Vietnam ICT Development and Opportunities

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Vietnam ICT Development and Opportunities

  1. 1. ContentVietnam ICT Overview Infrastructure ICT Industry Application Human Resource Legal FrameworkOpportunities Vietnam for ITO New Market All Rights reserved - © IMT 2008 2
  2. 2. Vietnam ICT OverviewReview Vietnam ICTdevelopment from 4 Vietnam ICTaspects ICT Infrastructure ICT Industry ICT Application Human Resource Telecom & Internet infrastructure ICT Industry ICT application in public and private sectors Human resource development Legal Framework All Rights reserved - © IMT 2008 3
  3. 3. ICT InfrastructureTelecom InfrastructureInternet PenetrationBroadband Development All Rights reserved - © IMT 2008 4
  4. 4. Telecom InfrastructureTelecom marketdevelops very fast Eight telecom service providers Seven 2G mobile operators Five 3G mobile operatorsNumber of subscribersgrows 40-45% annuallyMobile penetration over100% since 20097 millions 3Gsubscribers, Apr 2010 All Rights reserved - © IMT 2008 5
  5. 5. Internet PenetrationTop 10 in Asiaand top 20 in theworld for numberof internet users #7 in Asia #19 in the worldInternetpenetration 27.1%(Jun 2010) All Rights reserved - © IMT 2008 6
  6. 6. Broadband Development Top 10 Countries by Annual Growth fromWorld top 10 for Q4 2008 to Q4 2009broadband internetgrowth rate in 2009#21 in the world forbroadband usersInternational internetbandwidth is108.8Gbps by Mar ‘10 All Rights reserved - © IMT 2008 7
  7. 7. ICT IndustryIT Industry OverviewHardware IndustrySoftware IndustryDigital Content IndustryTelecom Industry All Rights reserved - © IMT 2008 8
  8. 8. IT Industry OverviewRevenue ($M USD) 2008 2009 Growth RateTotal 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 but software and digital content are developing fast Annual growth rate is 20- 25% during 2000-2008 All Rights reserved - © IMT 2008 9
  9. 9. IT Industry OverviewWorkforce (persons) 2008 2009 Growth RateTotal 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%Revenue per worker 2008 2009 Growth Rate(USD/person/year)Hardware 37,200 38,145 2.5%Software 12,000 13,281 10.7%Digital content 13,300 16,829 26.5% Source: Ministry of Information and Communications All Rights reserved - © IMT 2008 10
  10. 10. Hardware IndustryTop 10 exports of Vietnam Export $2.763B USD to 35 countries Ranked #7 in 2009 Over 121,000 workersFDI companies are the key players Samsung, Canon, Nidec, Compal, Fujitsu, Foxconn… Source: MIC whitebook 2010 All Rights reserved - © IMT 2008 11
  11. 11. Software IndustryGrow 35% annually in the last 10 Emerging as destination foryears software outsourcingMarket reached to $850M USD • Gartner selects Vietnam in 10and export $340M leading locations for offshore services in the Asia/Pacific &1000+ software companies Japan region for 2010employing 64,000 people • 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 All Rights reserved - © IMT 2008 12
  12. 12. Digital Content IndustryAnnual growth rate 50%since 2005Over 500 companiesemploying 41,000 peopleIn 2009, mobile contentindustry reaches 383.3 Source MIC, whitebook 2010millions USD3G network with 7 millionsusersDo not have a good eco-system Telcos take 65% of revenue All Rights reserved - © IMT 2008 13
  13. 13. Telecom IndustryTop 3 fastest growing telecom market in Asia 110% mobile phone penetration (2010) 3 top 100 global mobile service providersKey players: Viettel, VinaPhone, MobilefoneRevenue reaches to $6.87B USD with growth rate 33% in 2009 Mobile Phone Market Share Revenue $B USD 2006 2007 2008 2009 All Rights reserved - © IMT 2008 14
  14. 14. Application of ICTGovernment VisionIT Application in Public SectorIT Application in Private Sector All Rights reserved - © IMT 2008 15
  15. 15. Government VisionToward 2015, the use of information technology in governmentagencies 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 All Rights reserved - © IMT 2008 16
  16. 16. IT Application in Public Sector E-government is ranked in the middle group #44 by Waseda University #68 by Economist Intelligent UnitRatio of Computers over administrative officials (%) 2008 2009Ministries, ministerial-level agencies 77.86 81.41Provinces, centrally-run cities 37.36 55.87Ratio of Computers with Internet Access (%) 2008 2009Ministries, ministerial-level agencies 80.33 69.78Provinces, centrally-run cities 79.30 71.47Ratio of Government Agencies with Website 2008 2009Ministries, ministerial-level agencies 26/30 27/30Provinces, centrally-run cities 59/63 61/63 All Rights reserved - © IMT 2008 17
