Outsourcing IT service boosted among state agencies

The Government is aiming to boost the hire of information and technology services in state agencies. — Photo thongtincongnghe.com

HA NOI (Biz Hub) — The Government is aiming to boost the hire of information and technology services in state agencies, according to a resolution released on October 7.

Accordingly, state agencies can choose between full or partial service packages related to hardware, software, transmission lines and solutions to provide online public service.

The government also will allow ministers, deputy ministers, governmental agencies and the People's Committee chairperson to assign contracts and choose short-term hiring prices (under 12 months) if there are not enough conditions to determine a fixed price.

The Vietnam National Committee on Information Technology adopted the hire of information and technology services in state agencies last year.

The Prime Minister also signed a decision to initiate contracts for information and technology services in state agencies, which took effect in February.

According to the decision, state agencies, which outsource information and technology services, must have requirements for service providers related to professional capacity, finance, technical and technological conditions, experience, and information safety and security.

The outsourcing can help State-run agencies and companies remove the need for large investments in high-tech facilities by spending on their specific needs. — VNS

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IT outsourcing grows strongly

Lam Nguyen Hai Long, CEO of Quang Trung Software City, said the software outsourcing industry had been growing rapidly. — Photo bizlive

HCM CITY (Biz Hub) — Viet Nam's strong growth in the IT sector, low-cost and easily trained workforce, and support infrastructure for offshore outsourcing has made it a an emerging destination for IT outsourcing services, speakers at a conference held in HCM City said yesterday.

Lam Nguyen Hai Long, CEO of Quang Trung Software City, said the software outsourcing industry had been growing rapidly.

Speaking at the coun-try's first conference on IT outsourcing, Long said that HCM City and Ha Noi ranked 18th and 20th respectively among the top 100 most attractive global cities for software outsourcing, according to a 2015 report by Tholons, a leading strategic advisory firm for global outsourcing and research.

Nguyen Cong Ai, vice president of KPMG Vietnam, said a survey conducted by KPMG and QTSC of 80 business executives in the IT industry in Viet Nam pointed out that 98 per cent of polled firms rated Viet Nam as an attractive market for ITO businesses and indicated that they would invest in expanding business in the country.

Rising labour costs in other ITO hubs like China and India could trigger more opportunities for Viet Nam, he said.

Viet Nam has a skilled labour force with more than 40,000 engineers graduating each year from 290 universities across the country, in addition to 160,000 Vietnamese studying overseas.

Vu Anh Tuan, general secretary of the HCM City Computer Association (HCA), said that Viet Nam's further integration in the global economy, via foreign trade agreements, including the Trans-Pacific-Partnership Agreement and ASEAN Economic Community, would also help improve the country's infrastructure and the quality of labour force as well as business opportunities for out-sourcing firms.

However, delegates at the conference said that though Viet Nam's labour force was indeed professional, language competency remained a barrier for the industry. They said it was still difficult to recruit a large, skilled software team in the country.

Another problem is the low awareness about intellectual property rights and copyright issues, they said.

Ai urged enterprises to co-operate more with universities and colleges, and encourage them to provide more practical training curricula to match businesses' requirements.

To develop the domestic ITO industry, the Government and IT enterprises should work together to improve certain areas affecting the industry, including taxes, human resources, infrastructure and marketing, he added.

Representatives of IT firms at the conference urged improvement in the stability, speed and bandwidth of the electricity, telephone and internet infrastructure in the country.

Yuko Adachi, vice president of research at Gartner Asia-Pacific, said that domestic IT firms should also work closely with other providers, industry associations and government agencies to address concerns over data security.

The environment of offshore IT outsourcing is dramatically changing due to increasing cost pressures and uncertainty in the global economy, as well as emerging digital technologies such as automation and smart-machine-enabled services, she said.

ITO companies must prepare for the new competition from smart machine-enabled services, she added.

Ai said he agreed with Adachi, and urged Vietnamese firms to create a breakthrough in the smart machine field and not to rely on low-cost labour as a way of doing business, which would be inefficient in the long run.

Tuan said firms need to focus more on improving product quality and intellectual property rights as well as hiring qualified human resources to meet customers' requirements and capitalise on opportunities the TPP agreement will bring.

Organised by the QTSC and HCA, the two-day Viet Nam ITO conference attracted about 400 local and international business leaders, government representatives, entrepreneurs and education representatives. About 100 of that number were international investors and vendors from the US, Japan, Europe, Australia, Korea, Singapore and other countries. — VNS

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Japanese eye co-operation with Vietnam IT sector

Speaking at Japan ICT Day celebrated in HCM City on Wednesday, Nguyen Doan Hung, VJC's chairman, said Viet Nam and Japan have had fruitful co-operation in the IT sector in recent years.— Photo citinews

HCM CITY (Biz Hub) — Japanese information technology firms want to strengthen co-operation with their Vietnamese counterparts, especially to develop applications for social infrastructure and offshore business, according to the Viet Nam-Japan IT Cooperation Club (VJC).

