Lord Green The Minister of Trade and Industry, gave the opening speech. He is so good at inspiring business to get on a plane to take a look at new markets. His easy charm and practical approach will be difficult to follow when he steps down later this year. He makes it very clear that we are open for business.

HE Thein Sein gave an inspiring speech about his country in excellent English, talking about the opportunity and some of the challenges that face the country as it emerges into the global economy.

We need to get used to knowing "Burma" as Myanmar. Talk to Asians about Burma and they give you a blank look.

The opportunity for British companies in infrastructure, energy and financial services, manufacturing and agriculture are fabulous providing we can get in fast, be adventurous and sell our services. We seem sometimes to forget how good we were at pioneering new markets in the Victorian era when we put the GREAT into Britain. It is horrifying to me that the Italians, French and Germans are all well ahead of us on export growth in to the ASEAN region. Myanmar gives us the opportunity to get in first.

With a 54 million population, strong foreign development funding to help build infrastructure and the education system, there is already a developing IT skills market. Wireless technology and infrastructure will enable the country to develop much faster than many more established economies. No need today to run miles of wire round the country or set up complex and expensive schooling environments. Using wireless technology enables e Education allowing small village based schools to provide exceptional primary education. The internet gives access for  e-business.

It won't be long before mobile ownership is pervasive, businesses spring up, exports start to drive local business and like Vietnam  (http://www.nashtechsoftware.com/) Myanmar become a big part of the Global Village.

If you want to understand more then go to http://www.ukabc.org.uk/

(Paul Smith is a member of the ASEAN Business Council http://www.ukabc.org.uk/what-we-do/advisory-panel/paul-smith/

First contracts have already been signed with Mitsui &Co, Moshi Moshi Hotline and MOCAP for the development of BPO and Software business in the Japanese market with projects already underway. Nashtech, the largest foreign technology business in Vietnam with over 4000 employees, have invested in a Japanese speaking business centre in Hanoi and HCMC to serve the discerning Japanese company. Nashtech have taken a 15% share of MOCAP, a Mitsui, Moshi Moshi and SmartMedia investment in BPO and expect to add another 300 engineers over the next year.

So why Japan? Japanese business is under pressure to manage an increasing cost base and is suffering from a shortage of young, skilled labour. Not enough graduates coming through with science based qualifications and social burden driven by an aging population. Sounds familiar to the UK, Germany, France; indeed all the mature western economies. But Japan has a unique challenge restricting the use of high skill immigration as a potential solution: its language and character sets.

The solution so far has been to engage with China, particularly with the Japanese speaking community. Recent political issues between the two countries that have used Japanese business in China as leverage, has stimulated a move to alternative stable locations, with Vietnam top of the list.

Nashtech already serve many Japanese clients from its centres in Vietnam where over 2000 software engineers deliver solutions that meet the very high standards demanded by the Japanese market. The quality processes and high standards have been influenced by Nashtech’s German research and development business where over 300 engineers develop robust wireless network solutions in tandem with Vietnamese engineers – German engineering from Vietnam. Nashtech also have extensive experience in Business Process Outsourcing where they have established deep business transformation knowledge , through successful client engagements, of how to improve process whilst delivering outstanding financial value.

As a result the Mitsui/Nashtech co-operation agreement is very powerful, Japanese engineering from Vietnam is a reality but at a cost that enables Japanese business to get more for less, and compete globally to even greater effect.

AT Kearney’s research showed that Vietnam remained in the global top ten for software outsourcing rising two places to 8th from 10th position in 2010 but a massive 11 places since 2007

The ranking list was based on consideration of the following criteria in 50 countries: services and IT support, customer service and IT application support. The three major standards were financial attractiveness, human resources and business environment. Vietnam took the lead in the financial index.

