Vietnam to tap outsourcing boom

Fiona Chau
17 Jun 2009
00:00

Vietnam is determined to turning itself into the next hotspot for outsourcing, pitching its large pool of ICT talent, cheaper labor cost and government support.

Dr. Nguyen Huu Le, chairman of TMA Solutions and a representative of Vietnam Software Association (VINASA), said Vietnam provides 30,000 to 40,000 ICT graduates each year and delivers software development at a cost 40% lower than China or India.

This offers a cost advantage to multinational firms who are looking to improve efficiency and achieve greater cost savings in the recession.

Though Vietnam is still a developing market, it has attracted companies like IBM, Intel Renesas, Foxcon, Fujitsu and Canon to develop and manufacture high-tech products, and R&D outsourcing from Nortel, Alcatel-Lucent, NTT, Toshiba and Microsoft.

This, Nguyen said, provides Vietnam the expertise and knowledge to provide ICT outsourcing, localization and technical support for foreign companies.

To boost the country\'s software industry and tap the booming outsourcing sector, the Vietnam government recently announced a 980 billion dong ($55 million) program over the next five years to provide education and training of ICT professionals and establish and high tech parks.

VINASA will host a press conference today to introduce the country\'s ICT outsourcing market and to showcase cooperation opportunities in Southeast Asia.

Six companies, including TMA Solutions and Vietnam Data Communications Company (VDC), specializing in software outsourcing and data transmission, are exhibiting for the first time at CommunicAsia in the Vietnam Pavilion.

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