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Home / Industry Overview / Information Technology

The presence of big information technology (IT) groups such as Microsoft, Intel, IBM and recently Google, Ebay in Vietnam is considered a “good omen” for the development of IT industry which is positioning itself well in the world market. Though the electronics and computer hardware industries are holding sway over the market, the software and digital content industries are considered to have a higher growth in earnings.

Over the past few years, Vietnam’s IT industry has seen rapid development. In 2006 alone, the industry earmarked a total revenue of US$3 billion. Export and import turnover surpassed the US$1-billion mark with software industry earning US$360 million, digital content industry US$110 million and computer hardware industry US$2.54 billion.

Judging from these figures, Vietnam’s IT industry is likely to become a prestigious trademark soon.

Potential tapped

Last year, Vietnam’s IT exports rose 18.3 percent to US$1.233 billion and its IT imports registered an increase of 13.9 percent to US$1.412 billion.

The domestic IT market has developed strongly in recent years at an annual rate of more than 20 percent, while the global IT market has grown at a rate of 8 percent. Many big investment funds, including Dragon Capital, IFC, MEF, are keen to support the IT sector. One reason is that the robust development of the securities market has attracted a huge amount of domestic and foreign investments in the development of IT industry.

According to the Vietnam Association of Computer, the software and service industry will make a major breakthrough. Last year, the industry earned a revenue of US$360 million, including US$240 million from the domestic market and US$110 million from export under manufacturing contracts. The industry’s average growth rate over the past five years reached over 40 percent. In 2006 alone, the industry reported a growth rate of 43.9 percent and turnover from exports under manufacturing contracts increased by 57 percent. If this rate is maintained, the US$500-million target set for the software industry in 2007 will be within reach.

Vietnam now has more than 750 enterprises employing around 35,000 software engineers. Two of its enterprises have been granted Capability Maturity Model Integration (CMMI) certificates while many others have achieved ISO-9001 certifications. Each of 150 enterprises involved in software exports employs between 100-150 workers. Some enterprises such as FPT, Software, FPT Information Systems, TMA and PSV, even surpassed the 1000-worker mark.

Four potential areas in the IT industry are the mobile network, Internet service, game online and e-commerce. The mobile network and Internet service have attracted the largest number of enterprises while the highest earnings go to the mobile network.

Priority given to training human resources

After its entry to the World Trade Organisation (WTO), Vietnam has pledged to open its doors to the education sector and accept the market mechanism for training human resources, especially in the area of science and technology. So far, Vietnam has had 99 universities, 105 colleges and 72 foreign centres, which are training IT engineers and workers with around 90,000 workers  involved in the telecommunication sector, 100,000 in the electronics industry and computer hardware, and tens of thousands in digital technology.

The software and digital technology industry has boasted an annual human resource growth of 35-40 percent and the electronics and telecommunication industry, between 10-15 percent.

Apart from the development of infrastructure development projects and training centres, the number of university graduates in the IT industry keeps increasing year after year (estimated at around 33,000 on average).

It is expected that Vietnam will soon have a strong contingent of professional workers, meeting the country’s requirements for quick development of IT industry.

Hanoi Group’s Services

We have been building very strong connections with high ranking experts in the industry as well as some biggest players in the market. Our local clients are in different areas of the industry such as: hardware distributors, system integrators, software outsourcing etc.

Hanoi Group is confident in its effective function as Partner Matching Services provider in the IT industry.

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