Skip to content

Expensive Research and Development Center Project Proposed by German Company in Ho Chi Minh City, at a Cost of $175 Million

Over the following five years, German tech giant, SAP, plans to invest approximately 175 million US dollars in a cutting-edge Research and Development (R&D) facility in Vietnam.

German business announces expansion plans for a research and development center worth $175 million...
German business announces expansion plans for a research and development center worth $175 million in Ho Chi Minh City, Vietnam.

Expensive Research and Development Center Project Proposed by German Company in Ho Chi Minh City, at a Cost of $175 Million

SAP Expands Research and Development in Vietnam, Boosting Asia-Pacific Digital Transformation

SAP Labs Vietnam, the second R&D centre in Southeast Asia for the global technology company, has been officially launched in Ho Chi Minh City. The lab, located in a Grade-A building in Saigon ward, serves as a strategic hub for SAP's product development and digital transformation efforts in the Asia-Pacific region.

Since its inception in August 2025, SAP Labs Vietnam has been expanding rapidly. With over 200 employees already on board, the lab aims to increase its workforce to 500 by 2027, following a substantial investment of more than $175 million. This expansion underscores Vietnam’s growing strategic importance to SAP’s global business and the increasing demand for localized innovation in major markets such as Korea and Japan.

The lab's focus is on developing technologies tailored for industries including manufacturing, retail, and logistics. By doing so, SAP Labs Vietnam supports SAP’s broader commitment to driving digital transformation across key sectors in Asia-Pacific. The centre also emphasizes collaboration with top Vietnamese universities to nurture local tech talent in areas like data analytics, artificial intelligence (AI), and software engineering, thereby building a long-term talent ecosystem that fuels sustainable growth and inclusive innovation.

SAP's commitment to Vietnam is not new. The company has been present in the country for more than 15 years, providing technology solutions to major corporations in various sectors. SAP serves more than 400,000 customers in over 180 countries, and in the Asia-Pacific region, it is renowned for its enterprise resource planning, cloud computing, and AI solutions, playing a key role in global business efficiency and digital transformation.

In addition to seeking senior-level talent, SAP is working closely with leading universities in Ho Chi Minh City to nurture young tech talent and open career pathways in advanced fields such as data analytics, AI, and software engineering. This approach is part of SAP’s broader strategy to invest in local talent and innovation ecosystems, ensuring that the solutions developed at SAP Labs Vietnam respond to the unique market needs of Asia-Pacific countries.

The SAP RSSP initiative, established by SAP Asia-Pacific Japan, supports established partners on a rapid growth trajectory. FPT IS, a Vietnamese company, is one such partner. FPT has joined the SAP RSSP initiative to expand its capabilities and reach in the APJ region. In recognition of its contributions, FPT IS received three prestigious awards from SAP: Best Rise Partner, Best Midmarket Partner, and Best Partner of the Year.

In a statement, Thomas Saueressig, a member of the executive board of SAP SE, highlighted the importance of SAP Labs Vietnam, calling it an indispensable catalyst in the digital transformation of one of Asia's most dynamic tech markets. The lab's strategic role in SAP's product development and digital transformation efforts in the Asia-Pacific region is undeniable, making it a key player in the region's digital future.

Sources: [1] SAP News Center. (2025). SAP Labs Vietnam Opens to Drive Digital Transformation in Asia-Pacific. [online] Available at: https://news.sap.com/sap-labs-vietnam-opens-to-drive-digital-transformation-in-asia-pacific/

[2] SAP News Center. (2025). FPT IS Named SAP's Best Partner in Vietnam. [online] Available at: https://news.sap.com/fpt-is-named-saps-best-partner-in-vietnam/

[3] SAP News Center. (2025). ABeam Consulting Joins SAP's RSSP Initiative. [online] Available at: https://news.sap.com/abeam-consulting-joins-saps-rssp-initiative/

The expansion of SAP Labs Vietnam strengthens the company's commitment to the Asia-Pacific region, particularly in finance, technology, and key business sectors like manufacturing, retail, and logistics. As the strategic hub for SAP's product development, the lab aims to foster localized innovation in markets such as Korea and Japan.

The collaboration between SAP and top Vietnamese universities focuses on nurturing talent in fields like data analytics, artificial intelligence, and software engineering, aiming to build a long-term talent ecosystem that fuels sustainable growth and inclusive innovation in technology and business.

Read also:

    Latest