SK Group to foster AI ecosystem development in Vietnam

Photo: Business Korea

At the South Korea-Vietnam Business Forum on April 23, SK Group signed separate memorandums of understanding with Nghe An People's Committee and the National Innovation Centre (NIC) to foster AI ecosystem development.

The move follows the summit between South Korea and Vietnam, where both sides agreed to expand cooperation in future growth sectors such as AI, semiconductors, and energy. SK Group's MoUs with Vietnam represent this bilateral cooperation being put into action by the private sector.

Through these partnerships, SK Group plans to support Vietnam's growth as a key partner in its national AI strategy. In addition, building on AI data centre development and stable power supply, SK Group is expected to lay the groundwork for the first overseas expansion of its 'AI full-stack provider' model, linking AI model development and validation with the rollout of industry-specific AI services.

SK Innovation and SK Telecom signed an MoU with the Nghe An People's Committee to jointly explore developing an AI data centre (AIDC) and related infrastructure projects in the region. Nghe An is a major economic hub in north-central Vietnam and has emerged as a fast-growing region for manufacturing, energy and advanced industries, supported by its port and logistics infrastructure.

SK Telecom plans to review options for developing, building, and operating the AIDC while also seeking to secure global demand. The Nghe An People's Committee agreed to discuss support measures to help advance the partnership, including permits, administrative procedures, inter-ministerial coordination and incentive schemes.

SK Innovation will explore supplying electricity to the data centre and building dedicated generation facilities connected to the Quynh Lap liquefied natural gas (LNG) power plant, for which it was selected as a developer in February alongside PV Power and NASU. The project includes a 1,500 MW gas-fired power plant, an LNG terminal, and a dedicated port, with construction scheduled from 2027 to 2030. From the proposal stage, SK Innovation also presented a model to integrate SK Group's AI and semiconductor capabilities near the plant, laying the foundation for the current partnership.

At the forum, Nghe An People's Committee confirmed that the SK Innovation consortium has been granted approval for the Quynh Lap power plant, reaffirming its commitment to the development.

"Drawing on SK Group's experience in operating large-scale power generation and diverse energy solution businesses, we will ensure the successful development of the local power infrastructure," said Choo Hyeong-wook, president and CEO of SK Innovation.

SK Telecom and SK Innovation also signed a comprehensive MoU with Vietnam's NIC to support the development of the country's AI ecosystem.

The two sides agreed to cooperate on AIDC development, energy infrastructure development and the establishment of policy and institutional frameworks to foster the AI industry.

Under the agreement, SK Telecom will support AI ecosystem development in Vietnam through technology collaboration and investment promotion, and SK Innovation will provide energy solutions for AIDCs and related industries. The NIC will provide institutional support, such as coordinating with government agencies, improving regulations and developing policy, while also identifying and connecting local partners to facilitate project execution.

Established in 2019 by the Vietnamese government, NIC serves as the country's national innovation hub, leading initiatives in AI, semiconductors and investment promotion. SK Group has maintained a close partnership with NIC, including a previous $30 million contribution towards its establishment.

Jung Jai-hun, president and CEO of SK Telecom, said, "AI data centres are key infrastructure that underpins the growth of the AI industry. Building on SK Group's accumulated capabilities in the development, construction, and operation of AI data centres, we will further refine a collaboration model tailored to the Vietnamese market."

This partnership in Vietnam is significant as it could mark SK Group's first overseas expansion of the 'AI full-stack provider' strategy, integrating capabilities in AIDC, power, and energy solutions.

Chairman Chey Tae-won has consistently articulated his vision of transforming SK Group into an 'AI full-stack provider'. Leveraging SK Group's strengths across the AI value chain – including semiconductors, data centres, power and energy solutions, and AI services – the group aims to build the most efficient AI infrastructure model.

Under this vision, SK Group is advancing the development of the 100-MW hyperscale 'SK AI Data Centre Ulsan', targeted for completion in 2027. The group has also been laying the groundwork for South Korea to emerge as an Asia-Pacific AI hub by engaging in discussions with OpenAI on collaboration for AI data centre development in South Korea.

"AI will play a critical role in Vietnam's continued growth. SK Group has a portfolio spanning the entire AI ecosystem–from energy and semiconductors to AI models and applications–and we will leverage this to make tangible contributions to the development of Vietnam's AI industry," Tae-won said.

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SK Innovation eyes over $2 billion Quynh Lap LNG thermal power plant SK Innovation is interested in developing over $2 billion Quynh Lap LNG thermal power plant, drawing significant attention from international energy conglomerates, especially South Korean Groups.