Francis Lee opens up to DTiNews’ Hoai Nguyen about financial outlooks for 2010.
Let’s take a look back at 2009. What is your general assessment for the year?
2009 has been tough on Vietnamese businesses across all sectors. For a good part of the year, companies mostly ‘froze’ under the recession, not really knowing how to react. There are signs of stabilization currently and it is a relief to see more Vietnamese businesses starting to invest again.
Nevertheless, I believe Vietnam's economy is not as deeply affected by the global economic crisis as others in the region. It is likely that we are still going to see some solid growth, around 4-5%.
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| Francis Lee, Chief Representative and Country Manager, SAP Vietnam |
What has been the impact of the global economic downturn on foreign investments in Vietnam?
The global economic downturn has made foreign investors more cautious. Many have reduced their cash flow/capital to Vietnam in order to deal with more pressing needs at home. However, as mentioned, there are signs of stabilization. Looking ahead, Vietnam is still a very attractive market and I believe investors will return in great numbers when recovery is in full swing.
What is your assessment of the enterprise software market in Vietnam in the past year?
Despite economic challenges, 2009 was a very exciting year. We were very happy to see Vietnam’s enterprise software market growing in both size and maturity. Many landmark contracts have been signed this year. The size and scope of these projects has also increased significantly in comparison to previous years.
I believe this trend will continue in 2010 as well. At SAP, we will continue to be committed to our partners in Vietnam and work closely with facets of the community and ecosystem to accelerate the growth of Vietnam’s software industry.
What are some technology trends we should look for in 2010?
There are tremendous opportunities for 'on demand" offerings such as local businesses increasingly wanting solutions that empower their mobile workforce. We also see more companies, particularly in the SME sector, making more strategic investments in their IT infrastructure to help them streamline operations. These growing enterprises will see this as a way to be more competitive as they are looking at 2010 with guarded optimism.
Demand for IT next year will differ depending on the industry: In banking for instance, a strong customer relationship management (CRM) system is needed to support banks as they push their different consumer products. In the telecom industry, now that 3G is available in Vietnam, telco operators will need to pay more attention to network infrastructure and convergent charging solutions to enable them to provide better customer care and shorten the time it takes to market. Large enterprises may look into GRC (Governance, Risk & Compliance) systems.
Furthermore, business intelligence will be the next wave for businesses that have already set-up their back-end automation processes. They will need a system that enables them to drill down, slice and dice data fast and interpret it into information that their management can use for decision making.
What is your advice for Vietnamese enterprises in 2010?
First, Vietnamese enterprises need to strengthen their operation and business processes. That way, they can improve operational efficiency and lower costs. They need to be able to have clear visibility into their own operation and processes in order to make business decisions fast and react to market changes quickly.
Second, Vietnamese companies need to make more strategic investments. These may be in areas away from physical infrastructure. The low cost business model that many Vietnamese enterprises rely on can only last for a period of time. They need to make strategic investments in areas that can help them build a more sustainable business and gain real competitive advantages. Vietnamese enterprises need to find real differentiators as they enter the next phase of growth so that they can effectively and confidently compete in the global market.
