How is the software industry in Vietnam

The message
the Socialist Republic of Vietnam
in the Federal Republic of Germany

(VOVworld) - The foreign companies investing in technology in Vietnam have many advantages. This includes the numerous and well-qualified workforce. The state gives companies favorable conditions. Therefore, the technology sector is of great interest to more and more foreign companies.

Japanese companies in particular are very interested in the technology sector in Vietnam. Large corporations such as Sanyo, Sony, Panasonic and Toshiba have set up factories in Vietnam. Well-known IT companies in the USA such as Intel, IBM or the French companies Cap Gemini and Accenture have also started projects in Vietnam. In the past year, direct foreign investment in Vietnam fell significantly due to the global financial crisis. Nevertheless, there was an increase in investment in the IT area. Lam Nguyen Hai Long, the vice director of the software company Quang Trung:

“Since the beginning of 2011, there has been a new wave of investment in IT in Vietnam. Many companies from Japan and North America have invested in the Quang Trung software park in Ho Chi Minh City. We have improved the IT infrastructure considerably in recent years. However, there can still be problems in satisfying the interests of all investors. We must now concentrate more on training workers in this area.

After the earthquake and tsunami disaster in 2011, there was an increased tendency among Japanese companies to invest abroad instead of rebuilding their facilities at home. Many of those companies have chosen Vietnam as their new investment location, says Nguyen Kim Cuong, representative of the CMC group in Ho Chi Minh City:

“In the past few years, Vietnam and Japan have worked closely together. The vast majority of the workforce in Japanese companies in Vietnam are Vietnamese. There is an enormous labor market here. Vietnam is therefore a preferred choice for foreign investment by Japanese companies. ”

Vietnam has achieved considerable success in the information technology sector in recent years. This created the basis for the Ministry of Information and Telecommunications to develop a draft for IT development. The paper envisages developing Vietnam into one of the 70 countries worldwide that are ahead in the development of information technology by 2015. In order to achieve this goal, Vietnam offered foreign IT companies favorable conditions, Lam Nguyen Hai Long continued:

“Companies investing in IT in Vietnam will not have to pay taxes for the first four years. For nine more years they only have to pay half of the tax. The workforce in Vietnam is young and well qualified. That is our competitive advantage. "

According to Nguyen Trong Duong, representative of the Ministry of Information, Vietnam has increasingly focused on training workers in the IT sector in recent years:

“More than ten years ago, there were only ten universities in Vietnam that had information technology as a subject. This is now being taught in almost 300 schools across the country. About 60,000 students study information technology every year. Around 250,000 people are currently working in this field. Many of them have international degrees and are able to work for the foreign software companies. "

Vietnam is poised to receive a new wave of foreign investors.

Photo: Technology in Vietnam has a well-skilled workforce (from www.dangkiemoto.com)