Software outsourcers need HR improvement

HCMC – If Vietnamese software outsourcers did not improve the quality of their human resources, they would likely lose orders from Japanese information technology (IT) firms despite the fact that Japanese enterprises are shifting their orders to Vietnam.

As per the 2012 IT White Book of Japan compiled by the Japan Information Technology Promotion Agency (IPA) based on a survey of 1,100 IT companies in Japan, Vietnam remains the top partner for Japanese businesses. In particular, 31.5% of the respondents chose Vietnam as their partner, versus 20.6% for India and 16.7% for China.
In fact, 23.3% of the surveyed firms are placing orders in Vietnam, while the percentage is 17.8% in 2010.
Japanese companies prefer Vietnam for its low-cost, abundant and skilled labor force. In addition, Japan is looking to increase the proportion of outsourcing after the country was badly hit by earthquake and tsunami.
However, the value of orders for Vietnam is only one-thirtieth of the total value of orders for China. This indicates that the opportunity for Vietnamese enterprises is still great.
Vietnamese software companies have a chance to receive bulk outsourcing orders from Japan, but the biggest challenge for local firms is human resource, said Nguyen Doan Hung, chairman of the Vietnam IT business club.
He said Japanese people set strict requirements on working style of engineers. Therefore, the Vietnamese side has to demonstrate the characteristics of Vietnamese laborers like faithful, loyal and systematic.
The major weakness of IT human resource is not technical skills, but it is soft skills, including foreign languages, teamwork and being disciplinary, said Hung. Therefore, Vietnamese IT companies have to spend time on additional training.
Sharing this view, Naoki Ookubo, representative of IPA, said IT human resource quality is the top concern of Japanese enterprises. Therefore, if local firms did not remedy this issue, they would likely lose orders from Japanese partners.
By Ha Van - The Saigon Times Daily
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Announcement of Office Relocation - K&G Technology

K&G Technology is pleased to announce the relocation of its office in order to meet the needs of the fast growth of the firm, to improve our working conditions and the security system as well as to offer better service to our Clients.

We apologize for any inconveniences this office transition may cause, please feel free to contact us if you require any further clarification. We are looking forward to seeing you at our new office soon, and appreciate your pleasant cooperation.

As of October, 2012 onwards, our office will be located at the following address:

Add: R4-10-11 Road No.2, Hung Gia 1, Phu My Hung New Town,

        Tan Phong Ward, District 7, Ho Chi Minh City, Vietnam.

Tel: +84-8-541.259.79

Fax: +84-8-541.259.78

E: sales@kng.vn

Mobile ads to grow strongly

HCMC – Enterprises tend to combine mobile advertising with other traditional channels to enhance the effectiveness as technology is developing fast and consumers have too many shopping options, heard the Mobile Marketing Forum held in HCMC on Thursday.

Rohit Dadwai, managing director of the Mobile Marketing Association-Asia Pacific, said enterprises were paying more attention to mobile marketing as the number of mobile subscribers kept rising in Southeast Asia, especially Vietnam.
Vietnam has high growth in the number of people accessing the Internet via cell phones, making mobile marketing a remarkable tool for businesses.
A report of the advertising company GroupM shows that digital communication channels, including mobile marketing, only accounted for 4% of the total advertising cost of local enterprises but it tended to grow strongly. Traditional advertising channels like television and newspaper still prevail, but enterprises tend to combine these channels with mobile advertising to improve the effectiveness.
According to the report, Vietnam has a favorable environment for mobile marketing, with more than 120 million mobile subscribers, with some 36% of them accessing the Internet via cell phones.
Nguyen Thi Thuy Binh, deputy general director of Goldsun Focus Media, said the biggest advantage of mobile marketing was that consumers could quickly interact with goods and service providers.
Previously, mobile ads were often sent in the form of text, but now they have been turned into mobile phone applications.
Customers are easily attracted to the ads displayed in the small cell phone screens. Then, they can contact the suppliers or access their websites for further information about the products, said experts.
With an Internet connection, mobile phone users can approach product suppliers anytime and anywhere. As such, mobile marketing is an advantageous communication channel that enterprises cannot miss, said Binh.
By Ha Van - The Saigon Times Daily
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Harvey Nash Vietnam joins hand with FSoft

HCMC – Harvey Nash Vietnam has signed a cooperation agreement with FPT Software Joint Stock Company (Fsoft) to carry out information technology projects.

