return icon

Vietnam’s software industry sees growth overseas

VietNamNet Bridge - Vietnam saw growth in the domestic software market slow down in the last five years, but outsourcing for foreign markets were higher. 
VietNamNet Bridge - Vietnam saw growth in the domestic software market slow down in the last five years, but outsourcing for foreign markets were higher. 


A report of the Vietnam Software Association (Vinasa) showed that the big problems of the world’s and domestic economies led to the decline in the growth of the Vietnamese software industry in 2011-2015. 

However, it still could maintain 10-15 percent per annum growth rate (the growth rate was 30-40 percent in 2006-2010), 2-3 times higher than the GDP growth rate.

The revenue of the software industry increased from $1.06 billion in 2010 to $1.6 billion in 2015, while the revenue from services and digital content in 2015 was also over $1.6 billion. 

As such, the total revenue from software and information technology (IT) services increased from $2 billion in 2010 to $3 billion in 2015. The report pointed out that the Vietnamese value content was very high in total revenue, about 90-95 percent.

In recent years there was a sharp increase in the number and scale of the firms which do outsourcing for foreign partners.

Vinasa said that the domestic market was influenced by the national recession. 

In the home market, IT firms target two major groups of clients – state-owned agencies and businesses. 

Vietnam saw growth in the domestic software market slow down in the last five years, but outsourcing for foreign markets were higher. 
Meanwhile, the number of clients from both market segments decreased in recent years because the clients cut budgets for IT services.

The problems in policies relating to procurement and outsourcing services also hindered the development of the market.

Meanwhile, Vietnam’s export markets have been satisfactory with annual growth rate of 30-40 percent per annum. Vietnam has become the Number 1 favorite partner of Japan, while the US and European markets have had stable growth rate of 20-30 percent per annum.

A Gartner’s report showed that Vietnam is among the 10 most attractive countries for software outsourcing. 

In 2010-2015, Vietnam’s Hanoi and HCMC were named in the top 20 of the list of 100 t destinations for software outsourcing, according to Global Services-Tholons.

In 2013, Vietnam became the second largest partner for Japan in software outsourcing, just after China, according to a Japanese IT promotion agency.

However, analysts have warned that Vietnam’s software industry is facing big challenges for the next development period due to the lack of IT engineers. 

Vietnam would need 400,000 IT workers in 2016-2020, while 290 universities and junior colleges in Vietnam and the other 150 training establishments can provide 250,000 only.

From 2011 to 2015, the labor force in the software and digital content industry increased by 10 percent per annum.




Central localities likely to be hit by typhoon Noru

AI integration the inevitable path ahead

Big Data and AI will be the optimal tools to run factories in the future and digital transition will help firms optimise costs and cut emissions.

Ministry to scrutinise VietGap certifications after fake labels found on vegetables

The Ministry of Agriculture and Rural Development is investigating reports of vegetables sold in supermarkets being marked with fake Vietnamese Good Agricultural Practices (VietGap) labels.

E-commerce sector in dire need of qualified candidates

The tight supply of qualified candidates in the labour market is a glaring issue facing e-commerce firms, according to insiders.

Unique green moss-covered homes of the Tay Con Linh mountain range

It is an ideal environment for plants to flourish and thrive, including thick green moss, which ethnic people use to cover the palm-leaf roofs of their homes.

Farmers save wild birds and the environment

Farmers in different provinces throughout Việt Nam have for years spent time and effort to save wild birds, giving them a home to nest and lay eggs.

Deputy PM highlights significance of int'l solidarity, cooperation at UN session

The strengthening of international solidarity and cooperation is key to addressing interlocking global challenges, affirmed Permanent Deputy PM Pham Binh Minh while addressing the general debate of the 77th Session of the UN General Assembly.

Huge potential for luxury real estate in Vietnam

The branded residence market is gaining a stronger foothold in the Vietnamese market with potential to further develop, shaping the lifestyle of the country’s elite, according to experts.


Action plan to promote green growth in agriculture

Vietnam’s economic growth counts on high-tech FDI

Vietnam’s economic growth has been accelerating in 2022, with experts considering high-tech foreign investments as a driver.

The “seven-star” islands in Quang Ninh

Along with crystal blue sea and beaches, the 7 Sao (seven star) islands also have caves and primeval forests.

Customs you only see in Vietnam

The travel site Culture Trip has listed a number of Vietnamese customs that often surprise foreign tourists:

Investors and buyers play waiting game in credit switch

The State Bank of Vietnam finally created extra credit room for some banks on September 7. However, the extension is deemed low and may not help real estate businesses and homebuyers access feasible capital sources for their projects.

Woodwork exports to EU, US drop as consumers cut spending

Many woodwork manufacturers complain that exports have been sliding as people in target markets have been tightening their purse strings.

Vietnam: new destination for multinationals to set up R&D centers

Vietnam wants to upgrade foreign direct investment (FDI) quality by manufacturing products with higher hi-tech and added value, and multinationals are also striving to do this after many years in Vietnam.