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Vietnam’s IT Industry Continues to Grow

Vietnam IT Industry Growth
Image credit: Ministry of Information and Communications

Over the past few years, the information technology (IT) sector has had the fastest and most impressive growth rate among any other sector in Vietnam, contributing significantly to the country’s GDP and the state budget.

IT has also been identified as one of the spearhead industries to boost economic development from now until 2020, a press release has noted.

High Growth Rate

According to a report by the Ministry of Information and Communications (MIC), the IT sector is experiencing strong growth. Electronic hardware, software, and digital content industries have maintained a high growth rate, at an average of nearly 30% per year.

The release said that Vietnam’s outsourcing market has set a certain foothold on the world map. The country has been ranked sixth in the list of destinations for outsourcing in the world, released by a globally recognised consulting firm.

Additionally, industry experts have ranked Vietnam in eighth place among the leading suppliers of IT services. Meanwhile, Ho Chi Minh City and Ha Noi have are in the world’s top 20 most attractive cities for outsourcing.

Vietnam has become an attractive destination for high-tech investment, with the presence of most of the world’s tech giants, including IBM, Microsoft, Intel, Apple, Toshiba, and Samsung.

Apart from this, many of the country’s IT companies, including Viettel, FPT, and VNPT, are well-known globally. There is an increasing number of creative start-ups in this field.

Focusing on IT Development in Vietnam

To promote IT development, the government has issued several relevant policies. It launched the project “Enabling Viet Nam to soon become a strong country in IT and communication”.

The project aims to develop the IT industry into a spearhead economic sector with its annual growth rate being twice or three times as high as the GDP growth.

It also intends for the initiative to contribute to creating IT human resources that meet international standards and establish a robust broadband telecommunication infrastructure on a national scale.

Furthermore, the target program for the development of the IT industry until 2020, with a vision to 2025, has set the goal for the country to develop and produce IT products and services that can satisfy the market demand, both at home and abroad.

The Ministry of Science and Technology said that the government has drastically turned to support IT enterprises instead of resource-exploiting businesses.

Specifically, the government has issued Resolution No. 41/NQ-CP on tax incentives to promote the IT development and application in Viet Nam.

From a country that had to import equipment, computers, and mobile phones, Vietnam has now become one of the leading exporters of IT products in the world. This is thanks to its effective attraction, use of foreign direct investment (FDI) capital, and the promotion of domestic resources.

MIC recently announced it plans to boost the IT industry by focussing on domestic firms. It is developing a programme, which will encourage Vietnamese firms to engage deeper in the global ICT industry’s value chain and increase added value.

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