Ton That Nam Tran from Harvey Nash Vietnam said that the firm and Fsoft would conduct projects in three fields, including mobility, cloud computing and big data for foreign markets from now until 2015.
“Fsoft has plans to invest in the United Kingdom. Therefore, Harvey Nash Vietnam will support Fsoft in studying the market and selling software services in this market,” said Tran at the signing on Tuesday.
Since 2000, the two firms have carried out around 400 projects on software, enterprises resource planning (ERP) and business process outsourcing (BPO).
Regarding the software outsourcing, Harvey Nash Vietnam has obtained a high growth of around 30-40% per year in its main markets such as Australia, the United Kingdom, Germany, the U.S. and Southeast Asia.
By Dinh Nghia - The Saigon Times Daily
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Incentives okayed for Samsung expansion project

HCMC – The Government has approved strong incentives for an expansion project of Samsung in Bac Ninh Province, whose investment capital is raised from US$670 million to US$1.5 billion.

In a document issued in mid-September, the Government asked the Ministry of Planning and Investment to give relevant agencies guidelines on revising the investment certificate for the second-phase of the project of Samsung Electronics Vietnam Co. Ltd., including the incentives requested by the investor.
The planning ministry and relevant agencies will work with Samsung to help it revise the expansion project so that the investor will enjoy the biggest incentives under the prevalent laws.
As such, Samsung will go ahead with its expansion plan as incentives are a prerequisite for the firm to expand its investment.
Samsung has written to many agencies seeking investment incentives for its expansion project and confirming its determination in Vietnam’s market.
However, the fact that it has had to knock at many doors also exposes many shortcomings in the investment incentive mechanism of Vietnam. Not only Samsung, a number of other investors have encountered the same problem.
Samsung’s petition for incentives was submitted to the Government late last year. The company proposed a corporate income tax rate of 10% during the project’s lifetime, a tax exemption for four years and a 50% tax reduction for the following nine years for all electric and electronics products of the project. These incentives are almost similar to the ones already awarded to the investor in its first-stage investment.
However, under the current regulations, expansion projects are not given incentives.
According to the government of Bac Ninh Province, the expansion project of Samsung might be mulled for corporate income tax incentives as this is a high-tech investor. The company as a high-tech investor has enjoyed a preferential income tax rate of 10% for 15 years, a four-year tax exemption and a 50% tax reduction for the following nine years after it reports taxable incomes.
The province proposed the Government give the above special treatment to the expanded part of the project of Samsung based on the post-check mechanism.
The expansion project with capital spurred from US$670 million to US$1.5 billion in the 2015-2020 period and the investment in a R&D center in Vietnam will take the total revenue of Samsung Electronics Vietnam to US$20 billion a year, create jobs for more than 30,000 laborers and attract some 300 satellite enterprises.
The project to establish the Samsung technology complex in Vietnam is an enormous scheme and it has been deployed in line with schedule and commitments to the Government, said Bac Ninh’s government.
As of end-2011, Samsung had disbursed US$492 million into the project, or 73.43% of the total registered capital for the first stage. The investor plans to inject an additional US$684.7 million by late this year.
The project has created jobs for 23,000 laborers. The total output capacity reaches 100 million products for the whole year, with sales estimated to amount to US$10 billion including an export value of US$9.5 billion.
By Quoc Hung - The Saigon Times Daily
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Statistics on broadband subscriptions doubted

Statistics of the General Statistics Office (GSO) show there was no growth in new broadband Internet subscriptions in April-August, which stayed at 4.4 million users, but in reality, broadband Internet services in the country were expanding in the period.

This partly results from the different statistical methods and changes in the way people use the Internet.

Bui Quoc Viet, director of the Information Center under Vietnam Posts and Telecommunications Group (VNPT), said VNPT achieved almost half of the 2012 target for Internet ADSL service in the first half and that the growth was equivalent to 110% of the same period last year. Growth in recent months has amounted to 10%, he noted.

Fresh Internet subscriptions at NetNam Corporation have in recent months risen by 8%, and FPT Telecom has reported its steady growth.

Explaining why the GSO statistics are different from reality, Tran Minh Tan, deputy director of the Vietnam Internet Network Information Center (VNNIC), said statistics of GSO were merely monthly projections based on reports of enterprises and figures of VNNIC.

Tan said monthly reports which enterprises send to VNNIC were normally written in the middle of the following month, which is later than GSO announcements of statistics that are mainly based on figures in previous months.