Speaking at Japan ICT Day celebrated in HCM City on Wednesday, Nguyen Doan Hung, VJC's chairman, said Viet Nam and Japan have had fruitful co-operation in the IT sector in recent years.

Kazunori Hamano, vice chairman & chairman of the International Committee, Japan Information Technology Services Association (JISA), said Viet Nam had been the preferred partner for Japanese firms in the last decade due to its competitive prices and good quality.

According to surveys by the Viet Nam Software and IT Services Association (VINASA) and VJC, Vietnamese firms that do business with Japanese partners all enjoy good growth, averaging 77 per cent, and some even 300-400 per cent.

They mainly co-operate in software and services outsourcing, BPO (business process outsourcing), mobile application development, and cloud computing. The number of Vietnamese engineers working for Japanese IT projects in the first half of the year went up by 46.5 per cent year-on-year. JISA said Viet Nam is the second largest software outsourcing destination for Japan after China.

Hirotaka Yasuzumi, chief representative of the Japan External Trade Organization (JETRO) in HCM City, said in 2014 Japanese firms invested in 52 new IT projects in Viet Nam, accounting for 15 per cent of their total investment in the country.

Japanese firms expected to expand their investment in the IT sector in Viet Nam, especially in offshore businesses, he said.

But Viet Nam's IT human resources did not meet the expectations of Japanese firms, especially with respect to proficiency in Japanese, he said.

According to Deputy Minister of Information and Communications Nguyen Thanh Hung, more than 400,000 workers work in the IT sector.

The country had made efforts to standardise its IT workforce based on international norms to meet the needs of both local and foreign enterprises, he said.

Japan was an important partner to boost the development of the country's IT sector, he said.

Japan ICT Day this year, titled "Collaboration on Internet of Things Applications for Social Infrastructure and Offshore Business," offered a good chance for businesses in the two countries to exchange information and explore co-operation in IoT, which was growing rapidly, including in Japan and Viet Nam, he said. — VNS

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Web tech could ease congestion

"By 2020 there would be 50 billion mobile devices around the world connected to the internet and IoT used in daily life" said Chu Tien Dung. — File Photo

HCM CITY (VNS) — The rate of urbanisation in Viet Nam has increased from 16 per cent annually in the 1990s to 35.5 per cent now, and is projected to rise to 45 per cent in 2020, putting more and more pressure on urban infrastructure, a seminar on using technology to ease traffic congestion heard in HCM City yesterday.

"The answer to resolving the traffic problem is Internet of Things (IoT), a convergence platform for smart city traffic," Chu Tien Dung, chairman of the HCM City Computer Association, said in his opening speech at the 20th Viet Nam Information and Communications Technology Outlook.

He said by 2020 there would be 50 billion mobile devices around the world connected to the internet and IoT used in daily life.

A smart city traffic system should have a sensor system, connected infrastructure, and human resources, he said.

"With IoT, we can connect, supervise, search, manage and control everything. That should be perfect to make traffic better using IoT."

Dung introduced a model using IoT for smart traffic management with three components.

The first is information collection through cameras, tracking and assessing vehicle density and inputting meteorological data from around the city.

The information is then processed at the traffic control centre.

Finally, all the information about traffic congestion, flooding, the number of vehicles will be propagated through traffic boards, mobile devices, and radio to help drivers choose the best routes.

"A smart city where information and communication technology is applied to manage all aspect of life should be created to help drive the economy, address growth issues such as traffic and pollution, and provide citizen services in a timely, cost-effective way," Ho Huu Thang, technical director of the enterprise and public sector segment, Cisco Viet Nam, said.

He said in Viet Nam and many other countries around the world, separate management systems are built for each industry.

"They require huge investment, but they cannot connect with each other and cause great waste.

"Using [Cisco's] Smart City Connected Network, cities can address specific issues such as parking, lighting, public safety, pollution/environment … and roll out services based on their priorities."

Traffic congestion has worsened in major cities in Viet Nam, especially HCM City and Ha Noi. According to the National Traffic Safety Committee, in the first six months of this year, there were 1,783 traffic accidents in HCM City, in which 344 people were killed and 1,549 others were injured.

HCM City now has 877 traffic lights but only 4 per cent are linked to the Traffic Management Centre.

