orissa international ict in vietnam

© 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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• 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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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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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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Partial List of Governments Who Refer Companies To Us

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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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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

https://www.betasystems.com/

https://www.cybeats.com/solutions

https://www.datavalued.com/

https://www.digitalelement.com/

http://www.explorelearning.com/

http://www.grfederation.org/

https://global.vic.gov.au/

https://innovatecities.com/about

https://krisfinsoft.com/

https://www.legacyinnova.com/

http://www.medinno.com/

https://www.netsweeper.com/

https://www.owlts.com/

https://paristech.com/

https://peoplekeys.com/

http://www.sintellisys.com.sg/

http://www.texthelp.com/en-gb

https://www.assetcity.ca/

http://home.trillys.com/web/actucall/

https://swarmio.media/

https://www.bot.com/

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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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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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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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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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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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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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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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Key Players in ICT Industry

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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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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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• 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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• 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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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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• 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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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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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

[email protected]

T: +84 28 3827 3904

mailto:[email protected]

orissa international ict in vietnam

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