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There are two purposes for this study. First of all, in the academic perspective, this study aims to get a better understanding of what motivates Danish IT firms to choose Vietnam as a new outsourcing location and how they gain competitive advantage by forming joint-venture with local partners and transferring knowledge to their local partners. This is investigated through interviews with several Danish IT companies in Vietnam during my field trip study in February - March 2010. The investigation will focus on how Danish IT firms think, what they expect from the Vietnamese software development industry and their Vietnamese partners and how they transfer knowledge to local partners. Secondly, this study will help Danish firms get a better understanding of Danish-Vietnamese collaboration in Vietnam, especially when Danish firms want to enter the very young and potential software development market in Vietnam and be successful there.