Looking back at Vietnam's software industry 2006

2006 - the year ending the first phase of the Vietnamese software industry (2001-2005), the 2006 software industry left a striking impression? It is not enough to only mention the already anticipated development.

Looking back, seeing weaknesses to find ways to develop with experts and business leaders in this software industry is what we want to exchange with readers .

Software Industry 2006 - Development but not impressive!

The big investment of Intel, a venture capital fund of $ 100 million from IDG, the visit of Microsoft chairman Bill Gates to Vietnam and the attraction of many other foreign investment is a good sign of the whole IT industry. in an integration year. The software industry has also seen visible developments.

The number of software enterprises increased significantly to reach more than 2,000, the workforce in software enterprises also increased constantly to an estimated figure of 25,000. Concentrated software industrial parks have also been established with their own efforts.

But, a software industry is not only built by a few large businesses. Say anything, the majority of Vietnamese enterprises are small and medium and it is very difficult to assert themselves. 30% growth, revenue of 300 million USD statistics from Vietnam Software Association Vinasa has not reached the set target; not commensurate with an expected Vietnamese software industry, waiting for breakthroughs.

Vietnam Software Industry 2006

30% growth rate
USD 300 million in revenue
90 million USD - export
3 main markets: North America, Japan, Europe

700/2000 businesses actually produce and service
25,000 people work in software businesses

( Source: Vinasa )

Frankly, Mr. Pham Thuc Truong Luong, CEO of Tinhvan Information Technology Company, really did not have much impression on the Vietnamese software industry in 2006. Mr. Luong said: 'in a period all other industries are also very hot, the software industry in 2006 did not create a revolution or was impressive despite its development. We can see many more developed industries very much. '

Also from the perspective of his business, Mr. Tran Luong Son, General Director of VietSoftware, admitted, 2006 is a very difficult year for VietSoftware company. Mr. Son commented that this is also the general situation of the Vietnamese software industry: 'It can be said that many companies have hoped for the big IT spending parties, especially government and business. career is not so much so many companies expect it to be disappointed in 2006.

Outsourcing - optimal direction?

The supposedly initial phase of the Vietnamese software industry 2000-2005 has been remarkably successful with such significant achievements as IT Association Japan JISA ranks 4 among the countries in the world that Japanese enterprises want. software outsourcing cooperation and ranked 20 out of 25 countries in the software industry and services by Kearney of the United States. Japanese companies such as Hitachi, NEC, Fujitsu . have also outsourced software or directly invested in software production facilities in Vietnam.

Development and focus for foreign software outsourcing is considered an area that has contributed greatly to Vietnam's position on the world IT map. But, perhaps, it is the success in software outsourcing that makes the domestic market really not develop as expected. And many businesses have raised the problem: focus only on software outsourcing today, can not complete a real software industry. There should be newer directions besides this strength.

Mr. Ngo Hung Phuong, General Director of FCG Vietnam : Currently in Vietnam, I have passed the stage of proving I can do high quality software, satisfying the needs of overseas customers but now Now I have to prove that not only did I achieve that requirement, but I also had enough human resources to meet the increasing demands of customers.

Mr. Pham Thuc Truong Luong, CEO of Tinhvan Information Technology Company : Called an industry, it should be diverse, of course, if it is an industry or agriculture, we only plant one kind of tree. only a disadvantage in the market or weather will make us reel. Just like cashew or coffee, I don't think that is a software industry that we can focus on, we can focus on one direction: the Japanese market or the processing direction.

Domestic software market - What is missing?

This question has been put together with Vietnamese and foreign IT experts and many business leaders and their answers are not difficult.

Mr. Nguyen Long, General Secretary of Vietnam Association of Informatics : We lack accurate data to develop software industry in all international fields such as subcontractors for big projects. or participate in projects of world-famous brands or software in the country. Therefore, at present we do not assess where we are and how we orient it and it also makes it difficult for the environment and development orientation.

Mr. Pham Thuc Truong Luong, General Director of Tinhvan Information Technology Company : In addition to the limited capacity of domestic companies, it is the limit of receiving and reading ability of customers, of those who quit Money to buy technology products is also difficult and the number of users is also a problem.

Mr. Tran Luong Son, General Director of VietSoftware : The companies complained that lack of human resources, both in quantity and quality, were very popular. But we don't have an answer to this. For example, if the training university system is not ready for business, or the non-university system, the number of training can be many but the quality is not good.

Strategy to break through - things to do now

India, China, and South Korea all succeeded because they took advantage of the opportunity and opened their own paths. Having a specific orientation, strategy, which is appropriate for me, is crucial to whether Vietnam can become a center of the world in software production, supply and service and "production". International IT force or not?

However, to find a strategy for an entire software industry is not an organization, an individual can define. It needs common contributions from many sides: policy making, businesses, partners . And what's important, people are still key.

' Training is never superfluous, and that training does not have to guide young people to start work and it is not domestic work. IT is global and you work in Vietnam, you have to work internationally and vice versa. If there is only one thing to say about developing this industry, I think it is necessary to develop human resources , 'said Mr. Tran Luong Son, General Director of VietSoftware.

Mr. Pham Thuc Truong Luong, General Director of Tinhvan Information Technology Company, commented: The policies here must be at a scale, at a deeper level. For example, the policy on human resource training and policy to create a market with little copyright infringement, I think it is policies that can be contributed in a direct but cost-effective way. greater value with software companies.

From the perspective of a great corporate leader, Mr. Nick Donofrio, Deputy General Director of IBM Group advised: Discipline, scientific work, respect for international law, strengthening skills and ability management skills. These things, together with information technology skills, knowledge of software will help create opportunities to assert good and unbelievable good for Vietnam. It is not only a common note for a region in the world, but in ASEAN, it is important to prove its role in a large world that is coming together.

The stability and development of an industry can be reflected through growth or revenue. But, more importantly, it is the orientation and strategy that embody the power of a real software industry. A year of 2006 may not be really breakthrough of the software industry but in the general direction of integration, Vietnam's software industry is having unprecedented opportunities. A strategy to not miss the opportunity is to do it right in this new year .