ICT sector contributes 6.7% to Vietnam GDP: Deputy PM

Vietnam’s information communication and technology (ICT) sector has become an economic and technological spearhead, contributing 6.7% to the country’s GDP, said Deputy Prime Minister Nguyen Thien Nhan.

Nhan made the statement at a conference in Hanoi December 3 to review 10 years of development of the industry and the project to turn Vietnam into a strong IT nation by 2020, the government said on its website.

The Deputy PM highlighted achievements of the sector over the past decade, raising awareness on the role of IT and its importance in socio-economic development and IT applications in various areas.

In the past decade, the industry has obtained an annual growth of between 20% and 25%. The number of mobile and fixed phone subscribers was only 300,000 and 3.5 million in 2000, respectively; but the country now has 163.8 million subscribers, with mobile ones accounting for 90%.

Vietnam is ranked among ten most attractive destinations for software outsourcing for export, with total revenues making up 1.9% of its GDP. It is striving to advance to top 15 countries in terms of providing software outsourcing and digital content services by 2015.

The country has some 1,000 software firms, increasing nearly 6 times over the past ten years, with the total workforce of over 64,000.

In a master plan, Vietnam plans to develop some strong telecommunications companies, bring Internet to all educational establishments, and wide-band mobile communications to 85% of residents. Up to 80% of enterprises and social organizations will apply IT in management, production and business operations.

Nhan said Vietnam should renovate State management in IT sector, and give more incentives for telecom businesses to develop. In next ten years, the country will need to build 3-5 more software parks in some provinces, beside two in Hanoi and Ho Chi Minh City currently.

However, he also pointed out limitations in applying IT among ministries and localities, in human resource development and infrastructure for IT development.

The Vietnamese government had approved a master plan costing US$8.5 billion to develop the industry by 2020

Tags: Vietnam ICT, Vietnam IT industry, Vietnam IT sector