orissa international ict in vietnam
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© Orissa International
Sun Tzu, The Art of War
Those who do not know the lay of the land cannot maneuver their forces.Those who do not use local guides cannot take advantage of the ground.
© 2020 Orissa International
Orissa International
ICT in Vietnam
August 2020
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© 2020 Orissa International
• Established in 1997, headquartered in Singapore, with offices in Malaysia, Indonesia, Thailand, Vietnam and the Philippines.
• Boutique consultancy providing international trade advisory services to companies and export agencies seeking to export or do business in South East Asia.
• A strong track record in guiding companies with their initial entry into a new market. Over 15 export promotion agencies from around the world refer their companies to us for trade advisory services. Over 3000 individual client references with companies from around the world selling a variety of products and services, both industrial and commercial.
About Orissa International
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© 2020 Orissa International
Our Core Services
Distributor & End-User SearchIdentification of local distributors
and buyers that match your specific requirements
Customized Business MatchingCustomized business matching to
connect you with potential distributors and end-buyers
Market Research / Go-to-market Strategy
Market studies covering trends, opportunities, competitive landscape and regulations
Market Immersion ProgramA Lead generation program that
includes a go-to-market strategy and in- market report
Incorporation / Corporate AdvisoryCompany formation, statutory
compliance, accounting, and tax advisory services
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© 2020 Orissa International
Orissa International – Thailand496-502 Amarin Plaza 10th FloorPloenchit Road, Lumpini, Pathumwan, Bangkok 10330THAILANDT: +66 2 305 6848
Orissa International – Singapore1003 Bukit Merah Central#05-06 Inno CentreSingapore 159836SINGAPORET: +65 6225 8667
Orissa International – MalaysiaB1-23A-6, SOHO Suites @ KLCC20 Jln Perak50450 Kuala Lumpur MALAYSIAT: +60 3 2181 4936
Orissa International – IndonesiaMenara Topas, 14th FloorJl. M H Thamrin Kav. 9Jakarta 10350INDONESIAT: +62 21 3902 620 / 3902 678
Orissa International – VietnamR.E46, 4th Floor, Block E, Fosco Bldg40 Ba Huyen Thanh Quan StreetWard 6, District 3Ho Chi Minh City 722000VIETNAMT: +84 28 53827 3904
Orissa International – PhilippinesUnit 2410, One Corporate CentreJulia Vargas Ave cor. Meralco Ave Ortigas Center, Pasig City 1600PHILIPPINEST: +63 2 8375 1129
Our Offices in South East Asia
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© 2020 Orissa International
Partial List of Governments Who Refer Companies To Us
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© 2020 Orissa International
Partial List Of Our Corporate Clients
Aerospace Chemicals Environment ICT Material Handling
ARINC ADIWARNA AMMONIT MEASUREMENT AVECTRA ANACONDA
AVERSAN INC DYNAGLASS ENSWICO CACI HEYL & PATTERSON
CASSIDIAN ISOSCIENCES LAST UND ENERGIE MANAGEMENT CARNEGIE SPEECH COMPANY J&J TRUCK EQUIPMENT
GAETAN-DATA JOST CHEMICAL NEWTERRA MATIAS POWERSCREEN
MXI TECHNOLOGIES Q-BIOANALYTIC GMBH QUALICHEM NETSWEEPER ROLLRITE
SEARIDGE TECHNOLOGIES SCD PROBIOTICS REGENEX NEWMAN ELECTRONIK SCHRAMM INC
VISUAL DEFENCE SYSTEMS VALTECH CORPORATION SWISS NE WATER V3 TELETECH TEREX FINLAY
Agriculture Defense/ Security/Safety F&B Industrial Medical
ARIBA AIRBUS HELICOPTERS ADVANCED FOOD PRODUCTS CHLORIDE BATTERIES SOUTH EAST ASIA BAYCREST GLOBAL SOLUTIONS
BRUNO LEHMANN AG BAE SYSTEMS CHOCOELF CHOCOLATERIE ECHTERHAGE HOLDING GMBH CLARON TECHNOLOGY
ENSCO DYNAMIC AVIATION DATE LADY INC FLUID ENGINEERING ETOIMS MEDICAL TECHNOLOGY
FRONDITA BIOGROUP HUNTINGTON INGALLS DELGROSSO FOODS GENTEX CORPORATION EUCLID TECHNOLOGY
JACOBS CORPORATION KUCHERA DEFENSE EMMENTALER SWITZERLAND HMP MAGDEBURGER FISCHER ANALYSE INSTRUMENTE
KREAMER FEEDS MOMENTUM AVIATION GROUP HENRY’S SEAFOOD (US) NITTI (ASIA) FRESENIUS KABI
NORTHLAND FOREST PRODUCTS R3 STRATEGIC SUPPORT GROUP OTTENS FLAVORS SIKA GROUP MEDELA
Building & Construction Education FMCG Marine Transportation
DURACO AMERICAN SCHOLAR GROUP DANSKO DRAHTSEILE GEBRUNDER HENSCHEL GMBH CPCS TRANSCOM
ECORE INTERNATIONAL STUDENT NETWORK DESTINY MATERNITY EUGEN WOERNER GMBH ENSCO
FORTA CORPORATION JULIAN KRINSKY CAMPS AND PROGRAMS ELITE SA METALCRAFT MARINE ENVIRONMENTAL TECTONICS CORP
