Vietnam an Emerging Destination For Software Outsourcing

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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

Economic 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 2015
Source Word Bank

Economic Environment
 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
 14,000+ ICT companies with 440,000+ employees
 Software industry reached $1.36 USD with 88,800 employees in 2013
Source: Internet world statSource: 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 2007-2015) selects Ho Chi Minh city in
top 10 of emerging outsourcing cities and top 100
global outsourcing destinations
Vietnam has 2 cities in
Tholons Top
Outsourcing
Destinations 2015

 Intel invested $1B USD in a chip plant in SHTP
(Saigon High Tech Park)
 Samsung invested $3B 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
138% mobile phone penetration (2013)
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.
 Presence in Singapore, US and Vietnam
Service offerings
 Custom Application Development
 Outsourced Product Development
 Independent Software Testing
 Mobile Application Development
Fast Facts
 Founded 2008, consistent growth year
over year
 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: sales@imt-soft.com
Skype: imtsolutions
Tel: +1 703 953-2416
Tel: +84 8 3811 7742
Fax: +84 8 3811 6980
Web site: www.imt-soft.com

Vietnam an Emerging Destination For Software Outsourcing

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Vietnam an Emerging Destination For Software Outsourcing