Vietnam software outsourcing market is “famous” for cheap labor cost, foreign investment rate to Vietnam keep being higher and higher. Becoming a member of the World Trade Organization (WTO) in 2007, it benefits Vietnamese market. Vietnam’s economy has expanded, with an average 7.3 percent gross domestic product (GDP) growth per year.
1.IT Market Overview
“BMI View: Vietnam has one of the strongest economic outlooks in Asia and the Pacific, and this corresponds to a bright outlook for the IT market. Economic development – including purchasing power growth of households, modernisation of existing industries, and the growth of more technologically intensive verticals such as electronics manufacturing and outsourcing – will provide broad support to IT market growth. There is however a degree of uncertainty surrounding the hardware segment where PC demand faces strong competition from smartphones and it could be that a large number of consumers that do not have a legacy of PC ownership and use simply bypass the PC era”.
Computer Hardware Sales: VND34.5trn in 2016 to VND42.8trn in 2020, a compound annual growth rate (CAGR) of +5.5%. After PC sales declined 2014-2016 as smartphones cannibalized demand, we expect a stabilisation based on demand for the additional functionality offered by notebooks and with support from rising incomes.
Software Sales: VND11.3trn in 2016 to VND18.4trn in 2020, a CAGR of +13.1%. The availability of cloud l solutions should accelerate software adoption by Vietnamese enterprises through lower cost and more flexible terms, while also helping to combat the drag of piracy.
IT Services Sales:VND26.7trn in 2016 to VND45.5trn in 2020, a CAGR of +14.3%. Core services spending l growth will be driven by enterprise modernisation, with scope for sustained growth as a result of the low penetration of systems integration, maintenance, and consulting solution.”