The Ministry of Information and Communication (MoIC) has set its highest growth rate target of 14 percent to be reached by 2020. The Ministry of Information and Communication (MoIC) has set its highest growth rate target of 14 percent to be reached by 2020.

The target was set as part of the country's development plans, which set its lowest forecast growth rate of 10 percent by 2020.

Under the plans, the sector's total turnover would reach $50 billion with $14 billion coming from the hardware industry. The software, digital content and telecommunication industries would earn $5, $5.2 and $25 billion, respectively.

Acting head of MoIC' s Information and Communication Industry Department Nguyen Trong Duong said to reach the target, solutions involving human resources, investment, market expansion and research, as well as fulfilling environmental duties needed to be carried out.

Duong said the application of information and communication technology in governmental offices should be enhanced in order to provide momentum for Vietnamese IT firms.

He added that these businesses should concentrate on areas that Vietnam has advantages in, such as software exports and outsourcing of IT services when they deal with foreign markets.

However, some wonder whether the target that has been set is too high because the sector's turnover last year was $6.26 billion, an increase of 20 percent against 2008 figures.

General secretary of the Vietnam Informatics Association Nguyen Long said the hardware industry had contributed a huge amount of capital into the sector's total turnover. However, the ministry should review the real value of the industry because most of the businesses operating in this field are foreign-invested companies.

Long proposed that the sector should clarify its real situation in order to provide development plans in the near future.

The sector has been growing at the rate of 20 to 25 percent per year since 2000. As many as 1,000 businesses are operating in this field, which employs 57,000 labourers.



Source: http://www.intellasia.net/news/articles/info-tech/111286871.shtml