_The Global Information and Communications Technology Industry: Where Vietnam Fits in GVCs_

**Figure 5. Four types of IT services firms in Vietnam by ownership and market orientation**

||**Local market (65% of output)**|**Export market (35% of output)**|
|---|---|---|
|**Locally**<br>**owned**|**Type 1: state-oriented**<br>Dominated by a few medium- to large-sized local IT services<br>firms that are state-owned or formerly state-owned, with residual<br>connections to government (e.g. FPT, CMC). These firms<br>generally sell customized solutions based on global platform<br>softwarefrom firmslikeMicrosoft and SAP.|**Type 2: local SME exporters**<br>Many small- to medium-sized locally-owned software<br>development firms producing for export, several with<br>connections to Overseas Vietnamese (e.g. TMA Solutions, KMS<br>Technology).|
|**Foreign**<br>**owned**|**Type 3: Global IT Services Firms**<br>Many medium- t large-sized MNC IT services and system<br>integration firms, the only firms qualified for large systems, often<br>with onsite consultants for support, customization and<br>maintenance (e.g. IBM). Some of these firms also sell<br>customized solutions based on global platform software. The<br>mainclients are other MNCs operatingin Vietnam(e.g., banks).|**Type 4: MNE exporters**<br>A few MNC branch operations providing software development<br>and ICT-enabled series (digital content and BPO) for export (e.g.<br>Harvey Nash, Robert Bosch). Some of this work is for to<br>external clients and some is for parent companies (captive<br>operations).|

_Source_ : VINASA (export shares), authors

**Table 9. Top 15 ICT services and ICT-enabled services firms in Vietnam, 2013**

|**Rank**|**Company Name**|**HQ**|**Main Markets**|**Emp.**|**Revenue**<br>**(USD**<br>**Million)**|**Key Competences**|**Type**|
|---|---|---|---|---|---|---|---|
||Joint Stock Company|||||Software Application Development, Renting||
|1|<br>for Telecoms and<br>Informatics|Vietnam|Vietnam|502|$168|<br>Telecommunications Infrastructure, IT<br>Consulting|1|
|2|FPT Software<br>Company|Vietnam|Japan, US, EU,<br>Vietnam|6,00<br>0|$101|BPO, Cloud Computing, Mobility, IC Design|1|
|3|FPT Information<br>System|Vietnam|Vietnam|5,00<br>0|$34|Enterprise Resource Planning, E-<br>Government|1|
|4|TMA Solutions|Vietnam|US, Canada, EU,<br>Australia, Japan|1,70<br>0|$27|Cloud Computing, Big Data & Analytics,<br>Mobile|2|
|5|HiPT Group|Vietnam|Vietnam|262|$25|Systems Integration, Software<br>Development,IT Equipment|1|
|6|Harvey Nash|United<br>Kingdom|US, UK, EU,<br>Vietnam|945|$20|Software Development, BPO|3|
|7|Elcom Corp|Vietnam|Vietnam|335|$20|Software Development, R&D, Systems<br>Integration|1|
|8|Tinhvan<br>Technologies|Vietnam|Vietnam|363|$14|Software Development, Digital Content, IT<br>Consulting|1|
|9|Global Cybersoft<br>(HitachiConsulting)|United<br>States|US, Japan, EU,<br>Vietnam|850|$12|Enterprise Application Integration, Testing,<br>SoftwareDevelopment|3|
|10|KMSTechnology|Vietnam|US|459|$9|ProductDevelopment, SoftwareTesting|2|
|11|MK Smart|Vietnam|Vietnam, Japan,<br>Southern Africa,<br>Latin America|409|$8|Card Printing, Payment Card Security,<br>Automatic Payment|2|
|12|NTT Data|Japan|Japan, Vietnam|190|$8|Software Development, IT Consulting,<br>Manufacturing andLogistics|4|
|13|Technology and<br>Media Investment<br>Development|Vietnam|Vietnam|90|$6|BPO, Cloud Computing|1|
|14|SPi|Philippines|US,EU|800|$4|DigitizationServices, Content Solutions|4|
|15|Fuji Computer<br>Network|Japan|Japan|350|$4|Software Development, Systems<br>Integration,Computer Aided Design|4|

_Source_ : VINASA 30 Leading IT Companies 2014

# _Type 1: Locally-Owned IT Services Firms Producing for the Local Market_

The Financing and Promoting Technology Corporation (FPT) is one of the largest and most important formerly state-owned enterprises (SOEs) in the country. In 2003, the government restructured the organization, dividing it into three nominally independent firms: FPT Information System Company (a state owned systems-integrator and software developer), FPT Distribution (the firm which owned the master distribution contracts with IBM, HP, Cisco, Microsoft, Oracle and other large firms), and FPT Internet (controlled Internet activities in both Hanoi and Ho Chi Minh 21