Participants at the 2025 International Conference on AI and Semiconductors in Hanoi pored over the current global trends while outlining how Vietnam can use its potential to turn shortcomings into innovation drivers.

Suresh Venkatarayalu, senior vice president and chief technology officer at Honeywell, said that 6-7 years ago, Honeywell used to engage with semiconductor suppliers through a traditional procurement process. This was how the company made decisions and chose partners. However, the 2020 pandemic changed everything.

“We realised the need for a more efficient approach to managing supply and demand. Over the past two years, we saw the need to build strategic relationships with semiconductor companies,” he said.

Data and networks are the two core elements in the development of AI, Venkatarayalu said. “Data collection is not easy. Without good data, advanced AI solutions cannot operate effectively. Without large-scale data, no models are built for training.”

Bui Hai Hung, CEO of VinAI, provided a perspective on leveraging limited resources to drive innovation. He said that for a long time, the development of AI has relied on the use of increasingly large data and increasingly powerful computing power. However, this also entails a large demand for resources and higher costs.

Hung especially emphasised that the case of DeepSeek in China is a valuable lesson. Sometimes, the scarcity of resources becomes the driving force for us to find smarter ways to do things, thereby inspiring creativity.

“The DeepSeek team faced restrictions on GPU exports, forcing them to find ways to achieve more results with fewer resources. Currently, the number of GPUs of DeepSeek is estimated at much smaller than OpenAI – which has spent billions of dollars on AI,” he said.

DeepSeek has succeeded in significantly reducing the cost of training AI models, which comes from technical improvements such as optimising architecture, developing new algorithms, applying reinforcement learning and improving the efficiency of GPU usage at the low level.

Hung noted that Vietnam is facing serious resource constraints. He was previously a member of the DeepMind team in Mountain View, California. “When I decided to return to Vietnam to establish an AI lab, many colleagues were very surprised. It was a risky decision, but I believe that Vietnam has enough conditions, from talent to opportunity, to create interesting things. However, right from the start, I see a big challenge: the lack of resources.”

However, Hung also realised that Vietnam could be the ideal place to turn resource limitations into a driving force for innovation. Instead of seeing this as an obstacle, it could be a catalyst for innovation.

“In Vietnam, shortage of resources is not a barrier but a driving force for innovation. We have young and intelligent human resources. With performance and innovation, Vietnam can absolutely become a bright spot in the global AI field,” Hung stated.

AI is shaping the future of the semiconductor industry. Da-Shan Shiu, CEO of MediaTek, said that the industry requires high precision and optimal product quality. Thereby, AI and data will optimise the manufacturing process, from parameter control to improving equipment performance.

“Semiconductor manufacturing needs precision, near-perfect process control to maximise efficiency and yield. AI-based process control is an automated process, enabling real-time decision-making to ensure stability, reduce waste, and improve product reliability,” Shiu added.

Shiu also mentioned how AI supports real-time process control, especially in semiconductor chip manufacturing. AI can analyse data from measurement systems, identify small deviations in the production process and propose immediate adjustments. This minimises material loss and improves the reliability of the output product.

“To fully exploit AI in semiconductor manufacturing, businesses need to invest in powerful data systems and specialised models suitable for the complexity of production,” Shiu noted.

Christopher Nguyen, CEO and co-founder of Aitomatic, said that Vietnam is a rising force in the AI and semiconductor industries, driven by a young, talented population and increasing foreign and local investments

On the semiconductor side, the growing investments in both integrated chip design and packaging systems signal the start of a promising tech ecosystem.

“However, Vietnam should find its niche rather than competing in highly saturated markets like advanced semiconductor fabrication dominated by giants like TSMC,” he said. “Instead, we should focus on emerging, high-potential areas like edge AI, where no clear global leader has yet emerged,” Nguyen recommended.

“I believe Vietnam can build a comparative advantage by channelling resources and talent into these less crowded, fast-growing markets, creating the chance to become a global leader. I’m very excited about the potential of the edge becoming the centre and for edge AI in terms of chip design.”

