Booming IT sector is ‘engine for growth’

The information technology (IT) industry had become an important economic sector that contributes significantly to gross domestic product (GDP), Deputy Director of the National Steering Committee on Information Technology Do Trung Ta said yesterday.

Ta said that from 2001-09, the IT sector had an annual 20 to 25 per cent increase in revenue, triple the nation’s average rise in GDP.

Up to the end of last year, revenues of the IT and telecommunications sector were more than US$13 billion, 15 times that of 2000.

They contributed about 6.7 per cent to the country’s GDP. Of this, software and digital industries earned $1.5 billion, hardware, $4.6 billion; and telecoms services, $6.9 billion.

This year, revenue was estimated at $16 billion. In particular, the digital industry has seen growth of more than 50 per cent per annum. Ta said this brought in $690 million last year.

At a meeting held yesterday to review implementation of Directive 58-CT/TW calling for widespread IT development to enhance socio-economic growth, Ta said that after 10 years of implementation, ministries, cities and provinces, economic groups and corporations had made significant progress.

His conclusion was based on reports from 21 ministries, 55 cities and provinces – and 16 economic groups and corporations.

Up to 2009, the percentage of households owning computers was 13.6 per cent, five times that of 2002. Households connected to the internet grew by 12.2 per cent a year.

About 90 per cent of businesses are also connected to the internet, 67.7 per cent of companies have local area networks, and 67.8 per cent of enterprises use accounting software.

Viet Nam was ranked one of the 10 most attractive countries for the software industry last year, according to global management consulting firm A.T.Kearney.

However, the industry has received little support from the State budget compared to other countries in the region.

Last month, a Ministry of Information and Communications (MIC) meeting agreed that Viet Nam’s IT sector was facing unstable growth although it had attained rapid progress under Directive 58.

Operational efficiency in companies had slowed, and turnover, investment capital and tax contributions to the State budget had all declined, Le Nam Thang, deputy minister of Information and Communications said, adding that turnover per capita in IT companies had fallen year-by-year, which could lead to a decline in foreign investment.

Service quality had also shown many weaknesses, especially in broadband and internet services.

In addition, Thang said, internet service providers could not ensure information security and prevent problems caused by internet hackers and online viruses.

Residents in rural and mountain areas had not been able to take advantage of the services and had received no instructions in internet use.

Massive installations have led to a tangled web of cables and antenna sprouting in the sky of both rural communities and major cities.

According to a recent United Nations report, Viet Nam this year ranked 90th out of 200 United Nations’ member countries in the e-government readiness index.

The country ranked sixth among ASEAN-member countries, up by only one place to replace Indonesia after 10 years.

Viet Nam now has 24.7 million internet users, accounting for 30 per cent of the population, while the global average rate of internet users is 26.6 per cent.

There are about 117 phones for every 100 people and there are a total of 115.7 million telephone subscribers.

All rural communes have telephones and at least 8,025 communes have a post office offering public telephone, postal and internet services. — VNS

Tags: Vietnam IT industry, Vietnam IT sector