Booming IT sector -‘engine for growth'

The information technology (IT) industry has 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 on Dec. 5.
The information technology (IT) industry has 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 on Dec. 5.

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

Revenues of the IT and telecommunications sector were more than 13 billion USD last year, 15 times that of 2000.

They contributed about 6.7 percent to the country's GDP. Of this, software and digital industries earned 1.5 billion USD, hardware, 4.6 billion USD; and telecoms services, 6.9 billion USD.

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

At a meeting held on Dec. 5 to review implementation of Directive 58-CT/TW calling for IT development to enhance socio-economic growth, Ta said that after 10 years of implementation, ministries, cities and provinces, economic groups and corporations have made significant progress.

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

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

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

Vietnam 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 Vietnam 's IT sector is facing unstable growth although it has attained rapid progress under Directive 58.

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

Service quality has 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 have not been able to take advantage of the services and have 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, Vietnam 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.

Vietnam now has 24.7 million internet users, accounting for 30 percent of the population, while the global average rate of internet users is 26.6 percent.

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./.

See more