German enterprise software giant SAP officially launched SAP Labs Vietnam in Ho Chi Minh City on August 7, unveiling plans to invest over €150 million ($175 million) in the innovation hub over the next five years.

Vietnam becomes the 20th country globally and the second in Southeast Asia—after Singapore—to host an SAP Labs.

Speaking at the launch ceremony, Deputy Prime Minister Nguyen Chi Dung welcomed the investment, describing it as a strong vote of confidence in Vietnam’s market potential and technological capabilities. He expressed hope that SAP would maximize the effectiveness of the center and expand its footprint in the country.

The new hub will support SAP’s product development in critical areas such as sustainable digital supply chains and AI-powered intelligent enterprise solutions.

“SAP Labs Vietnam is more than just a research and development center – it is a catalyst for transformation in one of the most dynamic tech markets in Asia,” said Mr. Thomas Saueressig, Member of the Executive Board of SAP SE for Customer Services & Delivery.

He added that Vietnam is rapidly emerging as a key player in the global value chain, citing its competitive edge and high-quality human resources, especially in high-tech sectors like semiconductors and artificial intelligence.