Vietnam makes the grade in world’s software map

Vietnam has become the name that many countries in the world will consider when they look for reliable partners to implement software development projects. Report by the Vietnam Net online newspaper.
Vietnam has become the name that many countries in the world willconsider when they look for reliable partners to implement softwaredevelopment projects. Report by the Vietnam Net online newspaper.

The 2013 report by Tholons, a consultancy firm, about the 100 citiesin the world most attractive in terms of software outsourcing named theVietnam's Hanoi capital and Ho Chi Minh City in the top 25. The 16thgrade has been given to Ho Chi Minh City, while the 23rd to Hanoi.

Meanwhile, in a report by Gartner, also a consultancy firm, Vietnam isalways among the top 30 leading countries in the world and top 10countries in Asia-Pacific in outsourcing and services.

In September 2013, the US Software Magazine added Vietnamese FPTSoftware into the list of the world’s 500 biggest software serviceproviders.

With the turnover of 81.5 million USD andthe 30.4 percent growth rate in 2012, FPT Software is the firstVietnamese firm found in the list. Prior to that, in 2012, FPT Softwarewon the international award “Top 100 global service providers” given byGlobal Services, an Indian media firm and NeoGroup, an US consultancyfirm.

Meanwhile, another Vietnamese firm, TMASolutions, has been added by the US Aberdeen Group, Inc, specialising inanalyzing the world’s information technology market, into the list of15 best software outsourcing service providers. The list was releasedafter a survey on 52 software firms.

As “Vietnam”has become a strong brand, Vietnamese firms have got more opportunitiesto obtain more valuable contracts from foreign partners.

FPT Software has signed a contract with Suntory PepsiCo Beverage(Suntory PepsiCo), under which it deploys the Distribution ManagementSystem (DMS) - Lite based on mobility technology for Suntory PepsiCo'sin 2013-2015.

The firm has also started a new Cloudproject with a Texas based Independent Software Vendor (ISV) whoprovides software products to manage and automate work process forinsurance companies.

“Citus SaaS Blocks” is amulti-tenant framework built by FPT, which can help ISVs enable theirapplication into Software as a Service (SaaS) model and save up to 60percent effort in Cloud development.

Japanese firmsnow see Vietnam as an attractive market for them to outsource. A bigadvantage of Vietnamese firms is the low labor cost, which is just equalto 60 percent of Chinese and Indian. Meanwhile, Vietnamese firms havegood capability enough and can get adapted to the works.

To date, 70-80 Japanese information technology firms have invested inVietnam with an aim to take full advantage of the qualified and low costlabor force.

Japan is the most important market forVietnam with the value of over 130 billion USD. It is the third largestmarket in the world after the US and the EU.

Thelatest report by IPA, the agency for information technology promotion,Vietnam surpassed India in 2012 to become the Japanese second biggestpartner. Vietnam received 23 percent of Japanese overseas orders, higherthan the 13.7 percent for India.

To date, Chinaremains the biggest partner for Japanese firms. However, Vietnam mayjump to the No. 1 position in the near future.

About60 Japanese leading firms and 30 Japanese invested firms in Vietnamwould attend the Japan ICT Week 2013 to be held from October 23-26 inHanoi and Da Nang.-VNA

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