South Korean engineering and construction company GS E&C has signed two memoranda of understanding in Vietnam to advance data centre development and smart city construction, according to the Korea Times, positioning the firm as a key infrastructure partner in the country's digital economy expansion.

The GS Group construction arm met FPT Corp., Vietnam's largest private IT company and data centre market leader, in Hanoi on Wednesday. GS E&C president and CEO Huh Yoon-hong and FPT CEO Nguyen Van Khoa signed an agreement to cooperate on data centre and smart city projects, drawing on GS E&C's more than two decades of experience in the data centre sector.

Planned facilities will be built across key regions in Vietnam, each with an initial capacity of tens of megawatts, and constructed using modular methods to maximise efficiency. The partnership will also cover smart city infrastructure incorporating artificial intelligence and Internet of Things technologies, including advanced traffic systems, energy monitoring and public safety platforms.

GS E&C will provide design and construction expertise for AI infrastructure, while FPT will contribute cloud services and digital platform capabilities and facilitate engagement with Vietnamese government authorities.

GS E&C earlier signed a further agreement with the Bank for Investment and Development of Vietnam to establish a financial support framework for development and smart city projects through its Vietnamese subsidiary, VGSE. The arrangement covers project finance, guarantees, cash management and housing finance programmes.

A GS E&C official said the company aims to evolve "from a mere construction company into a leading partner in smart, innovative technologies."

Explore the full details of GS E&C's Vietnam strategy by reading the complete report.