For example, in January this year, when VNNIC had no report of last year compiled by enterprises, GSO calculated and estimated that the total Internet users nationwide last year numbered 33.4 million, with broadband Internet subscribers accounting for 4.33 million.

After statistics of VNNIC were released, GSO found such figures quite high. Therefore, GSO since March this year has made some adjustments based on VNNIC’s figures so that statistics closely reflect reality.

Reality shows that the slow broadband Internet growth is partly caused by the statistical method as well as changes in methods and technologies for using broadband Internet services, which have not been taken into account. Meanwhile, GSO has just collected statistics on broadband Internet users based on ADSL, one of the first broadband Internet technologies.

Currently, there are some other ways of accessing broadband Internet such as fiber optic and third generation (3G). These new technologies have attracted much attention of broadband Internet users thanks to their speed and mobility.

While the ADSL service has only attracted 4.4 million users though it has been present on the market for long, 3G has achieved stronger-than-expected growth.

Statistics of the Ministry of Information and Communications indicate that since 3G was launched nearly three years ago, over 16 million people had subscribed to this service by June this year, 3.2 million higher than the number released early this year. However, the 3G users only accounted for around 14% of the total mobile phone subscribers.

Besides, according to GSO, the number of new phone users in January-August reached an estimated 7.65 million, up 13.6% from the same period last year. Until the end of last month, the total number of phone users nationwide had amounted to 135.8 million, with 15.1 million landline subscribers and 120.7 million mobile users.
(http://businesstimes.com.vn)
 

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Hi-tech park gets mobile application laboratory

 A mobile application laboratory, known as mLab, on Monday was put into operation at the HCMC Hi-tech Park with an aim to support and boost creative activities of individuals and organizations in the mobile application sector.

Le Hoai Quoc, director of the HCMC Hitech Park Authority, said the facility is an open space where technology businessmen and application developers can work, interact with one another and gain access to specialized tools.
According to Quoc, the laboratory not only provides technology infrastructure to individuals and entities to create mobile applications but also plays an intermediate role between investors and companies to release products from laboratories onto the market.
The laboratory is within the framework of the program “Establishing sustainable firms in the knowledge-based economy” carried out by the Information for Development program of the World Bank and the Netherlands government along with Nokia.
Besides Vietnam, the project has also been developed in Kenya, South Africa, Pakistan and Armenia. It now is being deployed and managed by the hi-tech park, the HCMC National University, FPT University and Elcom Co.
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Int’t conference to discuss future of Vietnam mobile sector

The future of the mobile telecom industry of Vietnam will be a topic of discussion at the International Conference and Exhibition Mobile Vietnam 2012 which will take place in Hanoi from October 18 to 21.

Within the framework of the event, an international conference themed “Future of Vietnam’s mobile sector” will be held. The conference will discuss hot issues in the local mobile telecom market such as the battle over mobile service charges, competition strategies, orientations and policies, said Pham Hong Hai, head of the Authority of Telecommunications under the Ministry of Information and Communications.
Mobile Vietnam 2012 will be attended by senior officials of the Government and relevant agencies, and local and foreign mobile operators including Viettel, VNPT, Sony, Ericsson, Telcordia, Huawei, Samsung and Gelmato.
The event also provides a chance for mobile service providers to market their products and promote cooperation among producers, traders and service suppliers as well as between businesses and State management agencies.
Hoang Son, director of Viettel Telecom, said Viettel would share experience in exploring the telecom markets at home and abroad and introduce the products under research and development at the conference.
VinaPhone and MobiFone will display 3G products at the event, said Bui Quoc Viet, director of the Information Center under Vietnam Posts and Telecommunications Group (VNPT). Meanwhile, Ericsson Vietnam will present the benefits of 3G together with other products and services.
By Van Oanh - The Saigon Times Daily

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The ASEAN Foundation and Microsoft expand partnership

