Thursday, May 03, 2007

Software industry aims at 800 million US$ revenue

Though obtaining satisfactory results recently, the software industry of Vietnam has not demonstrated its full ability yet.

The expectations for this key industry have been raised again since the government approved the programme to develop the software industry of Vietnam to 2010 in mid April.
The most important point of this programme is identifying the goals, policies, specific measures and the expenses for the programme. According to many IT experts, those goals are appropriate to the country’s ability if solutions are performed seriously.

According to the government’s viewpoint, the software industry is a knowledge-based, hi-tech economic sector, with high added value and export revenue, significantly contributing to modernisation and industrialisation. Vietnam especially encourages and creates favourable conditions for drawing investment and developing this industry as a core economic sector of the national economy.

Developing human resources is considered the key to the success of the software industry. Information services will be a focus, firstly outsourcing services for foreign clients, along with expanding the local market and developing some major software to replace imported products.
The programme aims to obtain an average growth rate of 35-40% a year, total revenue of over US$800 million, including at least 40% from exports. The workforce for the software sector will be around 55,000-60,000, with average production value of US$15,000/person/year. By 2010, Vietnam must have around 10 software companies which have over 1,000 employees and 200 companies with over 100 employees.

Vietnam has also set the goal of becoming one of the leading countries in attracting foreign investment in the software industry and one of the top 15 nations providing software outsourcing service in the world. Another goal is reducing the rate of software infringement to the average of the region.

To realise those targets, the Software Industry Development Programme proposes some policies and solutions, including the improvement of the legal environment and State management capability. The programme also proposes measures to develop human resources for the software industry.

Accordingly, software companies that meet conditions on human resources and infrastructure, especially companies in Hanoi, Da Nang and HCM City, will be helped to raise their competitiveness. Some software parks will be also developed in the three above cities.

The programme also lays out many projects and schemes to develop the software industry in various aspects like human resources, trademarks, trade promotion, market development, software export.

One of the most important points of the programme is that in 2010 the State will give priority to the programme. Accordingly, US$70 million will be invested in the programme: 30% from the State budget, 30% from local budgets, and 40% from enterprises, associations, ODA sources and other sources.

The Ministry of Post and Telematics will coordinate with ministries, government agencies, and local authorities to implement this programme.

Source: VET

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