Software and IT industry of Vietnam
The improvement in the Vietnam software development industry will prove to be beneficial to Vietnam because of the large population, which resides there. Being twelfth most populous country of the world, there is a potential of large domestic demand by people and availability of large number of labor that can make it possible for them to focus on the software development sector. By targeting this sector for around 20 years, it has been possible for Vietnam to modernize their software development procedures and be able to compete vigorously with other strong nations in the South Asian World, especially India.
Role of government in improving the software industry in Vietnam
Vietnam software development industry has been able to achieve amazing growth rates because of several reasons. One factor was the support and assistance provided by the Vietnamese government, which realized the hidden benefits that could be extracted to benefit the economy of Vietnam if the software industry is allowed to progress and nurture over time. Different policies have been designed and introduced for this purpose so that various aspects such as human resource, telecommunication infrastructure, ICT investment and Intellectual Property Rights are developed. Financial assistance was also provided by the government which reduced tariffs and import duties on ICT products if they were imported from other nations. ICT firms did not face any corporate income tax and there were no VAT rate for software products in Vietnam.
Accelerated growth in software market of Vietnam
Vietnam software development market followed the example of India to target their software market in order to achieve economic and social development. Because the costs of production are lower in this software industry along with availability of cheap labor and political stability in the economy, it has become a favorable base of investment for foreign firms as well. The software is developed and given out to customers not only with low prices for them but there is no compromise done on the quality of the software. The high quality of the software allows its demand to increase in even the most developed nations in the world such as USA.
The importance of stable socio-political conditions in Vietnam
Vietnam software development has also been able to progress because of the healthy socio, political and economic conditions of the country. Most of the developing nations suffer from different problems which does not allow them to incur economic development because most of the time, investment is done in other areas, mostly to reduce corruption in country or reduce problems of mismanagement and political instability issues. Only a healthy country would be able to focus on this sector in a better manner. Vietnam is stable and most of the foreign nation considers it as a “legitimate” nation to trade with.
The prevailing of traditional cultures and importance of values has also played an important role for this purpose. In Vietnam, customer service and loyalty are some values given a lot of importance, which allows people to be dedicated towards what they do. Without upmost dedication and motivation, it would not have been possible for Vietnam software development to witness this much growth.