What opportunities are there for Quang Nam?

Quang Nam province has the potential to capitalize on the trend in human resources. Photo: NK

Seeking opportunities for collaboration

The Korea-Vietnam ICT Investment Cooperation Forum, recently held in Da Nang , became an event for Korean ICT businesses to showcase their opportunities and advantages, as well as to seek cooperation between ICT businesses of the two countries.

Mr. Kwon Young-wook, CEO of Yaho Lab, affirmed that ICT is a promising field where businesses in Central Vietnam can develop or collaborate with Korean businesses to create profits and community benefits.

In particular, the central region, especially Da Nang City, possesses significant advantages for Korean ICT businesses to invest and cooperate thanks to government policies, technical infrastructure, and human resources, thereby creating attraction and widespread impact. Yaho Lab is a company specializing in personalized tutoring solutions based on artificial intelligence (AI), making its debut in Vietnam.

"Although Quang Nam is not as well-prepared for ICT as Da Nang, I think this is still a good opportunity for local businesses. Therefore, Quang Nam must develop specific strategies for the future if it wants to seize the opportunities from ICT."

"Yaho Lab is always ready to seek partners in Central Vietnam, Quang Nam, and Da Nang to jointly develop these modern technology platforms," ​​shared Mr. Kwon Young-wook.

In recent years, ICT has become a crucial development direction, promising many breakthroughs for the economy . In Da Nang City, information technology (IT) has been identified as one of the five key economic sectors prioritized for development.

Da Nang has issued numerous policies and initiatives to create momentum for the development of the IT sector, making Da Nang an attractive destination for investors, startups, and IT businesses.

In 2023, the total revenue of the IT industry reached VND 36,571 billion, an increase of 8.1% compared to 2022. Software export turnover reached USD 147.8 million, an increase of 12% compared to 2022. Da Nang's digital economy contributed approximately 20% to the city's GRDP, attracting about 53,000 people to work in the digital technology sector.

Mr. Nguyen Tuan Phuong, Chairman of FPT Software Central Vietnam, believes that semiconductor technology is currently closely related to the manufacturing sector, therefore investing in IT development will open up many opportunities for the economy.

However, for Quang Nam to seize this opportunity and integrate into this trend, strong steps from local leaders are essential. Investing in and preparing resources for semiconductor technology will help seize opportunities more easily. FPT Software Central Vietnam currently has approximately 6,500 employees, but its Quang Nam branch is relatively small due to resource limitations.

"The current challenge remains human resources, which is a decisive factor, especially high-quality human resources with knowledge and foreign language skills… We are trying to attract high-quality human resources to Quang Nam," Mr. Phuong said.

Anticipating human resource needs.

Some argue that, given that Quang Nam is not yet prepared for the development of IT industries, it could focus on supplying human resources to businesses in Central Vietnam, especially Da Nang.

Korean businesses are very interested in the ICT sector in Central Vietnam. Photo: GK

This opportunity looks very promising because Da Nang has three operational IT zones: the Da Nang Software Park with 2,200 employees, the Da Nang IT Zone, and the FPT Complex, which currently employs over 6,500 people. Da Nang is also completing and will put into operation Software Park No. 2 by the end of 2024, expected to attract 6,000 employees.

As of 2023, Da Nang City had over 2,000 digital businesses, including approximately 700 IT businesses with more than 50,000 employees, comprising 26,000 personnel in the software and digital content sectors. It is projected that by 2025, this number will reach 75,000 in the ICT sector and 115,000 by 2030, with an average salary of nearly 20 million VND per month.

According to Dr. Huynh Ngoc Tho, Vice Rector of the Vietnam-Korea University of Information and Communication Technology, there are great opportunities for IT professionals.

"Although Da Nang has 38 ICT training institutions (20 universities and colleges, 18 vocational schools) specializing in training in fields such as semiconductor microchips, IT, software engineering, AI, etc., this workforce will likely not be able to meet the demand in the coming years," Mr. Tho predicted.

In Da Nang, since the end of 2023, the city has established the Da Nang Center for Research and Training in Microchip Design and AI; and implemented numerous investment promotion activities, connecting corporations, training institutions, and domestic and international partners to promote the development of the city's semiconductor and AI industries.

Develop and finalize a plan for the development of semiconductors, integrated circuits, and AI, focusing on chip design, assembly, testing, and packaging; aiming to have at least 5,000 personnel in the semiconductor and integrated circuit field, 1,500 personnel in integrated circuit design, and 3,500 personnel in packaging and testing by 2030; contributing to Da Nang's deeper participation in the global semiconductor value chain.

According to Mr. Lee Jong Wook, Director of the LG VS Da Nang Center, the demand for ICT labor will explode in the next 4-5 years, leading to intense competition for human resources and frequent job hopping. Therefore, it is essential and appropriate to focus on training local human resources now.

Korean businesses are interested in investing in the central region of Vietnam.

According to many economic experts, economic cooperation between Vietnam and South Korea is flourishing more than ever. In particular, South Korea ranks first in direct investment; second in development cooperation, tourism, and labor; and third in trade cooperation.

In Central Vietnam, Korean businesses have implemented many effective cooperation projects, such as Hyundai Group, The Shilla Hotels & Resorts (a leading Korean hotel group) in Quang Nam, LG Group, Lotte Group, Detium in Da Nang, and Doosan Group in Quang Ngai… Currently, there are approximately 250 Korean businesses operating in the Central region.

In Quang Nam province alone, there are currently 58 South Korean FDI projects with a total investment of over 867 million USD, focusing on the processing and manufacturing industries and services.

Some typical South Korean FDI projects currently investing in the province include: Hyosung Quang Nam Co., Ltd.'s curtain fabric factory (total investment of US$410 million); SGI magnetic project of SGI VINA Co., Ltd. (total investment of US$80 million); Panko Tam Thang Co., Ltd.'s textile, garment, dyeing and textile accessories factory (investment of US$70 million); CTR Vina Co., Ltd.'s auto parts factory (total investment of US$27.2 million); Sedo Vinako Co., Ltd.'s factory producing camping equipment, tents and garments (total investment of US$15.2 million)...

Over the past period, Quang Nam province has supported and created favorable conditions for the effective implementation of projects by Korean investors. In particular, it has granted a license to a Korean investor to build the Tam Anh - Korea Industrial Park, covering an area of ​​193 hectares, in order to attract Korean businesses to invest in this industrial park.

Source: https://baoquangnam.vn/don-dau-lan-song-dau-tu-ict-han-quoc-co-hoi-nao-cho-quang-nam-3136787.html