GS E&C, Vietnam's FPT Corporation team up to develop data centers, smart cities

GS Engineering & Construction will team up with Vietnam's tech company FPT Corporation to jointly develop data centers and smart cities in Vietnam, the Korean company said Friday.

GS Engineering & Construction's CEO Huh Yoon-hong, left in first row, and FPT Corporation's CEO Nguyen Van Khoa, right in first row, pose for pictures after signing a memorandum of understanding in Hanoi, Vietnam, on April 22. [GS ENGINEERING & CONSTRUCTION]

GS Engineering & Construction will team up with Vietnam's tech company FPT Corporation to jointly develop data centers and smart cities in Vietnam, the Korean company said Friday.

The two companies signed a memorandum of understanding (MOU) at FPT Corporation's headquarters in Hanoi on Wednesday, with CEOs Huh Yoon-hong of GS Engineering & Construction and Nguyen Van Khoa of FPT Corporation in attendance.

FPT Corporation is Vietnam's leading tech company with the largest market share in the data center market by capacity. With GS Engineering & Construction's 20 years of expertise in building data centers, the two will work to bolster Vietnam's tech market and facilitate the country's digital transition on a national level.

The two companies will start by developing large-scale data centers in major regions of Vietnam, particularly using high-tech modular methods to meet rising demand for AI and cloud services. The projects will expand into smart cities, incorporating smart transportation, energy and safety systems.

GS Engineering & Construction will be in charge of developing and constructing the data centers and smart cities, while the Vietnamese counterpart will fill the tech infrastructure with its cloud service and digital platform capabilities. FPT Corporation will also be responsible for networking with the local government and generating profits in the local market.

GS Engineering & Construction also signed an MOU with the Bank for Investment and Development of Vietnam on Thursday for comprehensive financial cooperation to fund development projects for GS Engineering & Construction's local subsidiary.

"We will focus our skills and infrastructure to fortify the economic partnership between Korea and Vietnam, while also contributing to the growth of Vietnam's digital economy," GS Engineering & Construction said in a press release. "We will endeavor to become a partner that leads smart technology innovation, beyond a simple construction company."

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]