vietnam ict development and opportunities

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Content

�Vietnam ICT�Overview�Infrastructure�ICT Industry�Application�Human Resource�Legal Framework

�Opportunities�Vietnam for ITO�New Market


Vietnam ICT Overview

Vietnam ICT

Legal Framework

ICT

Ind

ustry

ICT

Infrastru

cture

ICT

Ap

plicatio

n

Hu

man

Reso

urce

� Review Vietnam ICT development from 4 aspects � Telecom & Internet

infrastructure� ICT Industry� ICT application in

public and private sectors

� Human resource development


ICT Infrastructure

�Telecom Infrastructure�Internet Penetration�Broadband Development


Telecom Infrastructure

� Telecom market develops very fast� Eight telecom service

providers� Seven 2G mobile

operators� Five 3G mobile operators

� Number of subscribers grows 40-45% annually

� Mobile penetration over 100% since 2009

� 7 millions 3G subscribers, Apr 2010


Internet Penetration

�Top 10 in Asia and top 20 in the world for number of internet users�#7 in Asia�#19 in the world

�Internet penetration 27.1% (Jun 2010)


Broadband Development

� World top 10 for broadband internet growth rate in 2009

� #21 in the world for broadband users

� International internet bandwidth is108.8 Gbps by Mar ‘10

Top 10 Countries by Annual Growth from Q4 2008 to Q4 2009


ICT Industry

�IT Industry Overview�Hardware Industry�Software Industry�Digital Content Industry�Telecom Industry


IT Industry Overview

Revenue ($M USD) 2008 2009 Growth Rate

Total of IT Industry 5,220 6,167 18.14%

Hardware 4,100 4,627 12.85%

Software 680 850 25%

Digital content 440 690 56.81%

� Hardware is dominant butsoftware and digital content are developing fast

� Annual growth rate is 20-25% during 2000-2008


IT Industry Overview

Revenue per worker (USD/person/year)

2008 2009 Growth Rate

Hardware 37,200 38,145 2.5%

Software 12,000 13,281 10.7%

Digital content 13,300 16,829 26.5%

Workforce (persons) 2008 2009 Growth Rate

Total of IT Industry 200,000 226,300 13.2%

Hardware 110,000 121,300 10.3%

Software 57,000 64,000 12.3%

Digital content 33,000 41,000 24.2%

Source: Ministry of Information and Communications


Hardware Industry

� Top 10 exports of Vietnam� Export $2.763B USD to 35 countries� Ranked #7 in 2009� Over 121,000 workers

� FDI companies are the key players� Samsung, Canon, Nidec, Compal, Fujitsu, Foxconn…

Source: MIC whitebook 2010


Software Industry

� Grow 35% annually in the last 10 years

� Market reached to $850M USD and export $340M

� 1000+ software companies employing 64,000 people

� Emerging as destination for software outsourcing• Gartner selects Vietnam in 10

leading locations for offshore services in the Asia/Pacific & Japan region for 2010

• A.T. Kearney lists Vietnam in top 10 for Global Services Location Index of 2009

• KPMG selects Ho Chi Minh city as location to watch for next outsourcing boom (Feb 2009)

• Tholons (2007, 2008, 2009) selects Ho Chi Minh city in top 10 of emerging outsourcing cities


Digital Content Industry

� Annual growth rate 50% since 2005

� Over 500 companies employing 41,000 people

� In 2009, mobile content industry reaches 383.3 millions USD

� 3G network with 7 millions users

� Do not have a good eco-system� Telcos take 65% of revenue

Source MIC, whitebook 2010


Telecom Industry

� Top 3 fastest growing telecom market in Asia� 110% mobile phone penetration (2010)� 3 top 100 global mobile service providers

� Key players: Viettel, VinaPhone, Mobilefone� Revenue reaches to $6.87B USD with growth rate 33% in 2009

Mobile Phone Market Share Revenue$B USD

2009200820072006


Application of ICT

�Government Vision�IT Application in Public Sector�IT Application in Private Sector


Government Vision

Toward 2015, the use of information technology in government agencies is aim to(1) Innovate methods to provide information and public

services for citizens and businesses, provide almost basically public service through network, citizens and businesses shall exchange information, send, receive records, pay service fees and receive services through network

(2) Innovate the method for managing information resources, develop national databases on people, land, finance, economy, industry and commerce as platform to deploy e-government

(3) Construct the electronic working environment among government agencies in the whole country