Pham Minh Chinh, Prime Minister Vietnam’s economy is aiming for development based on science and technology, innovation, digital transformation, and the green, digital, circular, creative, and sharing economies. To develop AI and semiconductors in particular, Vietnam should aim to cut at least 30 per cent of administrative procedures, reducing compliance costs for individuals and businesses, and strengthening decentralisation. We are shifting from management thinking to development thinking. Moreover, infrastructure for AI and semiconductor development should be carried out strongly, including transport infrastructure to reduce input and logistics costs, as well as infrastructure in IT, the digital transition, and energy. Human resources will meet the requirements of developing in microchips and AI. This is the biggest challenge, but Vietnam is focusing on implementing it, with solutions to innovate the education and training system towards better quality, focusing on encouraging basic research, training in English as a second language, and streamlining training with the spirit of lifelong learning. Another important solution is to develop a startup ecosystem for AI, semiconductors, and innovation that is suitable for the country’s talent and strengths. It is necessary to encourage the startup movement nationwide, contributing to the development of the country. Vietnam must build more research and development centres, as well as international and regional financial centres for Ho Chi Minh City and Danang. The government hopes that foreign partners and investors will contribute to providing advice on approaches, vision, and goals to ensure suitability with the situation in Vietnam. We must see contributions to perfecting institutions, cutting cumbersome procedures, and making decisions as soon as possible to reduce compliance costs for individuals and businesses as much as possible. Additionally, the government has requested partners to provide financial support and preferential loans to ensure efficiency, build more investment funds, develop financial centres, upgrade the stock market, encourage direct and indirect investment, and boost public-private cooperation to mobilise resources. Investors and partners should also promote tech transfer to Vietnam through R&D centres, and create conditions for Vietnamese enterprises to participate in global supply and production chains. Truong Gia Binh, chairman, FPT Group Vietnam has one million IT engineers, half of whom are software engineers who can be moved to AI, and is proceeding with the target of one million AI experts. If this can be carried out, Vietnam will be at the top of the list in terms of developed countries in this area. Many years ago, Vietnam was almost unknown on the world IT map. Today, it has become a hub for high-quality human resources. Therefore, investors can consider Vietnam as a large talent centre, where people with aspirations and a strong spirit of progress are gathered. With the current goals, FPT commits to transforming and training AI capacity for 500,000 people. Vietnam aims to train 50,000 semiconductor engineers by 2030 and will move towards hundreds of thousands of workers in the future. In the context of global investment in training semiconductor workers, FPT commits to training 5,000 people by the end of this decade, including 1,600 students studying semiconductors. In the past, more than a dozen leading universities have quickly opened training programmes on AI and semiconductors. FPT has prepared a force for a new generation of experts, integrating into the global technology flow. This is a gold mine waiting for international businesses to exploit. Moreover, the Party and state leaders have issued affirmations of Vietnam’s determination to choose innovation and sci-tech, including AI and semiconductors, as the roadmap for future development. We are mobilising the participation of the whole of society in digital transformation activities, and technology adoption in daily life.

A market upgrade could be possible later this year, photo Le Toan

On March 10, FTSE Russell announced that it would release the results of its mid-term national market classification review for Vietnam after the US market closes on April 8.

Minister of Finance Nguyen Van Thang also said that the resolutions from the plenary meeting of the Asia-Pacific Regional Committee (APRC) in late February, coupled with the prospect of market upgrade and robust economic growth, were expected to be key drivers for Vietnam’s stock market to enter a phase of deeper global integration.

“With a minimum GDP growth target of 8 per cent this year, the government will continue to strengthen policies supporting businesses, improve the investment environment, and enhance market governance standards to realise this goal,” Thang said. “The securities legal framework is also being refined, particularly with the revised Securities Law and related guiding documents, to create additional refinements for investors.”

Vietnam is currently one of two markets on FTSE Russell’s watch list for a potential upgrade.

“The outlook for Vietnam’s stock market upgrade to emerging market status this year is very positive. The Vietnam Securities Depository and Clearing Corporation (VSDC) expects FTSE Russell to positively assess the solutions implemented in the March review, making the possibility of an upgrade in September highly feasible, in line with investor expectations,” said Ta Thanh Binh, general director at the VSDC.

The VSDC is upgrading its electronic communication gateway, allowing securities firms and custodian banks to exchange foreign investor transaction data quickly and securely, replacing the current manual processes. This system is expected to be completed imminently, Binh added.

As part of the market upgrade efforts, on March 11, the Ho Chi Minh Stock Exchange announced a plan to test its new IT system, the KRX. The testing period is to run from March 17 to April 11, simulating stock trading operations as on a regular trading day.

“The expected rollout of the KRX system between late May and June is anticipated to improve market infrastructure and investor sentiment. The system has passed the national cybersecurity assessment, and broker-level testing is set to begin,” said Dao Minh Chau, associate director at SSI Research.

Although Vietnam has met key technical requirements, Chau said practical issues remain, including varied settlement cycles and inconsistencies in credit limits. Nonetheless, the State Securities Commission (SSC) is actively addressing these challenges in collaboration with international financial institutions.

On the same day, the SSC also announced plans to implement nine initiatives in 2025 to support the market upgrade, including operation of the KRX system and seven objectives targeted for completion before Q3.

