IT firms maintain growth momentum amid pandemic

13:00 | 14/11/2021 Information Technology

(VEN) - The Covid-19 pandemic has presented both challenges and opportunities for the information technology (IT) sector. Flexible businesses able to seize opportunities will be able to maintain growth and even make breakthroughs in certain fields.

it firms maintain growth momentum amid pandemic
The demand for digital transformation in the field of retail and e-commerce grew strongly during the social distancing period

Bright spot in gloomy picture

Despite the serious effects of Covid-19 on many export sectors, software exporter Rikkeisoft has been able to maintain annual revenue growth of more than 10 percent. Notably, in the first three quarters of 2021, its software export revenue grew more than 20 percent compared with the same period last year.

Nguyen Viet Lam, Deputy General Director of Rikkeisoft, said the company had expanded research and development in fields that require higher capability, especially digital transformation, and achieved satisfactory results. During the social distancing period, the company concentrated on digital transformation to meet growing retail and e-commerce demand.

“Rikkeisoft’s customers include hypermarkets and leading Japanese retail chains. Revenue in this field reached more than US$3 million in the first three quarters of 2021,” Lam said, adding that the company also succeeded in high-tech fields such as artificial intelligence (AI) and blockchain. Projects invested in and developed by Rikkeisoft have mobilized nearly US$12 million from foreign funds and are valued at more than US$100 million.

Deputy Minister of Information and Communications Pham Duc Long said Vietnam had been severely hit by the fourth wave of the pandemic starting in late April 2021, but Vietnamese IT companies have shown their resilience. “Many companies have achieved impressive growth, even more than 300 percent,” Deputy Minister Long said. For example, he said, total revenues of 76 leading information and communication technology (ICT) companies honoured this year exceed VND186.69 trillion (over US$8 billion), accounting for nearly 61 percent of the industry’s total.

it firms maintain growth momentum amid pandemic

Digital transformation, a lucrative business

Nguyen Van Khoa, President of the Vietnam Software and IT Services Association, said Covid-19, especially the fourth wave of the pandemic, had an adverse effect on every aspect of life and business, but it also motivated accelerated digital transformation, creating opportunities for ICT firms.

The International Data Corporation (IDC) forecast that by the end of 2022, 70 percent of organizations and businesses would transform their operations to increase interaction with customers, improve labor productivity and enhance recovery. It also predicted that global investment in digital transformation from 2020-2023 would reach US$6.8 trillion.

Truong Gia Binh, Chair of the Management Board at the FPT Corporation, emphasized that ICT companies should bring into play their internal strength and creativity and pioneer accelerated digital transformation for the country’s prosperity.

The FPT Corporation has promoted research and development of an ecology for Made by FPT products and solutions, significantly contributing to digital transformation efforts of the government, organizations and businesses. It is pursuing the goal of becoming one of the world’s Top 50 providers of digital transformation services and solutions by 2030.

While most business fields have been adversely affected by Covid-19 due to stagnant manufacturing and supply chain disruptions, the IT sector still finds opportunities to achieve impressive growth.

Quynh Nga