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Vietnam an Emerging Destination For Software Outsourcing


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Vietnam: an Emerging IT Outsourcing Destination
Prepared by IMT Solutions

Published in: Business, Travel
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Vietnam an Emerging Destination For Software Outsourcing

  1. 1. All Rights reserved - © IMT 2008-2013 2 Vietnam At A Glance  Population: 90+ millions  The 13th most populous country  Size: 331,698 km2  Main cities  Ha Noi (Capital), Ho Chi Minh city (Business hub), Hue (Ancient Capital), Da Nang (Central hub), Can Tho (Mekong Delta hub)  New powerhouse of Southeast Asia  Fast economy with average GDP growth rate expected 6.9% for 2006-2010  Workforce: 45+ millions  Average annual implementation FDI capital is $11B USD from 2008-2012
  2. 2. All Rights reserved - © IMT 2008-2013 3 Evaluation of Vietnam as a Destination for IT Outsourcing Economic Environment Political Environment Legal Environment Social Environment
  3. 3. All Rights reserved - © IMT 2008-2013 4 Economic Environment  One of the most stable and secure economies  Annual GDP growth increased significantly since open door policy launched (1986)  WTO member since 2007  Expect to join TPP (Trans-Pacific Partnership) by end of 2015 Source Word Bank
  4. 4. All Rights reserved - © IMT 2008-2013 5 Economic Environment  Attractive cost for IT outsourcing  30% less expensive than India and 50% less expensive than Eastern Europe (source: NeoIT 2006 and Ukrainian Hi-Tech Initiative 2007)  ICT industry is young but developing fast  14,000+ ICT companies with 440,000+ employees  Software industry reached $1.36 USD with 88,800 employees in 2013 Source: Internet world statSource: Vietnam MIC
  5. 5. All Rights reserved - © IMT 2008-2013 6 Political Environment Vietnam has a very stable political system No conflict with any neighbor country since 1979 No ethnic and religious conflict Government commits to support high tech industry Investing in human resource development Granting tax incentive for software companies Reducing telecom cost Setting up software parks Saigon Software Park, Quang Trung Software City, Da Nang Software Park…
  6. 6. All Rights reserved - © IMT 2008-2013 7 Legal Environment Legal system improvement on-track to meet WTO commitments Intellectual Property Protection being improved Software privacy reduced 9% from 2003 to 2011 (source BSA)
  7. 7. All Rights reserved - © IMT 2008-2013 8 Social Environment  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  Larger pool of talents  30K IT graduates annually  400 universities and colleges with IT training programs (3-5 years)  Human resource nearly doubled in 4 years, from 150K in 2006 to 250K in 2010  Attrition is less than 10%  Global Services cited Ho Chi Minh city in top 50 outsourcing cities for its large labor pool and “significantly low attrition rates” (Tholons 2006)
  8. 8. All Rights reserved - © IMT 2008-2013 9 Emerging as High Tech Center  A.T. Kearney lists Vietnam in top 10 for Global Services Location Index of 2009 and 2011  KPMG selects Ho Chi Minh city as location to watch for next outsourcing boom (Feb 2009)  Tholons (from 2007-2015) selects Ho Chi Minh city in top 10 of emerging outsourcing cities and top 100 global outsourcing destinations Vietnam has 2 cities in Tholons Top Outsourcing Destinations 2015
  9. 9. All Rights reserved - © IMT 2008-2013 10 Emerging as High Tech Center  Intel invested $1B USD in a chip plant in SHTP (Saigon High Tech Park)  Samsung invested $3B USD. In 2013 nearly 50% of Samsung mobile phones manufactured in Vietnam  IDG set up $600M USD investment fund for Vietnam software industry  Fortune companies chosen Vietnam for their IT outsourcing services  EA, IBM, Oracle, Juniper Networks, Microsoft, Alcatel-Lucent, Flextronics, NEC, NTT, Hitachi, Toshiba, Emerson, Panasonic, HP
  10. 10. All Rights reserved - © IMT 2008-2013 11 Emerging as High Tech Center Eastern Europe IT outsourcing companies open delivery centers (such as Luxoft) Indian rivals Aptech, NIIT and Tata Consultancy Services opened training centers to address the growing market Top 3 fastest growing telecom market in Asia 138% mobile phone penetration (2013) 3 top 100 global mobile service providers
  11. 11. All Rights reserved - © IMT 2008-2013 12 Why 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
  12. 12. All Rights reserved - © IMT 2008-2013 13 About IMT Company Overview  Information & communications Technology services firm based in Vietnam and serving client globally.  We partner with clients from early-stage to Fortune 500 across various industries and regions to resolve business-as- usual and complex technology challenges.  Presence in Singapore, US and Vietnam Service offerings  Custom Application Development  Outsourced Product Development  Independent Software Testing  Mobile Application Development Fast Facts  Founded 2008, consistent growth year over year  30% of staff have worked internationally in North America, Europe and Asia  Each project manager has 10+ years of experience in project management; with PMP or Certified Scrum Master  Top talents  Median age: 26  Average experience: 5 years  70% Male vs. 30% Female  Notable Certified Partnerships include Microsoft (Gold), Danish Government (Danida B2B), and Norwegian Government (Innovation Norway)
  13. 13. For more information, please contact IMT Solutions Email: Skype: imtsolutions Tel: +1 703 953-2416 Tel: +84 8 3811 7742 Fax: +84 8 3811 6980 Web site: