Software industry experiences high growth

The domestic software industry has witnessed significant growth over the past five years, according to the Viet Nam Software Association (Vinasa).

Software sales revenue saw a four-fold increase from US$250 million in 2005 to $680 million in 2008 and $850 million in 2009. Revenue was expected to top $1 billion by the year-end.

Exports also increased by 30-40 per cent in the past five years, the association said, adding that local enterprises had been successful in penetrating the lucrative Japanese market.

Viet Nam was Japan’s third largest software processing partner after China and India, and Japanese IT firms considered Vietnamese enterprises as reliable partners, said Vinasa vice chairman cum general secretary Pham Tan Cong.

In previous years, the association had organised dozens of business trips for local enterprises to participate in IT trade fairs and business conferences to seek new opportunities, Cong said.

The Japan Information Technology Service Industry Association vice chairman, Hiromi Sugiyama, highlighted the market’s huge potential, saying Japan’s need for software rose by 30 per cent a year, reaching $4.3 billion in 2008.

To win more contracts, Vietnamese companies should enhance the quality of IT developers and services, he noted.

Viet Nam has roughly 150 software companies, 19 of which are joint ventures.

The Ministry of Information and Communications’ draft plan on IT industry development estimated annual software sales would grow to $2 billion by 2015. Under the plan, the average growth rate of the country’s software industry can reach 15 per cent per annum by then.

The plan was to develop three production centres – in software, services and digital content – in HCM City, Ha Noi and Da Nang. — VNS

Vinasa will hold a two-day meeting in Ha Noi next week to review its operations in the 2005-10 period and to draw up operational guidelines for the next five years.

Over the past five years, the association had helped its members enhance their presence in the local market, expanding export outlets and connecting with international IT businesses, Cong said.

It also assisted in establishing trademarks and developing human resources, he added.

The association has 198 members, contributing 70 per cent of the industry’s total revenue and employing 60 per cent of the industry’s workers. — VNS

Tags: Vietnam IT industry, Vietnam IT sector, Vietnam software industry