Nashtech Software, a Harvey Nash subsidiary, employ over 4500 IT professionals in Vietnam and were the first foreign investor to set up a development centre in Vietnam. Now the second largest Software development firm in Vietnam major European, USA and Australian clients are moving to Nashtech Vietnam to capitalise on the loyal low cost resource. India maybe the biggest but Vietnamese staff are loyal, staff retention is outstanding, and productivity is high. Frankly does size matter? Not if you need quality, great knowledge retention and fabulous value for money.

Vietnam……top five next year?

How is employability defined in the contemporary global context? Why should higher education address employability issues? What are the key skills that graduates need? What are best practices in embedding employability in higher education? The above mentioned questions were addressed by both businesses and educators in a two-day Global Education Dialogue in Ho Chi Minh City (9-10 August 2012) organized by the British Council on “Employability skills in Southeast Asia and the needs of the new economy: The challenge for higher education.”

This is the first event held in Vietnam with the purpose of providing information and enhancing education policies as well as real experiences to bring new opportunities and challenges for education in ASEAN region. This event also plays an important role in establishing stable and long relationship between universities and businesses/industries across the world.

“Higher education needs to spend more time developing the soft skills of graduates if they are to be employable and then keep their job” was the message Paul Smith – the Chairman of Harvey Nash Outsourcing- delivered to the conference in Ho Chi Minh City.

During his presentation to a group of nearly 100 educationalist and business people from across Vietnam, ASEAN and the UK, Paul talked about how Harvey Nash was changing the face of professional services management in Vietnam, and the problems we are facing in making sure that talent we work with is equipped with both the aptitude and attitude to be successful.

The conference, called “Employability skills in Southeast Asia and the needs of the new economy: The challenge for higher education” was organized by the British Council with support from MOET and Aston University from the UK.

Paul was invited by the organizers to share his in depth knowledge with the delegates on the relationship between employability skills and the stages of economic development. Following on from the opening ceremony Paul immediately set the scene for the conference by explaining the work of Harvey Nash and how it has become the successful by not avoiding the problems of employability but by dealing with them. He also asked that higher education should start to play a more positive role in preparing Vietnam graduates with a more fully rounded skills set beyond just technical competence. In a suggestion deliberately designed to provoke debate he suggested that a degree in skills would be just as important as any other academic subject. Indeed he suggested a first in Soft skills would be better than a first in Mathematics.

The conference heard presentations on a range of subjects by delegates from the UK, Philippines, Indonesia and Japan as well as from Vietnam. The breadth and depth of the discussion is a real demonstration of the progress that Vietnam is making in building a world class pool of talent. There is no doubt we still have a long way to go in meeting that objective, but it is also clear that Harvey Nash has a crucial role to play in that journey. In a series of meetings outside the main conference proceedings many good contacts were made with people who like us are working hard to make the Vietnamese education system more fit for purpose, and the possibility of some future exciting collaborations were discussed.

This appeared as the major theme of the conference – the future belongs to partnerships and to those who have the vision to change the way the world works. Harvey Nash and it’s passion for the power of talent will be one of those partners who and through conferences such as this we are sharing our success story.

By Ms Thi Thu Hien Nguyen
Harvey Nash Vietnam Recruitment Leader

This beat the USA, UK, Germany and wait for it, India. It is why they are such great software developers and why NashTech (Harvey Nash plc) is proud to employ 4,500 in its Offshore centres.

Now it is also interesting that the American 2012 Olympic team will be dressed by Ralph Lauren of course. It is very likely that the USA will top the medal table so by default will Vietnam because that is where some of the team uniforms are made. I suspect that will be the case for a number of the top teams at 2012.
http://edition.cnn.com/2012/07/18/opinion/u-s-olympic-scandal-raina/index.html

But seriously, Vietnam's Olympic 2012 squad arrived in London to start their preparations at Bradford College to beat the two silvers won in previous games. There are 18 qualified Vietnamese competitors at 2012 covering Athletics, Badminton, Fencing, Gymnastics, Judo, Rowing, Shooting, Swimming, Taekwondo, Weightlifting, and Wrestling. You can find the details here: http://en.wikipedia.org/wiki/Vietnam_at_the_2012_Summer_Olympics

