Vietnam Information Technology Profile
The Vietnamese IT industry’s average revenue growth during 2001-2009 marked 20%-25% per year. By end of 2010 revenues of the software industry and digital content industry reached USD 2 billion. The hardware industry’s revenue scored USD 5.6 billion in 2010. That would be a substantial contribution since Vietnam’s GDP was estimated at USD 104.6 billion in the same year. It is estimated that the total IT industry revenue in 2011 as much as USD 8.5 billion with a potential to grow at 18%-22% until 2015.
In light of achievements during 2000-2005, Vietnam’s IT industry has maintained high growth rates and achieved significant results during 2006-2010. The industry has become a key economic-technical sector, and also one important driving force for economic development, reducing poverty and improving people’s living standards. IT helps bring Vietnam gradually catch up with developed countries around the world. The development of Vietnam’s IT industry is diversely in several sub-fields such as software industry, hardware industry, digital content industry, and IT services. The hardware sector contributes the most to the industry revenue but has low added value due to strong concentration on simple assembly lines. The digital content industry and IT services are expected to boom in coming years but Vietnamese companies might lose the domestic markets to foreign competitors. The software industry is still very much fragmented as Vietnamese software firms are still small in size and lack of strategic and creative directions.
GDP AND IT INDUSTRY GROWTH IN VIETNAM
(Growth rate in percentage) 2003 2004 2005 2006 2007 2008 2009 2010 2011(e)
IT Industry 28.8 33.3 20.9 22.6 22.1 21.7 18.1 23.7 11.4
GDP 7.3 7.8 8.4 8.2 8.5 6.3 5.3 6.8 5.8
Source: NNMT ADVISOR
This report, prepared by our local industry insiders and subject matter experts, will help explain further details of the Vietnamese IT industry and subsectors. Audiences will start to have big picture about the industry by understanding what others have recognized about it via international ranking in particular areas. Take, for an example, we can better understand the status of e-Government in Vietnam later on when we, at the beginning, realize where it is against other its counterparts in the region and in the world.
Audiences then can enjoy a comprehensive SWOT analysis for the Vietnamese IT industry. At this level of abstract, we have moved a further step to touch on some key points about the industry and subsectors. Keep that in mind, audience will benefit more by further investigating the regulatory aspect in the next chapter. We shall better understand about the policies applied in the industry, both fundamental and promotion ones. We can investigate the national strategy of Vietnam on ICT development. To move on we can build our understandings about industry stakeholders, especially the regulator and professional associations. We will have opportunities to review on what are going on in reality and which technology advances and IT applications have been being used in Vietnam. We, step by step, address the issues such as E-Government, digitized systems and applications, IT parks, and communications infrastructure and the Internet in Vietnam. We see what are going on in reality out there.
Accumulating the foundations in previous chapters, one can further review one or all single components of the Vietnamese IT industry: hardware, software, and digital contents in many perspectives: historical development, SWOT analysis, essential industry indicators, key categories and major companies, and human resources. One can go further to learn more about some Vietnamese leading companies in the field.
At the end of the day, one can find the answer for the question: Is a 90-million-population Vietnam a market or an IT global center of production and development? This is a turning point which makes this report helpful for economists, researchers, analysts, ICT vendors and companies, investors, and eventually end users.
In light of achievements during 2000-2005, Vietnam’s IT industry has maintained high growth rates and achieved significant results during 2006-2010. The industry has become a key economic-technical sector, and also one important driving force for economic development, reducing poverty and improving people’s living standards. IT helps bring Vietnam gradually catch up with developed countries around the world. The development of Vietnam’s IT industry is diversely in several sub-fields such as software industry, hardware industry, digital content industry, and IT services. The hardware sector contributes the most to the industry revenue but has low added value due to strong concentration on simple assembly lines. The digital content industry and IT services are expected to boom in coming years but Vietnamese companies might lose the domestic markets to foreign competitors. The software industry is still very much fragmented as Vietnamese software firms are still small in size and lack of strategic and creative directions.
