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    • Vietnamese tech firms have room to grow

    Vietnamese tech firms are expected to grow rapidly in both the mid-and long-term thanks to rising IT demand around the world and rapid digital transformation at home.
    Vietnamese tech firms have room to grow ảnh 1Vietnam targets100,000 digital firms in Vietnam by 2025, a rise of 56.25% from 2021. (Photo: VNA)

    Hanoi (VNA) – Vietnamese tech firms are expected to grow rapidly in both the mid-and long-term thanks to rising IT demand around the world and rapid digital transformation at home.

    Statista, a German company specialising in market and consumer data, said IT services spending is expected to amount to 1.28 trillion USD and 1.39 trillion VND in 2022 and 2023, up 7.9% and 8.8%, respectively.

    The Vietnamese Ministry of Information and Communications targeted 100,000 digital firms in Vietnam by 2025, a rise of 56.25% from 2021.

    Software exports by domestic enterprises has increased with new contracts. Tech conglomerate FPT, for example, earned 11.73 trillion VND (478.83 million USD) from exports as of August, up 28.7% year-on-year.

    Meanwhile, digital transformation has been accelerated by both businesses and the public sector.

    The Bank for Investment and Development of Vietnam (BIDV) and Vietnam Public Joint Stock Commercial Bank (PVcomBank) have rolled out projects on digital transformation with services offered by tech group CMC.

    Provinces including Nam Dinh, Thua Thien-Hue, Dak Nong and Hau Giang have also engaged in strategic cooperation in digital transformation with FPT and CMC.

    The telecom segment is expected to grow stably thanks to a rise in the number of broadband subscribers (8-10%), and a boom of 4G and 5G services.

    Stock companies said that IT firms will continue double-digit growth, and major groups like the military-run Industry and Telecommunication Group (Viettel), the Vietnam Posts and Telecommunications Group (VNPT), FPT and CMC still have ample room to grow.

    Vietnamese tech firms have room to grow ảnh 2Illustrative image (Source: VNA)

    Notably, Vietnam has advantages in its IT workforce market.

    According to HSBC, 51 percent of programmers in Vietnam are 29-30 years old. The hourly wage for IT outsourcing software development in Vietnam is about 18 USD, equivalent to 64% in other Asian nations and 10% in the US.

    Therefore, customers from big markets like the US, Japan, the EU and Asia-Pacific have selected Vietnam as an ideal destination for cooperation in IT development.

    ForeScout Technologies of the US, which delivers automated cybersecurity across the digital terrain, has recognised CMC Saigon Technology & Solution (CMC TSSG) as its Gold Partner and the only Service Delivery Partner in Vietnam.

    Meanwhile, FPT and CMC also offer  services in Japan, the US, the EU and Asia-Pacific.

    Fitch Solutions forecast that Vietnam’s IT market will reach 208 trillion VND this year, and 370 trillion VND by 2026./.

    VNA

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