Shree Ganeshay Namah:

Students’ Declaration

We the below mentioned students of S.Y.M.B.A. hereby declare that the report for

Global/Country Study Report Project entitled “<Topic>” in Vietnam is a result of our own work

and our indebtedness to other work publications, references, if any, have been duly

acknowledged.

Place : Sarigam

Date :

Sr.No. Enrollment No. Name Signature

1 Rakesh Patel

2 Keyur Nayak

Faculty Guide : Asst.Prof.Pranav Raythatha

IT Sector; Steeple Analysis of Vietnam for Indian and Gujarat entrepreneurs.

IT Report:

Respected All Faculties and Guide,

On behalf of the group for global project under the guide of Asst.Professor Mr. Pranav

Raythatha, We Patel Rakesh and Patel Keyur of MBA 4 th Semester, Laxmi Institute of

Management, Sarigam have put an effort on IT Sector under the heading entrepreneurial

opportunities in Vietnam for Indian and Gujarat entrepreneurs by looking various strategic

contexts for this project.

STEEPLE ANALYSIS

SOCIAL ANALYSIS OF VIETNAM WITH REFERENCE TO IT AND AUXILIARY

INDUSTRY

he socialist-oriented market economy (is the official title given to the current economic system in

the Socialist Republic of Vietnam. It is described as a multi-sectoral market economy oriented towards the

eventual and long-term development of socialism,[1] where the state sector plays a decisive role

in directing economic development.

Vietnam is located in a Southeast Asian region (ASEAN) with neighboring countries like Laos,

Cambodia, Myanmar, Brunei, Singapore, Thailand, Indonesia, Malaysia, Philippines etc. is

considered a cradle of mankind, one of the earliest agricultural centers practicing wet rice

farming, where the stone and metallurgical revolutions took place.

The history of Vietnams is passed through significant changes and revolutions in the cause of

national building, the Vietnamese people had to cope with various foreign aggressions. During

12 centuries from the resistance war against the Qin Dynasty in the 3rd century B.C until late

20th century, the Vietnamese had to launch hundreds of struggles and uprisings against foreign

aggressions. The principle of placing the small and weak forces before much larger and stronger

ones has become the rule of thumb in the national defense wars of the Vietnamese people.

If we talk of social status of Vietnamese, they are still following their traditional values very

much in each activity.

For centuries Vietnamese society was knit together by Confucian norms based on five

relationships: the subordination of subject to ruler, son to father, wife to husband, and younger

brother to elder brother, and the mutual respect between friends. These norms influenced the

evolution of Vietnam as a hierarchic, authoritarian society in which Confucian scholarship,

monarchical absolutism, filial piety, the subordinate role of women, and the family system were

regarded as integral to the natural order of the universe.

The traditional society was stratified on the basis of education and occupation into four groups:

scholar-officials or mandarins, farmers, artisans, and merchants. At the pinnacle was the

emperor, who ruled with the "mandate of heaven." Next were the scholar-officials, recruited

through rigorous civil service examinations in Chinese classical literature and philosophy. Once

a person passed the triennial examinations he became an accredited scholar or degree holder and

was eligible for appointment to the imperial civil service, the most prestigious route to power,

status, and wealth. Together, the emperor, his family, and the scholar-officials constituted the

ruling class.

There is immense scope of entrepreneurial opportunities in IT segment for Indians as we hold

strategic competencies in software and design as well as good in education also.

Technological environment in Vietnam

 Vietnamese IT spending is expected to reach US$2.53bn in 2012-13, up 15%, with BMI

upwardly revising its forecast due to macroeconomic factors. The PC market slowed in 2012-13

due recession, but drivers including rising PC penetration, economic growth, a range of

government ICT initiatives and a campaign to develop Vietnam's domestic IT industry will help

to sustain continued expansion going forward. Vietnam's improving ICT infrastructure will also

drive the development of the nation's IT marketing a country with below 20% PC penetration.

