Vietnam Software Outsourcing 2013 updated

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Vietnam Software Outsourcing 2013 updated

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  • http://www.moj.gov.vn/vbpq/en/Lists/Vn%20bn%20php%20lut/View_Detail.aspx?ItemID=10499
  • Vietnam Software Outsourcing 2013 updated

    1. 1. Vietnam – New Destination for Software Outsourcing Dang Nguyen Business Development Manager at TMA Solutions
    2. 2. Content 1. Vietnam overview 2. Vietnam – New destination for software outsourcing
    3. 3. 1. Vietnam Overview (1/3) • • • • Size: 331,698 km2 Main cities: Hanoi (Capital), Ho Chi Minh city (Business hub), Hue (Ancient Capital), Da Nang (Central hub), Can Tho (Mekong Delta hub) Population: 90+ millions – the 13th most populous country in the world Workforce: o Young and well-educated population o 49M+ workmen (2012) o 60% of 90M population are under 30 o 1,6M students o Literacy rate is more than 90%
    4. 4. 1. Vietnam Overview (2/3) • Member of UN (United Nations, 1977), ASEAN (Association of Southeast Asian Nations, 1995), ASEM (The Asia-Europe Meeting, 1996), WTO (World Trade Organization, 2007) • Politics/Legislation o One-party Communist state o Safest investment environment: 41th on global peace in 2013 (Global Peace index report)
    5. 5. 1. Vietnam Overview (3/3) • • • FDI: $40B+ invested in the last 10 years GDP: o $123.96 billion (2012), $141.67 billion (2013, estimate) o Average GDP growth of 7% during the last 20 years o One of the fastest growing economies in Asia Inflation: 6.81% (2012)
    6. 6. 2. Vietnam – New Destination for Software Outsourcing (1/5) • Vietnam o The top destination for investment beyond BRIC (UKTI, 2010) o Top 30 leading countries in the world, top 10 leading countries in Asia Pacific in outsourcing and services (Gartner report, 2013) o o • Top Ten of A.T. Kearney’s Global Services Location Index 2011 & 2009 Be the most favored partner of Japanese business since 2009 Ho Chi Minh City on KPMG 'locations to watch' for next outsourcing boom (KPMG Advisory , 2009) • Ho Chi Minh City: 16th among top 25 most attractive software outsourcing countries. Hanoi ranked at 23rd (Tholons report, 2013)
    7. 7. 2. Vietnam – New Destination for Software Outsourcing (2/5) • ICT industry is young but developing fast o 5,500+ IT companies in Ho Chi Minh City o Software industry generated $1.17billion in 2011, increased 10% compared to 2010 Revenue of Software Industry (million USD) 1,172 1,064 850 680 2008 2009 2010 2011 Source: Viet Nam Information and Communication Technology – White Book 2012
    8. 8. • • 2. Vietnam – New Destination for Software Outsourcing (3/5) Quality o Meet stringent quality requirements from world leading companies o Adoption of international quality standards and methodologies for software development and testing: CMMI, ISO, TL 9000, and Agile/SCRUM Large pool of talents o 400 universities and colleges with IT training programs (3-5 years) o 50K IT students graduate annually o IT human resource increased 55% from 200,000 in 2008 to almost 300,000 in 2011 o Software workforce increased 38% from 57,000 employees in 2008 to reach 78,894 in 2011 Source: Viet Nam Information and Communication Technology – White Book 2012
    9. 9. 2. Vietnam – New Destination for Software Outsourcing (4/5) • Strong government support for the software industry o Intellectual Property Protection being improved. Software privacy reduced 9% from 2003 to 2011 (BSA) o Setting up software parks: Saigon Software Park, Quang Trung Software City, Da Nang Software Park, etc. o Corporate income tax incentives for newly set up IT enterprises:  Tax rate at 10% in 15 years  Tax exemption for no more than 4 years; 50% reduction of payable tax amounts for no more than 9 subsequent years (Law on Corporate Income Tax, No 14/2008/QH12, Article 13, 14)
    10. 10. 2. Vietnam – New Destination for Software Outsourcing (5/5) Leading global companies that have outsourced to Vietnam
    11. 11. Thank you! For more information, please contact Dang Nguyen Business Development Manager at TMA Solutions • Skype: anhdanglucky • LinkedIn: http://vn.linkedin.com/in/dangnguyenhcm

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