Although it’s hardly in the same league as China and India, Vietnam is steadily attracting more foreign investment in the lucrative IT sector.

Vietnamese exports of software and IT products and services expanded to $70 million in 2005-a far cry from India’s $17 billion plus in similar exports-but significant nonetheless, say analysts.

In order to continue its climb, Vietnam must address some obstacles, however. The absence of a fiber-optic broadband network is a major drawback that creates delays for uploading and downloading sizeable files. In addition, a lack of fluent English speakers has also created challenges, yet many foreign investors have been willing to overlook this in light of the country’s young and highly motivated work force.