Vietnam: Asia's Next IT Hotspot

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Jittiporn did not comment on the possibility that SAP might establish a Vietnamese office, but noted that the company already has almost 40 clients in Vietnam. These include multinational companies, as well as local firms such as Boa Minh Insurance and Binh Minh Textile.

Likewise, Symantec has chosen to work with local partners instead of establishing a Vietnam office.

Eric Hoh, vice-president of Symantec in Asia South, said Vietnamese companies are now aware of the need for security.

He added: "We are also working with partners to educate the market on the importance of security and availability. Through an extensive network of distributors and resellers, Symantec will continue to expand our presence in both security and availability."

In any case, the liberalization of Vietnam's financial industry is likely to boost demand for hardware, software and IT services in the country.

Financial Insights, a subsidiary of research company IDC, noted in a report early this year that state-owned commercial banks and the smaller joint-stock banks, which together make up 91.7 percent of the Vietnamese banks, are investing heavily in IT modernization.

The Vietnamese government is also leading the charge when the Ministry of Finance announced in October that it would build a new Treasury & Budget Management Information System (TSBMIS) together with IBM.

The US$49 million project was funded by the World Bank. It is aimed at integrating and centralizing the government's financial management systems into a single platform to improve transparency and accountability of public financial management.

According to Krishna Giri, public sector leader at IBM Global Business Services in Asean and Asia South, the new systems will be operational in pilot sites from April 2008.

Apart from IBM, which is providing consulting services, hardware, software and support services, FPT and Oracle will also be involved in systems integration throughout the project.

Perhaps the strongest sign of Vietnam's booming tech sector comes in the decision by the organizers of CommunicAsia, Asia's largest communications industry trade show, to stage a similar event in Vietnam in 2007.

Vietnam's telecoms market was worth US$2 billion in 2005. Its teledensity--at just 18.41 per 100 people--means that Vietnam's telecoms industry is expected to balloon.

Between 2001 and 2004, the country's telecoms sector grew 47.8 percent each year. By 2008, the number of cellphone users in Vietnam is expected to increase to 21 million. The International Telecommunication Union has also named Vietnam as the world's second fastest-growing telecom market, after China.

Provided by ZDNet Asia—Where Technology Means Business