The ASEAN Foundation today announced that it would implement a new ICT training programme for small and medium enterprises (SMEs), funded by a $300,000 grant from Microsoft.
The programme will target young entrepreneurs aged 16-25, and focus on the latest ICT applications for SME development. Over the next 24 months, the pilot project is expected to reach more than 20,000 people—youth, students, and women—and close to 1,000 SMEs from Indonesia, Thailand, the Philippines, and Vietnam.
Dr. Makarim Wibisono, ASEAN Foundation executive director remarked: “Our vision for this ICT programme is that it will not only help increase growth and competitiveness among micro-entrepreneurs in Indonesia, the Philippines, Thailand, and Vietnam, but that its success will also lead to the future implementation of similar projects in other ASEAN countries. Through our long-standing collaboration with Microsoft, The ASEAN Foundation stands ready to help people across the region realize greater opportunity through improved access to information technology.”
Tracey Fellows, president of Microsoft Asia Pacific, said: “I am delighted to launch this grant, a first for Microsoft in the region in its scope and breadth, and the next exciting step in our long-term partnership with The ASEAN Foundation. SMEs are the lifeblood of most countries in this region. Through this partnership we want to enable the next generation of young people to start their own business or create their own opportunities. This grant reflects our belief in the power of technology to help transform lives, and the social and economic development of every nation.”
The launch of the programme is a key milestone in tackling rising jobless rates among young people. According to a paper released in early September by the International Labour Organization titled “Global Employment Outlook: Bleak Labour Market Prospects for Youth”, youth unemployment rates in South East Asia and the Pacific are forecasted to rise from 13.1 per cent in 2012 to 14.2 per cent in 2017.
The new programme will see close collaboration between non-governmental organizations (NGOs), academia and organisations from the public and private sectors, working together to help young entrepreneurs realise their full potential through activities such as:
· Development and delivery of ICT curriculum tailored for the needs of micro-entrepreneurs, to help them understand how they can use technology most effectively to sustain and grow their businesses.
· A ‘Train the Trainer’ series to help communities extend the reach of this curriculum across the region.
· Selection of one entrepreneur for an E-Business Incubation program, which will provide mentorship and assistance as they implement ICT marketing tools into their business operations.
The project announced today expands upon The ASEAN Foundation’s partnership with Microsoft, which began in 2005 and has resulted in the development of ICT curriculum for farmers in rural areas, and delivery of ICT training to more than 50,000 people in Indonesia.

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Vietnam spends more on IT

Vietnam’s spending on information technology (IT) is growing at an average rate of 17% per year, almost hitting US$3 billion in 2011 and forecast to reach US$3.5 billion in 2012 if the tempo is maintained.

Speaking at a workshop on Vietnam information and communication technology held in HCMC on Wednesday, Nguyen Trong Duong, head of the IT department under the Ministry of Information and Communications, said Vietnam’s IT spending had been rising sharply in the last five years, despite economic uncertainties.
According to the White Book of IT released on the same day, Vietnam’s IT spending is surging by some 17% every year, amounting to US$2.9 billion in 2011, twice as much as the figure of US$1.4 billion in 2006.
Hardware and software make up a large proportion in the structure of IT spending in Vietnam, reaching 88% in 2006. However, the proportion of spending on hardware is gradually shrinking, standing at around 84% in 2011, equivalent to US$2.4 billion, while spending on software and IT services keeps picking up.
Moreover, Vietnam’s hardware export has been growing over the past years. In 2011, hardware and electronic products brought in US$11.3 billion, up 101% against 2010, accounting for 82% of the total revenue of the IT industry.
This impressive growth is attributed to the export revenues of Samsung, Canon, Panasonic, Foxcomm and Nokia, whose factories in Vietnam have been completed, allowing them to boost export of hardware and electronic products.
Export turnover of computers, electronic products and components, and telecom devices totaled US$10.89 billion in 2011, rising more than 92.2% year-on-year. For the first time, export turnover surpassed import turnover, resulting a trade surplus of US$428 million for the industry.
Cell phones generate the highest export revenue, making up 60% of the total turnover.
While hardware export records significant growth, telecommunications, which is seen as a gold mine for enterprises, witnesses its growth slowing down. The industry obtained unsatisfactory revenues last year because citizens and businesses cut spending on telecommunications.
Specifically, the total revenue of the telecommunications sector was US$7 billion in 2011, down 26% against 2010. Notably, revenue of mobile phone services dropped from US$5.7 billion to US$5.4 billion, but still accounted for 77.5% of the total revenue.
http://businesstimes.com.vn

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Vietnam smartphone users to reach 21 pct by year-end.

The number of smart phone users in Vietnam is expected to rise to 21 percent from the current 16 percent of mobilephone users by this year’s end, according to a recent research by Ericsson Consumer Lab (ECL).

