With a population of approximately 95 million, Vietnam IT market is potential for global technology vendors. It is even clearer when Vietnam modernizes and adopts international standards not only in communication infrastructure but also in technology in general. However, there are a few things you need to know in details before making a move to Vietnamese Market.
Great Revenue
Vietnamese IT industry has achieved steady growth during the past few years. According to the Vietnam Software and IT Services Association (VINASA), this industry valued more than $70 billion in 2017 with an impressive rate of growth approximately 30% per year.
Rapid Growth
Despite of being a young and potential market, Vietnam IT market still has an incredibly growth. It is that, penetration has started to increase in the country side, with latest data showing penetration at 20% among those aged between 18 and 24. It means that, there are more and more people acknowledge technology solutions and consider it as an important role in their life.
Cybersecurity
Vietnam’s computer systems have been exposed to be very vulnerable to attack, mainly by Ransomware. In 2015 there was a total of 31,500 security incidents in the country (Vietnam Computer Emergency Response Team). It is even worse when by the first half of 2016, this number was 4.4 times higher.
In Security Trends 2018, according to Smart Protection Network of Trend Micro, Vietnam was among those countries with highest accidents caused by ransomware.
It means that, this is a huge potential market for vendors about storage, backup or system security.
Some Challenges
Although, Vietnam IT market has been proven to be very potential, there are many difficulties yet
Trading Across Borders
Even with strong manufacturing and reliance on interconnectivity, trading across borders still a challenge. Since the process is quite complicated, it requires many documentation for both importing and exporting, which can be difficult at the best of time
Supporting Investor
Investor protection is an area in which Vietnam fails miserably. It is ranked in 169th place by the World Bank and IFC (International Finance Corporation)
Moreover, even though Vietnam has changed their policies to attract FDI, it is still not enough. Investors in the technology sector have their different requirements and demands compared, which Vietnam hi-tech projects still have not met their qualifications
To sum up, those are few basic things that enterprises as well as investor need to know before making a move to Vietnam IT market. Despite of those challenges, Vietnam technology sector still a potential pie. All you need is a partner with high experience that you can trust to go wit you along the way.
Omedia is a Marketing Agency with high professional and well-understanding Vietnam IT market, with more than 10-year expereience in this field.
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