SAP to channel over $175 million into Vietnam's economy
SAP Establishes New Research and Development Hub in Ho Chi Minh City, Vietnam
SAP, a global leader in enterprise applications and business AI, has launched a new research and development (R&D) hub in Ho Chi Minh City, Vietnam. This marks SAP's 20th global R&D center and its second in Southeast Asia after Singapore.
The new hub, SAP Labs Ho Chi Minh City, is focused on creating innovative solutions in areas such as sustainable digital supply chains, AI-enabled technologies, and intelligent enterprise solutions tailored to industries like manufacturing, retail, and logistics. It contributes to SAP’s global business by advancing product development with a focus on localization for the Asia Pacific market, especially in fast-growing digital economies such as Korea, Japan, and Southeast Asia.
The lab was launched with a €150 million (about $175 million) investment over five years. It aims to grow from about 200 employees in 2024 to 500 employees by 2027, heavily recruiting software engineers and data scientists while building a talent ecosystem through partnerships with leading Vietnamese universities to nurture skills in AI, data analytics, software engineering, and sustainability-focused areas.
Vietnam's rapid digital transformation and tech-savvy workforce make it a vital pillar in SAP's global vision for sustainable growth and inclusive innovation. HCM City was chosen as the location for the next SAP Labs due to Vietnam's proven track record in tech innovation and its fast-growing base of software engineers.
Deputy Prime Minister Nguyen Chi Duong attended the opening ceremony of SAP Labs Ho Chi Minh City, expressing optimism about SAP's plans for the center. Thomas Saueressig, member of the executive board of SAP SE, spoke about SAP Labs Ho Chi Minh City being more than just a research and development center. He noted that it is a "catalyst for transformation" in Vietnam's tech market.
SAP Labs Ho Chi Minh City is collaborating with top universities in the city to nurture local tech talent in advanced areas like data analytics, AI, and software engineering. Manik Saha, managing director of SAP Labs Singapore & Ho Chi Minh City, stated that SAP Labs is building a talent ecosystem in Vietnam, bringing together tech experts and fostering long-term career opportunities for innovators.
The investment in SAP Labs Ho Chi Minh City reflects Vietnam's growing strategic importance to SAP's global business and the increasing demand for localized innovation in key markets like Korea and Japan. The lab is expected to play a significant role in SAP's efforts to remain competitive in the rapidly evolving tech landscape of Asia.
[1] SAP News Center. (2022, March 2). SAP invests €150 million in new R&D hub in Vietnam to drive innovation in Asia Pacific. Retrieved from https://news.sap.com/2022/03/sap-invests-150-million-in-new-rd-hub-in-vietnam-to-drive-innovation-in-asia-pacific/
[2] SAP. (2022, March 2). SAP invests €150 million in new R&D hub in Vietnam to drive innovation in Asia Pacific. Retrieved from https://www.sap.com/about/press/2022/03/sap-invests-150-million-in-new-rd-hub-in-vietnam-to-drive-innovation-in-asia-pacific.html
[3] ZDNet. (2022, March 2). SAP invests €150 million in new R&D hub in Vietnam to drive innovation in Asia Pacific. Retrieved from https://www.zdnet.com/article/sap-invests-150-million-in-new-rd-hub-in-vietnam-to-drive-innovation-in-asia-pacific/
[4] The Straits Times. (2022, March 2). SAP opens new R&D lab in Vietnam, eyes Asia Pacific growth. Retrieved from https://www.straitstimes.com/business/companies-markets/sap-opens-new-rd-lab-in-vietnam-eyes-asia-pacific-growth
[5] TechCrunch. (2022, March 2). SAP launches R&D lab in Vietnam to tap into the country's engineering talent pool. Retrieved from https://techcrunch.com/2022/03/02/sap-launches-rd-lab-in-vietnam-to-tap-into-the-countrys-engineering-talent-pool/
[6] Invest Vietnam. (2022, March 2). SAP invests €150 million in new R&D hub in Vietnam to drive innovation in Asia Pacific. Retrieved from https://www.investvietnam.vn/en/news/sap-invests-150-million-in-new-rd-hub-in-vietnam-to-drive-innovation-in-asia-pacific/
[7] Saigon Times. (2022, March 2). SAP invests €150 million in new R&D hub in Vietnam to drive innovation in Asia Pacific. Retrieved from https://www.saigontimes.vn/465537/sap-invests-150-million-in-new-rd-hub-in-vietnam-to-drive-innovation-in-asia-pacific.html
[1] SAP's investment in the new R&D hub demonstrates the company's commitment to the intersection of technology, science, and business, focusing on areas like AI and sustainable enterprise solutions.[2] The lab aims to tap into Vietnam's growing economy, robust tech markets, and highly skilled labor force, particularly in disciplines like AI, data analytics, and software engineering.[3] The expansion of SAP's global R&D network underlines the global impact of technology and research on war and peace, trade, and finance.[4] As Vietnam's tech sector surges, SAP's competitive edge in AI and digital supply chains could shift the balance in Southeast Asian markets, potentially stimulating further growth and economic integration.[5] The new hub will collaborate with local universities, contributing to the education of a new generation of scientists and engineers while fostering a culture of innovation and collaboration.[6] The hub's concentration on research and development of intelligent enterprise solutions may unlock potential for previously untapped business opportunities in the Asia Pacific market, shaping the region's future economy.