GDP AND IT INDUSTRY GROWTH IN VIETNAM
(Growth rate in percentage) 2003 2004 2005 2006 2007 2008 2009 2010 2011(e)
IT Industry 28.8 33.3 20.9 22.6 22.1 21.7 18.1 23.7 11.4
GDP 7.3 7.8 8.4 8.2 8.5 6.3 5.3 6.8 5.8
Source: NNMT ADVISOR
This report, prepared by our local industry insiders and subject matter experts, will help explain further details of the Vietnamese IT industry and subsectors. Audiences will start to have big picture about the industry by understanding what others have recognized about it via international ranking in particular areas. Take, for an example, we can better understand the status of e-Government in Vietnam later on when we, at the beginning, realize where it is against other its counterparts in the region and in the world.
Audiences then can enjoy a comprehensive SWOT analysis for the Vietnamese IT industry. At this level of abstract, we have moved a further step to touch on some key points about the industry and subsectors. Keep that in mind, audience will benefit more by further investigating the regulatory aspect in the next chapter. We shall better understand about the policies applied in the industry, both fundamental and promotion ones. We can investigate the national strategy of Vietnam on ICT development. To move on we can build our understandings about industry stakeholders, especially the regulator and professional associations. We will have opportunities to review on what are going on in reality and which technology advances and IT applications have been being used in Vietnam. We, step by step, address the issues such as E-Government, digitized systems and applications, IT parks, and communications infrastructure and the Internet in Vietnam. We see what are going on in reality out there.
Accumulating the foundations in previous chapters, one can further review one or all single components of the Vietnamese IT industry: hardware, software, and digital contents in many perspectives: historical development, SWOT analysis, essential industry indicators, key categories and major companies, and human resources. One can go further to learn more about some Vietnamese leading companies in the field.
At the end of the day, one can find the answer for the question: Is a 90-million-population Vietnam a market or an IT global center of production and development? This is a turning point which makes this report helpful for economists, researchers, analysts, ICT vendors and companies, investors, and eventually end users.
1 EXECUTIVE SUMMARY
2 IT INDUSTRY RANKING
3 VIETNAM’S IT INDUSTRY SWOT ANALYSIS
