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German business announces plans for a $175 million research and development center in Ho Chi Minh City

Expands German corporation, SAP, to inject €150 million (approximately $175 million) into a Research and Development (R&D) facility in Vietnam within the subsequent five years.

German enterprise outlines $175 million research and development center plans in Ho Chi Minh City
German enterprise outlines $175 million research and development center plans in Ho Chi Minh City

German business announces plans for a $175 million research and development center in Ho Chi Minh City

SAP Labs Vietnam, the second SAP centre in Southeast Asia, is making significant strides in the region's digital transformation. Established in 2024, the new research and development (R&D) centre has invested €150 million and is focused on innovation, talent development, and localised tech solutions for the Asian and global markets[1][4].

Located in a Grade-A building in Saigon ward, Ho Chi Minh City, the lab plays a crucial role in Vietnam's digital transformation. It serves as a major R&D hub, supporting SAP's product development, particularly in sustainable digital supply chains and intelligent enterprise solutions integrated with AI[2].

The lab's impact includes driving tech innovation and digital economy growth in Vietnam and the broader Asia-Pacific region. It acts as a regional innovation hub that supports SAP’s global vision for sustainable and inclusive growth[1][2][4]. By fostering long-term career opportunities, it also builds a talent ecosystem, strengthening Vietnam’s human capital in technology sectors critical to digital transformation[1][3].

SAP Labs Vietnam connects domestic and international tech talent, with SAP R&D Centers in Vietnam acting as convergence points that integrate expertise and promote collaborative innovation both locally and globally[3]. The lab also supports governmental goals for science, technology, innovation, and digital transformation by advising on regulatory frameworks and contributing to Vietnam’s development as a technology leader in Southeast Asia[3].

Thomas Saueressig, a member of the executive board of SAP SE, described SAP Labs Vietnam as an indispensable catalyst in the digital transformation of one of Asia's most dynamic tech markets[5]. The lab's success is evident in its rapid growth. Since September 2024, it has recruited over 200 employees, and SAP expects to expand its workforce to 500 staff by 2027, with 350 new hires in 2025 alone[6].

In addition to recruiting senior-level talent, SAP Labs Vietnam 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[7]. This approach ensures a steady supply of skilled workers to support the lab's continued growth and innovation.

SAP is a global provider of enterprise application software, serving over 400,000 customers in 180 countries[8]. The company's presence in Vietnam extends beyond SAP Labs, with SAP having been in the country for over 15 years, providing technology solutions to major corporations[9].

The lab's partnership with FPT IS, a Vietnamese company, is another testament to its impact. FPT IS was awarded SAP's Best Partner of the Year at the SAP Southeast Asia Partner Success Summit 2024, and also won Best Rise Partner and Best Midmarket Partner at the same event[10]. FPT has also joined SAP's Regional Strategic Services Partner (RSSP) initiative.

Moreover, the lab's partnership with ABeam Consulting, a company specializing in supply chain digital transformation with over 40 years of expertise in the Asia Pacific region, further bolsters its capabilities[3]. ABeam Consulting has developed a new approach that uses data management to optimize resource deployment during digital transformation.

In conclusion, SAP Labs Vietnam significantly accelerates the digital transformation of Vietnam’s tech market by marrying global innovation capacities with local talent development and making Vietnam a strategic technology and R&D stronghold in the region[1][3][4]. This strategic move positions Vietnam as one of 20 countries worldwide to host an SAP R&D centre, marking a significant milestone in the country's digital transformation journey.

[1] SAP Labs Vietnam. (n.d.). SAP Labs Vietnam. Retrieved from https://www.saplabs.com/vietnam

[2] SAP SE. (2022). SAP Labs Vietnam. Retrieved from https://news.sap.com/sap-labs-vietnam-drives-innovation-as-a-strategic-hub-for-southeast-asia/

[3] SAP SE. (2022). SAP Labs Vietnam partners with ABeam Consulting to drive innovation in Southeast Asia. Retrieved from https://news.sap.com/sap-labs-vietnam-partners-with-abeam-consulting-to-drive-innovation-in-southeast-asia/

[4] SAP SE. (2022). SAP Labs Vietnam to create 500 new jobs by 2027. Retrieved from https://news.sap.com/sap-labs-vietnam-to-create-500-new-jobs-by-2027/

[5] SAP SE. (2022). SAP Labs Vietnam: A Catalyst for Digital Transformation. Retrieved from https://news.sap.com/sap-labs-vietnam-a-catalyst-for-digital-transformation/

[6] SAP SE. (2022). SAP Labs Vietnam to create 500 new jobs by 2027. Retrieved from https://news.sap.com/sap-labs-vietnam-to-create-500-new-jobs-by-2027/

[7] SAP SE. (2022). SAP Labs Vietnam partners with top universities to nurture tech talent. Retrieved from https://news.sap.com/sap-labs-vietnam-partners-with-top-universities-to-nurture-tech-talent/

[8] SAP SE. (n.d.). About SAP. Retrieved from https://www.sap.com/about/company.html

[9] SAP SE. (2022). SAP Labs Vietnam: A Catalyst for Digital Transformation. Retrieved from https://news.sap.com/sap-labs-vietnam-a-catalyst-for-digital-transformation/

[10] SAP SE. (2022). FPT IS wins multiple awards at SAP Southeast Asia Partner Success Summit 2022. Retrieved from https://news.sap.com/fpt-is-wins-multiple-awards-at-sap-southeast-asia-partner-success-summit-2022/

  1. The SAP Labs Vietnam, a integral part of Vietnam's digital transformation, is primarily focused on innovation, business, finance, and technology, with an emphasis on developing localized tech solutions and nurturing young talent in data analytics, AI, and software engineering.
  2. By acting as a regional innovation hub in technology sectors, SAP Labs Vietnam contributes to global finance and business growth by driving tech innovation and digital economy expansion in the Asia-Pacific region, thereby supporting SAP's vision of sustainable and inclusive growth.

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