SAP positions Vietnam as key R&D hub with €150 million investment

SAP on 7 August announced the official launch of SAP Labs Vietnam with plans to invest more than 150 million Euro over the next five years into the digital innovation hub. A global leader in enterprise applications and business AI, SAP has worked with Asia, and the world’s, most respected companies for more than 50 years, helping them unite business-critical operations spanning finance, procurement, HR, supply chain, and customer experience.

It underscores SAP’s ongoing investment in Asia Pacific and its commitment to elevating local digital capabilities and helping strengthen Vietnam’s position as a dynamic technology market in Southeast Asia.

The new hub will play a key role in supporting SAP’s product development across core areas, including sustainable digital supply chains and intelligent enterprise solutions, enabled by AI.

“SAP Labs Vietnam is more than just a research and development center - it’s a catalyst for transformation in one of the most dynamic tech markets in Asia,” said Thomas Saueressig, member of the executive board of SAP SE, Customer Services & Delivery.

“Vietnam’s proven track record in delivering tech innovation as well as its fast-growing base of software engineers made Ho Chi Minh City a fitting choice for our next SAP Labs location", he added.

With more than 200 employees already onboarded since September 2024, SAP Labs Vietnam is expected to grow to 500 employees by 2027, including up to 350 new hires in 2025.

As well as recruiting for senior roles, the company is working closely with Vietnam’s top universities in Ho Chi Minh City to nurture local tech talent and provide career pathways in advanced areas like data analytics, AI, and software engineering.

“We’re not just opening an office, we’re building a talent ecosystem. That means bringing together Vietnam’s most creative and knowledgeable tech experts as well as collaborating with the country’s top universities to foster long-term career opportunities for the next generation of innovators,” said Manik Saha, Managing Director of SAP Labs Singapore & Vietnam.

SAP’s investment reflects the country’s growing strategic importance to SAP’s global business and the increasing demand for localised innovation in key markets such as Korea and Japan. “Vietnam’s rapid digital transformation and its young, tech-savvy workforce make it a vital pillar in SAP’s global vision for sustainable growth and inclusive innovation,” added Viet Nguyen, managing director of SAP Vietnam.

Vietnam is one of Southeast Asia’s fastest-growing digital economies, increasing by an estimated rate of 20 per cent in 2024, contributing 18.3 per cent to GDP. With SAP Labs Vietnam, the company aims to not only develop world-class software, but also help local businesses and communities thrive in an increasingly connected digital world.