Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Vietnam News  >>   IT & Electronics  >>   Vietnam’s IT industry languishes
NEWS UPDATES Asean Affairs        20  April 2011

Vietnam’s IT industry languishes

Related Stories

March 5, 2011
Cambodia, Laos, Vietnam discuss joint website

January 15, 2011
Asean ICT Masterplan adopted

January 13,2011
Asean must strengthen ICT development

December 7,2010
Samsung to open LED plant in Malaysia

November 3,2010
Malaysian ICT firms see potential business

Despite its huge potential, Vietnam’s software industry has failed to develop as rapidly as it could have.

The decade-old industry has some impressive achievements, including an increase in revenue every year. Its turnover last year was 20 times the 2001 figure while its workforce had grown 10 times. Vietnam has also become an important global provider of software services.

But growth in the last few years has remained far short of potential.

There is huge demand for software products and services, particularly in public administration and industry.

But with the local industry unable to meet the needs, the main beneficiaries are foreign companies who get contracts worth millions of US dollars.

For instance, the IT infrastructure needed to set up a personal income tax management system is now being provided by two foreign firms with FPT only acting as a contractor.

Many Vietnamese firms like Petrolimex, Cement Corporation, and Thu Duc House Company are ready to pay foreign IT companies for overall management solutions.

Domestic banks spent dozens of millions of dollars each to create core banking – the services provided by a group of networked branches – to develop personal banking and even larger amounts for carrying out administration measures and operate the core banking system.

Many state enterprises are also potentially large customers for the software industry.

Vietnamese IT companies only had the capability to undertake minor projects under sub-contracts with foreign partners, experts said.

The Corporation for Financing and Promoting Technology, or FPT, for example, is one of the country's largest IT companies but has only 6,000 workers involved in software and IT-enabled services. Of them, half are deployed in sub-contracted projects.

The number of IT companies with even 500 software engineers remains modest.

The limited numbers preclude Vietnamese IT companies from landing major deals, experts pointed out.

Prof Dang Huu, former Minister of Technology and Natural Resources, said there was a fairly good policy framework in place to develop IT, especially software services.

However, the polices were not proving very effective because administrative officials and managers ignored them, he said.

Le Manh Ha, director of the HCM City Department of Information and Communication, also underlined the role of these people in fostering the IT industry's growth.

Agencies and enterprises using public funds must give priority to sourcing IT products and services from domestic firms, with failure to do so entailing severe penalties.

But Ha said this regulation was not being implemented because officials at such agencies and enterprises demanded bribes.

He also blamed IT firms for lacking systematic development strategies, especially for marketing and advertising their products and building brands, saying this has made it difficult for them to get a firm foothold in the market.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below
Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code



 
Today's  Stories    20  April 2011 Subsribe Now !
 • Mekong dam decision deferred to ministerial level Subcribe: Asean Affairs Global Magazine
• Asean countries short on Internet freedom Asean Affairs Premium
• Cambodia to launch first satellite
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

 
• Private investment in billions for Indo plan
• Malaysia wants foreign investments

• Philippines’ BOP surplus surges in March

• Refuse power grows in Thailand

• Vietnam’s IT industry languishes p

Asean Analysis    20  April 2011

Advertise Your Brand
• Investment doesn’t threaten Malaysia Sponsor Our Events

Asean Stock Watch    20  April 2011

 
• Asean will see a rally today p

Global News Impacting Asia    17 November 2010

p

• Bank of America sees Asian inflation

p

• Lloyd’s increases insurance push in Malaysia

p

• Wells Fargo analyst on euro

p

• Obama’s visit to Asia

p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com