Software giant SAP invests $175 ml in R&D center in Vietnam

German software heavyweight SAP has officially launched a research & development center in Vietnam, with plans to invest more than €150 million ($175 million) over the next five years.

The SAP Labs Vietnam center, located in Saigon ward, Ho Chi Minh City, officially began operations on Thursday. It is SAP’s second R&D center in Southeast Asia, following its facility in Singapore.

At the launch event, Clas Neumann, senior vice president and head of the SAP Labs Global Network, said now is the “right time” to invest in Vietnam due to its abundant tech talent, strong government support for innovation and digital transformation, and a solid academic infrastructure.

Since September 2024, SAP Labs Vietnam has hired over 200 employees, with plans to expand to 500 by 2027. In 2025 alone, the company expects to recruit an additional 350 staff. Among SAP’s 20 global research centers, the Vietnam facility has recorded the fastest growth in its first year of operation.

Vietnam is currently one of the fastest-growing digital economies in Southeast Asia, with a growth rate of 20% in 2024, contributing 18.3% to the country’s GDP, three times higher than the overall economic growth rate, according to data from the former Ministry of Information and Communications (now the Ministry of Science and Technology).

At the ceremony, Deputy Prime Minister Nguyen Chi Dung noted that Vietnam has identified 11 strategic technology sectors and aims to become a global AI hub. He encouraged SAP to expand its investment in HCMC and other localities across the country.

He also called on SAP to support the training of a large, high-quality tech workforce, in line with the government’s goal of developing 50,000 to 100,000 semiconductor and AI engineers.

SAP is a global leader in enterprise software and artificial intelligence (AI), with a market capitalization of more than €310 billion.

Manik Saha, managing director of SAP Labs Singapore and Vietnam, said the company is committed to building a talent ecosystem by connecting with Vietnamese tech professionals and partnering with local universities to create long-term career opportunities for young people.