I will be cheering the Vietnamese team along with our 4,500 developers in Vietnam. If they are half as good and dedicated as the Harvey Nash team in Hanoi and HCMC then lots of medals will be won.

http://www.nashtechsoftware.com/software-development/clients

Paul Smith, July 2012

Fry says,” With a better educated work force, Vietnam has achieved considerable success in attracting international investments. I have numerous entrepreneur friends in East Asian countries such as Japan and Korea who have expressed considerable satisfaction with their Vietnamese workers. I would argue that Vietnam probably has the best quality (relative to cost) workforce in the world.”

His reasoning as to why the culture values teachers and academic achievement so highly is really interesting: “There are four key themes of Vietnamese history that are important to understand. First, Vietnam spent over 1,000 years under the direct influence of China. Second, Vietnam frequently has to confront many natural disasters such as floods and typhoons. This forced them to develop innovative responses such as the huge dykes that protect Hanoi from the Red River floods. Third, Vietnam faced serious threats from external invaders such as the Mongols, the Chinese, the French, and finally the Americans. To defeat these invaders, the Vietnamese showed great ingenuity and cleverness. Fourth, the heart of Vietnamese culture is the village, where education and teaching were highly valued.” Says Gerald W Fry, Professor, Department of Organisational Leadership, Policy, and Development, at the University of Minnesota.

Read the full article.

According to research compiled by HSBC, a banking giant in Asia Pacific, Vietnam will emerge as the next big hub for Asia’s electronics industry, overtaking traditional locations in the region. HSBC’s report on how the economic landscape will change over the next 40 years is substantiated by the World Banks prediction that the Vietnamese economy will grow to become the world’s 14th largest economy by 2050. For a really balanced editorial about the Vietnamese economy follow read the Indochine Machine.

Vietnam’s low cost manufacturing base attracted a wave of manufacturing investors particularly in the retailing, clothing and technology sectors. Intel invested in Vietnam 6 years ago raising the profile as an investment destination. Samsung, Canon, Microsoft and Panasonic, were also early investors on the sector, but not quite so early as Harvey Nash though!

Harvey Nash invested in the ICT services sector some twelve years ago. It was a very early commitment, well before other technology investors. The result is that they are now the third largest employer of ICT professionals in the country. Vietnam’s young population, bias towards a science based education, and growing ICT labour force makes for a strong story. The stability of the political system, WTO membership and intent to make ICT a plus 10% contributor to GDP, coupled with a foreign investor friendly approach, makes the story compelling and HSBC predictions look very real.

Harvey Nash has over 4000 ICT professionals in Vietnam delivering technology and software solutions to UK, Germany, USA and Australia. Vietnam also hosts Harvey Nash’s BPO service centre and Executive recruitment business.

The event, attended by 200 businessmen and women from the UK and Vietnam, provided a platform for networking and above all the formation of trading relationships between the two countries. Over 40 Harvey Nash Clients attended this exclusive event for British businesses. Lord Green, Minister of UK Trade and Investment spoke of the growing relationship with Vietnam and the fact that as the 17th largest exporter to the country there is tremendous opportunity for SME’s to grow their businesses through this fast developing market.

The Duke of York spoke about the special trade relationship that the British and Vietnamese governments have formed and called for more British businesses to take advantage of the markets in one of the top growth economies in the world.

Paul Smith, Chairman of Harvey Nash Outsourcing related the growth of Harvey Nash’s software business in Vietnam starting in 2000 with 25 people and growing to over 4500 software engineers today. Jack Howell, CEO of Prudential Vietnam, Patrick Regis, CEO of Rolls Royce Vietnam, Alain Cany, CEO Jardines Vietnam and Sumit Dutta, HSBC Vietnam, all spoke of the significant business opportunities in the country.

