Vietnam emerges as a rising hub for global tech investment
SAP joins Qualcomm and Nvidia in expanding R&D presence as Vietnam ramps up semiconductor and AI talent development
Vietnam is rapidly becoming a strategic hub for global technology giants, attracting fresh waves of research and development (R&D) investments. German software leader SAP has opened a new R&D center in Ho Chi Minh City, joining the ranks of Qualcomm and Nvidia, which are already expanding their operations in the country.
SAP opens second Southeast Asia R&D base in Ho Chi Minh City
On August 7, SAP inaugurated its second R&D center in Southeast Asia, following Singapore. The company plans to invest €150 million (about KRW 242.4 billion) over the next five years, expanding its current workforce from 200 to 500 by 2027.
As a global leader in enterprise resource planning (ERP) systems, SAP operates more than 20 R&D centers worldwide, with existing locations in countries including Germany, China, Canada, and India. Simon Davies, SAP’s Asia Pacific president, said, “Vietnam is rapidly advancing in science, technology, and mathematics and is now recognized as a global talent pool. While several governments offered partnership proposals, Vietnam proved to be the most suitable choice.”
Vietnam pushes for high-tech industry growth
The Vietnamese government, aiming to achieve developed-country status by 2045, is strategically pursuing high-tech investments. In January, it announced incentives covering up to 50% of initial R&D costs in the semiconductor and AI sectors.
This policy direction has drawn multiple global tech firms. In June, U.S. semiconductor company Qualcomm launched its first Southeast Asian R&D center in Vietnam, focusing on AI research. Meanwhile, Nvidia CEO Jensen Huang visited in December, announcing plans to acquire AI startup VinBrain (a Vingroup subsidiary) and establish a local AI R&D facility.
Training up to 100,000 engineers in semiconductors and AI
Speaking at SAP’s R&D center opening ceremony, Vietnamese Deputy Prime Minister Nguyen Chi Dung acknowledged that Vietnam has lagged in innovation but is now on a fast-growth trajectory. He set a goal to train between 50,000 and 100,000 engineers in semiconductors and AI in the coming years.
Industry observers note that Vietnam’s young workforce, competitive labor costs, and pro-business policies position it well to become a global innovation hub.