Meanwhile, there is strong demand for ERP solutions in 2012-13 and cloud computing revenues

are expected to report at least 300% growth over the five-year forecast period to 2016.

Headline Expenditure Projections in IT

Computer Hardware Sales: US$1.6bn in 2011 to US$1.8bn in 2012, +13% in US dollar terms.

Forecasting US dollar terms unchanged; however, tablets are expected to provide a strong

growth area in 2012 due to lower prices.

Software Sales: US$187mn in 2011 to US$222mn in 2012, +22% in US dollar terms. Forecast in

US dollar terms upwardly revised due to analyst modification, but will depend on the success in

bringing down illegal software use.

IT Services Sales: US$395mn in 2011 to US$474mn in 2012, +20% in US dollar terms. Forecast

in US dollar terms upwardly revised due to analyst modification with growing demand for digital

infrastructure projects in various sectors, such as banking, telecoms, energy and government.

Risk/Reward Ratings: Vietnam scores 33.2 out of 100 in our Asia risk/reward ratings table. This

places the country 11th, ahead of Sri Lanka. The country ranks only ninth for its IT market score,

with 36.9.Key Trends & Developments.

In 2011, a number of government ministries and organizations, including the Ministry of

Education and Training, started to promote the roll out of cloud services. Plans to modernize IT

in government agencies and the customs department, as well as the Tax Administration

Modernization Plan for 2008-2013 represent opportunities for vendors of IT products and

services.

An ambitious government IT plan for 2010-2020 should shape many segments of the

Vietnamese IT market, with the government pledging to invest VND2.4tn (US4, 115mn) from

the State Budget in the ICT sector over this period. The government's increasing focus on

encouraging ICT development and foreign investment in the technology sector will also create

opportunities. Many of the government's ICT development plans and programmes are still in an

ascent stage and their ultimate effectiveness is yet to be determined.

This is a very good opportunities for Indian Entrepreneurs to cater vast untapped Vietnam

Software and R & D markets as well as to start contract with its government to undertake several

IT projects and IT education on scale basis.

Based on our research on IT sector prospects of Indian Entrepreneur in Vietnam , We found

following areas for business opportunities in our seminar for IT Sector.

(1) Technology Requirements from the Business Process Redesign

(2) Target Environment: Target technology environment

(3) Education related, company related B 2 B approach, B 2 G approach for software

development, B 2 C approach via Network design, financial sector particularly banking

related IT application and IT training interface.

(4) Government Projects and Outsourcing

Economical Environment of Vietnam

Vietnam: Economy

Following economic stagnation after reunification from 1975 to 1985, the 1986 Sixth Party

Congress approved broad economic reforms (known as "Doi Moi," or "renovation") that

introduced market reforms, opened up the country for foreign investment, and dramatically

improved Vietnam's business climate. Vietnam became one of the fastest-growing economies in

the world, averaging around 8% annual gross domestic product (GDP) growth from 1990 to

1997 and 6.5% from 1998-2003. GDP grew more than 8% annually from 2004 to 2007, slowed

to 5.3% growth in 2009, recovered to 6.8% in 2010, and reached 5.8% over the first 9 months of

2011. Viewed over time, foreign trade and foreign direct investment (FDI) have improved

significantly, although new registered FDI has started to trend downward. The average annual

foreign investment commitment rose sharply after foreign investment was authorized in 1988,

although the global economic crisis affected FDI in 2009. In the first 9 months of 2011,

disbursed FDI capital totaled $9.1 billion, up 1% compared to the same period in 2010.

Registered FDI (including new and additional capital) was $8.88 billion in the first 9 months of

2011, a fall of about 30% compared to the same period of 2010. From 1990 to 2011, agricultural

production nearly doubled, transforming Vietnam from a net food importer to the world's

second-largest exporter of rice. In the first 9 months of 2011, Vietnam’s exports ($70 billion)

were up by 23% compared to the same period in 2010. Vietnam’s imports ($76.87 billion) were

up by 27% from the same period in 2010, and the country was still running a structural trade

deficit, reaching $6.87 billion in the first 9 months of 2011.

