VietNamNet Bridge – The fact that Vietnam has fallen by some grades in Tholons’
ranking in software outsourcing turns out to be not the bad news at all.
Especially, insiders believe that the figures quoted by Tholons are higher than
Hanoi’s actual capability.
Hanoi, HCM City on the high rankings
According to the latest Tholons’ report on the 100 cities in the world most
attractive in software outsourcing, HCM City ranks the 17th, while Hanoi at
If compared with the last year’s report, Hanoi remains at the same position,
while HCM City has fallen by one grade. However, if compared with 2009, Hanoi
has fallen sharply from the 10th to 21st and HCM City from the 5th to 17th.
However, Tholons still believes that in South East Asia, Vietnam remains one of
the biggest ITO (information technology service outsourcing) providers which can
replace India and China in the field.
The low labor cost, the improved business environment and qualified labor force
all are the reasons that have made big companies such as Intel, IBM,
Teleperformance and Siemens decide to set up their distribution centers in
Hanoi and HCM City are the two most potential cities in the region in terms of
ITO. They alone make up 90 percent of the Vietnamese total software outsourcing
turnover: Hanoi earned 5.59 billion dollars from software outsourcing in the
first 9 months of 2010, increasing by 19.5 percent in comparison with the same
period of 2009.
Especially, HCM City still can see its name in the list of the top 10 newly
emerging destinations (the nations from the 11th to the 20th in the top 100 are
considered the most redoubtable rivals to the nations in the top 10). Tholons
reserved a whole page in its report to analyze the capability of HCM City.
Even though HCM City has fallen by one grade from last year, HCM City is still
considered a destination with great potentials, which can be the alternative
choice for foreign companies, once the software outsourcing costs in China have
The pay to Vietnamese BPO (business processing outsourcing) workers is 75
percent lower than that in Beijing, Shanghai and Shenzhen on average, while the
pay to ITO workers is 45 percent lower.
Especially, French language skill proves to be a big advantage of HCM City,
which was a former French colony for a long time, from 1850 to 1950. Therefore,
HCM City may catch the eyes of many French information technology groups such as
ESI, Mega International, SYSUM or Worketer. The enterprises have recently
carried out a market survey in Hanoi and HCM City to learn about the markets.
Hanoi’s 5.59 billion dollars worth of export turnover doubtful
Nguyen Thi Thu Giang from VINASA, a software and information technology service
firm, said she was really surprised about the export turnover of 5.59 billion
dollars released by Tholons.
Giang said that the total turnover from software exports of Hanoi alone in the
whole year 2011 was 2.3 billion dollars only. Meanwhile, it is unreasonable to
say that Hanoi could export 5.59 billion dollars worth of software products just
in the first nine months of 2010 as reported by THolons.
VINASA has affirmed that software outsourcing has just been modest income. In
2003, Vietnam earned 100 million dollars and in 2007, it earned 498 million
Experts have also said that there seems to be no miracle that can help Vietnam
raise its software outsource exports to 5 billion dollars just within 50
Fsoft, the firm which is considered the biggest software exporter, could earn
1349 billion dong in 2011, while Tinh Van got 5.5 billion dong.
Source: Buu Dien
Hanoi’s high ranking in software outsourcing gives Vietnamese the start have 584 words, post on english.vietnamnet.vn at 2012-06-27 07:26:56. This is cached page on VietNam Breaking News. If you want remove this page, please contact us.