Tablet will also see the number of its users increase from 2 percent to 5 percent in the last six months of the year.
Along with the rising number of smartphone and tablet users, the research also said local smartphone users will use more mobile apps in the second half of this year, with the number predicted to go from 35 percent to 40 percent.
Entertaining, television, video and game services are the current most downloaded apps, according to ECL, one of the world’s leading telecom market researchers.
It is also expected that apps related to banking, shopping and tourism will attract more users in the future.
Continuous upgrades of network infrastructure and more appropriate pricing policies will maintain the high smartphone growth rate in the country, ECL stated.
“Mobile operators in Vietnam should keep pace with the technology developments of smartphones in terms of coverage, transmission speed and stability,” said Jan Wassenius, director of Ericsson Vietnam, Laos and Cambodia.

 - VNA -

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Smartphone, tablet sales on the rise

The number of smartphone users in Vietnam will increase from the current 16 percent of mobilephone users to 21 percent by the end of this year.
Meanwhile, the number of tablet users will increase to 5 percent from the current 2 percent.
The world’s leading telecom market researcher Ericsson ConsumerLab made known the figures after studying the trend of using data enabled devices in the country, which expects to post a growth rate of 21 percent in the next six months.
Faster connectivity and access to apps drive most data enabled device and smartphone purchases, Ericsson ConsumerLab, a subsidiary of Swedish telecom giant Ericsson, added.
The lab said that the download rate of mobile applications from Vietnam’s smartphone users will also see a boost of 35-40 percent in the next six months.
The research also showed that continuous upgrades of network infrastructure and more appropriate pricing policies will help keep the smartphone growth rate high.
“Mobile operators in Vietnam should keep pace with the technology developments of smartphones in terms of coverage, transmission speed and stability,” said Jan Wassenius, director of Ericsson Vietnam, Laos and Cambodia.
In terms of respondents’ daily app usage, 49 percent reported using apps for social networking, 39 percent for chat, 31 percent for weather forecasts, 26 percent for news, 20 percent for maps and navigation, and 12 percent for timetables and traffic, according to a survey conducted in high-growth markets worldwide.
Meanwhile, the top 10 activities performed by consumers who have recently purchased a smartphone include (in order of popularity) checking in to locations, using maps, watching internet TV and movies, playing online games, playing games on social networking sites, and blogging.
In a separate study made last week by market researcher Nielsen, 70 percent of Vietnamese consumers use ordinary mobile phones, but 42 percent of them want to exchange those devices for smartphones in the next six months.
The survey, conducted in over 39 countries in Asia and the Pacific, including Vietnam, said most Vietnamese often ask friends, families and colleagues for advice before buying phones.
In addition, 39 percent say they find phones from looking at shop displays and 6 percent look for information about phones in leaflets.
New mobile subscriptions in Vietnam have skyrocketed in recent years, reaching 19 million in 2006, 25 million in 2007, 74 million in 2008, 98 million in 2009 and 121 million by the end of July 2012.
 - VNA -

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Cloud computing to revolutionise Vietnamese technology sector

Cloud computing has been described as a “technological tsunami” and according to recent figures, the phenomenon has hit Vietnam with force.
In Symantec’s latest survey, 46 percent of participants are already deploying hybrid clouds and virtualization projects within their organisations.
The benefits of such projects are numerous. Cloud computing not only enables businesses to scale down on operation costs and improve storage performance and rate, it also allows organisations to reduce pressure on existing systems and enhance administrative management abilities.
Opportunity for local businesses
Symantec, a leading global software company, say that Vietnamese businesses are keen to embrace cloud computing. The results from their latest nationwide survey show that 39 percent of domestic businesses currently use Virtual Private Software as a Service (VPS), whereas a further 21 percent deploy server and database virtualization.
Another recent report by the top-research group Gartner highlights the growth of cloud computing in the global marketplace. Surveying over 50 percent of the world’s businesses and organisations, Gartner claim that the cloud-computing sector grows 17 percent year-on-year. In 2011 global cloud computing services amounted to US$2.4 billion and the group predicts that this will hit a staggering US$8.1 billion in 2013.
Leading firms IBM, Microsoft and HP have all signaled that Vietnam is on the tipping point of a technological revolution, and before long, will start deploying cloud-based technologies.
Some domestic businesses and organisations such as VinaCorp, Quang Trung Software and the Ministry of Natural Resources and Environment have quickly recognised trends in cloud computing and adopted these new practices to increase competitiveness and streamline operations.
Microsoft will propel this trend further, following the launch of its Vietnamese-language website that explores the possibilities of local businesses adopting cloud-computing services (microsoft.com/asia/cloud/Vietnam).
Oscar Chang, deputy head of Trend Micro group, asserts that cloud computing offers businesses an excellent opportunity to restructure their operating models.
In addition, he explains, it will also save companies’ money. By outsourcing infrastructure, maintenance, fixed assets, software and hardware costs, companies will only have to pay licensing costs and service fees.
Hidden risks
Despite the benefits it poses, cloud computing does bring with it a myriad of security threats, as data that was previously stored on-premises is transferred into the cloud.
Chang is the first to admit that cloud computing is a much riskier strategy than more traditional IT models. “More conventional computing styles see each computer and server individually safeguarded, but cloud computing requires a huge defensive eco-system. If your neighbour’s data is hacked, it leaves you in a vulnerable position”.
The majority of international organisations are still hesitant to upload their critical and sensitive data to cloud computing-based services because hacked accounts are not uncommon. However, these risks can be reduced if security strategy is synonymous with cloud-computing application processes.
Source: VOV
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IT growth based on six pillars