3.1 STRENGTHS
3.2 WEAKNESSES
3.3 OPPORTUNITIES
3.4 THREATS
4 IT POLICY, STRATEGY, AND RELEVANT LAWS AND REGULATIONS
4.1 IT FUNDAMENTAL POLICIES
4.1.1 THE NATIONAL STRATEGY ON “TRANSFORMING VIETNAM INTO AN ADVANCED ICT COUNTRY”
4.2 IT PROMOTION POLICY
4.3 IT-RELATED REGULATIONS
5 IT-RELATED ORGANIZATIONS
5.1 NATIONAL STEERING COMMITTEE ON ICT (NSCICT)
5.2 MIC ACTING AS THE REGULATOR
5.3 PROFESSIONAL ASSOCIATIONS
5.3.1 VIETNAM ASSOCIATION FOR INFORMATION PROCESSING (VAIP)
5.3.2 VIETNAM SOFTWARE ASSOCIATION (VINASA)
5.3.3 VIETNAM ELECTRONIC INDUSTRIES ASSOCIATION (VEIA)
5.3.4 VIETNAM INFORMATION SECURITY ASSOCIATION (VNISA)
5.3.5 INTERNET SOCIETY VIETNAM (ISOC)
5.3.6 THE RADIO ELECTRONICS ASSOCIATION OF VIETNAM (REV)
5.3.7 HO CHI MINH CITY COMPUTER ASSOCIATION (HCA)
5.3.8 VIETNAM E-COMMERCE ASSOCIATION (VECOM)
5.4 OTHER RELEVANT ORGANIZATIONS
5.4.1 NATIONAL OFFICE OF INTELLECTUAL PROPERTY OF VIETNAM (NOIP)
5.4.2 VIETNAM STANDARD AND CONSUMER ASSOCIATION (VINASTAS)
6 IT UTILIZATION
6.1 E-GOVERNMENT
6.2 IT APPLICATIONS AND DIGITIZED SYSTEMS IN REALITY
6.2.1 TRADE INFORMATION SYSTEMS
6.2.2 EDUCATIONAL SUPPORT SYSTEMS
6.2.3 APPLICATIONS IN FINANCIAL AND BANKING SECTOR
6.2.4 HOSPITAL AND HEALTH CARE INFORMATION SYSTEM AND TELEMEDICINE
6.2.5 APPLICATIONS IN AGRICULTURE AND FOREST INDUSTRIES
6.2.6 APPLICATIONS IN LOGISTICS AND TRANSPORTATION
6.2.7 E-COMMERCE
6.2.8 CLOUD COMPUTING
6.3 IT-RELATED EVENTS
6.4 IT PARKS
6.4.1 OVERVIEW OF IT PARKS
6.4.2 QUANG TRUNG SOFTWARE CITY
6.4.3 HANOI IT & TELECOMMUNICATIONS TRADING CENTER
6.4.4 SAIGON SOFTWARE PARK (SSP)
6.4.5 DANANG SOFTWARE PARK
6.4.6 IT PARK OF VIETNAM NATIONAL UNIVERSITY AT HO CHI MINH CITY
6.4.7 E-TOWN
6.4.8 CANTHO SOFTWARE PARK
6.5 COMMUNICATIONS INFRASTRUCTURE AND INTERNET
7 PROFILE OF IT SUBSECTORS
7.1 HARDWARE
7.1.1 BRIEF ON THE DEVELOPMENT OF THE VIETNAMESE HARDWARE INDUSTRY
7.1.2 SWOT ANALYSIS FOR THE VIETNAMESE HARDWARE INDUSTRY
7.1.3 ESSENTIAL INDUSTRY INDICATORS
7.1.4 KEY PRODUCTS
7.1.5 MAJOR COMPANIES AND INVESTMENT PROJECTS
7.1.6 HUMAN RESOURCES
7.2 SOFTWARE
7.2.1 BRIEF ON THE DEVELOPMENT OF THE VIETNAMESE SOFTWARE INDUSTRY
7.2.2 SWOT ANALYSIS FOR THE VIETNAMESE SOFTWARE INDUSTRY
7.2.3 ESSENTIAL INDUSTRY INDICATORS
7.2.4 KEY CATEGORIES AND MAJOR COMPANIES
7.2.5 HUMAN RESOURCES
7.3 DIGITAL CONTENTS
7.3.1 BRIEF ON THE DEVELOPMENT OF THE DIGITAL CONTENTS INDUSTRY
7.3.2 SWOT ANALYSIS FOR THE VIETNAMESE DIGITAL CONTENTS INDUSTRY
7.3.3 ESSENTIAL INDUSTRY INDICATORS
7.3.4 KEY CATEGORIES AND MAJOR COMPANIES
7.3.5 HUMAN RESOURCES
