overcome these hurdles and capitalize on the growth potential.
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