The draft of the national programme on developing information technology by 2020 has clarified six pillars, said the Ministry of Information and Communication’s Information Technology Department at a conference in Hanoi on May 31.
The pillars included policy environment, IT human resources, enterprises and brand name development, products and markets, attracting investment into IT zones and developing open sources (that promotes free redistribution and access to an end product’s design and implementation details).
The total State budget support for the programme would be 2.34 trillion VND (111 million USD).
Digital content, hardware-electrics and IT services would be among projects to get preferential credit.
In addition, Vietnam will research and revise tax policies and establish IT human resource development funds and an IT development fund.
The Government will support short-term training courses for businesses and organisations and partly fund the cost of sitting exams for international IT certificates.
To develop IT enterprises, the Government would provide part of investment to build and apply standards, as well as supporting them to businesses foreign prestigious trade marks.
The ministry said Vietnam will give priority to key IT products and services, establishing a revising board with representatives from various relevant ministries and the Vietnam Development Bank to revise production plans and key IT products and services proposed by businesses.
It will also focus on developing specific IT products in State administrative management, banking, finance, national defence and transport areas as well as providing orientation for other services, including software for telecommunication equipment, digital content for mobile phones, internet television and social networks.
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Vietnam attends UN meeting on science and technology for development

A Vietnamese delegation led by Minister of Science and Technology Nguyen Quan, is attending a United Nations meeting on science and technology for development in Geneva, Switzerland from May 21-25.
At a ministerial round-table session on May 21, Minister Quan highlighted some scientific and technological achievements which have contributed to Vietnam’s economic development in recent times. He introduced a scientific and technological development strategy for the 2011-2020 period, which has been approved by the Government. He expressed Vietnam’s wish to cooperate with regional and international countries in developing science and technology and dealing with climate change.
Aside from the meeting, Minister Quan worked with the Director General of the World Intellectual Property Organization (WIPO), Francis Gurry, on May 22. He asked Francis to support Vietnam in building and implementing a national program on intellectual property rights, developing three trademarks for agriculture, building an intellectual property development centre at Hoa Lac Hi-tech Park and training human resources.
Francis said he supports Vietnam’s national strategy on intellectual property with the aim of turning it into an effective tool for promoting science technology, economy, society and culture.

(http://businesstimes.com.vn/vietnam-attends-un-meeting-on-science-and-technology-for-development/ )
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Vietnamese IT firms find big opportunities from CeBIT 2012

VietNamNet Bridge – Vietnamese information technology (IT) firms which have just returned from CeBIT 2012, an IT trade fair, keep optimistic about their opportunities in the future.

They believe that if having reasonable ways of approaching the market, Vietnamese software products would find their footholds at international trade fairs.

Tran Phuc Hong, Director of TMA Mobile Solutions (TMS), said mobile app is a fast developing sector, where all businesses can find their opportunities, no matter they are big or small. Hong said that the most important thing for businesses is having original idea. If not, their products would not catch the attention, even though they have low prices.

Also according to Hong, during the five day trade fair, 60 foreign companies expressed their interests in TMS’s products, while 10 of them have asked to send price quotations. There’s a noteworthy thing is that when foreign partners seek mobile apps, they tend to pay more attention to the interfaces, wanting well designed and friendly ones, and to the benefits of the products, rather than technologies.

Meanwhile, Nguyen Xuan Hoang, General Director of Misa, the company which specializes in providing software products in corporate governance, said it was difficult to sell products right at international trade fairs, but it seems to be more feasible to seek business partners.