7.4 INTERNATIONAL EXPANSION
8 PROFILES OF MAJOR VIETNAMESE IT COMPANIES
8.1 FPT
8.1.1 COMPANY OVERVIEW
8.1.2 COMPANY’S STRATEGY
8.1.3 ORGANIZATIONAL STRUCTURE
8.1.4 BUSINESS SCOPE AND FINANCIAL PERFORMANCE
8.2 CMC
8.2.1 COMPANY OVERVIEW
8.2.2 ORGANIZATIONAL STRUCTURE
8.2.3 COMPANY’S STRATEGY
8.2.4 BUSINESS SCOPE AND FINANCIAL PERFORMANCE
8.3 VTC
8.3.1 COMPANY OVERVIEW
8.3.2 ORGANIZATIONAL STRUCTURE
8.3.3 COMPANY’S STRATEGY AND BRIEF ON COMPETITION
8.3.4 BUSINESS SCOPE AND FINANCIAL PERFORMANCE
8.4 VNPT (VASC, VDC)
8.4.1 COMPANY OVERVIEW
8.4.2 COMPANY’S STRATEGY AND BUSINESS SCOPE
8.5 VIETTEL
8.5.1 COMPANY OVERVIEW
8.5.2 COMPANY’S STRATEGY IN IT SECTOR
8.5.3 BUSINESS SCOPE AND FINANCIAL PERFORMANCE
8.6 TMA SOLUTIONS
8.6.1 COMPANY OVERVIEW
8.6.2 COMPANY’S STRATEGY
8.6.3 BUSINESS SCOPE AND CORE COMPETENCIES
8.7 LAC VIET
8.7.1 COMPANY OVERVIEW
8.7.2 COMPANY’S STRATEGY AND BUSINESS SCOPE
8.8 PEACESOFT
8.8.1 COMPANY OVERVIEW
8.8.2 COMPANY’S STRATEGY
8.9 VINAGAME
8.9.1 COMPANY OVERVIEW
8.9.2 COMPANY’S STRATEGY AND BUSINESS SCOPE
8.10 VTB
8.10.1 COMPANY OVERVIEW
8.11 HANEL
8.11.1 COMPANY OVERVIEW
9 HUMAN RESOURCE DEVELOPMENT IN IT
9.1 BASIC STATISTICS
9.2 GOVERNMENT’S EFFORT IN HUMAN RESOURCE DEVELOPMENT FOR IT SECTOR
9.3 PARTICIPATION OF PRIVATE SECTORS
2 IT INDUSTRY RANKING
3 VIETNAM’S IT INDUSTRY SWOT ANALYSIS
3.1 STRENGTHS
3.2 WEAKNESSES
3.3 OPPORTUNITIES
3.4 THREATS
4 IT POLICY, STRATEGY, AND RELEVANT LAWS AND REGULATIONS
4.1 IT FUNDAMENTAL POLICIES
4.1.1 THE NATIONAL STRATEGY ON “TRANSFORMING VIETNAM INTO AN ADVANCED ICT COUNTRY”
4.2 IT PROMOTION POLICY
4.3 IT-RELATED REGULATIONS
5 IT-RELATED ORGANIZATIONS
5.1 NATIONAL STEERING COMMITTEE ON ICT (NSCICT)
5.2 MIC ACTING AS THE REGULATOR
5.3 PROFESSIONAL ASSOCIATIONS
5.3.1 VIETNAM ASSOCIATION FOR INFORMATION PROCESSING (VAIP)
5.3.2 VIETNAM SOFTWARE ASSOCIATION (VINASA)
5.3.3 VIETNAM ELECTRONIC INDUSTRIES ASSOCIATION (VEIA)
5.3.4 VIETNAM INFORMATION SECURITY ASSOCIATION (VNISA)
5.3.5 INTERNET SOCIETY VIETNAM (ISOC)
5.3.6 THE RADIO ELECTRONICS ASSOCIATION OF VIETNAM (REV)
5.3.7 HO CHI MINH CITY COMPUTER ASSOCIATION (HCA)
5.3.8 VIETNAM E-COMMERCE ASSOCIATION (VECOM)
5.4 OTHER RELEVANT ORGANIZATIONS
5.4.1 NATIONAL OFFICE OF INTELLECTUAL PROPERTY OF VIETNAM (NOIP)
5.4.2 VIETNAM STANDARD AND CONSUMER ASSOCIATION (VINASTAS)
6 IT UTILIZATION
6.1 E-GOVERNMENT
6.2 IT APPLICATIONS AND DIGITIZED SYSTEMS IN REALITY
6.2.1 TRADE INFORMATION SYSTEMS
6.2.2 EDUCATIONAL SUPPORT SYSTEMS
6.2.3 APPLICATIONS IN FINANCIAL AND BANKING SECTOR
6.2.4 HOSPITAL AND HEALTH CARE INFORMATION SYSTEM AND TELEMEDICINE
