http://www.asianewsnet.net/home/news.php?id=18650&sec=2
Viet Nam aims to become IT powerhouse in 10 years
Business Desk
Viet Nam News
Publication Date : 27-04-2011
Samsung produces mobile phones in Viet Nam. Investors in
information and telecommunications technology will receive incentives. DUC
TAM/VNA
In the hope of becoming an information and communications technology
(ICT) powerhouse within 10 years, Viet Nam will continue to create favourable
conditions for investors.
Announcing this, Deputy Prime Minister Nguyen Thien Nhan said Viet Nam
needed international partners to help build infrastructure and organise
technology transfer.
Nguyen Trong Duong, director of the ministry of information and
communications' information technology department, said the telecommunication
infrastructure in Viet Nam had been growing at an extraordinary pace.
He said preferential treatment for the industry was reflected through
investment law and taxation policies.
"For example, software enterprises are exempt from corporate tax for the
first four years after they make a profit," he said. "After that, they will
have to pay only half of the required tax for the next nine years."
In addition, material imported for software production is also tax-free.
Duong said that for large-scale investment projects, such as the Intel
Corporation's US$1 billion assembly and testing plant in HCM City and Samsung's
$1 billion mobile phone manufacturing plant in nothern Bac Ninh Province,
further incentives would be granted.
"For example, as the Samsung plant in Viet Nam exports a large volume of
mobile phones, a special Customs office will be based inside the factory to
enable faster clearances.
"Not every area in the sector will receive preferential treatments, only
those with high added value," he said.
Nhan said Viet Nam would continue the administrative reforms so as to
create a more attractive business environment for ICT enterprises.
Duong said top priority would be given to software engineering.
He said the strategic orientation for the emerging software sector was to
provide offshore software development involving Vietnamese enterprises
developing software as required by foreign clients instead of developing their
own software.
"We are realistic enough not to target manufacturing packaged softwares,
such as operating systems, which would involves billions in investment," he
said.
"If we ever develop packaged software, it would be to provide domestic
products at an affordable price to replace international ones rather than
compete in the global market."
Duong said some of the hesitation among foreign investors was the poor
infrastructure and inadequate workforce.
"To many people's amazement, the telecommunication infrastructure in Viet
Nam has been growing at an extraordinary pace and now we are confident that the
current infrastructure can totally empower Viet Nam to catch up with the global
trend.
"At the same time, the quality of fresh graduates is getting better and
better as long as they have proper time for training, normally from three to
six months, before actually getting into work," Duong said.
Nguyen The Dung, from World Bank Viet Nam, said Viet Nam should mobilise
different resources, even Official Development Assistance whose conventional
domain were for transportation infrastructure, to boost ICT development in Viet
Nam.
Dung, who manages a $93 million project funded by the World Bank to help
boost IT application in State agencies, said although the project was started
in 2006 and expected to end next year, disbursement was slow due to limited
capacities.
"This is understandable because Viet Nam is still new to this type of
project," he said.
Dung said Viet Nam should improve its capacity to be able to effectively
utilise financial assistance.
The ICT sector in Viet Nam achieved $7.4 billion in revenue last year,
growing at a rate of 15 to 20 per cent. By 2020, it is expected to contribute 8
to 10 per cent to the GDP.
[Non-text portions of this message have been removed]
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