Vietnam ICT Development and Opportunities

Content

Vietnam ICT
Overview
Infrastructure
ICT Industry
Application
Human Resource
Legal Framework
Opportunities
Vietnam for ITO
New Market

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Vietnam ICT Overview

Review Vietnam ICT
development from 4 Vietnam ICT
aspects

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


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

Top 10 Countries by Annual Growth from
World top 10 for Q4 2008 to Q4 2009
broadband internet
growth rate in 2009
#21 in the world for
broadband users
International internet
bandwidth is108.8
Gbps by Mar ‘10


ICT Industry

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



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 but
software and digital content
are developing fast
Annual growth rate is 20-
25% during 2000-2008



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%

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


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 Emerging as destination for
years software outsourcing
Market reached to $850M USD • Gartner selects Vietnam in 10
and export $340M leading locations for offshore
services in the Asia/Pacific &
1000+ software companies
Japan region for 2010
employing 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

Digital Content Industry

Annual growth rate 50%
since 2005
Over 500 companies
employing 41,000 people
In 2009, mobile content
industry reaches 383.3
Source MIC, whitebook 2010
millions USD
3G network with 7 millions
users
Do not have a good eco-
system
Telcos take 65% of revenue


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

2006 2007 2008 2009


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

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

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

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
Source: Tholons & Global Services 2009


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 Solutions
Email: sales@imt.com.vn
Skype: imtsolutions
YIM: imtsolutions
Tel: +84 8 3811 7742
Fax: +84 8 3811 6980
Web site: www.imt-soft.com

Vietnam ICT Development and Opportunities

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