The deal, signed on Tuesday as part of Qualcomm president and CEO Cristiano Amon’s visit to Vietnam, will see the launch of the VNPT-Qualcomm Excellence Center (VQEC) - the first facility in the country to operate under an original design co-development model using Qualcomm’s core technologies.

VNPT will lead the center, which will also become one of Qualcomm’s Authorized Design Centers.

The VQEC will focus on research, product development, technology transfer, training high-quality talent, and promoting the commercialization of solutions based on Qualcomm’s technology platforms.

Under the agreement, the two companies will cooperate in artificial intelligence (AI), next-generation mobile networks (5G/6G), the Internet of Things (IoT), AI computing devices, and advanced networking equipment.

On the same day, Prime Minister Pham Minh Chinh met with Amon in Hanoi. At the meeting, the Vietnamese leader asked Qualcomm to expand its investment in Vietnam, especially in core technologies which have higher values in the semiconductor industry value chain.

Qualcomm, valued at about $160 billion, is a global leader in advanced wireless and 5G technology and is expanding into Edge AI. The U.S. company has operated in Vietnam for over two decades and launched its first Southeast Asia R&D center in Hanoi in June, following the acquisition of a 65% stake in AI firm MovianAI from Vingroup (HoSE: VIC).

Qualcomm earned a revenue of $38.96 billion in fiscal year 2024 (ending September 29), including 12% from Vietnam, the second-highest portion among all nations.

According to Qualcomm’s annual report for fiscal year 2024, China (including Hong Kong) was the biggest market with 66% of Qualcomm revenue. Vietnam came second with 12%, equivalent to $4.7 billion. Other major markets were the United States with 3% and South Korea with 7%.