Vietnam is the destination of technology giants

According to the latest report on Southeast Asia's Digital Economy 2019, the region's digital economy is expected to exceed $ 100 billion this year and triple by 2025. Southeast Asia has the potential to become one of the fastest-growing EC markets due to the tech-savvy population, especially the increasing use of smartphones.

Vietnam is the destination of technology giants

 2022-01-12

Vietnam is the destination of technology giants

1. The destination of the giant technology companies


 

According to the latest report on Southeast Asia's Digital Economy 2019, the region's digital economy is expected to exceed $ 100 billion this year and triple by 2025. Southeast Asia has the potential to become one of the fastest-growing EC markets due to the tech-savvy population, especially the increasing use of smartphones.

 

According to a TopDev study, the Vietnamese market in 2020 was well-received, with EC, FinTech (combining financial "Finance" and technology "Technology"), Ride Hailing / Food, EdTech (education "Education" and technology). Combining "Technology"), it thrives in 12 key areas such as health care.

 

Roxy Sexton, Apple's vice president of supply chains, said he was ready to meet and explore opportunities to collaborate with Vietnamese ICT companies wishing to join Apple's supply chain. In the near future, Vietnam will be the destination of the world's leading technology companies.

 

In addition to Samsung being one of the foreign companies helping to revitalize Vietnam's economy, Apple's future participation could also add to the wave of foreign investment in Vietnam. Samsung announced in 2020 that it will invest an additional US $ 300 million in R & D investment in the Hanoi region, requiring an additional 4,000 workers in the technology sector in the near future.

 

Hindustan Computers Limited (HCL), one of India's three largest IT companies (the world's top five outsourcing companies), has developed a center in Ho Chi Minh City and will need an additional 10,000 engineers over the next five years. Axon Enterprise, one of the leading law enforcement technology development companies in the United States, is also concentrating its technology development bases in Ho Chi Minh City, Vietnam.

 

 

2. Human resources shortage situation


 

The salary of a technical manager (who plays the role of CTO or CIO of a company) is up to 5,700$ US (equivalent to 132,291,000 VND) and 1329$ US (equivalent to 30.8 million VND) is the average salary available to the company. With experienced people, salary increases after one year of work can reach 12-18%. Salaries are around 38,165,000 VND/ month, followed by TensorFlows, which is currently the most expensive technology, followed by Kubernetes and Go (33,577,000 VND/month, 28,270,000 VND/month).

 

Machine learning and AI engineers have fairly high salaries, with a monthly salary of 51 million VND and 44 million VND per month, still maintaining the top position in the most promising positions. Due to the shortage of human resources and strict requirements, the salary of managers with more than 5 years of experience is more than 31 million VND/ month. However, employers also find it difficult to find people with a variety of requirements, including salaries and other work requirements to balance their lives.

 

Finding talent is difficult, and maintaining talent is even more difficult for businesses. IT is one of the four industries with the highest turnover rates, with an average programmer “jumping” time of 20 months and a turnover rate of 24% in 2020.

 

To explain these numbers, TopDev's IT report analyzes that the answer is not included in salary. Given a new job, the programmer's salary will only increase by 15%, because there are various conditions that are worth receiving. At the top is the need for formal training (43.2%) and a clear career development path (38.4%).

 

 

3. Solutions to the shortage of human resources


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According to TopDev's IT report, Vietnam will need more than 400,000 IT workers in 2020, which is expected to increase to 500,000 by 2021.

 

There are many reasons for the shortage of human resources. The lack of orientation, primarily from training programs, is not what companies focus on seeking. Graduates lack the necessary skills and aren't fluent in English.

 

From now on, IT training centers will need to focus on quality over quantity. Currently, the government plans to invest more in 20 schools currently teaching IT in Vietnam. Then, the government will work with businesses to offer shorter training courses to enable young people to address their true needs and keep up with new technologies.

 

In fact, many companies now have internship programs that are the best opportunity for students to practice. Part-time jobs will also greatly help you accumulate experience, processes, and problem-solving methods for future work. Moreover, foreign language and social interaction skills should also be focused on, not just skills and knowledge.

 

 

4. Conclusion


Vietnam's IT talent is increasingly valued for its ability to self-study, explore and integrate with foreign companies. However, it is no exaggeration to say that domestic technology can be compared with the countries of the region. The issue of human resources is not fully utilized in terms of scope and power to ensure quantity and quality.

 

It is also the reason for seeing the great powers fighting each other, primarily for technology, not trade. Therefore, technology is a way to help Vietnam give up ruts to catch distant waves. Vietnam's dream of becoming an IT country will come true someday. 

 

On the other hand, in the era of multi-generational hiring, the working culture of the new generation has changed, and companies are also facing challenges in retaining and hiring new employees. Companies need to focus on creating work-life balance and improving the company's dynamic environment so that candidates can easily integrate their product development and contribute to their ideas. Many large companies are now applying their startup models to motivate their employees to focus on their work.

 

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