MITSUBISHI CHEMICAL NORTH WEST REGIONAL COLLEGE GRANDLUXE NOSKE-KAESER GMBH LOGISTICS PLUS
RIGEL TECHNOLOGY PENN STATE UNIVERSITY MUSK COLLECTION RAYTHEON ANSCHUTZ GMBH OSHKOSH CORPORATION
SINGAPORE SAFETY GLASS TEMPLE UNIVERSITY WORLD ART GROUP SAM ELECTRONICS TEHO INTERNATIONAL
TESTING BLUHM & FEURHERDT TEXTHELP YORK WALL COVERINGS T DOCK INTERNATIONAL TRIPLESTAR HOLDINGS
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© 2020 Orissa International
Beta Systemshttps://www.betasystems.com/
Cybeatshttps://www.cybeats.com/solutions
Data Valuehttps://www.datavalued.com/
Digital Elementhttps://www.digitalelement.com/
Explore Learninghttp://www.explorelearning.com/
Global Resilience Federation (GRF)http://www.grfederation.org/
Global Victoriahttps://global.vic.gov.au/
Innovate Citieshttps://innovatecities.com/about
KrisfinSofthttps://krisfinsoft.com/
Legacy Innovationhttps://www.legacyinnova.com/
Medisys Innovation Pte Ltdhttp://www.medinno.com/
Netsweeper Inchhttps://www.netsweeper.com/
OWL Testing Softwarehttps://www.owlts.com/
PARIS Technologies Inc.https://paristech.com/
PeopleKeyshttps://peoplekeys.com/
Sintellisyswww.sintellisys.com.sg
Texthelpwww.texthelp.com/en-gb
Trans-Planhttps://www.assetcity.ca/
Trillys Systemshttp://home.trillys.com/web/actucall/
Ubique Networkshttps://swarmio.media/
World Trade Center Torontohttps://www.bot.com/
Partial List Of Our ICT Clients
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© 2020 Orissa International
Vietnam ICT Economy
Overview of Vietnam ICT Industry
Sources:ITU; White Book 2019; We are Social 2020; Google and Temasek
Vietnam Internet Use
Snapshots:
• Average growth rate: 31.1% (2014 – 2019);
• Revenue: USD 112.35 billion (2019);
• Internet & smartphone penetration rate: 66% & 72%, respectively (2019);
• Average speed of mobile and fixed line internet connections rising by 6.1%
(21.56 Mbps ) and 9.7% (27.18 Mbps), respectively.
• Internet economy’s CAGR: 38% in 2015-2018.
Total number of internet
users on any device
68.2 million
Internet users as a % of
total population
70%
Annual growth in
number of internet users
+10 % (+6.2 million)
Average daily time spent
using the internet
6H 30M
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© 2020 Orissa International
Million USD
Revenue Growth Rate
Revenue and Growth Rate of IT industry
Overview of Vietnam ICT Industry
Sources:White Book 2019TopDevWe are Social 2020
Vietnam ICT Industry Data
ICT Export ICT Total Revenue FDI 2018 for Technology Science Sector
USD 91.5 Billion (2019) USD 112.35 Billion (2019) USD 2.1 Billion (2019)
Software Export Turnover Software Industry Revenue IT Engineers
USD 3.5 Billion (2018) USD 4.45 Billion (2019) 400,000
Businesses in ICT Sector Software Industry Growth Rate IT Students Graduate Annually
50,000 Businesses (2018) 13.8% 50,000 from 153 IT Institutions
Total revenue of IT industry 2018
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© 2020 Orissa International
Vietnam’s Digital Economy – Retail
Sources:iPrice; Deloitte Vietnam; Vietnam E-Business Index 2019 Report
Mobile phone (any type)
Smart phone
Laptop or Desktop Computer
Tablet Computer
97% 72% 43% 13%
Electronics & Physical Media
Travel (Including Accommodation)
Food & Personal Care
Fashion & Beauty
Furniture & Appliances
Toys, DIY & Hobbies
USD 840.7 M 541.1 M 232.7 M358.3 M367.9 M386.3 M
Digital Consumers
% Enterprises praising online advertising tools
Preference for different B2C platforms Q2/2020 Vietnam Internet Economy (GMV,$B)
GMV: gross merchandise value
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© 2020 Orissa International
Vietnam’s Digital Economy – Digitalization in Public Organization
At ministries, ministerial-level agencies and government agencies
Sources:White Book 2019Vietnam E-Business Index 2019 ReportData61 2019
Number of online public services
E-Government
Customs
TaxFinance
IoTSmart City
Open Data & Right to Information portals
Inter-agency communication
Vietnam’s e-government targets
In provinces and cities under central authorities
Online public services used by enterprises
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© 2020 Orissa International
Vietnam’s Digital Economy – Digitalization in Private Organization
Businesses’ assessment of impacts of digital transformation on themselves
Sources:Vietnam CEO Insight 2019Vietnam E-Business Index
2019 Report
ICT Expenditure of Business CustomersUSD million
Management Software Adoption(2018)
% of Enterprises receiving orders via online channels
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© 2020 Orissa International