Therefore, Hoang said, Misa attended CeBIT 2012 to look for the foreign partners who can distribute Misa’s products on foreign markets. Besides, Misa was also looking for reasonable partners who can provide the solutions to be applied in Vietnam.

Hoang has revealed that some companies from Germany, France, Ukraine and Qatar wanted to cooperate with Misa to localize Misa’s software product on human resource and client administration for the European and the Middle East markets. Besides, the businesses from Portugal and Greece want to cooperate with Misa to develop education software products in Vietnam.

However, both the businessmen have admitted that it was really a difficult task to attract the attention of visitors to the company’s stall among the stalls of many big guys in world such as IBM, SAP, Microsoft and HP. CeBIT has always been described as a “zoomed out technology world”.

According to Hoang, in general, foreign partners would seek the information about the products and the enterprises which can satisfy their needs on the organization board’s website before the trade fair occurred. After that, they would contract the targeted partners via mails or telephones. At the trade fair, they would meet the partners face to face to clarify some issues.

In general, businessmen said though it is really costly to attend international trade fairs, one should not expect the good results to come immediately after the trade fairs. However, in return for the big money spent, the trade fair attendants have the opportunities to introduce their products to many partners at the same time, and receive information about many different markets.

Hong said that one would not be able to see his products and services accepted by clients, if he does not come to learn about the market. Meanwhile, joining international trade fairs is really a good way to save time and reap fruits.

TMS, for example, introduced 11 products at CeBIT 2012 and received market reactions at the trade fair. This would help TMS make reasonable investment on every product. The products that catch big attention would be heavily invested before they are marketed.

Source: TBKTSG
vietnamnet.vn
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Internet helps increase Vietnam’s GDP

The Internet contributes 0.9 percent to total Vietnam’s GDP and 1.6 percent to the country’s total 14.4 percent GDP growth.

This is part of a report by McKinsey & Company, released at a conference in Hanoi this week.
The report, called “Online and upcoming: The internet’s impact on rising countries”, is based on a survey conducted among 30 countries.
According to the report, the Internet also helps small and medium enterprises increase business effectiveness by 19 percent.
At the conference, Deputy Minister of Information and Communication Le Nam Thang said the internet has developed strongly in Vietnam, with more than 30 million internet users out of the nation’s total population of 87 million.
He said the robust growth of the telecommunication and information technology sectors in recent years will potentially create breakthroughs for the Vietnamese economy, helping Vietnam integrate more deeply into the world.
The Vietnamese Government considers the internet as important national infrastructure, assisting other sectors, he said.
However, Shaowei Ying, Vice Director of McKinsey & Company’s Singapore office, said e-commerce in Vietnam has not been adequately invested and exploited. Vietnamese enterprises have not yet made full use of the internet to maximize their effectiveness and reach more customers.
Participants at the conference suggested that in future the government should promote investment in internet infrastructure and expand coverage to rural areas.
They also recommended that Vietnam strengthen its manufacture and exports of information technology products in order to attract more foreign investment.
VNA
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New Internet policy aimed at socio-economic growth

New Internet policy aimed at socio-economic growth 

Le Nam Thang, deputy minister of Information and Communications, said Vietnam is developing a new Internet policy to replace the old one, keeping in mind the current situation in the country, and exploring the advantages of the Internet, curbing misuse and focused on socio-economic growth.

The deputy minister stated this at a meeting to discuss ‘Influence of Internet on the country’s economic growth’ organised by the Vietnam Club of Information Technology Journalists with participation of leaders of the Ministry of Information and Communications, Vietnam’s Internet Association and international IT corporations such as Google, Intel and other domestic enterprises.
At the meeting, the US-based McKinsey & Company released its survey report ‘Online and upcoming: Internet impact on developing countries.’
The Internet contributes to 9 per cent of Vietnam’s gross domestic product (GDP), which is the same as Turkey and Morocco, according to a recent global survey.

