Vietnam Software Outsourcing 2013 updated

1. Vietnam – New Destination for
Software Outsourcing
Dang Nguyen
Business Development Manager
at TMA Solutions

2. Content
1. Vietnam overview
2. Vietnam – New destination for software
outsourcing

3. 1. Vietnam Overview (1/3)
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Size: 331,698 km2
Main cities: Hanoi (Capital), Ho Chi Minh city (Business hub), Hue (Ancient
Capital), Da Nang (Central hub), Can Tho (Mekong Delta hub)
Population: 90+ millions – the 13th most populous country in the world
Workforce:
o Young and well-educated population
o 49M+ workmen (2012)
o 60% of 90M population are under 30
o 1,6M students
o Literacy rate is more than 90%

4. 1. Vietnam Overview (2/3)
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Member of UN (United Nations, 1977), ASEAN (Association of Southeast Asian
Nations, 1995), ASEM (The Asia-Europe Meeting, 1996), WTO (World Trade
Organization, 2007)
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Politics/Legislation
o One-party Communist state
o Safest investment environment: 41th on global peace in 2013 (Global Peace
index report)

5. 1. Vietnam Overview (3/3)
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FDI: $40B+ invested in the last 10 years
GDP:
o $123.96 billion (2012), $141.67 billion (2013, estimate)
o Average GDP growth of 7% during the last 20 years
o One of the fastest growing economies in Asia
Inflation: 6.81% (2012)

6. 2. Vietnam – New Destination for Software
Outsourcing (1/5)
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Vietnam
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The top destination for investment beyond BRIC (UKTI, 2010)
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Top 30 leading countries in the world, top 10 leading countries in Asia
Pacific in outsourcing and services (Gartner report, 2013)
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Top Ten of A.T. Kearney’s Global Services Location Index 2011 & 2009
Be the most favored partner of Japanese business since 2009
Ho Chi Minh City on KPMG 'locations to watch' for next outsourcing boom
(KPMG Advisory , 2009)
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Ho Chi Minh City: 16th among top 25 most attractive software outsourcing
countries. Hanoi ranked at 23rd (Tholons report, 2013)

7. 2. Vietnam – New Destination for Software
Outsourcing (2/5)
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ICT industry is young but developing fast
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5,500+ IT companies in Ho Chi Minh City
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Software industry generated $1.17billion in 2011, increased 10% compared to
2010
Revenue of Software Industry (million USD)
1,172
1,064
850
680
2008
2009
2010
2011
Source: Viet Nam Information and Communication Technology – White Book 2012

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2. Vietnam – New Destination for Software
Outsourcing (3/5)
Quality
o Meet stringent quality requirements from world leading companies
o Adoption of international quality standards and methodologies for software
development and testing: CMMI, ISO, TL 9000, and Agile/SCRUM
Large pool of talents
o 400 universities and colleges with IT training programs (3-5 years)
o 50K IT students graduate annually
o IT human resource increased 55% from 200,000 in 2008 to almost 300,000 in
2011
o Software workforce increased 38% from 57,000 employees in 2008 to reach
78,894 in 2011
Source: Viet Nam Information and Communication Technology – White Book 2012

9. 2. Vietnam – New Destination for Software
Outsourcing (4/5)
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Strong government support for the software industry
o Intellectual Property Protection being improved. Software privacy reduced
9% from 2003 to 2011 (BSA)
o Setting up software parks: Saigon Software Park, Quang Trung Software
City, Da Nang Software Park, etc.
o Corporate income tax incentives for newly set up IT enterprises:
 Tax rate at 10% in 15 years
 Tax exemption for no more than 4 years; 50% reduction of payable tax
amounts for no more than 9 subsequent years
(Law on Corporate Income Tax, No 14/2008/QH12, Article 13, 14)

10. 2. Vietnam – New Destination for Software
Outsourcing (5/5)
Leading global companies that have outsourced to Vietnam

11. Thank you!
For more information, please contact
Dang Nguyen
Business Development Manager at TMA Solutions
• Skype: anhdanglucky
• LinkedIn: http://vn.linkedin.com/in/dangnguyenhcm