Vietnam an Emerging Destination For Software Outsourcing

Revised Aug 20th, 2013

All Rights reserved - © IMT 2008-2013 2

Vietnam At A Glance

Population: 90+ millions

The 13th most populous country

Size: 331,698 km2

Main cities

Ha Noi (Capital), Ho Chi Minh city (Business

hub), Hue (Ancient Capital), Da Nang

(Central hub), Can Tho (Mekong Delta hub)

New powerhouse of Southeast Asia

Fast economy with average GDP growth

rate expected 6.9% for 2006-2010

Workforce: 45+ millions

Average annual implementation FDI capital

is $11B USD from 2008-2012


Evaluation of Vietnam as a

Destination for IT Outsourcing

Economic Environment

Political Environment

Legal Environment

Social Environment



One of the most stable and secure economies

Annual GDP growth increased significantly since open door

policy launched (1986)

WTO member since 2007

Expect to join TPP (Trans-Pacific Partnership) by end of 2013

Source Word Bank



Attractive cost for IT outsourcing

30% less expensive than India and 50% less expensive than Eastern

Europe (source: NeoIT 2006 and Ukrainian Hi-Tech Initiative 2007)

ICT industry is young but developing fast

4,000+ ICT companies with 300,000 employees

Software industry reached $1.2 USD with 79,000 employees in 2011

Source: Internet world stat Source: Vietnam MIC


Political Environment

Vietnam has a very stable political system

No conflict with any neighbor country since 1979

No ethnic and religious conflict

Government commits to support high tech

industry

Investing in human resource development

Granting tax incentive for software companies

Reducing telecom cost

Setting up software parks

Saigon Software Park, Quang Trung Software City, Da Nang

Software Park…


Legal Environment

Legal system improvement on-track to meet

WTO commitments

Intellectual Property Protection being

improved

Software privacy reduced 9% from 2003 to 2011 (source BSA)


Social Environment

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

Larger pool of talents

30K IT graduates annually

400 universities and colleges with IT training programs (3-5 years)

Human resource nearly doubled in 4 years, from 150K in 2006 to

250K in 2010

Attrition is less than 10%

Global Services cited Ho Chi Minh city in top 50 outsourcing cities for

its large labor pool and “significantly low attrition rates” (Tholons

2006)


Emerging as High Tech Center

A.T. Kearney lists Vietnam in top 10 for Global

Services Location Index of 2009 and 2011

KPMG selects Ho Chi Minh city as location to watch for

next outsourcing boom (Feb 2009)

Tholons (from 2007-2012) selects Ho Chi Minh city in

top 10 of emerging outsourcing cities

Ho Chi Minh city was

ranked #16th in Top 100

Outsourcing

Destinations by Tholons

(2013)



Intel invests $1B USD in a chip plant in SHTP (Saigon

High Tech Park)

Samsung invests $2.2B USD. In 2013 nearly 50% of

Samsung mobile phones manufactured in Vietnam

IDG set up $600M USD investment fund for Vietnam

software industry

Fortune companies chosen Vietnam for their IT

outsourcing services

EA, IBM, Oracle, Juniper Networks, Microsoft, Alcatel-Lucent,

Flextronics, NEC, NTT, Hitachi, Toshiba, Emerson, Panasonic,

HP



Eastern Europe IT outsourcing companies

open delivery centers (such as Luxoft)

Indian rivals Aptech, NIIT and Tata

Consultancy Services opened training

centers to address the growing market

Top 3 fastest growing telecom market in Asia

144% mobile phone penetration (2011)

3 top 100 global mobile service providers


Why 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


About IMT

Company Overview

Information & communications

Technology services firm based in

Vietnam and serving client globally.

We partner with clients from early-stage

to Fortune 500 across various industries

and regions to resolve business-as-

usual and complex technology

challenges.

Service offerings

Custom Application Development

Outsourced Product Development

Independent Validation & Testing

Mobile Application Development

Fast Facts

Founded 2008, growing from 8 to 150

engineers in 5 years

30% of staff have worked internationally

in North America, Europe and Asia

Each project manager has 10+ years of

experience in project management; with

PMP or Certified Scrum Master

Top talents

Median age: 26

Average experience: 5 years

70% Male vs. 30% Female

Notable Certified Partnerships include

Microsoft (Gold), Danish Government

(Danida B2B), and Norwegian

Government (Innovation Norway)

For more information, please contact

IMT Solutions

Email: [email protected]

Skype: imtsolutions

YIM: imtsolutions

Tel: +84 8 3811 7742

Fax: +84 8 3811 6980

Web site: www.imt-soft.com

mailto:[email protected]

http://www.imt-soft.com/

