Korea’s KT signs $95 million AI partnership with Vietnam’s Viettel Group

South Korea’s leading telecommunications service provider KT Corp. said on Tuesday it has signed a 130 billion won ($95 million) strategic partnership with Viettel Group, Vietnam’s state-owned telecom giant, to accelerate AI transformation (AX) across the Southeast Asian country.

Viettel Group, which owns Vietnam’s largest mobile operator Viettel Telecom, operates in 11 countries across Southeast Asia, Africa and Latin America, serving more than 138 million customers.

The group, which posted $7.34 billion in sales last year, is transforming into a “technology company,” focusing on AI, cloud computing and cybersecurity.

Under the agreement, KT will collaborate with Viettel across six core areas: AX consulting; AI business development; business-to-consumer (B2C) business and small-and-medium enterprise (SME)-targeted AI solutions; infrastructure for AI data centers and cloud services; AX capability building and the establishment of a global development center; and joint global business expansion.

The deal also includes plans for a joint venture to accelerate end-to-end AI transformation in Vietnam and the broader ASEAN region.

“KT is committed to accelerating the growth of the AX business domestically and globally as a trusted AI innovation partner,” said KT Chief Executive Kim Young-shub.

Kim signed the partnership agreement with Viettel Chairman and CEO Tao Duc Thang in Hanoi.

Before the deal, the KT CEO met with Vietnam’s Deputy Prime Minister Nguyen Chi Dung and Vice Minister of Science and Technology Bui The Duy to discuss bilateral business cooperation.

AREAS OF COOPERATION

Specifically, the Korean mobile and internet service company plans to provide AX consulting services to support Viettel’s national AI transition.

KT also plans to co-develop AI products tailored to the Vietnamese market, including a national AI model, Vietnamese-language AI agents and anti-voice phishing solutions.

These services are intended to boost AI accessibility for Viettel’s B2C customer base and small businesses. The two companies will also jointly develop AI-specific data centers and GPU farms to scale up the country’s cloud and AI infrastructure.

KT and Viettel plan to open a global development center (GDC) in Hanoi to tap into Vietnam’s growing pool of tech talent.

The Korean company said it also plans to roll out its AI education platform, AICE, across Vietnam to train the next generation of AI professionals.

Write to Ji-Hee Choi at mymasaki@hankyung.com

In-Soo Nam edited this article.