  17. 17. IT Application in Private Sector86.5% of enterprise are using IT applicationIT application mainly to support basic businessactivities (Accounting, HR, Website…)Lacking of enterprise-wide application such asERP Only 7% of enterprises using ERP software Less than 1% of enterprises using web portalThe level of application is much higher thangovernment (ranked #46 by IEU 2009) All Rights reserved - © IMT 2008 18
  18. 18. IT for Personal UsageMainly forinformationsearching andlearningApplicationfocused onentertainment,valued addedservice on internetand mobile All Rights reserved - © IMT 2008 19
  19. 19. Human ResourceHuman ResourceHR Development All Rights reserved - © IMT 2008 20
  20. 20. Human Resource All Rights reserved - © IMT 2008 21
  21. 21. Human Resource All Rights reserved - © IMT 2008 22
  22. 22. Human ResourceYoung, 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 All Rights reserved - © IMT 2008 23
  23. 23. HR DevelopmentGovernment’s HR development plan aims to have 1million 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 Minister80% of IT graduates will be well-trained in professionand language to meet the international standardOpen for foreign training centers and universities toset up in Vietnam to address the growing market RMIT, Vietnam-German University Indian rivals such as Aptech, NIIT and Tata Consultancy Services All Rights reserved - © IMT 2008 24
  24. 24. Legal FrameworkGovernment OrganizationsMIC Organizational StructureMajor ResponsibilitiesNon-Government ICT Committees All Rights reserved - © IMT 2008 25
  25. 25. Government Organizations All Rights reserved - © IMT 2008 26
  26. 26. MIC Organizational Structure All Rights reserved - © IMT 2008 27
  27. 27. Major ResponsibilitiesNSCICT: Oversees ICT development and plays the key role in cross-cutting and inter-ministerial coordination of ICT issuesMinistry of Information & Communications: Sets policy for andregulates the press, publishing, posts, ICT, electronics, broadcastingand national information infrastructure; manages public servicesMinistry of Science and Technology: Develops R&D programs inICT; sets ICT standardsMinistry of Education: Develops human resourceMinistry of Planning & Investment: Ensures that sufficient andtimely investment is available for approved development in ICTMinistry of Industry and Trade: Defines policies and developslegislation and programs in the area of e-commerce and trade All Rights reserved - © IMT 2008 28
  28. 28. Non-Government ICT CommitteesUnder Central Committee of the Communist Party, there isa Committee for Science and Education that is concernedwith ICT-related mattersThe National Assembly also has a Committee for Science,Technology, and Environment that proposes various ICT-related legislative activitiesOrganizations that support government in ICT initiatives:Vietnam Association of Information Processing (VAIP), HanoiAssociation for ICT, Ho Chi Minh City Computer Association(HCA), Vietnam Association of Electronics Enterprises,Vietnam Software Association (VINASA), and VietnamChamber of Commerce and Industry (VCCI) All Rights reserved - © IMT 2008 29
  29. 29. OpportunitiesLeverage the strengths of Vietnam Highly skilled workforce Fast growing ICT market All Rights reserved - © IMT 2008 30
  30. 30. Vietnam for IT OutsourcingOne of the most stable and secure economiesLarge pool of talentsCompetitive costStrong government supportEmerging as a high-tech center All Rights reserved - © IMT 2008 31
  31. 31. Vietnam for IT Outsourcing Ha Noi and HCMC in thelist of top 50 emerging globaloutsourcing citiesHCMC ranked #5 and HaNoi ranked #10 in 2009 HCMC recognized asestablished globaloutsourcing city for ProductDevelopment and SoftwareTesting Source: Tholons & Global Services 2009 All Rights reserved - © IMT 2008 32
  32. 32. New MarketKey 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 All Rights reserved - © IMT 2008 33
  33. 33. About IMT SolutionsVietnam 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.comBusiness 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 implementationTrusted by global clients & partners All Rights reserved - © IMT 2008 34
  34. 34. For more information, please contactIMT SolutionsEmail: sales@imt.com.vnSkype: imtsolutionsYIM: imtsolutionsTel: +84 8 3811 7742Fax: +84 8 3811 6980Web site: www.imt-soft.com

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