MSIT to Make Wider Inroads into Vietnamese ICT Market (May 23)
- Enhance support system for companies advancing into Vietnam in ways including marketing (ICT partnership event), hub (Ho Chi Minh IT cooperation center) and personnel development (Korea IT school)
□ The Ministry of Science and ICT (MSIT) and National IT Industry Promotion Agency (NIPA) announced to increase support for Korean companies to advance into Vietnam which is the largest ICT export destination of Korea among New Southern policy countries through measures such as ICT partnership event (marketing), Ho Chi Minh IT cooperation center (hub) and Korea IT school (personnel development).
ㅇ Vietnam is Korea’s second largest ICT export destination ($27.89bn in 2018, takes up 12.7% of total ICT export) and has been growing rapidly at over 6% in the recent five years. There is a high demand for Korean companies to enter the Vietnamese market as can be illustrated by around 800 Korean businesses setting up local branches last year.
- However, Korean ICT companies have difficulty in securing worksites, recruiting outstanding talents and pioneering sales channels in Vietnam. Also, more than 70% of ICT export to Vietnam goes to devices and related items such as semiconductors and displays, so a systematic support is required to diversify the export items.
* According to the result of survey conducted on ICT companies which have entered the Vietnamese market (Nov. 2018), companies had difficulty in ① gaining access to the pool of outstanding talents (35%), ② pioneering sales channels (24%) etc. when they do businesses in Vietnam.
□ In an effort to bolster support for ICT export to Vietnam, MSIT held “Korea-Vietnam ICT partnership” exhibition (May 23, Thur) to provide support in exporting products and services to Vietnam which are scalable via 5G communication services such as smart city control, educational technology, information security and Korean Wave contents.
ㅇ In this exhibition, 26 domestic ICT and broadcasting content companies had export consultation meetings worth around 10m dollars with promising local buyers and had networking meetings. EES, a company participating in the exhibition has been selected as a partner company in the field of control platform to UNPT-IT, a Vietnamese company in smart city industry which has the mission to build smart cities in 25 Vietnamese cities (Hanoi, Danang, Phu Quoc etc.) and the two sides signed MOU (worth over 25bn won). In addition, 2 MOUs on co-production of broadcasting contents and export contract on broadcasting format* will be signed.
* export broadcasting production concept or format to Vietnamese broadcasting companies.
□ Meanwhile, IT cooperation center was set up last year in Hanoi, the capital city for increasing cooperation between governments and businesses of the two countries and support has been provided to policy consultation and promoting export (3.32m dollars in 2018) of companies of the center. This year, Ho Chi Minh IT cooperation center was established to expand support for settlement of businesses, localization of products and services and business networking.
ㅇ On the occasion of the opening ceremony for Ho Chi Minh IT cooperation center held on May 23(Thur), the Ho Chi Minh Communist Youth Union and operating agency signed a MoU on cooperation to promote startups and nurture talents to expand mutual exchanges such as jointly hosting ICT startup contest.
□ In addition, ‘KOREA IT SCHOOL’ is operated to train ICT professionals in Vietnam and support businesses having a hard time in recruiting personnel.
ㅇ KOREA IT SCHOOL has educational programs in the field of SW and Korean language to train students interested in Korean companies who are ready to graduate from Vietnamese universities and those searching for jobs (50 people in 2019) so that they can carry out practical projects of Korean SW companies.
- It aims to increase national brand value on excellent ICT capabilities of Korea and provide support to Korean companies to reduce the burden of Korean companies in recruiting experts.
□ MSIT will strengthen strategic support such as marketing, expansion of hub and personnel development to diversify the device-focused export structure of Vietnam to be software-focused.
ㅇ In addition, MSIT will provide support to countries under the New Southern policy including Vietnam which is preparing to launch 5G service within the next two to three years and facilitate the process of overseas expansion for ICT businesses who have great potential for scale-up via 5G in ways such as smart city and Korean wave contents.
- In the future, a group on overseas market expansion will be formed by the time of 5G service commercialization and support will be increased for Korean companies to go abroad.