Investment environment 
Vietnam
has enjoyed over 30 years of political stability, no conflict with
neighboring countries and now the government is determined to reform
administration and fight against corruption.
GDP growth (8,4%) ranked 2nd highest in Asia in 2007.
IT
is one of the fastest growing sectors in Vietnam, growing at 22%
annually. Experts predict that Vietnam’s IT spending will rank within
the top 10 in the world by the end of 2008. In 2007 alone, the
Government invested about US$1.4 million in IT rel 
ated projects.
In addition to hardware and software, Vietnam has al so been ranked as a top telecommunications market.
Many preferences for software industry
Corporate income tax is reduced by 25%, 20% or 10% in accordance with investment incentive
Tax exemption is offered for 4 years.
Vietnam is making every effort to enforce and im prove intellectual property protections. In summer 2006,
Vietnam enacted legislation to come into full compliance with TRIP (WTO
Trade Related Aspects of Intellectual Property).
750 software companies with 35,000 emp loyees, of which 150 companies working in outsourcing (scale: 100-150 employees).
Turnover
of software and IT products made for US$ 350 mi. USD (2006), including
US$ 110 mi. USD from exports (annually increased by 30%).
Human resource 
Vietnam has a well educated and technically savvy population , 96% of Vietnam's population is literate.
Young,
dynamic and hardworking workforce: More than 50 % of population (Total
population: approximately 84 million) is under 30.
Vietnam’s
salaries are almost 50% less expensive for both ITO and BPO in India.
The labor costs are also 90% less expensive than that in the US.
80,000 IT engineers and more than 20,000 newcomers/year
83% of the students from Vietnamese colleges and universities with graduate science degrees
The
average gained value of each Vietnamese programmer reached over US$
10,000/head/year. However, in some big software enterprises with many
outsourcing projects, this increases to US$ 17,000 – 20,000/head/year.
Infrastructure
The
expansion of the cellular network nationwide coupled with the reduction
of service charges and the entry of new operators have contributed to
the recent growth of mobile users in Vietnam (93% growth). Mobile phone
users base in Vietnam had increased from nine million in 2005 to 17.3
million in 2006.
The total capacity of Internet connection lines is 12,115 Mbps.
The
number of Internet subscribers jumped by 78.5% during 2006-07, up to
4.9 million people, while Internet users increased by nearly 80
percent, to reach a combined total of 17.5 million people.
Increasing
investment in infrastructure: building, high tech parks, networks and
bandwidth. For example, 8 delicated software parks in the major cities
of Ho Chi Minh, Hanoi, Hai Phong, Can Tho, and Da Nang.