The ultimate goal is to launch a central counterparty clearing (CCP) mechanism for Vietnam’s stock market, which the VSDC has committed to completing in 2026.

“The non-prefunding solution, which allows foreign investors to trade in accordance with FTSE’s criteria, is just an initial step. In the long-term vision for meeting MSCI’s upgrade requirements, implementing the CCP settlement mechanism will be a more crucial and strategic move,” said a VSDC representative.

The revised Securities Law, enacted late last year, has established the legal framework for the VSDC to set up a subsidiary to implement this CCP mechanism in line with international standards, and it is working intensively to execute this plan on schedule, the representative added.

By the end of the trading session on March 12, Vietnam’s stock market saw the VN-Index register its fifth consecutive positive session. Analysts at Vietnam Construction Securities forecast that upward momentum remains dominant, with no clear signals of a reversal. The VN-Index is expected to rise, aiming for a resistance level of 1,360-1,365 points.

Nguyen Duc Hoan, CEO of ACB Securities, emphasised that historical trends in regional markets show that before an official upgrade, stock markets often experience strong growth phases.

“This year is considered a crucial period for investors to accumulate shares in companies with significant potential,” he said. “However, the market also faces considerable challenges, particularly from global economic fluctuations. Trade conflicts, the risk of returning inflation, and the US Federal Reserve’s interest rate policies could all exert pressure on investment capital flows.”

At the APRC 2025 conference of the International Organisation of Securities Commissions (IOSCO), Vietnam became a signatory to a multilateral MoU on supervision of APRC. This marks a significant step in strengthening market oversight cooperation between Vietnam’s SSC and other securities regulatory bodies within APRC and IOSCO.

Cisco Secure AI Factory with NVIDIA breaks new ground in AI infrastructure and security while accelerating and simplifying enterprise AI adoption

News Summary:

• Offering will empower customers to build and secure data centers to develop and run AI workloads.
• The Cisco Secure AI Factory with NVIDIA will embed security within all layers, from the application, to the workload, to the infrastructure using solutions like Cisco AI Defense and Hybrid Mesh Firewall.

SAN JOSE, Calif., March 19, 2025 /PRNewswire/ — GTC — Cisco [NASDAQ: CSCO] today unveiled an AI factory architecture with NVIDIA that puts security at its core. This collaboration with NVIDIA builds on the expanded partnership that was announced last month, and the companies have moved swiftly to provide validated reference architectures today. Together, the companies are developing the Cisco Secure AI Factory with NVIDIA to dramatically simplify how enterprises deploy, manage, and secure AI infrastructure at any scale.

Cisco and NVIDIA

“AI can unlock groundbreaking opportunities for the enterprise,” said Chuck Robbins, Chair and CEO, Cisco. “To achieve this, the integration of networking and security is essential. Cisco and NVIDIA’s trusted, innovative solutions empower our customers to harness AI’s full potential simply and securely.”

“AI factories are transforming every industry, and security must be built into every layer to protect data, applications and infrastructure,” said Jensen Huang, founder and CEO, NVIDIA. “Together, NVIDIA and Cisco are creating the blueprint for secure AI—giving enterprises the foundation they need to confidently scale AI while safeguarding their most valuable assets.”

Developing and delivering AI applications require high performing, scalable infrastructure and AI software tool chain. Securing this infrastructure and AI software requires a new architecture – one that embeds security at all layers of the AI stack and automatically expands and adapts as the underlying infrastructure changes. Cisco and NVIDIA’s partnership on the NVIDIA Spectrum-X^TM Ethernet networking platform provides the foundation for the Cisco Secure AI Factory with NVIDIA. Cisco is integrating security solutions like Cisco Hypershield, to help protect AI workloads, and Cisco AI Defense, to help protect the development, deployment, and use of AI models and applications. Together, Cisco and NVIDIA will provide customers with the flexibility to design infrastructure for their specific AI needs without sacrificing operational simplicity or security.

Building a Secure AI Factory
AI factories – data centers purpose-built to power AI workloads – are designed to be more modular, scalable and agile, but organizations must also look beyond raw compute power. AI Factories must address new and complex security challenges. The recently published Cisco State of AI Security report analyzes dozens of AI-specific threat vectors and over 700 pieces of AI-related legislation to highlight key developments from a rapidly evolving AI security landscape. Organizations that strategically address both their AI infrastructure and security challenges simultaneously will be more agile, scale faster, and derive business value quicker.

