Illustrative photo (Source: VNA)

HCM City (VNA) – A seminar on opportunities and challenges for made-in-Vietnam IT products and services in joining the global value chain took place in Ho Chi Minh City on November 22.

In 2017, more than 28,000 companies operating in Vietnam’s IT sector generated 91.6 billion USD in revenue, up 35 percent from 2016. Of the total revenue, hardware products contributed 81.6 billion USD, software 3.8 billion USD, IT services 5.4 billion USD and digital content 800 million USD. The sector’s export value, meanwhile, reached 78.9 billion USD.

According to To Thi Thu Huong, deputy head of the Department of Information Technology under the Ministry of Information and Communications, developing IT production value chains is key to engage deeper in the fourth industrial revolution. However, Vietnamese firms still lack knowledge and experiences in selling their products for clients in the global market. Their human resources and products are yet to meet current demand in the market.

Hoang Minh Tri, general director of 4p Electronics JSC, said most Vietnamese IT companies employ outdated technologies and production management, thus lacking capacity to fulfill requirement of FDI enterprises in terms of prices, quality, and goods delivery.

The Ministry of Information and Communications said a number of major groups operating in Vietnam are yet to pay attention to developing their local support companies.

Tri said the participation in the global value chain is important to the growth of the support industry.

He stressed the need to create a fair environment for both FDI and domestic firms and efficient administration procedures applied for small- and medium-sized enterprises.-VNA