272 ha Smart City project in North of HanoiInvestor/Constructor: BRG Group & Japan’s Sumitomo CorpTotal investment: USD 4.2 billionProject duration: 2018 - 2028
Da Nang approved a smart city development plan for 2018-2025 to connect to 126 ASEAN smart city networkTotal investment: USD 95 millionProject duration: 2018 - 2030
Ho Chi Minh City has started smart city development plan since 2017. Total investment of USD 117 millionProject duration: 2017 – 2020 vision to 2025
Binh Duong has agreed to begin implementation of the smart city project in 2019. Contractors: Vietnam’s Becamex IDC Corp and Japan’s NTT EastProject duration: 2016 -2020
DA NANG
Vietnam’s Digital Economy – Smart Cities
• By 2020, Vietnam should have 3 cities built smart cities:
Hanoi, Da Nang and Ho Chi Minh City.
• Provinces and cities in the neighboring areas such as
Dong Nai, Binh Duong, Ba Ria - Vung Tau, Bac Ninh and
Hai Phong will be the next ones to be implemented.
Priority areas for the development of smart city
Smart city management
Water systems
Waste collection and treatment systems
Grids, lighting systems
Traffic systems
Education
Healthcare
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© 2020 Orissa International
Vietnam’s ICT Economy – Digitalization in Manufacturing
(%)100
80
60
40
20
0
Finance/
AccountingSales R&DManufacturing Service Logistics
Yes
No
Expecting to be applied in
the next 2 years
Departments/Divisions with technology application in businesses Methods, tools, and technologies that businesses have used or are expected to use to promote effective digital transformation
New physics and materials
Nano, 3D printing, Photovoltaic, Self-
driving cars, Electric cars, Flying devices
Digital technologies
AI, Big data, IoT, Blockchain, Cloud,
Autonomous Robot, Simulation,
Computing quantum
Energy and environmentMini satellites,
Turbine technology Wind, Smart Grid,
Battery Technology, Ocean Energy
BiologyStem cells, Biological
chips, Biosensors, Neuroscience,
Individual medicine, Diagnostic and
biomedical imaging
Sources:Vietnam CEO Insight 2019Asia IoT
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© 2020 Orissa International
Key Players in ICT Industry
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© 2020 Orissa International
Adoption of Emerging TechnologiesShare of large companies adopting emerging digital technologies in Vietnam and East Asia/the Pacific
Sources:Data61 2019rubikAINational University of Singapore andMicrosoft
Applications of AI companies in Vietnam Perceived benefits of cloud applications in Vietnam
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© 2020 Orissa International
Opportunities and Challenges in Vietnam ICT sector
FintechLow credit-card penetration (31%) & a booming e-commerce sector → alternative payment mechanisms
Cybersecurity3rd largest home for botnets after India & China; > 60 million computers infected with malicious codes in 2018 → security is a priority
E-commerce70% e-commerce concentrated in Hanoi & HCMC → huge potential in tier 2 cities and rural areas
AI/IoT/CloudFastest growing market for cloud computing (revenue on cloud services grew 64.4% in 2010 - 2016) → increased demand for e-government & Industry 4.0
Agriculture 4.0EUVN FTA & CPTPP will drive investment in agriculture
Edtech & Skills developmentUSD 55 million investment in 2018. There is a need to bridge the skill gaps between university graduates and corporates with international companies in the country
Opportunities
Challenges
Sources:Data61 2019
Bureaucracy and Regulatory Delays Cybersecurity Skills Storage Digital Disruption
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© 2020 Orissa International
• Client: An AI software developer providing customized solutions serving the logistics,
transportation and wholesale retail sector
• Business Need: The client provides a flexible platform that allows subscribers to customize
according to their business need with low cost and low technology skill. The client was seeking
distributors in Vietnam to adopt their software and sell it to their network of companies
• Market Research: Orissa International conducted a market study covering an overview of AI
development in Vietnam as well as suppliers of the relevant technologies. The research was
followed up by business matching exercise, where we arranged 6 meetings for the client in both
Hanoi and Ho Chi Minh City with system integrators, IT consulting companies and IT service
companies with large networks in both cities. .
