Why NVIDIA and Google Choose Vietnam for Expansion

Vietnam is having a moment. Over the past few years, the country has quietly climbed the ranks as a hot spot for global businesses, particularly in the tech sector. Now, with NVIDIA and Google expanding their operations here, it’s clear Vietnam is no longer just a rising star — it’s a destination of choice for some of the biggest names in the industry. So, what’s driving these moves?

In this article, let freeC Asia unpack why NVIDIA and Google choose Vietnam for expansion by looking at its economic momentum, talented workforce, and the growing opportunities it offers to global players. With in-depth analysis and the latest data, we explore why Vietnam is becoming the epicenter of tech investments.

1. Why NVIDIA and Google Choose Vietnam for Expansion?

When companies like NVIDIA and Google make a move, they’re not just chasing short-term wins; they’re looking for long-term strategic advantages. Vietnam ticks a lot of boxes for them, from its burgeoning tech ecosystem to its cost advantages.

NVIDIA’s Playbook

NVIDIA’s focus in Vietnam is clear: AI and innovation. By partnering with local universities and fostering research, they’re not just building a presence; they’re investing in the future of tech talent. Recent announcements include establishing a research and development center in Ho Chi Minh City, which will specialize in artificial intelligence (AI) and high-performance computing. NVIDIA’s collaboration with the Vietnam National University has already resulted in initiatives aimed at training thousands of AI professionals annually. According to NVIDIA’s CEO Jensen Huang, Vietnam’s openness to AI innovation makes it a fertile ground for groundbreaking technologies.

Google’s Expansion

For Google, Vietnam represents a vibrant, fast-growing market. Whether it’s expanding cloud services or collaborating with local startups, Google’s strategy is about embedding itself into Vietnam’s digital economy. In 2024, Google announced plans to develop a hyperscale data center near Ho Chi Minh City, projected to be operational by 2027. This investment, worth an estimated $1.5 billion, underscores Google’s commitment to Vietnam as a critical part of its Asia-Pacific strategy. Google’s presence already supports Vietnam’s transition to a digital-first economy, which is expected to generate $57 billion by 2025, according to Google’s own e-Conomy SEA report.

2. Vietnam’s Economic Foundations

Vietnam’s rise didn’t happen overnight. The country’s economic story is one of deliberate, sustained growth and smart policymaking.

Resilient Growth

Let’s talk numbers: Vietnam’s GDP growth was 7.4% in the third quarter of 2024, one of the highest in Asia. The country’s export-driven economy has also benefited from strong trade partnerships and its integration into global supply chains. With a focus on sectors like electronics, textiles, and software development, Vietnam is now among the top 10 exporters of technology products globally.

Business-Friendly Policies

The Vietnamese government has gone all-in on attracting foreign investment. Tax incentives, streamlined regulations, and trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have made it easier than ever for businesses to set up shop. Initiatives like the National Innovation Center aim to bolster the country’s standing as a hub for technology and innovation.

Infrastructure in the Fast Lane

Vietnam has been building—literally. From improved roadways and ports to cutting-edge tech parks like Saigon Hi-Tech Park, the infrastructure is catching up with its ambitions. Ho Chi Minh City Metro Line 1, set to open in 2025, is expected to enhance connectivity in one of the busiest tech corridors. According to the Ministry of Planning and Investment, Vietnam’s infrastructure spending will reach $25 billion annually by 2025.

3. Vietnam’s Workforce: Young, Skilled, and Hungry

If Vietnam’s economic story is impressive, its talent pool is the real clincher. This is a country brimming with energy, ambition, and know-how.

Educated and Ready to Learn

Vietnam’s universities churn out over 50,000 STEM graduates every year. The quality of education has been on an upward trajectory, with institutions like Vietnam National University and Ho Chi Minh City University of Technology offering world-class programs. A recent survey by TopDev shows that over 70% of Vietnam’s software engineers hold certifications in trending fields like cloud computing, blockchain, and machine learning.