The shift away from a centrally planned economy to a more market-oriented economic model

has improved the quality of life for many Vietnamese. Per capita income rose from $220 in 1994

to $1,168 in 2010. Year-on-year inflation, however, increased to 18.2% in the first 9 months of

2011, up from 8.6% in the same period of 2010. The Vietnamese Government was unable to

reach its 2011 Consumer Price Index (CPI) target of 7%. The Vietnamese savings rate is about

25% of GDP. Official unemployment remains low, but does not reflect employment trends in the

unofficial economy, which comprises over 70% of the total workforce. Unemployment was 2.2%

in the first 9 months of 2011--a slight decline from 2.8% in 2010--with urban unemployment

being higher (3.5% in the first 9 months of 2011, 4.4% in 2010) than rural (1.2% the first 9

months of 2011, 2.3% in 2010).

The Vietnamese Government still holds a tight rein over major sectors of the economy through

large state-owned economic groups and enterprises. The government has plans to reform key

sectors and partially privatize state-owned enterprises, but implementation has been gradual and

the state sector still accounts for approximately 40% of GDP. Greater emphasis on private sector

development is critical for job creation. In 2011, the Vietnamese Government proposed a

strategy for restructuring the economy by 2015. The three pillars of the proposed strategy are

improving public investment; reforming state-owned enterprises; and restructuring finance

markets, focusing on the banking system.

The 2001 entry-into-force of the Bilateral Trade Agreement (BTA) between the U.S. and

Vietnam was a significant milestone for Vietnam's economy and for normalization of U.S.-

Vietnam relations. Bilateral trade between the United States and Vietnam has expanded

dramatically, rising from $2.97 billion in 2002 to $18.6 billion in 2010. The U.S. is Vietnam's

second-largest trade partner overall (after China).

Implementation of the BTA, which includes provisions on trade in goods and services,

enforcement of intellectual property rights, protection for investments, and transparency,

fundamentally changed Vietnam's trade regime and helped it accede to the World Trade

Organization (WTO) in 2007.

Vietnam was granted permanent normal trade relations (PNTR) status by the United States in

December 2006. To meet the obligations of WTO membership, Vietnam revised nearly all of its

trade and investment laws and guiding regulations and opened up large sectors of its economy to

foreign investors and exporters.

A U.S.-Vietnam Trade and Investment Framework Agreement (TIFA), a bridge to future

economic cooperation, was signed in 2007 during President Nguyen Minh Triet's visit to the

United States. The first TIFA Council occurred in December 2007 in Washington, and there have

been frequent TIFA meetings and dialogues since then. During Prime Minister Nguyen Tan

Dung's June 2008 visit, the United States and Vietnam committed to undertake Bilateral

Investment Treaty (BIT) negotiations. Three rounds of talks were completed, but BIT talks have

not resumed since Vietnam and the United States began negotiations on free trade in 2010.

Agriculture and Industry

As in the rest of Asia, farms in Vietnam tend to be very small, and are usually less than one

hectare (2.5 acres) each. Rice and other farm outputs are quite profitable, on a per-kilogram

basis, but the total income from these small operations is increasingly insufficient to cover daily

household needs. Off-farm income is necessary, and growing in importance. Due to its high

productivity, Vietnam is currently a net exporter of agricultural products. Besides rice, key

exports are coffee (robusta), pepper (spice), cashews, tea, rubber, wood products, and fisheries

products. In 2010, Vietnam was ranked 17 among all suppliers of food and agricultural products

to the United States, a strong indicator of Vietnam’s growing importance as a global supplier of

key agricultural commodities. Agriculture's share of economic output has declined, falling as a

share of GDP from 42% in 1989 to 21% in 2010, as production in other sectors of the economy

has risen.

