The software industry in Vietnam is still very small but, according to the director of a local programming company, it has a burgeoning future. Tran Ha Nam, director of Ho Chi Minh City-based Scitec Corp, says that the current number of 2,000 local programmers in Vietnam is expected to soar as the software industry takes off.
While the Software Engineering Institute of the US rates Vietnam's software development at level two on a five-point scale, the vice chairman of VN informatics Association, Nguyen Trong, said that the biggest problem being faced by the industry is software piracy. "Software programmed by Vietnamese operators accounts for only five to 10% of software turnover," he says. He adds that local end-users prefer imported software to local programs; local banks have spent up to US$200,000 for foreign software programs, while Vietnamese versions cost a tenth of that price.
Both Trong and Nam say that while the base of programmers is limited, many are highly skilled and are capable of producing more system-based programs as opposed to the smaller applications they have been turning out. Programs that have met with a good response include the Assisted System for Enterprise Heads, developed by the HCMC Department of Science, Technology and Environment, and a system for measurement and data collection which was programmed for the Hoa Binh hydro power plant. Many applications have also been written for banks and enterprises.
Software Performance Display at
ComputerWorld Expo '96
Trong and Nam also agree that another problem facing the development of the software industry in their country is that local users are not accustomed to buying intellectual property such as software, and they find it difficult to recognize the commercial value associated with the programs. For instance, some companies will readily spend many thousands of dollars on equipping their offices with top-of-the-line computers, but then balk at paying a few hundred dollars for the necessary software.
Show Highlights Potential
Software and hardware producers from around the globe attended ComputerWorld Expo '96 in February 1996, held in Ho Chi Minh City. The show, which was co-hosted by the Vietnam Chamber of Commerce and Industry (VCCI), attracted over 50 companies from Hong Kong, Japan, Singapore, Taiwan, Thailand, the UK and the US. Besides displaying a wide range of computer products, the exhibitors participated in a five-day conference on software development in the nation.
Mark Wolfendale, chief executive for System Union Limited (SUL), a UK-based software house, told the conference that SUL has an expanding customer base in Vietnam with over 40 buyers including BHP Petroleum, Canadian Oxy Vietnam, World Vision Vietnam and the Ministry of Transport in Vietnam. "Our sales are growing fast, particulary in the oil and gas industry," he said. SUL is available in 22 languages, including Vietnamese. Presently, two of the company's systems-SunAccount and SunBusiness-are circulated through SUL Ho Chi Minh agent, TRG Limited. Both systems are presently undergoing registration with the Revenue Authority.
Meanwhile, Vietnamese programming houses are challenging foreign imports in a bid to win market share. Nam says his company makes a wide range of software for the local market and for export. "To date, our programs target the foreign community," he said, adding that their most successful program is a Vietnamese language-learning program designed for expatriate business people. "We also focus on programs which introduce Vietnam to the world through CD-ROM travel journeys. We have recently signed a contract to supply 40 CD-ROM programs dealing with all facets of the country," he said.
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