Swedish software tools maker IAR shifts gears to tap Vietnam auto market

Appointing a distributor for Vietnam is a move to strengthen IAR’s presence in the Vietnamese market. What was the reason for this decision?

Vietnam’s automotive industry is a growing market with companies like VinFast, Thaco, Hyundai Thanh Cong, Toyota Vietnam, Honda Vietnam and Ford Vietnam making significant strides. As the industry rapidly grows and evolves, it is essential to have the right technology and expertise to keep pace with the competition. This is where we come in. IAR's software development tools are essential for developers who require mission-critical software that is highly reliable and secure and meets strict industry standards for quality and safety.

Does this mark your Vietnam debut? What were your criteria in choosing the distributor?

Vietnam has consistently been a part of our focus in recent times. We have a regional distributor that covers our Southeast Asian markets, including Vietnam, but this year, we decided to intensify focus on the country due to the abundance of growth opportunities in terms of the technology developments that we are seeing here.

IAR has been doing business in Vietnam for over 10 years, but now, with our partner SH Consulting, a leading provider of embedded software solutions and consulting services in the country, we will be directly operating in the market.

For 40 years, we have been cultivating an ecosystem of partners for knowledge sharing, technical integration and development. This extends that work.

When it comes to choosing our partners or distributors, we require that they are professional, ethical and sustainability-driven. Their practices should align with our code of conduct, which regulates business ethics, human rights and humane terms of employment, environmental sustainability, and health and safety.

How do you assess this market in terms of technology development?

I am very positive about growth opportunities in Vietnam's technology development.

In particular, Vietnam presents compelling opportunities for development in the automotive industry, driven by not only the increasing wealth of Vietnamese consumers and the removal of tariff barriers under free trade agreements, but also by investments from foreign car companies and the Vietnamese government’s ambition to develop a strong domestic automotive industry.

To drive innovation and grow their business, developers will need to have the right technology and expertise to keep pace with the competition. With IAR's tools, developers can create robust and reliable software for embedded systems, ensuring that the software meets the strict safety and quality standards required for automotive applications.

These tools can help streamline the development process while improving the overall reliability and safety of the software.

We have also seen how the Vietnamese government is actively issuing new policies and programs to increase competitiveness, especially in telecommunications, information technology and automation.

Vietnam’s automobile market could reach around 900,000 units by 2025, and around 1.8 million vehicles by 2030 as average incomes rise. The country’s Internet of Things and embedded systems industry also hold immense potential and will create a high demand for millions of skilled engineers and professionals over the next two decades.

What are your market share expectations here?

It is too premature to share that now as we have just entered into partnership with SH Consulting Vietnam. However, we are committed to the market and are positive about Vietnam’s automotive industry growth. We look forward to sharing more updates with you soon.

The Vietnamese government is striving to facilitate digital transformation. What are IAR's strengths in supporting this initative?

Since 1983, IAR’s solutions have ensured quality, security, reliability and efficiency in developing over one million embedded applications for companies across industrial automation, IoT, automotive, medical and other industries.

We have supported over 15,000 devices for over 200 semiconductor partners. With our steady and strong track record of offering world-leading software and services for embedded development, we look forward to enabling companies in Vietnam create, secure and innovate products to meet customer demands, today and tomorrow.

Sustainable growth and going green are the stated priorities for many automotive and technology manufacturers. Does IAR have policies and initiatives to support this?

Our products go with our passion for technology. Therefore, we only work with professional and ethically sustainable suppliers whose practices align with our code of conduct which covers business ethics, human rights, environmental sustainability, and health and safety.

Does IAR have any plan to tap the Vietnamese IT talent pool?

Yes, definitely. We understand the importance of going local and hence the partnership with SH Consulting Vietnam. While we do not have a Vietnam office now, we hope that our products will indirectly create job openings within the automotive sector.

As an established firm, what advice would you give Vietnamese IT start-ups on facing challenges and thriving in the current global economic landscape?

The reason we have been in the business for this long is that we have constantly been evolving and fine-tuning our technology to stay ahead of the competition and always providing best service to our customers.

Therefore, my advice to IT start-ups on facing upcoming challenges and thriving in the current global economic landscape is that they remain focused on staying competitive, constantly adjust their approach, innovate, and improve how they work with customers.

There are many ups and downs in building a startup, so they have to be patient when things don’t go their way fast enough. At the same time, they have to be persistent, believe in their product, and be solution-driven. Importantly, don’t stop innovating.

Finally, in trying to create a superior product, they need to consider code quality and product security during the application development process because it has a very large effect on the final product.