South Korea’s KT Corp has committed 130 billion won ($95 million) to a strategic partnership with Vietnam’s state-owned Viettel Group, as the telecommunications company looks to offset declining domestic revenue through Southeast Asian expansion.
The companies have agreed to collaborate on AI transformation (AX) projects worth 130 billion won, including the establishment of an AI data center (AIDC), formation of a joint venture (JV), and talent development. The agreement, signed Tuesday in Hanoi, calls for developing Vietnam-specific artificial intelligence models and voice phishing prevention solutions.
KT’s international push comes as the company faces revenue pressures at home. KT revenue for the twelve months ending December 31, 2024 was $18.707B, a 12.07% decline year-over-year. The partnership represents a significant bet on Vietnam’s digital transformation ambitions, where Deputy Prime Minister Nguyen Chi Dung has reaffirmed that the Vietnamese Government encourages businesses from the Republic of Korea (RoK), including Korea Telecom (KT), a major mobile carrier, to invest in large-scale projects in Vietnam.
Viettel operates across 11 countries with more than 138 million customers, making it an attractive partner for KT’s regional expansion strategy. The companies plan to establish a global development center in Hanoi for AI talent cultivation and explore joint ventures across Southeast Asia.
However, the success of this costly venture will depend on execution in a competitive market where technology giants from the US and China dominate AI development. KT previously partnered with Microsoft on AI initiatives and Thailand’s Jasmine Group for language model development, as it transforms from a traditional telecom operator into an AI-focused company.
