Starting from scratch, the past two decades have seen the Vietnamese software and information technology (IT) service industry make a bold mark on the world's IT map as it has maintained its position among the top 10 best countries for software outsourcing, according to industry insiders.

The nation is also widely viewed as Japan's number one preferred partner and second-largest offshore partner.

At the Sao Khue Award 2022 ceremony (Image source: congthuong.vn)

According to VOV News, this information was revealed during a recent ceremony held to announce and give the Sao Khue Award 2022 organized by the Viet Nam Association for Software and IT Services (VINASA).

Over the past two years, the Sao Khue Award has set the goal of promoting the digital solution platform in order to boost the development of digital ecosystems to contribute to outlining orientations for the information and communication technology (ICT) business community to play a key role in the digital transformation process.

In total, 174 excellent digital platforms, services, and solutions from 113 agencies and enterprises were awarded the 2022 Sao Khue Award, of which 10 services and solutions were honored with the Top 10 Sao Khue Awards, whilst 19 awards were rated five stars.

Statistically, the 174 award-winning products achieved revenue of VND16,000 billion, equivalent to US$696 million, a figure higher than that of the entire software industry in 2008. Indeed, 80% of the winning products and solutions have made use of pioneering technologies such as AI and Blockchain which bring high levels of economic efficiency.

In line with this, the application serving employees in the Electricity of Vietnam (SmartEVN) of the Electricity Telecommunications and Information Technology Company can be seen as a typical example. This represents an integrated platform for human resource management and administrative services, with the system being deployed at all member units of EVN and for each employee, as Vietnamnet reported.

According to Nguyen Van Khoa, president of VINASA, through impressive figures revealed at the Sao Khue 2022 award ceremony, it can clearly be seen that local technology enterprises have quickly accessed new technologies. Simultaneously they have been doing proper investment and research on integrated platforms and solutions between technology businesses.

“Digital ecosystems are gradually being formed for industries, fields, and sectors of the national economy, demonstrating the companionship of the technology business community with the Government, the Ministry of Information and Communications in the strategy for digital government development towards promoting digital economy and digital society in the country's digital transformation process," Khoa went on to say.

Photo: FPT

As Saigon Technology news, despite IT outsourcing being fairly young in Vietnam (20 years), the country is turning out to be a small but vibrant powerhouse for technology and software development outsourcing. The Asian-Pacific nation was the most improved in regards to the rank of software outsourcing servicing by the Global Services Location Index 201. Vietnam's success was prominent with the country rising by five places, competitive enough to now host companies like IBM, Intel, Samsung, Microsoft, and Nokia. That is despite the nation’s history of being a socialist republic with a Communist political influence. Most clients find out that the country has a highly adaptive approach to upcoming software and tech developments. Some key players are FPT Software, TMA Solutions, Saigon Technology Solutions, CMC Software.

Moreover, as SGH Asia reported, it's easy to access a large, young, and dynamic population in Vietnam. Vietnam’s development over the past 30 years has been nothing short of remarkable, experiencing rapid demographic and social change. In 2019, its population reached 96.5 million, a dramatic increase from approximately 60 million in 1986 when Vietnam first began its economic reform by adopting the Doi Moi Policy. This 96.5 million population is expected to expand to over 120 million by 2050, while the present life expectancy of 76 years of age, is the highest among countries in the region with similar income levels.

In addition, Vietnam’s population is young and vibrant with a median age of only 30 and 70% being under the age of 35. This means that the country’s 96.5 million people consist of a considerable market comprising of a tech-savvy and digitally active younger generation that is driving Vietnam’s exciting innovation ecosystem. With Vietnam representing a country of opportunity and growth, this young and dynamic population is on the move, quickly adapting and embracing changing trends as more people move to urbanized areas for employment and business opportunities.

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