Vietnam is a great example. They already have an enviable 32% of the population connected to the internet. To put it in perspective that is 26.5 million users. With a population of 86 million with the majority living in countryside not well served by technology cities.

ICT education along with e-learning represents a unique challenge for countries such as Vietnam, how to connect thousands of remote schools at least cost as fast as possible. Cloud Computing is a real answer. Schools just need basic PC’s and can hook into central education applications cheaply and easily. http://vietnambusiness.asia/businesses-turn-to-cloud-computing/

Roll out of “digital education” becomes a real option to speed up and increase the pool of trained and educated staff. This is a strategy at the top of the Vietnamese government priorities for obvious reasons.

Many of Harvey Nash’s 4000 plus software engineers in Vietnam live in the cities but many have come from the countryside to study in the cities before getting their first job – in the cities. Over 80,000 graduates go through Universities each year and government targets reckon than 200,000 ICT students will be needed to meet 2015 growth in Vietnam’s ICT sector. With over 11% of GDP projected to come from the sector, the next years will be exciting with young people coming into the sector to meet resource demand. As the largest foreign software technology investor in Vietnam, we are enjoying the excitement.

Vietnam is increasingly attracting world attention as one of the fastest growing economies in Asia. It was recently ranked 34th in an Ernst & Young report into the globalisation of major economies around the world. Vietnams’ ICT Industry is a key player in helping the country to globalise. Harvey Nash are the largest foreign invested software and BPO business in the country. A Q&A by E&Y is included below or to read the report click here.

How do you measure globalisation and how has Vietnam positioned itself in the process?

The world is in a very interesting time in the context of globalisation. What we are seeing now is that countries in different places have different approaches to globalisation. There are some countries having closed economies like Iran or India which have not been open to investment from outside. They have closed their borders, ranking very poor in the globalisation index. Then you can see countries like Singapore where the dependence on global trade and trade with other countries is very high.

Actually the trend is very positive in Vietnam in terms of globalisation. The country scored 34th out of 60 in the globalisation index. This is a very positive trend which we think will bring about many good things for the Vietnamese economy.

Globalisation has brought challenges for individual businesses. In which ways do you think that the Vietnamese firms can overcome the challenges?

The first is to make sure that you have a global-local balance. What we have seen in the last several years is that there has been a whole new series of companies, which we called emerging heroes, that have performed very well through the recession. What they are really able to do is to focus on developing a strong and successful business in their local market, knowing customers very well and developing a successful model before they went beyond borders. The other factors are of course innovating locally, making sure that you have right relationship with regulators and the government, which is going to be very important and making sure that you have developed a good leadership team as well.

Vietnam is an export-led economy with exports contributing about two-thirds to its gross domestic product (GDP). Do you think that Vietnam has a global and domestic trade imbalance?

I think the fact that Vietnam’s rising income level in recent years and as it will become an industrialised country until 2020 will create huge opportunities in this market for domestic businesses to serve the local market.
At the same time, if you look at the trade right now, Vietnam still has a deficit. There have been tremendous opportunities for Vietnam to increase its exports to Asian market, which represents very huge demands and growth, particularly in its neigbouring Chinese market. So, we believe that there remained very big market opportunities beyond Vietnam’s border.

The trend in Vietnam is very positive and I agree that the focus on domestic market is critical. But in order to continue improve globalisation ranking, it is important to keep the border open in the context of encouraging foreign investment to continue in Vietnam. So it is important to have a healthy balance, making sure that the country is very focus on its domestic market but at the same time looking for the opportunities that exist beyond its border.

I have often written about the speed that Vietnam is maturing as an economy and in relationships with the international community. Now, the ultimate indicator: Bob Dylan will be playing to an audience in Ho Chi Minh City on April 10th…..Awesome! I am old enough not just to remember his performances but to have bought his early vinyls on release.