6.2.5 APPLICATIONS IN AGRICULTURE AND FOREST INDUSTRIES
6.2.6 APPLICATIONS IN LOGISTICS AND TRANSPORTATION
6.2.7 E-COMMERCE
6.2.8 CLOUD COMPUTING
6.3 IT-RELATED EVENTS
6.4 IT PARKS
6.4.1 OVERVIEW OF IT PARKS
6.4.2 QUANG TRUNG SOFTWARE CITY
6.4.3 HANOI IT & TELECOMMUNICATIONS TRADING CENTER
6.4.4 SAIGON SOFTWARE PARK (SSP)
6.4.5 DANANG SOFTWARE PARK
6.4.6 IT PARK OF VIETNAM NATIONAL UNIVERSITY AT HO CHI MINH CITY
6.4.7 E-TOWN
6.4.8 CANTHO SOFTWARE PARK
6.5 COMMUNICATIONS INFRASTRUCTURE AND INTERNET
7 PROFILE OF IT SUBSECTORS
7.1 HARDWARE
7.1.1 BRIEF ON THE DEVELOPMENT OF THE VIETNAMESE HARDWARE INDUSTRY
7.1.2 SWOT ANALYSIS FOR THE VIETNAMESE HARDWARE INDUSTRY
7.1.3 ESSENTIAL INDUSTRY INDICATORS
7.1.4 KEY PRODUCTS
7.1.5 MAJOR COMPANIES AND INVESTMENT PROJECTS
7.1.6 HUMAN RESOURCES
7.2 SOFTWARE
7.2.1 BRIEF ON THE DEVELOPMENT OF THE VIETNAMESE SOFTWARE INDUSTRY
7.2.2 SWOT ANALYSIS FOR THE VIETNAMESE SOFTWARE INDUSTRY
7.2.3 ESSENTIAL INDUSTRY INDICATORS
7.2.4 KEY CATEGORIES AND MAJOR COMPANIES
7.2.5 HUMAN RESOURCES
7.3 DIGITAL CONTENTS
7.3.1 BRIEF ON THE DEVELOPMENT OF THE DIGITAL CONTENTS INDUSTRY
7.3.2 SWOT ANALYSIS FOR THE VIETNAMESE DIGITAL CONTENTS INDUSTRY
7.3.3 ESSENTIAL INDUSTRY INDICATORS
7.3.4 KEY CATEGORIES AND MAJOR COMPANIES
7.3.5 HUMAN RESOURCES
7.4 INTERNATIONAL EXPANSION
8 PROFILES OF MAJOR VIETNAMESE IT COMPANIES
8.1 FPT
8.1.1 COMPANY OVERVIEW
8.1.2 COMPANY’S STRATEGY
8.1.3 ORGANIZATIONAL STRUCTURE
8.1.4 BUSINESS SCOPE AND FINANCIAL PERFORMANCE
8.2 CMC
8.2.1 COMPANY OVERVIEW
8.2.2 ORGANIZATIONAL STRUCTURE
8.2.3 COMPANY’S STRATEGY
8.2.4 BUSINESS SCOPE AND FINANCIAL PERFORMANCE
8.3 VTC
8.3.1 COMPANY OVERVIEW
8.3.2 ORGANIZATIONAL STRUCTURE
8.3.3 COMPANY’S STRATEGY AND BRIEF ON COMPETITION
8.3.4 BUSINESS SCOPE AND FINANCIAL PERFORMANCE
8.4 VNPT (VASC, VDC)
8.4.1 COMPANY OVERVIEW
8.4.2 COMPANY’S STRATEGY AND BUSINESS SCOPE
8.5 VIETTEL
8.5.1 COMPANY OVERVIEW
8.5.2 COMPANY’S STRATEGY IN IT SECTOR
8.5.3 BUSINESS SCOPE AND FINANCIAL PERFORMANCE
8.6 TMA SOLUTIONS
8.6.1 COMPANY OVERVIEW
8.6.2 COMPANY’S STRATEGY
8.6.3 BUSINESS SCOPE AND CORE COMPETENCIES
8.7 LAC VIET
8.7.1 COMPANY OVERVIEW
8.7.2 COMPANY’S STRATEGY AND BUSINESS SCOPE
8.8 PEACESOFT
8.8.1 COMPANY OVERVIEW
8.8.2 COMPANY’S STRATEGY
8.9 VINAGAME
8.9.1 COMPANY OVERVIEW
8.9.2 COMPANY’S STRATEGY AND BUSINESS SCOPE
8.10 VTB
8.10.1 COMPANY OVERVIEW
8.11 HANEL
8.11.1 COMPANY OVERVIEW
9 HUMAN RESOURCE DEVELOPMENT IN IT
9.1 BASIC STATISTICS
9.2 GOVERNMENT’S EFFORT IN HUMAN RESOURCE DEVELOPMENT FOR IT SECTOR
9.3 PARTICIPATION OF PRIVATE SECTORS