Vietnam's industrial production has also grown. Industry and construction contributed 41% of

GDP in 2010, up from 27.3% in 1985. Subsidies have been cut, though state enterprises still

receive priority access to resources, including land and capital. The government is also

continuing the slow process of "equitizing" a significant number of smaller state enterprises--

transforming state enterprises into shareholding companies and distributing a portion of the

shares to management, workers, and private foreign and domestic investors. However, to date the

government continues to maintain control of the largest and most important companies.

Trade and Balance of Payments

To compensate for drastic cuts in Soviet-bloc support after 1989, Vietnam liberalized trade,

devalued its currency to increase exports, and embarked on a policy of regional and international

economic re-integration. Vietnam has demonstrated its commitment to trade liberalization in

recent years, and integration with the world economy has become one of the cornerstones of its

reform program. Vietnam has locked in its intention to create a more competitive and open

economy by committing to several comprehensive international trade agreements, including the

Association of Southeast Asian Nations (ASEAN) Free Trade Area (AFTA) and the U.S.-

Vietnam Bilateral Trade Agreement (BTA). Vietnam's accession to the World Trade

Organization further integrated Vietnam into the global economy. In November 2010, Vietnam

officially joined negotiations for the Trans-Pacific Partnership (TPP) free trade agreement.

As a result of these reforms, exports expanded significantly, growing by as much as 20%-30% in

some years. Exports accounted for about 70% of GDP in 2010. Imports have also grown rapidly,

and Vietnam has maintained a structural trade deficit, reaching $12.4 billion in 2010. Vietnam's

total external debt, amounting to 42.2% of GDP in 2010, was estimated at around $32.5 billion.

Vietnamese economy has weathered the global economic downturn relatively well. Capitalizing

on its measured integration into the global trade and investment system, the country has slowly

been transforming itself into a more market-oriented economy. Reforms include partial

privatization of state-owned enterprises, modernization of the trade regime, and increasing

recognition of private property rights.

Vietnam’s economic freedom score is 51, making its economy the 140th freest in the 2013

Index. Its score is 0.3 point worse than last year, with declines in monetary freedom, labor

freedom, and trade freedom overshadowing improvements in control of government spending,

business freedom, and freedom from corruption. Vietnam is ranked 30th out of 41 countries in

the Asia–Pacific region, and its overall score is lower than the world and regional averages.

Vietnam is one of the fastest growing economies having large pool of cheap labours both skilled

and unskilled. Though infrastructure is key constraint, government is providing various

measures and incentives of IT related development which is key opportunities for Indian

entrepreneurs in Vietnam.

The Ministry of Planning and Investment (MPI), formerly the State Planning Commission, is a governmental ministry charged with the role of state management over planningand investment. The ministry's headquarters is located in Hanoi.[1]

The agency provides, among others, strategic advice for country-level socio-economic development. It also programs and plans economic management mechanisms and policies for the national economy, for specific sectors as well as for domestic and foreign investments.

Foreign investment in Vietnam is governed under the Law on Foreign Investment and its related regulations, decrees and circulars. The four main types of foreign investments in Vietnam are: (1) Joint Ventures; (2) Business Cooperation (Contracts); (3) 100-Percent Foreign-Owned Enterprises; and (4) Build-Operate-Transfer enterprises.

The đồng has been the currency of Vietnam since May 3, 1978. Issued by theState Bank of Vietnam, it is

represented by the symbol "₫". Formerly, it was subdivided into 10 hào, which was further subdivided into

10 xu, neither of which is now used.