A Global Mindset

Vietnamese professionals are highly adaptable. Many have experience working in multinational environments and possess strong English proficiency. According to EF’s 2023 English Proficiency Index, Vietnam ranks third in Asia for English skills, behind only Singapore and the Philippines. This global mindset makes them ideal for roles requiring cross-cultural collaboration, whether in-office or remote.

Remote-Ready Talent

Speaking of remote work, Vietnam’s workforce has embraced it with open arms. The pandemic proved how well Vietnamese professionals can thrive in distributed teams, making the country a go-to destination for companies looking to build remote operations. Companies like Upwork and Turing.com report that Vietnamese freelancers are among the top 5 most hired globally in fields like software development and digital marketing.

4. Cost Efficiency Meets Quality

Let’s get practical. While Vietnam offers top-tier talent, it does so at a fraction of the cost compared to other tech hubs.

Competitive Salaries

For companies operating on tight margins, Vietnam’s labor costs are a game-changer. A software engineer here earns an average annual salary of $18,000, compared to $36,000 in India and over $100,000 in the U.S. This doesn’t mean sacrificing quality; it’s about getting more value for your investment.

Affordable Operations

Beyond wages, the overall cost of doing business in Vietnam is low. Office rentals in Ho Chi Minh City average $20 per square meter per month, compared to $100 in Singapore. Utility and administrative expenses are also highly competitive, allowing businesses to reinvest savings into innovation and growth.

Real Savings

To put it into perspective: a mid-sized company could save up to 50% on operational costs by choosing Vietnam over Singapore or Hong Kong. These savings enable firms to scale faster and focus on high-impact projects.

Leveraging Remote Workforces

Vietnam’s remote workforce offers even more cost advantages. By employing remote talent, companies can save on physical infrastructure while tapping into a skilled and adaptable pool of professionals. Remote work agreements have surged by 25% annually, reflecting global confidence in Vietnam’s telecommuting capabilities.

5. Strategic Location and Stability

Vietnam’s geography and political climate are also working in its favor.

Proximity to Major Markets

Situated in the heart of Southeast Asia, Vietnam offers easy access to regional powerhouses like China, Japan, and South Korea. This makes it an ideal base for companies with regional supply chains. Vietnam’s logistics sector grew by 14% in 2024 alone, reflecting its growing importance.

Diversifying from China

As global businesses look to reduce reliance on China, Vietnam has emerged as a logical alternative. It’s close enough to maintain logistical efficiency but politically stable enough to avoid the risks associated with larger economies. According to the US-China Business Council, 20% of its members are actively shifting operations to Vietnam.

Trade Agreements

Vietnam’s participation in global trade deals like the RCEP and CPTPP further boosts its appeal. These agreements lower tariffs and improve market access, making Vietnam a magnet for international businesses. Export revenues under these agreements have grown by 15% year-on-year, according to the Ministry of Industry and Trade.

6. Challenges and How to Tackle Them

No destination is perfect, and Vietnam is no exception. However, the challenges here are solvable with the right strategies.

Talent Retention

With so many players entering the market, competition for top talent is fierce. Companies need to think beyond salaries and focus on creating career development opportunities and a strong workplace culture.

Infrastructure Bottlenecks

Traffic jams in cities like Ho Chi Minh and Hanoi are infamous, and internet connectivity in rural areas can be inconsistent. These are growing pains, but they’re being addressed through ongoing investments. The government has committed $3 billion to expand internet coverage to 98% of households by 2026.

Practical Solutions

• Recruitment Partnerships: Collaborating with local agencies can streamline hiring.
• Upskilling Initiatives: Investing in employee training ensures access to future-ready talent.
• Remote Work: Expanding remote operations can mitigate infrastructure limitations.

7. What This Means for Recruitment

The ripple effects of NVIDIA and Google’s expansions are being felt across Vietnam’s recruitment landscape.

