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A LAND OF OPPORTUNITY FOR
       EMERGING PRODUCT-CENTRIC IT FIRMS
       Another noteworthy development in Vietnam’s dynamic IT          59%                 57%
       landscape is the increasing appeal it holds for emerging        Cost Cutting Tool   Enables Focus on
       product-centric IT firms, including both startups. They are                          Core Business
       choosing Vietnam as their preferred location to develop their
       core offerings and build their initial IT teams.                47%                 31%
                                                                       Solves Capacity     Enhances
       The driving force behind this trend is the continuous           Issues              Service Quality
       improvement of technical and business skills among
       Vietnamese IT professionals. These proficient professionals are   28%                28%
       ideally positioned to contribute significantly to the creation of   Critical to      Access to
       innovative products. Moreover, Vietnam offers an enabling       Business Needs      Intellectual Capital
       environment for cost-effective product development and
       rigorous testing. This makes it a prime choice for firms         17%                 17%
       dedicated to bringing new products to market.                   Manages Business    Drives Broader
                                                                       Environments
                                                                                           Transformational Change
       A POSITIVE OUTLOOK FOR 2024
       Worldwide IT Spending Forecast (Millions of U.S. Dollars)


                                   2022           2022         2023          2023         2024          2024
                                   Spending       Growth       Spending      Growth       Spending      Growth


        Data Center Systems        221,223        16.6         217,880       -1.5         235,530       8.1
        Devices                    766,279        -6.3         700,023       -8.6         748,150       6.9
        Software                   811,496        10.7         922,745       13.7         1,052,956     14.1
        IT Services                1,305,699      7.5          1,420,905     8.8          1,585,373     11.6
        Communications Services    1,423,075      -1.9         1,461,662     2.7          1,517,877     3.8
        Overall IT                 4,527,772      2.8          4,723,215     4.3          5,139,886     8.8

                                                                                              Source: Gartner (July 2023)

       Businesses can benefit from the increasing global software spending in 2024. This is driven by high demand and
       innovation in the software sector across the Asia-Pacific, the U.S., and the EU. To gain a competitive edge in this
       market, you need to adopt the latest software technologies and solutions that will improve your performance,
       efficiency, and customer satisfaction.


       VIETNAM IT LANDSCAPE


       BRIDGING THE GAP BETWEEN SUPPLY                               The number of IT graduates each year
       AND DEMAND WITH CATALYST                                         compared to the actual demand
       The economic downturn has slowed down the recruitment
       market this year, creating an oversupply of candidates for
       limited jobs.§ Businesses need to restructure and adapt to
       digital transformation and new technologies.¨ Together,
       these factors increase the competition and challenges for         25%                   35%
       job seekers and employers.
                                                                        Quantity                Quality
       When it comes to Vietnam’s IT industry, it previously faced
       recruitment challenges due to the gap between the supply
       and demand of IT personnel. According to a 2022 report,
       only 30% of IT graduates met the job requirements.©






       2   Vietnam IT demand drives recruitment of qualified personnel | DTiNews - Dan Tri International, the news gateway of Vietnam
       3   Vol. 40, No. 1, Special Issue: Digital Transformation in Southeast Asia (April 2023), pp. 127-144 (18 pages). Published By: ISEAS -
       Yusof Ishak Institute

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