The contribution is driven by private consumption of Internet-related products such as broadband and mobile Internet spending, cited the survey.
Private consumption accounts for some 2 per cent of Vietnam’s GDP but is offset by the country’s large trade deficit in Internet-related goods and services.
The survey also pointed out that the GDP contribution of the Internet in Vietnam is still lower than the two per cent average for nine developing countries that the company studied in detail.
However, Shaowei Ying, associate principal in McKinsey’s Singapore office, told at the seminar that the contribution will soon catch up with the average rate and probably be able to reach 2.5 per cent in the near future.
On the other hand, McKinsey’s survey found that e-commerce in Vietnam is still an untapped market with high potential for growth. Shaowei Ying announced that business effectiveness of small and medium enterprises has increased by 19.3 per cent thanks to utilization of Internet.
It said more than one-third of Internet users have visited an online shopping or auction site. Meanwhile, in another survey, 50 per cent of Internet users said they believed that shopping online provides access to a wider range of products.
Moreover, Vietnam’s foundations for e-commerce activity are low in comparison with more developed countries and regional averages, due to low online payment enablement, McKinsey said in the survey.
Vietnam has 30 million Internet users in Vietnam, accounting for 31 per cent of the population. The blooming growth of telecommunications and Information technology in the country has brought hopes of a breakthrough for Vietnam’s economy.
Ann Lavin, Head of the Public Policy and Government Affairs, Southeast Asia at Google Asia Pacific, said the real strength of internet in developing economy is in small and medium enterprises. She added that Google will have a discussion with Vietnam to assist such enterprises to participate in international markets.
Vuong Quang Khai, director of VNG, said during the past 10 years, digital content increased by over 50 per cent, a favourite condition to develop the digital content industry, as more and more subscribers have paid to access or download digital content.
However, it needs an appropriate policy to manage it or else it will fall in the control of foreign countries and affect national security, Khai said.

(vietnamnet.com)
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IT industry posts annual growth rate of 25-35%

IT industry posts annual growth rate of 25-35%

Software industry and IT services registered an annual growth rate of 25-35% in the past decade, three to five times higher than GDP growth rate, according to the Vietnam Software Association (VINASA).
Software sector recorded a ten-fold increase in revenue when it topped US$1.2 billion last year, said Pham Tan Cong, vice chairman of VINASA. If the booming revenue generated from digital content segment is included, the overall revenue peaked at US$2.3 billion in 2011, or 25 times higher than that ten years ago.
There were 120,000 employees working in software and IT services last year, a twenty-fold increase compared to 2002. The number of IT universities and colleges has surged to 277 with the enrollment of 169,000 students, including 56,000 fresh students enrolling annually.
Software and IT services human resource will develop in both quantity and quality in the coming time. There are a large number of IT giants employing over 500 people.
There are also several giants employing over 1,000 people such as FPT, VTC, Viettel and VinaGame. In particular, FPT Software Co. has become the biggest IT service provider in Southeast Asia with more than 3,000 employees.
The country has some 1,000 firms specializing in software outsourcing and IT services but most of them are small-sized businesses with 10-30 employees.
VINASA will celebrate its 10-year establishment this month. The association has 240 member enterprises, accounting for 60% of total industry employees and 70% of overall revenue generated from software industry and IT services.
It has held dozens of conferences and expos in the country and brought 25 groups of total 300 local enterprises overseas to seek opportunities within the past 10 years. – SGT

(http://businesstimes.com.vn)

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K&G Technology

 K&G Technology (kng.vn) is one of Vietnam leading IT Outsourcing ODC Services Provider, (ODC = Offshore Development Center Services). 

          The founders used to study and work more than 8 years in Japan with expertise in both technical and business domain. Our staffs are all bright, diligent, experienced, and also have deep knowledge of both Japanese and European culture and working style.
K&G Technology has gradually shown its capacity and gained good credits with disciplinary Japanese customers. Besides the Japanese partners, since 2007 K&G Technology has expanded into Europe market with clients from North-West Europe. With focus on product and service quality, we aim at becoming a fast-growing company in the field of information technology in Vietnam and services all various customers around the global.

          To outsource one or few parts of your business process to Vietnam / K&G Technology, clients in Europe can improve cost-performance, put-in cut-out change engineers freely as like your own team, NO troublesome HR management ...etc. and many merits.
With ODC Services for Europe Market, we have special price for man-month to offer,
Clients can start from 2 engineers with 6 months or 1 year.

K&G portfolio: http://www.slideshare.net/KNG_IT_Outsourcing/portfolio-kg-technology
K&G Technology references: http://goo.gl/zMvxv

K&G Technology - Vietnam is currently applying for CMMi Level 3.

We confidently offer Europe Clients ODC Services for Software packages,
Online Web System NEW Development, upgrade, conversion, transition, maintenance.

We are looking for more North-West Europe IT Services Companies who are looking for Vietnam Partners.

9 years of providing IT Outsourcing / dedicated team worldwide.

KNG.VN is professional in providing dedicated IT Team globally ! more than 9 years...

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