NVIDIA has announced it intends to buy Vietnam healthtech firm VinBrain. The value of the deal has not been disclosed. VinBrain will reportedly be used as the foundation for a NVIDIA research and development centre in Vietnam.
Whereas this has been heralded as a coup for Vietnam’s tech sector–VietnamBiz has gone so far as to suggest this supports the thesis that Vietnam is is becoming a ‘promised land’ for global tech firms– it’s difficult to know exactly what this might mean on a practical level at this point in time.
Of note, Art Times has looked at VinBrains financials noting that about VND 627 billion or US$24.7 million has been invested in the business since its inception. It also notes that VinGroup currently owns about half of the company and recorded a loss on said holding in the third quarter of 2024 of VND 16 billion or about US$630,728. Based on these numbers the firm looks to be relatively small.
On this line of thought, Zing News seems skeptical of any broad new job creation but rather suggests the benefits will be in the quality of the positions created.
“Even if Nvidia’s data center itself doesn’t directly create many jobs, the positions it will fill will be highly skilled, requiring scientists with degrees and research backgrounds,” it has said.
Also worthy of a mention is that Vietnam is in the process of developing legislation in response to the Global Minimum Tax to provide alternatives to tax breaks as incentives for foreign firms. The centrepiece of this legislation looks to be a research and development fund to which foreign firms can contribute a certain amount each year of their profits before tax.
See also: Technology in Vietnam