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Waves of foreign investment come to Vietnam’s ICT sector
There will be a new wave of foreign investment in Vietnam’s information and communication technology (ICT) sector following Intel’s decision to invest US $300 million to build a semiconductor chip assembly and test manufacturing (ATM) factory in Ho Chi Minh City, an Intel Corp official forecast.
Intel Vietnam General Director Than Trong Phuc told a Vietnam News Agency reporter that the move made by Intel to invest in Vietnam reflected the sentiments of the world’s IT community. The project will have significant effects on other trans-national ICT corporations’ business strategies in the Vietnamese market, Phuc predicted.
Phuc said: “With a growing trend towards an expanding market, trans-national ICT companies will seek destinations for their investment that meet their demands and strategies. Among Asian countries, China and India have registered strong ICT development. However, most of trans-national companies share the same formula of investment, i.e. China and India plus one (another destination for investment) to minimise business risks.
“Intel’s recent decision to invest in Vietnam will offer Vietnam a good opportunity to gain the remaining position next to China and India,” Phuc continued.
According to the Intel Vietnam chief, there are various reasons for the fact that Vietnam has become an attractive new destination for trans-national ICT firms. Vietnam has a fast-growing and stable economy, a geographically strategic position, cheap labour costs, a young workforce and positive development prospects.
To prepare for a new wave of investment in the ICT sector, Phuc confirmed that Vietnam should develop ICT infrastructure and improve its legal system related to ICT investment and development. In addition, Vietnam should enhance personnel training so as to meet the domestic market’s increasing labour demand.
Moreover, the Vietnamese Government should pay attention to stimulating risky forms of investment, he said, adding that this will provide a good foundation for training and developing “made-in-Vietnam” intellectual talent for the ICT industry.
Meanwhile, Microsoft Vietnam General Director Christophe Desriac said: “With a population of 82 million and promising young ICT workers, Vietnam is a potential market for Microsoft. Therefore, Microsoft senior officials always pay very close attention to co-operation programmes with Vietnam towards a common goal of reducing the global digital divide in accordance with the vision of Microsoft Chairman and Chief Software Architect Bill Gates.”
Desriac forecasts that there will be a large number of foreign ICT giants flocking to Vietnam to set up ATM plants in the future. This will bring Vietnam a good chance to embrace sophisticated information and communication technologies.
“Vietnam has the ability to become the country with the highest ICT growth in the region. The coming time is of significance to Vietnam’s ICT industry,” he added.
Desriac emphasised that compared to other regional countries, Vietnam is a very secure investment market.
“Vietnam’s potential entry to the World Trade Organisation (WTO) will positively affect its ICT development. When Vietnam joins the WTO, foreign investors will be more confident of investing in the country. This is similar to an internationally-certified investment market that will maintain their long-term business commitments to Vietnam,” he said.
Meanwhile, Subramanyam Venkatakrishnan, Country Manager of the IBM Vietnam Company, said Vietnam is an emerging market with an annual GDP growth rate of 7-8%, following only China in Asia. The country also possesses a pool of young, dynamic labour and a stable society with strong support in ICT from the Government.
Vietnamese Deputy Prime Minister Nguyen Tan Dung has affirmed that Vietnam always regards developing the ICT sector to be an important national policy in its development strategy and one of the key weapons to combat poverty.
Speaking at the fifth ASEAN Telecommunications and Information Technology Ministers' Meeting in Hanoi last September, he said: "The Vietnamese Government defines the ICT industry as one of the most important engines backing national development. The application of ICT advances has helped hasten the country's international integration, refine the competitiveness of the national economy, improve the people's living standards, and ensure national security and defence.”
Venkatakrishnan noted that Vietnam offers a pool of young IT talent, which is very dynamic, energetic, and eager to earn, but lacking in experience, especially experience working in a multi-cultural environment.
“We address this issue by nurturing a learning environment and professional development programmes,” the IBM official added.
IBM operated in Vietnam from 1938 to 1975. In 1993, IBM returned to Vietnam for market evaluation, and in 1994 established Representative Offices in Hanoi and Ho Chi Minh City. In 1996, IBM established a wholly-foreign-owned subsidiary in Vietnam, the IBM Vietnam Company, focusing on information technology related services.
Source: Vietnam Agency
