NEC Solutions Vietnam, headquartered in Hanoi, has merged with Sang Tao Corporation, a well-established software development company in Ho Chi Minh City on 24 May 2008, with the approval from the Hanoi Authority for People’s Committee, Department of Planning & Investment on 31 March 2008. This is the first IT industrial merger in Vietnam between a Japanese affiliate and a Vietnamese company that has been approved by the government of Vietnam.
NEC Solutions Vietnam was jointly established in April 2006 by NEC Soft., Ltd. (“NEC Soft”,) based in Tokyo, and NEC Asia Pte. Ltd. (“NEC Asia”) based in Singapore (previously known as NEC Solutions Asia Pacific Pte. Ltd.) to expand software development and system integration business in Vietnam. Sang Tao Corporation, whose business ties with NEC Soft date back to 2004, before the establishment of NEC Solutions Vietnam, had proposed strengthening of the relationship through an alliance.
Known for diligence of its people and a national policy to foster IT engineers, Vietnam is regarded as a potential destination for conducting software development businesses. Given that the country is enjoying rapid economic growth rate of around 8 % annually and the IT investment growth rate in Vietnam is second after India in Asia, the Vietnamese market is becoming increasingly promising. However, there is intensifying competition as a result of increase in information service companies that have started operations in Vietnam. NEC Solutions Vietnam seeks to retain top-class talent through the merger with Sang Tao Corporation to establish sustainable dominance in the marketplace.
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