Software firms urged to innovate

The Viet Nam Software Association (Vinasa) should foster research in advanced technologies and develop new software products to meet domestic demand, Deputy Prime Minister Nguyen Thien Nhan has said.

Nhan made the request at Vinasa’s third congress held in Ha Noi last Saturday. The event aimed to review the association’s operations in the 2005-10 period and draw up operational guidelines for the next five years.

The Deputy PM also asked the association to offer the Government effective consultations for IT policy making and promote co-operation to create favourable conditions for IT universities to develop Viet Nam into a strong IT country.

Viet Nam’s software sector had experienced a breakthrough over the past five years with a year-on-year growth rate of 30-40 per cent, Vinasa said.

Software sales revenue enjoyed a four-fold increase from US$250 million in 2005 to $680 million in 2008 and $890 million in 2009. Revenue was expected to top $1 billion by year-end.

Exports also experienced strong growth in the past five years, it said, adding that software enterprises had gained successes in penetrating the Japanese market.

Despite the encouraging results over the past five years, the domestic software industry is still faced with several challenges due to the small-size of local software enterprises and their inadequate financial capacities.

Top priority should be given to creating closer and stronger links among the local firms to help the industry gain a 40-fold increase in revenue in the next 10 years, Nhan said.

During the event, he also awarded the Labour Order to VINASA.

Over the past five years, the association had helped its members enhance their presence in the local market by expanding export outlets and connecting with international IT businesses, said VINASA’s vice chairman Pham Tan Cong.

It also assisted in establishing trademarks and developing human resources, he added.

The association has 198 members which contribute 70 per cent of the industry’s total revenues and employ 60 per cent of the industry’s workers. — VNS

Tags: Vietnam software industry, VINASA