TRANSLATION INDUSTRY UNDER

INTEGRATION PRESSURE FROM VIETNAM

VIEWPOINT

OUTLINE1. Overview of Vietnam Market2. Opportunities and Challenges from the Integration into

AEC and TPP3. Translation Trends4. Roles of Associations5. Issues Remained in the Translation Industry

1. OVERVIEW OF VIETNAM MARKET1. Population: 90,630,000 (Estimated in 2014) 2. Area: 332,698 km2 3. GDP: USD 187 billion (2014); per capita: USD 20724. Market: - Domestic Enterprises: 375,000 enterprises in operation - Countries with FDI in Vietnam: Korea; Japan; Singapore; Hong Kong; Taiwan - Total FDI received in 2014: USD 22 billion - Oversea Investment Demand

VIETNAM TRANSLATION MARKETTranslation Industry Value: USD 100 millionClients Individual Clients (15%): Demand for notarized translation (immigration,

oversea study, labour export, etc.) Enterprises (local, oversea, FDI) (80%) NGOs (5%) Major Fields- Engineering- Medicine- Website Localization- Finance- Legislation - Publication

VIETNAM MARKET VS. GLOBAL MARKET

Items Vietnam GlobalRevenue USD 100 million USD 45 billionLSPs 500 18,000Natural growth rate 30% 13%Allocation Hanoi; HCM America: 39%; Europe

49%; Asia: 12%Maturity 20 years 100 years Freelancer Part-time At high

professionalismService buyer Poor understanding of

quality requirements and inadequate investment

Spending 1-3% revenue on Localization

CLIENT BUYING CHARACTERISTICS

• Low awareness of the importance of translation in business (the translation owns the same value as the original)

• Low cost expectation• Vague in the definition of “correct translation”• Revenue from big account: 30 million – 1 billion

VND/year

VIETNAMESE TRANSLATION COMPANIESTranslation Companies: over 500 Foreign Companies take up 5% Law firms, events companies, publishers providing

translation service takes up 10% Years of experience: ≤ 20

SOME CHARACTERISTICS OF VIETNAMESE TRANSLATION COMPANIES

Strengths: - Good quality foundation- Solid relationship with local clients- Service price lower than the average level in the region and

in other part of the world

Weaknesses- Companies possessing ISO certified quality management

processes accounting for 1% only- Failure to meet international clients’ requirements

Opportunities: Prospective Clients- FDI growth: 101 countries and territoriesValue: USD 22 billion (2014)- TPP Agreement, ASEAN Economic Community (AEC)Challenges- Strict requirements on quality and deadline- Competition with international companies- Upgradation of translation technology

FREELANCERS Number: approximately 100,000Profile:+ Graduated from national and international universities majored in foreign studies+ Experienced in studying and working overseaGreat freelancer forum: Proz, Freelancer, TranslatorsCafe, TranslatorsBase

→ Increasingly high rate of clients using freelancers(Shared B2C economic such as Onehourtranslation…), making up 80% of global market share.- Easy search in internet- Low cost- Simple procedure

POPULAR LANGUAGES

English

Chinese

Japanese

Korean

French

Thai

German

Laos

Russian

Spain

Domestic: • English, Chinese, Japanese, Korean,

Vietnamese continue to be dominant → Strong competitiveness

• Tending to fast develop: Laos, Cambodia, Thai, Bermese → Medium competitiveness

Foreign: • Compete in English<> Asian

language pairs

Trends of languages

LANGUAGE SERVICES

Transl

ation

Interp

retati

on

Voice

-overs

Locali

zation DTP

Transc

riptio

nOthe

r0%20%40%60%

Service coverage in the overall industry value

Service coverage in the overall in-dustry value

3. SERVICE TRENDS IN 2016

• Fast growing services:• Desktop publishing• Website localization• Translation: Industries are supported or directly affected

by TPP• (Legal Affairs, Finance-Banking, Transport-Logistics, Import

& Export, Training,…)

INDUSTRY’S COMMON FACTS• Low service rates, in comparison with the values that bring; with

English translations price ranging from VND 50,000 – 800,000/page

Consequences: employees give up the industry, translators give up the career

• Many individually operated and small-scaled businesses, without any grips over freelancer’s input quality and products' output qualities, leading to Clients’ equation of low quality

• ISO-based quality management is paid little to no attention and poorly implemented at translation companies

• Freelancer: proz.com as international market, direct assignment from Clients for Vietnamese market (Good price); From Translation Company: Low rate due to low rate from Clients

• Freelancers rarely get a hold on translation technologies, such as Trados, Wordfast, ...

• There is still no organization to manage and regulate to support translation and interpretation industry

TRANSLATION’S ROLES IN ECONOMIC DEVELOPMENT

• Required conditions for administrative procedures

• Discussion and negotiation support• Vital requirement in enterprises’ brand

development and promotion

2. OPPORTUNITIES AND CHALLENGES FROM INTEGRATION INTO AEC AND TPP

• Population: 625 million - Youth 60%

• GDP: USD2,398 billion

• GDP Growth: 4.4%• Total Trade:

USD2,531 billion• Total FDI: USD136

billion• Tourist Arrivals:

102 million

- 12 countries, 790 million people- TPP Members are responsible for 40

percent of the world’s GDP and 26 percent of the world’s trade

- TPP will have a stronger effect on Vietnam than WTO will

OPPORTUNITIES FOR FREELANCERS AND LSPS FROM INTEGRATION

• Demands of foreign enterprises• Demands of Vietnamese enterprises investing overseas• Demands of governmental and non-governmental

organizations• Vietnamese enterprises are more advantageous in price

and quality

4. ROLES OF ASSOCIATIONSNational Interpretation and Translation

Centre (NITC)VATI: Vietnam Association of Translation

IndustryYour Translator Community

VIETNAM ASSOCIATION OF TRANSLATION INDUSTRY

VATI

I. MISSIONS, VISIONS, CORE VALUES2.1. Missions:- Strengthen and advance the role of translation industry in course of global integration and national development- Reconstruct the industry standards, certification in the coming time

2.2. Visions- Establish a strong Association with 59 members in 2015 and introduce an official Association in 2018 with 500 members- Establish the translation industry with the role comparable to other industries and highly valued in Vietnam

2.3. Core values Accurate, professional, honest

II. ORGANIZATIONAL STRUCTURE

3.1. Advisory Board (3-5 members)3.2. Executive Board (10-15 members)1. President (3-year term): 012. Vice President : 023. Secretary General (01) and the Secretariat4. Treasurer: 015. Chairpersons:- Chairperson of Board of Member- Chairperson of Board of Communications and Events- Chairperson of Board of International Relation- Chairperson of Standardization and Certification- Chairperson of Supervisory Board- Chairperson of Board of Translation Technology3.3. Founder Members

III. ACTION PLAN

In 2015- Press release and conference on establishment of Vietnam Association of Translation Industry, introduction of Executive Board. - Translator Day: 28/11/2015

Annual activities- 03 events/year including topic conferences for 30-50 participants- 01 big event/1-2 year, 100-300 participants- Executive Board meeting monthly: Online or Offline

5. ACTIONS TO BE TAKEN• Raise value, quality, and perception of translation

companies in the industry.• Notarized translation policy (Translators; Translation

companies possessing notary stamps)• Grant certification of translation and interpretation • Improve people’s recognition of translation and

interpretation• Promote international connection and trading

Thank you

Q & A