Vietnam IT industry – more than outsourcing

Vietnam is known as an outsourcing software destination but local IT businesses are expanding into other technology areas such as AI and fintech.

 For years, some giant technology companies in the world have chosen Vietnam to outsource their software projects. Last year, Vietnam exported $3.5 billion worth of software, up 11.6 percent from 2017, according to the Ministry of Information and Communications.

However, a recent report by an HCMC-based IT recruiting firm showed that local companies are branching out to different areas also.

Artificial Intelligence (AI) is one of them. Three big technology companies in Vietnam in recent years have been developing and coming up with solutions to apply AI in real life.

A giant conglomerate in Vietnam has also announced it would establish an AI research institute. 

Big demand has resulted in a higher paycheck for AI engineers in the country, the IT recruiting firm says. Its data shows that an AI engineer or machine learning engineer could earn up to $1,678 a month, 21 percent higher than the average salary for an experienced IT developer of $1,318.

Fintech is another area believed to have big potentials in Vietnam, as the development of mobile payment services could increase the number of cashless payments in the country.

There are at least 64 companies providing fintech services in the country, but this figure is still lower than 490 in Singapore, 262 in Indonesia, and 196 in Malaysia, adding that this means there are still opportunities in this area for large companies and future startups in Vietnam.

Vietnam’s fintech market reached $4.4 billion in 2017 and is estimated to grow to $7.8 billion by next year, according to consulting firm Solidiance.

The report added that other IT areas that Vietnamese businesses are expanding into are blockchain, software as a service (SAAS), and e-commerce.

IT is a growing industry in the country, which is promoting the development of Industry 4.0. A report by a recruitment firm in the United States released in January said that IT would be the industry with the highest recruitment demand this year with a 14 percent increase compared to last year.

Source: Vietnam Insider

About us: TMA Solutions was established in 1997 to provide quality software outsourcing services to leading companies worldwide. We are one of the largest software outsourcing companies in Vietnam with 2,600 engineers.

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