Vietnam Software Industry

Topics: Vietnam, Ho Chi Minh City, South Vietnam Pages: 5 (1965 words) Published: June 1, 2012 Software industry challenged by rising human resource costs HCM CITY — Rising costs for human resources have weakened Viet Nam's chief competitive advantage in the software industry. In the past, cheap labour was seen as the country's chief competitive advantage in making international-standard software, but that advantage is declining. The pool of employees for the software industry is still rather small, and language skills, particularly in English and Japanese, for writing software are limited. Viet Nam, however, still maintains a balance between expenditures and human resource skills, compared to India and China. "But this balance could collapse if the country doesn't control inflation," Nguyen Hung Cuong, software development director at Harvey Nash, told Dau tu (Vietnam Investment Review) newspaper. "Vietnamese-made software for the Japanese market is only 1-2 per cent of what China sells to Japan," Cuong added. The small pool of skilled employees is another problem as no company is able to employ several hundred software programmers in a few months. "This means that there is no chance for Vietnamese companies to process big software projects," Cuong added. Although Viet Nam is seen as a location that can produce international software, many projects remain on paper because of these limitations that the country faces. Meanwhile, turnover from the software processing industry in Viet Nam was US$1 billion, while total turnover for the sector was $244 billion worldwide last year. It is expected yo reach $268 billion this year. — VNS Software industry grows by a third

Viet Nam’s software industry grew 29 per cent this year, said the Ministry of Information and Communications.

At the two-day Viet Nam International Software Testing and Automation Conference hosted by LogiGear and event management firm MRD, the director of the ministry’s Information Technology Department, Nguyen Trong Duong, estimated the software industry would achieve a turnover of $1 billion this year, of which, 35 per cent would come from software outsourcing.

Duong added that one of the most promising software fields was software testing.

Nguyen Quoc Hung, chairman of LogiGear, said the US’s AT Kearne, a corporation that provides expert advice to clients across a range of industries, ranked Viet Nam among the top ten destinations for software testing over the last four years. The country ranked eighth this year. Hung said the global software testing market had developed at a rate of 17 per cent. He said Viet Nam had received numerous software testing contracts from foreign firms in Japan and North America.

Harry Robinson, an expert in software testing at Microsoft Corporation, said Viet Nam’s strengths were in software testing and test automation. In addition, he said Viet Nam had some competitive advantages such as cheap labour and a secure investment environment.

However, experts said Viet Nam was being held back by manpower limitations. In Viet Nam, there is just one software testing engineer for every five IT programmers, while the international standard is 1:3.

Hung said that to compete with other countries, Viet Nam had to demonstrate its ability to meet the needs of large prestigious projects., the website which is a prominent outsourcing industry organ has come out with a definitive research( report on Vietnam, spelling out in detail the opportunities available to the nation in the realm of outsourcing with particular emphasis on IT outsourcing. The report addresses the key issues of the factors...
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