Cisco Secure AI Factory with NVIDIA is expected to build on the companies’ unique ability to offer flexible AI networking and full-stack technology options that leverage the planned joint architecture. The partnership will bring together technologies from Cisco, NVIDIA, and our ecosystem partners into a secure AI factory architecture for enterprise customers, including:

• Compute: Cisco UCS AI servers based on NVIDIA HGX and NVIDIA MGX for accelerated computing.
• Networking: Cisco Nexus Hyperfabric AI and Nexus networking solutions, powered by Silicon One and NVIDIA Spectrum-X Ethernet networking.
• Storage: High-performance storage from certified partners Pure Storage, Hitachi Vantara, NetApp, and VAST Data.
• Software: NVIDIA AI Enterprise software platform to streamline the development and deployment of production-grade agentic AI workloads.

The Cisco Secure AI Factory with NVIDIA includes security at all layers:

• Securing the infrastructure: Cisco Hybrid Mesh Firewall provides unified security management and consistent policy across multiple enforcement points, including network switches, traditional firewalls, and workload agents. This integrated approach ensures pervasive and consistent security, ranging from deep packet inspection to wide infrastructure coverage, detecting, blocking and containing adversaries. Cisco Hypershield (part of Hybrid Mesh Firewall) will, in the future, extend pervasive, zero-trust security enforcement to every AI node by integrating with NVIDIA BlueField-3 DPUs.
• Securing the Workload: Cisco Hypershield prevents adversary lateral movement and proactive vulnerability mitigation without the need for patching, all from a single management interface. By monitoring and controlling process executions, file access, and network activities, Hypershield delivers deep visibility and surgical runtime enforcement within AI workloads. Future enhancements will further strengthen workload protection through integration with NVIDIA BlueField-3’s DOCA AppShield for real-time workload threat detection in AI-focused virtual machines and containers.
• Securing the AI application: Cisco AI Defense empowers security and AI teams with comprehensive tools to protect AI applications from safety (e.g. off-policy, toxic behavior) and security (i.e. prompt injection, data privacy) risks across the development lifecycle. AI Defense integrates into existing CI/CD workflows to provide automated vulnerability testing and a common layer of runtime security across any number of models and applications. Additionally, AI Defense helps companies align to AI security standards with a single integration, including NIST, MITRE ATLAS, and OWASP LLM Top 10. Future enhancements include integration with NVIDIA AI Enterprise to streamline AI security workflows.

Cisco and NVIDIA each bring a unique understanding of customer AI infrastructure needs, and by combining their insights, can offer flexible deployment models alongside proven reference architectures. The Secure AI Factory will provide enterprise customers with scalable, high-performance AI infrastructure that supports customers at any stage of their journey and embeds security throughout.

Cisco Secure AI Factory with NVIDIA will have flexible deployment options, including:

• Ready-to-deploy: Utilizing Cisco Nexus Hyperfabric AI along with Cisco’s security portfolio and NVIDIA technology, customers can deploy a vertically integrated AI solution that automates and simplifies the secure AI factory lifecycle from design to deployment and ongoing monitoring.
• Build-your-own: Featuring customizable modular components from Cisco, NVIDIA, and the companies’ storage ecosystem partners, customers can incorporate their current infrastructure and build solutions that are designed precisely for their unique environments.

“In today’s fast-moving market, businesses need more than just technology—they need end-to-end solutions that address their most pressing challenges. I see Cisco and NVIDIA combining their strengths to deliver integrated solutions that I believe will drive innovation, simplify deployment, and streamline operations,” said Patrick Moorhead, Founder, CEO and Chief Analyst, Moor Insights & Strategy. “AI isn’t easy but the combination of the two could be an ‘easy button’ for AI infrastructure. By making AI infrastructure easier to adopt and manage, they could empower enterprises to accelerate digital transformation and achieve their strategic goals with more confidence.”

Cisco and NVIDIA: The journey to a validated and unified architecture
Moving quickly is crucial to meet today’s demand for AI infrastructure, and Cisco and NVIDIA have made progress as part of the collaboration announced in February 2025. Cisco has developed new reference architectures with deployment options for Cisco Nexus Hyperfabric AI or Cisco Nexus 9000 Series Switches validated and based on the NVIDIA Enterprise Reference Architecture for HGX H200 and Spectrum-X.

AVAILABILITY
Solutions based on the Cisco Secure AI Factory with NVIDIA architecture are expected to be available for purchase before the end of calendar year 2025. Many of the individual technology components included in the architecture are available today.

ADDITIONAL RESOURCES

• Executive Blog Post: Embracing the AI Era: Cisco Secure AI Factory with NVIDIA, Jeetu Patel, Cisco’s Executive Vice President and Chief Product Officer
• For more information on the Cisco Secure AI Factory with NVIDIA, click here.