• Key Findings: From both of the market research and business matching, we found out that the
platform itself cannot be offered directly to the clients in Vietnam. Local companies (SMEs and
even some large corporates) may need to be educated on the benefits as they are not familiar
with doing the customization themselves.
• Our Recommendation: Our client can develop a “product” from their platform and market it with
their partners to customers in Vietnam instead of trying to sell the actual platform subscription.
Case Study 1: Market Intelligence Project
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© 2020 Orissa International
• Client: A solutions developer and service provider of data management, business intelligence,
analysis, and reporting software.
• Business Need: The client needed assistance in looking for a sales partner in Vietnam that will
help to introduce them with potential customers. Because the client offers services instead of a
software, most system integrators cannot help to connect them with their clients.
• Business Matching: We arranged additional meetings directly with potential end users and a
company that provides IT services and payment solution for retails sectors.
• Results: The two companies quickly came up with a Partnership Agreement and the next trip of
our client was focusing on end users in Retail only, with the help of their strategic partner.
Case Study 2: Busines Matching With Strategic Partners
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© 2020 Orissa International
The Market Immersion Program
To help companies address these challenges, Orissa International has developed a unique market entryprogram called the Market Immersion Program (MIP). Under this 12 month program, your company willreceive the following:
• Customised market entry strategy : Know where the opportunities are, who your competitors might be, and what is the best route to market.
• Database : Potential customers and distributors for lead generation.
• Dedicated sales person : Meet customers and distributors locally and develop long term relationships, to execute sales and development activities in the market, and to close deals.
• In-country support : Orissa’s in-country team will provide additional support you to help you achieve export success.
At the end of the program, your company should graduate with sales, whether it’s through distributors or direct to end-customers, much more experience and knowledge of the market, and your own dedicated sales person that can continue to grow your business.
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© 2020 Orissa International
• Low cost and risk: No governance issues, no compliance expenses of own legal entity, no audits, no share capital requirement but same benefits
• Fast-tracked market entry: Our in-market team will help develop an export roadmap for implementation, support the local staff with business development, and share their network of contacts and knowledge of the market with the Client
• Established administrative structure: Our in-country team has a well-established administrative structure from many years of experience in the market
• Easy exit process:
The Client can set up its own legal entity in the market at the end of the program. We will transfer
employment of the local staff to the new entity, and hand-hold the Client through the process
• Addresses key issues:
- High costs of registering a company, or renting office space, without having tested the market first
- Difficulty in obtaining an employment permit to allow a Singaporean to be based in-market
- Difficulty in hiring locally without having a registered presence, and supervising this person remotely
Benefits of the Market Immersion Program
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© 2020 Orissa International
What You Should Know about Doing Business in Vietnam
AccessResearch
Localization Partnership
ASEANProfitability
• Vietnam is one of the most dynamic countries in the
region in signing trade agreements. The free trade
agreements will give a foreign supplier an advantage
of lower tariff over another foreign supplier
• Vietnam offer a large labour force in a stable
economy. However, constant training will be needed
for smooth operation
• Facetime and relationship building with local contacts
• The importance of the local language in business
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© 2020 Orissa International
Business Matching
Ensuring your visit to the market is worthwhile – we arrange relevant and selected back-to-back meetings for a 2-3 day visit to the market
Market Immersion Program
We can help a company test the market first before they set up their own entity. This program taps on Orissa’s network of contacts and in-market expertise
Market Research
Market research on selected ASEAN countries on the market viability, local laws and policies, market structure, competitive landscape and best market entry strategies
Market Expansion
Expand into other ASEAN markets, or beyond with the help of Orissa International’s 6 regional offices and international partners
How Orissa International Can Assist You
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© 2020 Orissa International© Orissa International© 2020 Orissa International
Orissa International Pte Ltd
R.E46, 4th Floor, Block E, Fosco Bldg
40 Ba Huyen Thanh Quan Street
Ward 6, District 3,
Ho Chi Minh City 722000
VIETNAM
Thao Pham, Country Manager - Vietnam
thaop@orissa-international.com
T: +84 28 3827 3904
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