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.