ho chi minh city - the 5th of top 50 emerging outsourcing cities

Ho Chi Minh City – The 5th of Top 50 Emerging Outsourcing Cities

Dang NguyenBusiness Development Manager

at TMA Solutions

Content

1. Ho Chi Minh city Overview2. Ho Chi Minh city – Destination for Software

Outsourcing

• Natural area: 2,095,239 km2

• Coastal length: 15 km

• Population: 7,750,900 (2012) –

the most populous city in Vietnam

1. Ho Chi Minh city Overview (1/5)

The economic center of Vietnam

• Workforce:

o 2,676,000+ laborers (2009)

o Education expenditure accounted for

27.66% of frequent expenditure and

9.63% of total expenditure of the city

(2010)

o 80+ universities/colleges, with 400,000+

students, accounting for 20% of all

universities and colleges in the country

o 3,000+ Ph. D academics and 5,000+ master

degree holders

1. Ho Chi Minh city Overview (2/5)

• Economic sector structure (2012)

1. Ho Chi Minh city Overview (3/5)

58%41%

1%

Economic structure

Service

Industry and construction

Agriculture and others

• Total trade (export and import) reached $47.7 billion, with export at

$21.57 billion and import at $26.14 billion (2012)

• GDP: around $28.59 billion, about $3,700 per capita (2012); up 9.2 percent from

2011

Average GDP growth of 9.5% from 2011-2013, 1.8 times higher than the national

average (5.5%)

1. Ho Chi Minh city Overview (4/5)

2000 2002 2004 2006 2008 2010 2011 201202468

101214

GDP Growth Rate

Ho Chi Minh cityVietnam

%

• Modern transport system

The important transportation center of the country with growing transportation

system (roadway, waterway, railway and airline, etc.)

1. Ho Chi Minh city Overview (5/5)

Tan Son Nhat International Airport, the largest airport in Vietnam in terms of passengers handled

(with an estimated number of over 15.5 million passengers per year in 2010, accounting for more

than half of Vietnam's air passenger traffic

• 16th among top 25 most attractive software outsourcing cities (Tholons, 2013)

• 5th on the list of Top 50 Emerging Outsourcing Cities (Tholons, 2009)

• One of the Top Emerging Global Outsourcing Cities for Application Development &

Management (ADM) and Animation/Game Development (Tholons, 2009)

• 9th in the Top 10 Outsourcing Cities for software testing (Tholons, 2009)

• Ho Chi Minh City on KPMG 'locations to watch' for next outsourcing boom (KPMG

Advisory , 2009)

• The most attractive non-Indian destination for offshoring (NeoIT, 2006)

2. Ho Chi Minh city – Destination for Software Outsourcing (1/5)

• Accommodating top prestigious IT universities: The University of Science,

HCMC University of Technology, Posts and Telecommunications Institute of

Technology, University of Technical Education Ho Chi Minh City, etc.

• 5,500+ IT companies

• 1,800 software export companies (2011)

• Located by the largest Vietnam software development and testing companies

• Software export revenue: $175.5 million (2011)

2. Ho Chi Minh city – Destination for Software Outsourcing (2/5)

• Strong government support for the software industry

o Tax:

Free VAT for software products

Free Export Tax for software products

Free Enterprise Income Tax within the first 4 years of business

establishment, free 50% of enterprise income tax in the following 9

years

2. Ho Chi Minh city – Destination for Software Outsourcing (3/5)

• Many large software parks:

o Quang Trung Software Park (QTSC)

o Saigon Hi-Tech Park (SHTP)

o Saigon Software Park (SSP)

o Etown

2. Ho Chi Minh city – Destination for Software Outsourcing (4/5)

Leading global companies that have outsourced to Ho Chi Minh City

2. Ho Chi Minh city – Destination for Software Outsourcing (5/5)

Thank you!

For more information, please contact

Dang NguyenBusiness Development Manager at TMA Solutions

• Skype: anhdanglucky• LinkedIn: http://vn.linkedin.com/in/dangnguyenhcm