- Vietnam aims to become a global AI hub across 11 tech sectors.
- SAP urged to invest more and help train 50K–100K tech engineers.
- SAP commits to building talent through university partnerships.
German software giant SAP has officially established a research and development center in Vietnam, intending to invest over €150 million ($175 million) in the next five years. The SAP Labs Vietnam facility, located in Saigon ward, Ho Chi Minh City, officially started functioning on Thursday. It is SAP’s second research and development center in Southeast Asia, after its site in Singapore.
During the launch event, Clas Neumann, senior vice president and head of the SAP Labs Global Network, stated that the moment is ideal to invest in Vietnam because of its plentiful tech talent, robust governmental backing for innovation and digital transformation, and a strong academic foundation.
SAP Labs Vietnam has recruited more than 200 staff members since September 2024, aiming to grow to 500 by 2027. In 2025, the company anticipates hiring an extra 350 employees. Among SAP’s 20 worldwide research centers, the Vietnam facility has achieved the quickest growth in its initial year of operation.
Vietnam is presently among the rapidly expanding digital economies in Southeast Asia, with a projected growth rate of 20% in 2024, accounting for 18.3% of the nation's GDP, which is three times the general economic growth rate, based on information from the former Ministry of Information and Communications (now the Ministry of Science and Technology).
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During the ceremony, Deputy Prime Minister Nguyen Chi Dung highlighted that Vietnam has recognized 11 key technology sectors and intends to establish itself as a global hub for AI. He urged SAP to increase its investments in HCMC and other areas throughout the nation.
He also urged SAP to assist in training a substantial, high-caliber tech workforce, aligning with the government’s objective of cultivating 50,000 to 100,000 semiconductor and AI engineers. SAP stands as a worldwide frontrunner in enterprise software and artificial intelligence (AI), boasting a market capitalization exceeding €310 billion.
Manik Saha, managing director of SAP Labs in Singapore and Vietnam, stated that the organization is dedicated to establishing a talent ecosystem by engaging with Vietnamese tech experts and collaborating with local universities to generate sustainable career prospects for young people.