The Potential Prospect Of Vietnam IT Market In 2021

In the last 5 years, Vietnam has been going through positive changes in digital transformation, thus moving forward into a digital economy and a digital society. Therefore, the wave of tech startups as well as startup projects from large companies, has continuously been on the rise. With the entire technology industry’s substantial growth in general, it can be said that by late 2020 and early 2021, Vietnam will be considered as an IT nation of Southeast Asia. At present, the IT industry is being evaluated as one of the leading industries in Vietnam. There is a number of more than 153 institutions training 50,000 IT personnel.

According to experts’ assessment, Vietnam will be an ideal destination for leading technology companies in the world and the region to have their product development located.

1. Types Of IT Services In Vietnam

According to a recent analysis on Southeast Asia’s Digital Economic in 2019, the region’s digital economy will surpass $100 billion this year and tripled by 2025. Because of its tech-savvy population, Southeast Asia is poised to become one of the fastest-growing e-commerce marketplaces, with smartphone adoption on the rise. Vietnam will focus on 12 essential areas in 2020, including e-commerce, fintech, ride/food ordering, Edtech, healthcare, and so on.

2. Vietnam’s Welcoming Posture After The Pandemic

Statistics taken from Vietnam TopDev‘s report in late of 2020

Vietnam’s post-epidemic IT market, as well as IT recruiting demand, has undergone positive changes. Never before have we seen the government continuously open the doors of cooperation with foreign technology companies. The lack of resources is not a reason.

However, it is a sign of timely attention and understanding of the importance of promoting digitalization and technology application in economic, educational, social, and medical development. Also, from these challenges, we can once again confirm the significance of technology in helping people quickly overcome wide-ranging crises, thus creating more development opportunities for the whole society.

Moreover, after the worldwide changes due to Covid, strong investment trends from Western countries are heading to Asia, especially Vietnam – one of their top choices since more foreign companies are signaling a shift in production chains. This plays as a precious opportunity for Vietnam, so the government and domestic businesses are collaborating to build a next for improving and promoting technology to be ready for future transformation.

For that reason, the IT recruitment market is heading towards a brighter outlook with a more optimistic future for both employers and candidates. However, these changes also force both parties to adapt and upgrade themselves to fit new trends in this new era. With more standardization in the recruitment process, requirements from employers have become realistic and updated with the world’s trends.

By early 2021, Vietnam has over 400.000 IT Engineers with more than 50.000 IT Students graduated from 153 IT Institutions annually.

3. Vietnam’s Tech Companies Transformation In Covid-19 Era

The 03 key elements for a sucessful transformation are: “Reforming regulations, Applying management tools, and Streamlining processes” will be crucial for businesses to reshape their management, enabling workflows to remain smooth and efficient.

Covid-19 has brought about great difficulties, so much, so Tech companies were forced to choose the “cost reduction” route, “dismissing employees,” or just shut down. Around 66% of Vietnam’s Tech Companies, however, choose to embrace the “Fast Adaptation” method with great success by utilizing:

• Maintaining business operations, designing new work processes
• Implementing work from home to ensure “Social Distancing”
• Practicing to optimize the model
• Applying technologies thoroughly
• Building a “wartime” corporate culture

4. Vietnam – The New Hotspot For Technological Advancements

Many of the world’s largest technological businesses will set up shop in Vietnam in the not-too-distant future. Rory Sexton, Vice President of Apple’s Supply Chain, said the company is ready to meet and discuss potential collaboration potential with Vietnamese ICT companies interested in joining Apple’s supply chain.

Apart from Samsung, one of the foreign capital firms that have aided in the acceleration of Vietnam’s economy, Apple’s participation in the future is likely to increase Vietnam’s wave of foreign investment in 2020.

Samsung has stated that they will invest an additional $300 million in R&D in Hanoi by 2020 and that they would need 4,000 more IT employees shortly.

5. Conclusion

Vietnam ranked 42nd among 129 global economies on the Global Innovation Index 2019 (GII) published by the World Intellectual Property Organization (WIPO) in New Delhi, India on Wednesday, comparing to 45th position last year.

In the past 9 months of 2019, Vietnam has attracted $26,16B FDI which brought Vietnam to the 8th position among 20 best countries to invest in according to US News & World Report on new transformations in Vietnam. Vietnam also ranked 48th among 157 countries in terms of Human Capital Index (HCI), only following Singapore in ASEAN region.

At present, the IT industry is being evaluated as one of the leading industries in Vietnam. There is a number of more than 153 institutions training 50,000 IT personnel. According to experts’ assessment, Vietnam will be an ideal destination for leading technology companies in the world and the region to have their product development located.

Particularly in the Vietnam market, there are numerous small and large startups developing potential projects directly related to AI and Machine Learning, which creates an abundance of outstanding values for the technology industry as a whole.