There are 383 public cameras around the city, which are managed by different agencies. — VNS

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IT application among Ha Noi firms remains low

IT application among small- and medium-sized and state-owned enterprises in the capital city of Ha Noi remains low. — Photo baocongthuong.com.vn

HA NOI (Biz Hub) — An information and technology (IT) survey of nearly 200 enterprises in Ha Noi showed that IT application among local small- and medium-sized and state-owned enterprises remains low.

The survey was carried out by the Ha Noi Department of Information and Communication and related agencies.

The survey showed that Ha Noi companies spend only from 0.15 per cent to 0.3 per cent of their revenue for IT operations.

Most enterprises are equipped with between 10 and 100 computers and had their computers connected to the Internet.

Enterprises also increased using anti-virus software for information security, however, most of these have not applied information security solutions for network systems, host computers and datas.

Under 10 per cent of enterprises in Ha Noi hold periodic evaluation on information safety of their IT system, according to the survey.

Ninety per cent of enterprises had website application and used free email systems.

Many enterprises applied management software in human resources, financing and accounting, customer relations, goods purchasing, inventory and projects.

However, these software are mostly not managed well and were used incoherently.

The Politburo issued Resolution No.36-NQ-TW in July, 2014 on boosting IT development and application to serve the nation's sustainable development and international integration.

To implement the Resolution, the capital city determined IT development and application a strategic priority in order to enhance production and business efficiency, lay the foundation and motivation for socio-economic development and quicken the city's industrialisation and progress.

Effective application of technology will help enterprises govern better with software which allows enterprises to work more effectively, increase efficiency, save costs, create new motivation and lift an enterprise's position, e-newspaper VietnamPlus qouted Nguyen Ba Quynh from Microsoft Viet Nam as saying. — VNS

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FPT win $34 million contract in Bangladesh

FPT IS and the National Board of Revenue (NBR) sign a US$33.6 million contract to provide Integrated VAT Administration System for Bangladeshi government in Dhaka, Bangladesh on September 16. — Photo baophapluat.vn HA NOI (Biz Hub) — FPT Information System Company (FPT IS) beat five international contractors to win a US$33.6 million contract to provide, implement and maintain the Integrated VAT Administration System (IVAS) for the Bangladeshi government. The contract was signed by FPT IS and the National Board of Revenue (NBR) of Bangladesh in Dhaka, Bangladesh on September 16. This contract accounts for one-tenth of $310 million of trade between Viet Nam and Bangladesh in the first six months this year. FPT IS will implement the project IVAS in 12 months and give maintenance service in the five following years. FPT IS's technician will carry out solutions on software, infrastructure and management services for more than 320 local tax agencies under NBR. Due to limitation in IT application, indirect tax collection of Bangladeshi government has faced many difficulties, which affected its collection and statistics activities. IVAS will help Bangladeshi government lift the country's VAT collection from $4.5 billion last year, accounting for 3.7 per cent of gross domestic product (GDP) to $8 billion, or 4.5 per cent of GDP, by 2020. The winning of IVAS confirmed that Vietnamese technology and information (IT) capacity could meet requirements of big projects in foreign countries, said FPT IS chairman Do Cao Bao at the signing cermony. The victory is not only for FPT IS but also of the country's IT sector in the global market, opening cooperation opportunities between Viet Nam and Bangladesh in particular and the Southern Asia in general, even if India, a IT giant, is located in the region. Md Nojibur Rahman, chairman of NBR, said that this is an important project for the board, which will help the Bangladeshi government to increase its state revenue. "We are optimistic that the cooperation between FPT and its consultant units will make the project successful," the chairman said. FPT IS has also won many contracts in foreign countries including Cambodia, the Philippines, Laos, and Myanmar. — VNS Source:bizhub.vn

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40 Vietnamese leading IT companies to be announced

HA NOI (Biz Hub) — A list of 40 leading Vietnamese information and technology (IT) companies will be announced at an awards ceremony on October 8 in Ha Noi, announced the Viet Nam Software and IT Services Association (VINASA).

VINASA did reveal that 18 of these companies are working in business process outsourcing (BPO), IT outsourcing and offshoring areas; and 15 companies provide software and solutions services.

The awards' jury board includes representatives from the Ministry of Information and Communications, Ministry of Industry and Trade, the Viet Nam Chamber of Commerce and Industry, and IT experts.

The board had initially planned to choose 50 companies for recognition out of the award's 87 nominees, however only 40 companies met the award's criteria.

VINASA will also publish profiles of the 40 companies for distribution amongst 1,000 big domestic and international organizations and companies.

The publication is considered a handbook for foreign organisations and enterprises that want to analyse and work within Viet Nam's IT sector, said Mai Liem Truc, chairperson of the jury board.

The awards held last year garnered positive commentary and feedback from Vietnamese and foreign organisations, said the chairperson. — VNS

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