Environmental Factors of Vietnam which needs to be taken care

In the traditional Vietnamese worldview, people should live in harmony with nature [LeTrong Cuc ____]. At the same time, however, they must make use of natural resources toprovide for their day-to-day survival [Jamieson ____: _ ]. Nature was also seen as aconstant threat to human survival, with the frequent occurrence of floods, typhoons,droughts and other natural calamities [Rambo ____: ___]. Regardless of what relationsbetween Vietnamese people and nature may have really been like in the past, due to

growing population pressure and recent rapid economic growth, environmental problemshave increased significantly in recent decades. Consequently, environmental protectionhas become a major concern of the Vietnamese government, as is indicated by therecent formation of a separate Ministry of Environment and Natural Resources. Theextent to which the public is concerned about environmental problems has not beenknown, however, although many officials assume that the public is largely ignorant and unconcerned about matters relating to the environment.

Deforestatio is major concern in Vietnam and government is very keen and sensitive about environmental issues. But for an IT industry, it is an advantage that it can minimum harm external environment and even help to control environmental issues with precise implementation of laws and nalysis.IT industry consume only energy that is quite crucial environmental aspects and the fibre network laid for internet also play some government norms which are concern area.

We Government is promoting to reduce the pressure for over-exploitation of timber by expanding and promoting the use of non-timber products which are eco-friendly and environment friendly.

Political Environment of Vietnam:

Vietnam is following communist governance system.The rule of law remains an issue, a remnant

of decades of Communism. The court system is inefficient, and the protection of intellectual

property has been a major area of contention in international trade negotiations. A lack of

democratic governance and accountability continues to perpetuate systemic corruption.

Political scenario in Vietnam: So far as political mechanism and governance in Vietnam is

concern, the country has not sound track record even today as far as public freedom, suppression

of freedom of expression and peaceful assembly, political reforms and act, expose co officials

corruption, call for democratic alternatives to one party rule, free speech, journalism and civil

rights are concerned due to socialist government model. In Vietnam, police frequently torture

suspects to elicit confessions for national interest and, in several cases, have responded to public

protests over evictions, confiscation of land, and police brutality with excessive use of force.

Anti-China protests in Hanoi and Ho Chi Minh City in 2011 were dispersed and protesters were

intimidated, harassed, and in some cases detained for several days.

1. The current Prime Minister Mr.Nguyen Tan Dung has served since 2005, and he is

serving his last term.

2. The President of Vietnam represents the Socialist Republic of Vietnam internally and

externally as the head of state, maintains the regular and coordinated operation and

stability of the national government system and safeguards the independence and

territorial integrity of the country. The President appoints prime ministers, vice

presidents, ministers and other officials with the consent of the National Assembly. In

Socialist of Vietnam, The President, the head of State is also the chief commander of the

Vietnam People’s army and also serve as a Chairman of the Council for Defense and

Security of the country and his tenure for this post is five years as well as he can serve for

the same post by two tenure only.

3. The current President, MR. Truong Tan Sang, is the Politburo's highest-ranking

member.

The Chairman of senate-National Assembly is the head of political constituency. Mr. Nguyen

Sinh Hung is the current chairman of the National Assembly of Vietnam.

Vietnam is one of the fastest growing developing countries in south Asian region Key Issues in

Vietnam politics which directly affecting its economy:

Some of very key issues needs to be addressed for Vietnam governments to attract more FDI in

IT sectors particularly for Indian Entrepreneurs are as under.

4. Macroeconomic policies are tight to protect state run industries which are highly required

to ease for economy reforms.

5. SOE-State owned enterprise reforms are required to reduce risk to financial sector risk

and public finances and to improve overall growth prospective in the economy.

6. Vietnam requires maintaining an exchange system free of political interference and

restrictions on the making of payments and easing the current international transactions.

7. Another thing is to do TAX REFORMs for efficient functioning of economical activity

by Vietnam government to increase overall growth.

Legal Framework and Governance Mechanism:

Legal Structure: Article 4 of the Constitution stipulates the leading role of the

Communist Party of Vietnam (CPV). The CPV's executive is the 150-member Central

Committee, elected by the Congress of all party members, which meets every five years.

