Software export is a lucrative aspect in Da Nang’s information technology (IT) industry. This year witnesses the software exports thrive impressively. However, to make even more breakthroughs in this aspect, it is high time for the city to deal with current shortage of high-quality human resources.

Japan has remained Da Nang’s largest software export market. Software engineers arre seen working at the Wakumo Viet Nam Co., Ltd., whose parent company is based in Tokyo, Japan.

According to the municipal Department of Information and Communications, the total revenue of the city’s information and communication technology (ICT) is expected to have reached 30,050 billion VND by late this year, surpassing by 4% of the year’s target, and rising by 19.2% compared to last year.

Noticeable, software exports are likely to hit 89 million US$, exceeding by 11% of the year’s target, up 14% against last year. It is worth praising that some software enterprises operating in the city have joined the city’s ‘trillion VND’ club like Viettel Da Nang and FPT Software Da Nang. Meanwhile, many others have also recorded spectacular growth, including Asian Tech Co., Ltd., and Rikkeisoft Co., Ltd.

Dang Ngoc Hai, the General Secretary of the Da Nang Software Association, said that Japan has remained Da Nang’s largest software export market. In addition, the city has emerged as an attractive new destination for domestic and foreign IT businesses.

Some large domestic IT corporations show their willingness to open their branches in Da Nang, whilst, in a similar vein, foreign companies also look forward to setting up their software development centres here so as to seek highly potential outsourcing resources.

In addition to a large increase in the number of IT companies, the software industry made a remarkable step in the supply chain last year. Large-scale software export companies across the city have focused on providing high-quality services instead of specialising in low-cost outsourcing.

According to Nguyen Tuan Phuong, the Director of FPT Software Da Nang, by late this year, his company’s software exports will have reached 1,230 billion VND worth of revenue, 230 billion VND higher than the figure reported last year.

It is a good sign to see many IT businesses launch their new products and services associated with the Industry 4.0’s technologies such as artificial intelligence and data analysis, hereby, promising many breakthroughs in the coming years.

However, the arrivals of new industries such as artificial intelligence and block chain now create a ‘headache’ for IT businesses in recruiting highly qualified employees.

Human resource training is a decisive and strategic factor for the growth of the city’s IT industry.

After nearly 10 years of operating in the city, the Axon Active Viet Nam Co., Ltd., for example, now still faces difficulties in recruiting highly qualified human resources, which has more or less adversely affected the city branch’s overall growth.

According to Director of the Department of Information and Communications Nguyen Quang Thanh, about 12,000 people now work in software production and outsourcing. It is forecasted that, by 2020, these aspects will need about 17,000 people, and by 2025 the figure will climb to 35,600.

“Human resource training is a decisive and strategic factor for the growth of the city’s IT industry”, affirmed Thanh.

Folloowing a recent approval by the municipal administration in August on speeding up ICT infrastructure development, focus will on maintaining the stable and effective operation of the existing Da Nang Software Park located in downtown Hai Chau District’s Thach Thang Ward, in tandem with the establishment of a centralised IT park in suburb Hoa Vang District.

Besides, work will also start on the construction of the 5.3ha Software Park No 2 in Hai Chau District’s Thuan Phuoc Ward and the expanded Da Nang Software Park, which covers 3.2 ha in Cam Le Distric.
By 2025, Da Nang will have housed 4 software and IT parks, together accounting for 10% of the city’s gross regional domestic product (GRDP), and by 2030, the figure is expected to have reach 6, accounting for 15% to the city’s GRDP.

By PHONG LAN – Translated by ANH THU