Growing Demand for Tech Roles

Roles in AI, data science, and cloud computing are skyrocketing in demand. Recruitment agencies are pivoting to specialize in these high-tech areas, catering to the needs of global clients.

Opportunities for Agencies

Vietnamese recruitment firms have a golden opportunity to become key partners for international companies. By understanding local nuances and global expectations, they can bridge gaps effectively.

Remote Recruitment Boom

The demand for remote Vietnamese talent is surging. Global companies increasingly rely on Vietnam’s recruitment agencies to identify and onboard professionals who can seamlessly integrate into international teams. Agencies specializing in remote placements report a 30% growth in demand year-on-year.

8. Lessons for Global Businesses

As NVIDIA and Google pave the way for tech innovation in Vietnam, their moves hold invaluable lessons for other global companies contemplating expansion into the region.

Embrace Vietnam’s Talent

Vietnam’s workforce is its most significant asset. With over 50,000 STEM graduates entering the job market annually, the talent pool is not just vast but also well-equipped to tackle global challenges. Vietnamese professionals excel in high-demand fields such as artificial intelligence, software development, and digital marketing. Their strong work ethic, adaptability, and increasing English proficiency make them ideal for both on-site and remote roles.

Companies entering Vietnam can leverage the workforce’s affordability without compromising on quality. Salaries in Vietnam are approximately 30-40% lower than in competing countries like India or the Philippines, enabling businesses to allocate more resources toward innovation and scaling.

Tap into Remote Workforce Potential

Vietnam has emerged as a global hub for remote talent. Since the pandemic, remote work opportunities have surged, with professionals and businesses alike embracing this model. According to a 2023 study, over 60% of Vietnam’s workforce expressed confidence in working remotely, highlighting their technical readiness and ability to integrate seamlessly into international teams.

For global businesses, this means the ability to access world-class talent without the need for physical offices. Industries ranging from IT and finance to digital marketing have seen remarkable success in hiring Vietnamese remote teams, often at a fraction of the cost of in-office teams in traditional tech hubs.

Invest in Long-Term Partnerships

Vietnam’s evolving economy requires businesses to think long-term. Companies that invest in partnerships with local universities, training programs, and government initiatives are more likely to secure a steady pipeline of talent. For example, NVIDIA’s collaboration with the Vietnam National University to train AI specialists is a model for companies looking to develop localized expertise.

Building such partnerships not only enhances a company’s reputation but also contributes to the broader development of Vietnam’s tech ecosystem. This reciprocal growth fosters a win-win environment, allowing businesses to thrive while supporting the country’s economic ambitions.

Adapt to Local and Global Trends

Vietnam’s workforce is increasingly aligned with global trends, particularly in emerging fields such as blockchain, cloud computing, and data science. Companies should capitalize on this by offering roles that challenge and excite professionals. In addition, focusing on upskilling programs can fill any talent gaps and ensure employees are equipped with the latest knowledge and technologies.

Seize the Cost Advantage

Global companies are recognizing Vietnam’s unique cost-value proposition. By employing Vietnamese talent for remote or hybrid roles, businesses can achieve operational efficiency while maintaining high productivity. Data from recruitment agencies shows that companies hiring Vietnamese professionals for remote positions save between 30-50% on operational costs compared to traditional hires in Western markets.

Collaborate with Local Recruitment Experts

Navigating Vietnam’s talent market requires nuanced understanding. Recruitment agencies with expertise in local hiring practices can be invaluable. These agencies help bridge cultural and operational gaps, ensuring that global companies onboard the right candidates efficiently. Agencies specializing in remote workforce placements, in particular, report a 30% year-on-year increase in demand for Vietnamese talent.

Vietnam’s transformation into a global tech hub is no accident. Strategic policymaking, a talented workforce, and competitive costs have made it a destination of choice for companies like NVIDIA and Google. For businesses eyeing their next big move, Vietnam offers a compelling blend of opportunity and innovation. With billions of dollars in investments pouring in, the time to tap into this dynamic market is now.