Legislative Branch: In Vietnam, to run the congregation or body of ministers which

is a council called the National Assembly there to exercise constitutional powers and

frame policies for the nations interest was established by the Vietnam Constitution

of 1992, is the supreme arm of state and the only body in a country having

constitutional and legislative power. The National Assembly shall decide the

fundamental domestic and foreign policies, the socio-economic tasks, the country's

national - defense and security issues, the essential principles governing the organization

and activity of the State machinery, the social relations and the activities of the citizen.

Executive Branch: The Government is the executive organ of the National

Assembly, the highest organ of state administration of the Socialist Republic of

Vietnam. For Nation’s internal as well as external security and integrity, it requires

a holistic approach and overall management of the work from executive

functionaries to attain decisive strength and success on front of the political,

economic, cultural, social, and national - defense, security and external duties of the

State. The Government shall be composed of the Prime Minister, the Deputy Prime

Ministers, the Cabinet Ministers, and other members. With the exception of the Prime

Minister, its members are not necessarily members of the National Assembly. In Socialist

of Vietnam, The President of the State and the Prime Minister are elected by the central

council -National Assembly.

Judiciary Branch: Supreme People's Court (chief justice is elected for a five-year term

by the National Assembly on the recommendation of the president). The Supreme

People's Court, the local People's Courts, the Military Tribunals and the other tribunals

established by law are the judicial organs of the Socialist Republic of Vietnam.

Local Government: On a formal level Vietnam’s local administration system is divided

geographically into three levels:

• Provinces (about 60 units including three municipalities)

• Districts (about 600 units)

• Communes (about 10,400 units).

Electoral System: Vietnam has universal suffrage at age 18. Elections for the National

Assembly are scheduled every five years.

Politics/Political Parties: Vietnam is a one-party state. The Vietnamese Communist

Party (VCP) has a monopoly on power.

Vietnam’s Capital: Hanoi

The current Prime Minister Mr.Nguyen Tan Dung has served since 2005, and he is

serving his last term.

The President of Vietnam represents the Socialist Republic of Vietnam internally and

externally as the head of state, maintains the regular and coordinated operation and

stability of the national government system and safeguards the independence and

territorial integrity of the country. The President appoints prime ministers, vice

presidents, ministers and other officials with the consent of the National Assembly. In

Socialist of Vietnam, The President, the head of State is also the chief commander of the

Vietnam People’s army and also serve as a Chairman of the Council for Defense and

Security of the country and his tenure for this post is five years as well as he can serve for

the same post by two tenure only.

The current President, MR. Truong Tan Sang, is the Politburo's highest-ranking

member.

The Chairman of senate-National Assembly is the head of political constituency. Mr.

Nguyen Sinh Hung is the current chairman of the National Assembly of Vietnam.

Though government is active on industrial peace and security, there is little scope for

judiciary independence in Vietnam over political government which is important one for

an industry to investment establishment in Vietnam.

Ethical and Values for business in Vietnam

This is very important part of corporate responsibility which drives business and economy

growth.

In order to be successful with business practices in Vietnam, you must be aware of the ethics in that particular

country. "Transparency International, a global counter-corruption watchdog, ranks Vietnam as the second most

corrupt country in South-East Asia, based on a survey of international businessmen" (economist.com). The corruption

is very much widespread and must be taken into account when doing business in the country. Aside from being a

very corrupt nation, the workforce struggles with conditions in the factories they work in. As an international manager

we must be able to deal with these situations. For the most part, the workers suffer from conditions like long hours

with little to no breaks, unsanitary environments, and lack of appropriate gear/equipment. Workers at times even

come to work sick just to prevent from losing a job. 

Women also have little role in the workforce. They are usually raised up to be strictly a wife and mother and only

recently have started working in the factories. "Women often accept the poor working conditions and work in these

factories because of their poor economic situation that often result in poor health" (unc.edu). These types of work

conditions are definitely a significant factor in doing business in this country. We don't see these harsh conditions in

the U.S. and being in a company that is globally competitive we'd have to deal with such things; however, in order to

make our business successful and stay competitive we would have to adhere to these conditions as much as we'd

hate to see them. 