Dylan, whose songs like “Blowin’ in the Wind” and “Masters of War” were sung at many a Vietnam War-era protest, is scheduled to perform a set list of his own determining on April 10 at RMIT University in Ho Chi Minh according to the New York Times.

http://artsbeat.blogs.nytimes.com/2011/03/15/modern-times-indeed-dylan-plans-first-concert-in-vietnam/

It beats a visit from Bill Gates, President Bush and even Clinton in my mind. It shows just how far perceptions of Vietnam as a modern, vibrant and growing force in the global market place, have come particularly in the USA. Dylan no longer part of the protests then, now part of building Vietnam into the 14th largest economy in the world (see previous blog!)

Listening to an INTEL representative is Vietnam before Christmas; he is expecting one in twelve chips delivered globally to be made in Vietnam by 2012. Microsoft, IBM and HP are also investing in the talent of Vietnam.

Businesses from the UK and USA, both large and small, have woken up to the tremendous IT talent in Vietnam. Harvey Nash USA are signing up both software development and BPO contracts with a number of businesses that are taking advantage of the cost arbitrage and the tremendous quality coming out of Vietnam. In the UK over 200 projects have been completed.

Michael Hugo a writer, speaker and consultant who blogs for cio.com has recently returned from a trip to Vietnam and about the IT sector. It is worth reading as he uses the Harvey Nash strap line “The Power of Talent” in the title of his piece - click here to read the full article. He makes some interesting observations about the Vietnamese software sector.

It is pleasing that we invested over ten years ago and now deliver millions of dollars of software to corporate’s world wide. The “first boat” to the island has to do the ground work but also reaps the benefits of strong investment. Harvey Nash Vietnam have developed some pretty important life changing software in the last few years. Every time you answer your mobile, it is odds on Harvey Nash software is helping deliver the call!

But then there are the leaders and the followers. Harvey Nash has always innovated, never been afraid of change, and always look for, and takes opportunity.

I welcome all followers, it will help to create a more dynamic and broader skills based market. It adds real credibility to Vietnam.

I have had the privilege of sharing in the excitement and energy of this growth. Ambition and aspiration are two vital facets of Vietnamese culture that has driven both the Vietnamese ICT industry and Harvey Nash’s growth in Asia.

Harvey Nash have been developing software and business process outsourcing facilities for ten years and have seen their business grow to over 1300 people with close to 3000 associate IT professionals.

Viet Nam’s ICT sector has seen ten year growth of triple the nation’s average GDP growth, making the ITC Sector one of the most important components of Viet Nam’s economy. Up to the end of 2009 the ICT sector saw revenues of US$13 billion contributing 6.7 per cent of the Country’s GDP. Of this software and digital services contributed $1.5 billion, hardware, $4.6 billion and telecoms $6.9 billion. Revenues of £16 billion are forecast for 2010.

The announcement was made by Deputy Director of the National Steering Committee on Information Technology, Do Trung Ta.

Other important facts announced are:

• Up to 2009, the percentage of households owning computers was 13.6 per cent, five times that of 2002. Households connected to the internet grew by 12.2 per cent a year.
• About 90 per cent of businesses are also connected to the internet, 67.7 per cent of companies have local area networks, and 67.8 per cent of enterprises use accounting software.
• Viet Nam was ranked one of the 10 most attractive countries for the software industry last year, according to global management consulting firm A.T.Kearney.
• Viet Nam now has 24.7 million internet users, accounting for 30 per cent of the population, while the global average rate of internet users is 26.6 per cent.
• There are about 117 phones for every 100 people and there are a total of 115.7 million telephone subscribers.
• All rural communes have telephones and at least 8,025 communes have a post office offering public telephone, postal and internet services.
• Viet Nam jumped 10 places in terms of an improved ease of doing business, from 88th position in 2009 to 78th in 2010.*
• Viet Nam exports are generating an estimated 24-per-cent increase in revenues for 2010 and will reach 70.8 billion dollars, according to government data published Thursday.*

There are of course still a number of challenges the industry needs to address particularly with telecoms infrastructure but with wireless technology more pervasive than fixed line the challenges will be very different to those faced in the West. Education needs to keep pace with the sectors insatiable appetite for qualified people and red tape still slows business down.

