Vietnam to beef up software outsourcing industry

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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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. 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...

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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