The Vietnamese government has identified ICT as a key sector contributing to the country’s development. Vietnam’s ICT market is expected to continue its growth between 2018 and 2020, due to the government’s desire to turn Vietnam into an ICT power.
Companies operating in the Vietnamese ICT market can enjoy support measures from the government such as tax incentives and simplified administrative procedures. New hi-tech parks are set to be constructed between 2015 and 2030 through a combination of central government direction, local government funds, and private capital. Enterprises located in software or hi-tech parks are offered further support and incentives.
The biggest opportunities for foreign companies are software segments in banking and finance, oil and gas, as well as aviation and telecoms, which are the biggest spenders and present the most potential for both customized solutions and off-the-shelf software.
Here we will break down the opportunities in the ICT sector in Vietnam:
Broadband IT, telecommunication, and broadcasting
There are opportunities for foreign investors to provide the equipment and infrastructure and value-added services, such as developing wireless and alternative broadband technologies (including WiMAX4G and fiber optic) and partnering with established network operators to provide 3G services, Pay TV infrastructure and media broadcasting services.
As more people use mobile phones to access the internet, marketing activities tailored to mobile devices become essential for businesses. E-commerce and e-payment, digital content production, applications, e-learning and online training systems, animation, mobile games as well as value-added services for interactive mobile, internet and television are all areas with opportunities.
Following the global trend for cloud technology, there is growing interest and demand from Vietnamese companies for cloud services.
Expertise in the IT security area is becoming more essential as local awareness of internet fraud and computer crimes is increasing.
There are opportunities for IT service providers for fintech, IT technical training and consulting, IT management, software/enterprise applications (ERP and CRM system, finance and accounting software), data center and data storage as well as web services.
Vietnam’s financial services industry is underdeveloped but holds immense growth potential in the years to come. Vietnam’s regulatory and legal framework and business environment are still below regional standards, but continuous improvement is expected. Fintech opportunities also lie in Vietnam’s significant potential for adopting digital banking and cash-free payment systems.
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