Feel free to send me new facts that will enhance understanding of Viet Nam.

*Source: World Bank

In the year 2000 we started with just 20 people in Hanoi in partnership with FPT Software who had a workforce of roughly the same size. Now, Harvey Nash have a big business employing over a 1000 IT professionals and BPO staff in HCMC alone, with access to a team of nearly 3500 throughout offices in Vietnam. This amazing growth was recognised on Wednesday 15th September when I hosted celebration with nearly 500 guests the 10th anniversary of setting up business in Vietnam.

Looking back over the last ten years I am amazed by just how much impact we have had on the international business community. Did you know that well over 25 million Americans receive and send smart mobile phone calls using software built and supported by Harvey Nash Vietnam? Did you know that over 20 million British school children have their education administered by software written by Harvey Nash in Vietnam?

We were privileged to have Deputy Minister Hong, from the Ministry of Information and Communications, the Director of Information Technology and the Director of Human Resource for Vietnam, attend the event. Vice Minister Hong (pronounced, HOM) complimented Harvey Nash’s contribution to the ICT industry during his speech and reiterated the government’s commitment to ICT education and ICT based businesses in Vietnam, particularly foreign investors such as Harvey Nash.

The Vietnamese government also presented an award to Harvey Nash for their contribution to the ICT Industry which was accepted by Albert Ellis the CEO of Harvey Nash.
Another important guest, Tim Brownbill, British Consul General and Director of Trade and Investment in Vietnam, stressed the increasing relationship between our countries and Harvey Nash’s importance as one of the most successful foreign investors in ICT in Vietnam.

Our staff provided the entertainment both traditional and modern, Wow it was professional with their version of "strictly come dancing" rivalling the best in the real UK version. Some of the senior management team joined in (me, old as I am put the younger members of the team to shame!) which raised a cheer from the young energetic workforce. Remember that 30% of the 86million population are under 30 years old so the average age of our team is round about 26 years old.

We presented awards for long service. The ten year awards were presented with almost our entire start up team still with us and the five year awards formed a very long queue: retention and staff loyalty are one of our real successes particularly when compared with India. We really do believe in the power of talent.

Albert Ellis, CEO spoke about our continued commitment to growing our business in Vietnam and the increasing importance of the outsourcing business to our future.

The opening and closing video created a lot of emotion, particularly for me, as it recognised the history, the people, and the successes over the last ten years. I now chair a group of young , energetic and very professional Brits and Vietnamese, led ably by Alistair Copeland, who are building an even bigger business for the next ten years. I am immensely proud, and admit a little envious, as the last ten years has been so much fun, but there is still plenty of life in the old dog and "you are as young as the people you work with". That makes me 26 year old then!

Bring on the next ten years.

More importantly for Vietnam, the government has announced that it continues to actively prevent hyperinflation and indeed seems to have inflationary factors under control. There have been some real concerns that commodity and energy prices coupled with lower export orders would cause some problems for the Vietnamese economy. Any problems that did occur were short lived.

The government were frankly very creative in handling GDP growth challenges. Rather than print money they gave all workers a three month tax holiday. What a great idea (are you listening Gordon?). Seriously, this is really good news not just for the 86million people that live and work in Vietnam but for those doing business with this fast growing country.

As Vietnam take on the chair of the ASEAN region for 2010 (a sort of EU for south east Asia) the importance of economic growth and stability is vital. We see how important Vietnam is in the region through the way business is attracted to the country. Vietnam is fast becoming the number one choice not just for manufacturing, but for services. Harvey Nash lead the way in providing professional IT services from Vietnam.

With interest that has developed during 2009 it looks like we will be the “pied piper” for much more business from the UK, USA and mainland Europe in 2010. We don’t mind that really, we have a great software development business in the country. Blowing our own trumpet about it is never a problem.