Ethics and human rights such as these can affect the way we run business. If we work people in these conditions,

this bad image can reflect on us back at home. We can regulate something simple like more breaks and a cleaner

environment for them to work in. As human rights continue to improve in Vietnam, the workers are more aware of the

unethical conditions also and are starting to speak out.

Key Ethics are concern ares for business:

Weak systems and controls are exposing companies in Asia-Pacific and in Vietnam to significant risks as internal controls and compliance programs are not implemented as thoroughly as they should be.

The slower growth environment is putting management under pressure to take short cuts by, for example, misstating financial statements to meet targets.

Fraudulent practices are on the rise, and there is a disconnect between the policies that are in place and how they are applied in practice.

Summary

Summary Report: IT Sector

Vietnam IT , ITES and particularly ICT industry has grown at a phenomenal rate over the last decade or so years and is now a pillar of the country's economy

The economy and financial structure of Vietnam and IT sector have begun to stabilize, and government policy credibility has improved. Undergirded by tight macroeconomic policies, inflation is receding rapidly, activity is slowing, and the current account deficit has declined sharply. The informal interbank exchange rate has moved within the band around the official rate and investors, both domestic and

foreign, are shifting into dong assets, allowing the State Bank of Vietnam (SBV) to increase foreign exchange reserves. Based on the external LIC DSA, Vietnam remains at low risk of debt distress.

Confidence in the Vietnam dong has improved, bringing the informal interbank exchange rate back within the official trading band. Investors, both domestic and foreign, are shifting into dong assets, allowing the SBV to increase international reserves significantly in the first three months of 2012, though they remain low.

IDG Vietnam’s General Director Nguyen Lam said that last year Vietnam, the Philippines and Indonesia were the three Southeast Asian countries that had a growth of IT spending of over 10 percent. This year, despite the global economic slowdown, the spending of the Vietnam IT market is still predicted to grow by over one percent.

As far as IT business is concerned, Vietnam is very optimistic for long run growth. According to IDG, as of 2010, Vietnam will be the IT market with the highest growth rate in Southeast Asia. The implementation of big foreign-invested IT projects, the development of the third generation (3G) mobile network and investment in IT infrastructure, particularly in the private sector, will be the motivation for the IT market.

According to the Vietnam Software Association (Vinasa), Vietnam, India and China were the three countries that processed software for Japan that showed positive growth, but still, Vietnam’s market share in Japan is very small, only 0.5 percent.As far as IT Hardware and ICT is concern, with new foreign investments pouring in and more than 600 software oriented firms already in place, Vietnam’s information technology sector is by all measure going great guns. And recent big-ticket investments from the multinational likes of Intel and Canon are established Vietnam as a low-cost IT leader in the region, challenging the positions of such countries as china, Thailand and the Philippines.

In addition to suppliers ranging from household names like NEC, TDK and Kelly Services to obscure specialists such as Daewon semiconductor Packaging, Dainippon Screen Manufacturing, Munters, and STATS ChipPAC, Intel’s preference for sourcing locally willlikely provide opportunities for dozens, if not hundreds, of new Vietnamise technology companies. That growing mass of suppliers will in turn make Vietnam more attractive for other global IT manufacturers. Vietnam’s concentration on the industry is fast eroding other countries’ head start. If Intel’s recent decision is a sign of the times, Vietnam is set to draw more IT-related investments that would have previously been destined for elsewhere in the region.

The information technology report presents the technology requirements and find out the

profitable business opportunities available in South Asian country Vietnam who is already

an exporter of IT and ICT Hardware particularly in manufacturing of Microchip for processor

is concern. For Indian IT Sector, already India’s largest IT software company TCS and

Aptech are there in IT segment and support activities.