IT Application in Public Sector

Ratio of Computers over administrative officials (%) 2008 2009

Ministries, ministerial-level agencies 77.86 81.41

Provinces, centrally-run cities 37.36 55.87

Ratio of Computers with Internet Access (%) 2008 2009

Ministries, ministerial-level agencies 80.33 69.78

Provinces, centrally-run cities 79.30 71.47

Ratio of Government Agencies with Website 2008 2009

Ministries, ministerial-level agencies 26/30 27/30

Provinces, centrally-run cities 59/63 61/63

� E-government is ranked in the middle group� #44 by Waseda University� #68 by Economist Intelligent Unit


IT Application in Private Sector

�86.5% of enterprise are using IT application�IT application mainly to support basic business

activities (Accounting, HR, Website…)�Lacking of enterprise-wide application such as

ERP �Only 7% of enterprises using ERP software�Less than 1% of enterprises using web portal

�The level of application is much higher than government (ranked #46 by IEU 2009)


IT for Personal Usage

�Mainly for information searching and learning

�Application focused on entertainment, valued added service on internet and mobile


Human Resource

�Human Resource�HR Development


Human Resource


Human Resource

� Young, hardworking and fast learning workforce� 60% of population under 30� Literature rate higher than 90%� English taught as a main foreign language since grade 6, secondary school


HR Development

� Government’s HR development plan aims to have 1 million IT workforce by 2020� Plan on development Vietnam’s IT HR up to 2020 by MIC

� The Master Plan on developing IT HR to 2015 and orientations towards 2020 by Prime Minister

� 80% of IT graduates will be well-trained in profession and language to meet the international standard

� Open for foreign training centers and universities to set up in Vietnam to address the growing market� RMIT, Vietnam-German University

� Indian rivals such as Aptech, NIIT and Tata Consultancy Services


Legal Framework

�Government Organizations�MIC Organizational Structure�Major Responsibilities�Non-Government ICT Committees


Government Organizations


MIC Organizational Structure


Major Responsibilities

� NSCICT: Oversees ICT development and plays the key role in cross-cutting and inter-ministerial coordination of ICT issues

� Ministry of Information & Communications: Sets policy for and regulates the press, publishing, posts, ICT, electronics, broadcasting and national information infrastructure; manages public services

� Ministry of Science and Technology: Develops R&D programs in ICT; sets ICT standards

� Ministry of Education: Develops human resource

� Ministry of Planning & Investment: Ensures that sufficient and timely investment is available for approved development in ICT

� Ministry of Industry and Trade: Defines policies and develops legislation and programs in the area of e-commerce and trade


Non-Government ICT Committees

� Under Central Committee of the Communist Party, there is a Committee for Science and Education that is concerned with ICT-related matters

� The National Assembly also has a Committee for Science, Technology, and Environment that proposes various ICT-related legislative activities

� Organizations that support government in ICT initiatives: Vietnam Association of Information Processing (VAIP), Hanoi Association for ICT, Ho Chi Minh City Computer Association (HCA), Vietnam Association of Electronics Enterprises, Vietnam Software Association (VINASA), and Vietnam Chamber of Commerce and Industry (VCCI)


Opportunities

�Leverage the strengths of Vietnam�Highly skilled workforce�Fast growing ICT market


Vietnam for IT Outsourcing

� One of the most stable and secure economies� Large pool of talents� Competitive cost� Strong government support� Emerging as a high-tech center


Vietnam for IT Outsourcing

Source: Tholons & Global Services 2009

�Ha Noi and HCMC in the list of top 50 emerging global outsourcing cities

�HCMC ranked #5 and Ha Noi ranked #10 in 2009

�HCMC recognized as established global outsourcing city for Product Development and Software Testing


New Market

Key Drivers� Government’s strong commitment to develop ICT� WTO admission leads to significant improvement in legal

framework� Software privacy reduced 7% from 2004 to 2009 (BSA)

� Strong FDI boosts IT investment demand within foreign business sector

� Increasing need from local business sector for IT solutions to improve business process and operation efficiency


About IMT Solutions

� Vietnam software solution company� 100 software engineers

� Head-quartered in Ho Chi Minh city, Vietnam

� Sale representatives & partners in US, Canada, Denmark & Switzerland

� Web site: http://www.imt-soft.com

� Business focuses� Software testing services

� Microsoft solutions: .NET, SharePoint

� Telecom & mobile: OSS, BSS, iPhone/iPad/Android/BlackBerry

� Business process outsourcing (BPO)

� Application lifecycle management consulting and implementation

� Trusted by global clients & partners

For more information, please contact

IMT SolutionsEmail: [email protected]

Skype: imtsolutions

YIM: imtsolutions

Tel: +84 8 3811 7742

Fax: +84 8 3811 6980

Web site: www.imt-soft.com

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