S3Corp. Tech Blog

Between 2010 and 2015, Vietnam software outsourcing industry experienced transformative growth, with revenue skyrocketing from $7.6 billion in 2010 to an impressive $49.5 billion by 2015—representing a sevenfold increase over just five years. This significant achievement underscores Vietnam’s rapid evolution as a hub for software development and technology services on the global stage.

Nguyen Thanh Tuyen, a representative from the Ministry of Information and Communications, shared this data at the Vietnam ICT COMM 2016 conference held in Hanoi. Tuyen emphasized that with total IT sector revenues reaching $49.5 billion, Vietnam’s information technology industry marked a nearly 15% growth rate compared to the previous year. In 2015 alone, IT became one of the largest contributors to the national budget, generating VND82.3 trillion (or $3.68 billion) in tax revenue, accounting for 10% of the state budget collection.

Consistent IT Growth Amid Economic Challenges

The growth trajectory of Vietnam’s IT sector in 2015 was driven by both domestic and export demand, with outsourcing as a central component. Tuyen highlighted that despite global economic challenges, the electronics sector thrived, yielding revenues of over $46 billion—an increase of 16% compared to 2014.

Retail sales in the hardware segment remained stable, even as the market for traditional devices such as PCs and tablets slowed. The Vietnamese laptop market, for example, saw only a modest 2.4% growth in units sold, reflecting minimal value growth against 2014. Nevertheless, this segment remained resilient, contributing to the broader strength of Vietnam’s hardware industry.

Software and Digital Content Sectors Show Resilience

Despite global economic headwinds between 2011 and 2015, the software sector in Vietnam reported a stable rise. In 2015, the software industry generated $16 billion in revenue, marking a 9% year-on-year growth rate. Tuyen attributed this growth to the increasing demand for software development services, both domestically and internationally, which has been vital in positioning Vietnam as a formidable player in the global software outsourcing market.

The digital content sector also saw steady expansion, with revenues reaching $1.5 billion—a 10% increase from the previous year. Online mobile gaming emerged as a particularly promising segment within digital content. Revenue from mobile games in 2015 hit $107 million, bolstered by the rise in smartphone users from 12.6 million in 2014 to 13.3 million in 2015. By year’s end, Vietnam had 76 licensed online mobile game providers, reflecting the growing domestic demand for digital entertainment.

Social media usage also surged during this period. By December 2015, Vietnam had approximately 200 licensed social networking platforms, with Facebook users alone reaching 35 million—roughly one-third of the country’s population. This growth has not only supported the digital content sector but has also created new opportunities for e-commerce and digital advertising.

E-Commerce on the Rise

E-commerce experienced a boom in Vietnam from 2010 to 2015. Le Thi Ha, of the Vietnam E-Commerce and Information Technology Agency (Vecita), highlighted that by 2015, 62% of internet users in Vietnam were engaged in online shopping. The average annual online spending per Vietnamese consumer reached $160, contributing to more than $4 billion in revenue that year. Forecasts anticipated this figure could reach $10 billion by 2020, with per capita spending climbing to $350, making up an estimated 5% of the nation’s total retail sales.

This rapid rise in e-commerce has been accompanied by an increase in online business presence. By 2015, over 20,000 businesses, or 45% of all enterprises in Vietnam, had established their own websites, and 18% had mobile sales applications to reach customers more effectively.

Aiming for Global ICT Competitiveness

Vietnam has set ambitious goals to position itself as a top ICT nation by 2020, aiming to leverage technology as a driver of economic growth and competitiveness. The country’s vision aligns with the International Telecommunication Union’s (ITU) benchmarks, which rank countries based on ICT growth and impact. Vietnamese ICT firms are therefore investing heavily in infrastructure development and expanding web application development to support both daily life and broader economic activities.

Government Support and Industry Incentives

Pham Duc Nghiem, representing the Ministry of Science and Technology, noted that the government has actively supported the growth of the ICT sector through targeted incentives and favorable policies aimed at fostering innovation and investment. These initiatives are designed to support ICT enterprises in expanding their operational capabilities and increasing their contributions to the economy.

The government’s support, coupled with Vietnam’s growing expertise and competitive positioning in the global IT market, underscores the nation’s strategic focus on technology as a foundational pillar of its future economic growth.

Vietnam’s rapid rise in IT revenues and expansion across software outsourcing, electronics, and e-commerce sectors marks a transformative period in the nation’s economic development. This momentum not only positions Vietnam software outsourcing as a growing technology leader in Asia but also lays the groundwork for sustained growth and global competitiveness in the years to come.