Vietnam to beef up software outsourcing industry

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Vietnam softwareThe Vietnamese software industry wants to embark on higher-value software outsourcing projects in a bid to boost the industry which is already doing 25 per cent of the total outsourced work by Japanese IT companies, local media reported.

In the past, Vietnamese firms could do simpler works such as low-value coding or testing projects. Meanwhile, they now have added software product design and research, which can bring higher value.

Analysts noted that Japanese tend to outsource to Vietnamese firms instead of Chinese, because there have been many regular changes in the Chinese labour law and also political tensions between the countries.

In the past, more higher-value orders have come from Japan, industry associations in Vietnam said. Some Japanese companies are also considering setting up some research and development, as well as IT services and software outsourcing centers in Vietnam.

Dung has noted that Vietnam is now completely capable to undertake the jobs which require high techniques, which helps improve its competitiveness in comparison with the rivals China, India, the Philippines and Malaysia. In the future,  Myanmar is also expected to grab a slice of the cake from Japan.

On the domestic market, the Vietnamese software industry has been facing challenges due to the economic recession. Therefore, its turnover growth in 2012 was lower than the year before at 3.1 per cent, with around $1.2 billion. However, Vietnam’s total turnover in the IT industry in 2012 was $25.5 billion, an increase of 86 per cent over 2011.

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Reading Time: 1 minute

The Vietnamese software industry wants to embark on higher-value software outsourcing projects in a bid to boost the industry which is already doing 25 per cent of the total outsourced work by Japanese IT companies, local media reported.

Reading Time: 1 minute

Vietnam softwareThe Vietnamese software industry wants to embark on higher-value software outsourcing projects in a bid to boost the industry which is already doing 25 per cent of the total outsourced work by Japanese IT companies, local media reported.

In the past, Vietnamese firms could do simpler works such as low-value coding or testing projects. Meanwhile, they now have added software product design and research, which can bring higher value.

Analysts noted that Japanese tend to outsource to Vietnamese firms instead of Chinese, because there have been many regular changes in the Chinese labour law and also political tensions between the countries.

In the past, more higher-value orders have come from Japan, industry associations in Vietnam said. Some Japanese companies are also considering setting up some research and development, as well as IT services and software outsourcing centers in Vietnam.

Dung has noted that Vietnam is now completely capable to undertake the jobs which require high techniques, which helps improve its competitiveness in comparison with the rivals China, India, the Philippines and Malaysia. In the future,  Myanmar is also expected to grab a slice of the cake from Japan.

On the domestic market, the Vietnamese software industry has been facing challenges due to the economic recession. Therefore, its turnover growth in 2012 was lower than the year before at 3.1 per cent, with around $1.2 billion. However, Vietnam’s total turnover in the IT industry in 2012 was $25.5 billion, an increase of 86 per cent over 2011.

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