Vietnamʹs turnover from IT and telecommunication reaches $16b

In 2010, Vietnam’s turnover from digital content touched the threshold of $1 billion, equalling to the revenue from software sector, the Ministry of Information and Communications (MIC) reported.

According to the report presented by Nguyen Minh Son, director of Department of Planning and Finance under the Ministry of Finance (MoF) at the meeting with information and technology (IT) and telecommunication enterprises held on March 10 in Hanoi, the total turnover of IT and telecommunication firms in Vietnam has reached 330 trillion dong ($16 billion) in 2010, accounting for about 10 percent of Vietnam’s GDP.

In 2010, the telecommunications sector continued bringing the highest turnover of about 200 trillion dong, and followed by hardware production field with about $7 billion.

The software and digital content sectors were estimated to post the growth of 20‐ 30 percent, gaining total revenue of about $2 billion ($1 billion of software sector and another $1 billion of digital content field). Thus, after half of a decade of developing with a growth of over 50 percent, the digital content has caught the software sector that has over ten years seniority in terms of revenue.

Although gaining the 2‐3 fold growth against the countryʹs GDP during many past years, according to the report of MIC, the IT and telecommunication sector still remains many limitations such as weak competitiveness, limits in approaching the technology as well as the credit sources to develop, low labour productivity (65 percent of growth of enterprises is based on social investment capital, the labour productivity has contributed only 25 percent, according to the report of the World Bank‐WB). In addition, the electronic hardware industry sector is still prone to assembly and the percentage of localisation and value‐added content accounted for only 10 percent of the total turnover.

In 2009, the Vietnam’s IT and telecommunications sector earned a revenue of $13 billion and contributed 6.7 percent of the countryʹs total GDP, of which, the hardware industry accounted for $6.9 billion, software and digital content at $1.5 billion and the remaining belonged to telecommunications field. – Saigon Times

Tags: Vietnam IT sector, Vietnam telecommunication

Posted by VBN on Mar 14 2011. Filed under Technology, Telecommunication. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry