Vietnam software program trade sees the chance to development abroad

Information Technology

Vietnam noticed development within the home software program market decelerate within the final 5 years, however outsourcing for international markets was larger. 

Based on the report of the Vietnam Software program growth Affiliation (Vinasa), it confirmed the large issues of the world’s and home economies that led to the decline within the development of the Vietnamese software program trade in 2011-2015. 

Nonetheless, it nonetheless may keep a 10-15 % every year development charge (the expansion charge was 30-40 % in 2006-2010), 2-3 occasions larger in comparison with the GDP development charge.

The income of the applying trade elevated from $1.06 billion in 2010 to $1.6 billion in 2015, whereas the income from companies and digital content material in 2015 was additionally over $1.6 billion. 

Subsequently, the total complete income from software program and knowledge know-how (IT) companies elevated from $2 billion in 2010 to $3 billion in 2015. The report remarked that the Vietnamese worth content material was fairly excessive altogether income, about 90-95 %.

Currently, there’s a sharp upsurge within the quantity and scale of the companies which do outsourcing for international companions.

Vinasa expressed the concept the home market was influenced by the nationwide recession. 

In your house market, IT companies goal two main classes of shoppers – state-owned companies and companies. 

In the meantime, what number of shoppers from each market segments decreased lately because the shoppers reduce budgets for IT companies.

The issues in insurance policies regarding procurement and Vietnam software program outsourcing companies additionally hindered the event of the market.

In the meantime, Vietnam’s export markets give a optimistic signal through the annual development charge of 30-40 % every year. Vietnam has turn into the No 1 favourite companion of Japan, whereas the US and European markets have skilled a secure development charge of 20-30 % every year.

A Gartner’s report confirmed that Vietnam is without doubt one of the 10 most tasty nations for software program outsourcing companies. In 2010-2015, Vietnam’s Hanoi and HCMC have been named in probably the most really efficient 20 of the checklist of 100 t locations for software program outsourcing, in accordance with International Providers-Tholons.

In 2013, Vietnam turned the 2nd largest companion for Japan in software program outsourcing, quickly after China, in accordance with a Japanese IT promotion company.

Nonetheless, analysts have warned that Vietnam’s software program trade is going through huge challenges for the subsequent growth interval because of inadequate IT engineers. 

Vietnam would want 400,000 IT employees in 2016-2020, whereas 290 universities and junior schools in Vietnam and one different 150 coaching institutions can present 250,000 solely.

From 2011 to 2015, the labor pressure within the software and digital content material trade elevated by 10 % every year.

Learn Extra:Vietnam performs with the large boys on software program outsourcing


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