Vietnam’s IT industry has been moving up the value chain and offering more value-added work. This has partly been encouraged by the growth of Vietnam as a regional market for domestic enterprises and global technology vendors.
1. Brief overview of the IT industry
The field of Information Technology (IT) is a scientific and technical domain that harnesses the power of computers and computer software to facilitate the distribution, processing, storage, exchange, and utilization of data. The products and services stemming from this industry have become indispensable components of modern-day life, encompassing a wide range of devices and applications such as smartphones, personal computers, and online platforms.
At present, IT holds a prominent position within the education system, with dedicated IT universities and various other educational institutions offering specialized IT programs. This field is recognized as a distinct area of study that centers on the advancement of technology and engineering in the digital era.
Within the realm of education, Information Technology equips individuals with the necessary knowledge and skills to effectively navigate computers and computer software for the purposes of distributing and processing information. Moreover, it encompasses activities related to exchanging, storing, and converting data and information in diverse formats.
2. Importance of identifying developing IT industries
Identifying developing IT industries is of utmost importance in the rapidly evolving world of technology. It allows us to stay ahead of the curve and harness the opportunities presented by emerging trends and advancements. By recognizing and understanding the potential growth areas within the IT sector, businesses and individuals can make informed decisions about investments, career choices, and strategic partnerships.
One of the key reasons for identifying developing IT industries is to capitalize on new market opportunities. Technology is constantly evolving, and new sectors and niches are continually emerging. By identifying these growing industries, businesses can position themselves to cater to the changing needs and demands of customers. This could involve developing new products or services, entering new markets, or adapting existing offerings to cater to the specific requirements of these industries.
Moreover, staying abreast of developing IT industries enables individuals to make informed career choices. By identifying the areas with potential growth, professionals can align their skillsets and expertise accordingly. This allows them to stay relevant and competitive in the job market and capitalize on the increasing demand for specialized skills in these emerging fields.
3. Modes and opportunities for IT industry in Vietnam
The Information Technology (IT) industry in Vietnam is facing various challenges and opportunities in the rapidly digitalized era.
One of the main challenges is fierce competition from other countries in the region and globally. Attracting investment and talent in the IT sector requires Vietnam to compete with nations that have strong financial support and well-developed IT education systems. To overcome this challenge, Vietnam needs to enhance training and improve the quality of IT professionals, along with creating a favorable environment to attract investments and encourage innovation.
However, amidst these circumstances, Vietnam also has many opportunities for development in the IT industry. The increasing young workforce equipped with IT knowledge and passion for technology presents a potential talent pool for this sector. Additionally, the support and promotion of domestic technology businesses are creating a unique environment for startups and the development of innovative projects.
The significant advancement of information technology and its application in various fields such as e-commerce, fintech, online education, and healthcare provide substantial opportunities for the IT industry in Vietnam. Applying IT can enhance productivity, efficiency, and competitiveness of businesses while generating new services and products.
To seize these opportunities, the IT industry needs to address challenges such as improving the quality of education and training, ensuring information security and privacy, and developing reliable IT infrastructure. Additionally, promoting research and technological development is also crucial for the continued growth of the IT industry in Vietnam.
The opportunities within the IT industry in Vietnam are not limited to the domestic market but also extend to the international market. Collaborations and partnerships between Vietnamese technology companies and foreign enterprises create opportunities to access the global market and expand operational scale.
4. So, which IT industry currently is trending in the Vietnam market?
4.1 Fintech (a.k.a Financial technology)
Fintech in Vietnam mostly focuses on payments with 47 % of Vietnamese companies working on payment services, the highest rate in the South East region.
And Vietnam’s fintech industry is expected to reach at least 7.8 billion USD dollar in revenue by 2020. A rising middle class, growing internet usage, and a young population present a great combination for the fintech sector to thrive and become more and more popular here. In an estimate, there are over 120 companies and brands cover a wide range of services, from digital payments to wealth management and blockchain…
In detail, digital payments are the most popular segment, most popular apps like MoMo, Moca, Airpay, and Zalo Pay are leading the way.
Peer-to-peer lending (P2P) is also becoming increasingly popular in Vietnam, Tima, Growth Wealth, and Trust Circle among the most popular online lending apps here.
Blockchain and cryptocurrency is the third place in this sector that is increasingly gaining traction. In Vietnam, some companies like TomoChain and Kyber Network exchange in cryptocurrency. This kind of currency allowing consumers can have much faster and cheaper transactions. Everything started way back in 2018 when Vietnam held its first-ever international conference on blockchain and its potential for development in the country.
4.2 Vietnam has a promising E-commerce market
Data from the report shows that Shopee Vietnam continued to lead in the whole year of 2019 in terms of website traffic. With an impressive average of 33.6 million traffic per month. And some other big website likes Thegioididong, Sendo, Tiki, and Lazada took behind.
Shopee is a big name with financial support from SEA Limited. They competed well on all fronts. In just a single year, Shopee introduced the Shopee Live feature in March, promoted it with Cristiano Ronaldo in September. Organized the Shopee Show in November, and partnered with GrabExpress in December.
Unlike Shopee, Sendo focused primarily on attracting new users. From Q1 to Q2, Sendo’s website traffic increased by 24%. And at the same time, Sendo’s mobile app also climbing up and ranked #2 nationwide in terms of new downloads in the second and third quarters of 2019.
On the other hand, Tiki chose to go slowly but surely by launching a new Livestream feature called TikiLive. And improving their warehousing and fast delivery capacity. The immediate result from these efforts is according to iPrice’s report, Tiki received lots of good feedback from consumers, helping them to rank #2 nationwide in terms of popularity on social media in 2019.
And finally, Lazada Vietnam spent most of the year trying to combine entertainment and shopping with Lazada Super Party, Guess It gameshow, and the Lazada Music Festival. And most of these activities are only optimize for mobile, Lazada, although ranked second in terms of app users. But only ranked fifth in terms of website traffic, achieving 23.8 million average visitors a month.
4.3 Potential of artificial intelligence in Vietnam
The artificial intelligence sector (AI) industry in Vietnam shows strong potential. While still developing, all the AI development team in the country has followed global trends in application to human resources, education, healthcare, agriculture, transport, and e-commerce.
An example of how AI is being used domestically can be found in the Vietnamese conglomerate FPT Corporation, which has used AI to control smart traffic in Ho Chi Minh City. Viettel Group has used AI in endoscopy for their operations in Vietnam. Viettel is also using AI to defend against cyberattacks and help businesses deal with internal IT security.
And the most important event for Vietnam’s artificial intelligence is in August, the government issued Resolution No.50-NQ-TW, encouraging FDI by increasing the number of businesses to 50 percent by 2025 in the advanced technology and IT industry – this could help develop AI further.
The IT industry in Vietnam still has lots of potentials to invest and AI, fintech, and eCommerce are just a few in a lot of sectors being trends here. With more than 70% population of Vietnam using the internet, we expecting more and more interesting trends shortly.
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