Software firms told to look for niche markets
Thursday, August 17,2017AsemconnectVietnam - Experts are advising software firms to spend money in niche markets.
Vietnam is always mentioned as a market with a cheap IT labor force, but, according to Viet Ho, product director of Rusell Investment, that assertion is both true and false.
Comparing the labor cost in HCM City with first-class cities of India, the cost in HCMC is lower. However, comparing HCMC with second- and third-class Indian cities, the cost in HCMC is higher.
Therefore, low cost should not be the competitive edge, because jobs may be outsourced to areas with lower costs in India.
Viet Ho, who does business with foreign firms, commented that foreigners now know Vietnam software industry.
“Most foreign partners know about Vietnam through the war for independence, tourism and food. They also have heard about Vietnam software export industry but not much,” he said.
Vietnam just makes up US$200-300 million out of the US$200 billion worth of the world’s software export market.
He said that Vietnam software firms would catch attention from clients who like reform and try to work with new partners. Meanwhile, the clients who want stability and ensured quality would choose familiar partners in India and the Philippines.
Therefore, he believes that Vietnam should try to obtain clients who like stability, because there are more clients than those who take risks working with new partners.
Hung Q. Nguyen, CEO and president of LogiGear, agrees that Vietnam has become better known in the field of IT outsourcing (ITO), but it is still inferior to India, Ukraine and China. To compete with these countries, Vietnam should spend money on research & development (R&D) to find niche markets, which heighten competitiveness.
Hung commented that ITO has witnessed big changes in the last two years. In the past, the building and updating of one software product lasted several months, but now, it is updated hourly.
Because of this, as well as AI, IoT and cloud computing, IT firms need fewer but more qualified workers.
If Vietnam enterprises want to exist in the IT industry, they need to adapt to the new circumstances. Since companies now don’t need too many workers, Vietnam’s advantage of having cheap labor force will no longer work.
Vietnam companies now need to invest in creativity to generate value, set up research and development labs, and accelerate personnel training to meet the increasing demands of clients.
He advised Vietnam firms to join the US market, even though it remains challenging.
Source: Vov.vn
Banks record positive business indicators in Q1 2024
Vietjet offers speical promotions on its flights to Australia
OCB estimated to achieve about VND1,200 billion profit in Q1/2024
Cienco 4 (C4G) target 92% increase in profit after tax in 2024
PVTrans (PVT) plans for consolidated profit in 2024 to reach VND760 billion
MSB plans to profit VND6,800 billion and pay 30% dividend
Vinhomes (VHM): Promoting potential new projects, profit target of VND35,000 billion in 2024
Da Nang Rubber (DRC) plans profits go backwards in 2024
Positive business results, DNSE plans to pay 5% cash dividend
Petrolimex Import-Export (PIT) plans to close the petroleum segment, focusing on the spice industry
PVOIL (OIL)'s goal to become the number one enterprise in terms of quality of petroleum and non-petroleum business services
Novaland (NVL): Audited profit after tax VND199 billion different from the self-made report
VIX Securities (VIX) plans to grow in 2024
Viettel Post (VTP) targets delivery and logistics revenue to reach VND9,147 billion in 2024
Plan of Hai Duong province for a period of 2021 - 2030, ...
Organize space reasonably and harmoniously, focusing on connecting Hai Duong in common development space, actively contributing to the ...Plan of Hau Giang province in a period of 2021 - 2030, ...
Sustainable forestry development program in a period of ...
12th-century ancient road unearthed at My Son Sanctuary
An ancient road dating back to the 12th century has freshly been discovered in an excavation on architectural ruins at the east side of ...Efforts made to seek UNESCO’s recognition for Con Moong ...
Vietnam Art Photo Contest and Exhibition 2024 to be held ...
Bas-relief featuring talks between Uncle Ho and soldiers ...