Search for 'push' for IT to 'take off'

Mobilizing investment capital for IT is considered to be the weakest stage in the implementation of Directive 58 in the period 2001-2005. This is one of the main factors that makes Vietnam IT not complete the plan.

Mobilizing investment capital for IT is considered to be the weakest stage in the implementation of Directive 58 in the period 2001-2005. This is one of the main factors that makes Vietnam IT not complete the plan.

Evaluation workshop of lessons learned after 5 years of implementing Politburo Directive 58 on IT application and development. Photo: Hung Hai.

Low starting point .

According to estimates, the investment budget for Vietnam's IT in the period from 2001 to 2005 from different sources is less than 0.4% of GDP, many times lower than the figure of 2% of GPD set in the General Plan. can. The increasing trend of the money flowing into this sector increased from 30-50% per year, but the starting point is too low, so there is not enough 'force' to have a jump in development.

Experience of developing countries that want to promote IT must have an annual investment of not less than 1% of the budget. Specifically, South Korea and the country typically develop IT speed in Asia, spending up to 1.4% of the budget. Estonia also spends 1% of its annual budget to fulfill its ambition and become a leading developing country in IT applications.

The capital allocated for projects in Vietnam has been dripping and spreading, not thoroughly grasping the policy of prioritizing investment in IT application and development. The way to allocate budgets does not follow the key focus and task of the plan, with the emotional color of the 'asking - giving' mechanism.

. stall projects!

Picture 1 of Search for 'push' for IT to 'take off'

Evaluation workshop of lessons learned after 5 years of implementing Politburo Directive 58 on IT application and development.Photo: Hung Hai .

According to the report of the Ministry of Planning and Investment, all of the Master Plan projects and programs are allocated under 'Scheme 95 and open source software program' next to Scheme 112 and Scheme 47. However, the majority of projects invested under Project 95 are not included in the Master Plan's key programs and projects. On the other hand, there is almost no mobilization of enterprises to invest in IT application.

Limited resources, most of the programs and projects related to IT application and development in the 2001-2005 period were delayed. Among the 4 key programs, only the IT human resource development program is completed with the specific implementation plan approved with 6 projects and projects. This program has not been implemented since there is no separate funding mechanism. Instead, there is a limited source of money from the National Target Program on Education and Funding.

The two programs of building and developing the hardware and software industries have not achieved the expected progress. The relevant indicators are not achieved. Expected revenue from the software industry reaches 500 million USD, of which 200 million USD is exported, only 45% of the target, export revenue reaches 35%.

Unique to the Program of Building and upgrading telecommunications and Internet infrastructure, although not built in the Master Plan, but has the most relevant content implemented. The reason is that on February 8, 2002, the Prime Minister approved the Vietnam Internet Development Plan 2001-2005.

The only key project that does not suffer from the funding problem is the Modernization of the banking system. Holding the majority of the budget of the total mobilized funding for the period 2001 - 2005, this project has a budget of up to 9,755 billion VND, of which 108 billion VND is for the State Bank, commercial banks account for VND 9,647 billion and also the project with the most visible results.

Currently, 85% of banking operations have been transferred to computer networks at different levels. The inter-bank payment system was built according to international standards, which was put into operation in 2002. The internal payment system of commercial banks was operated since 2003 with the payment amount increasing by 35% per year.

However, the level of IT application in this industry is still lagging behind that of regional and world countries. The reason is that the national telecommunications infrastructure has not met the bank's specific IT application requirements. The unified architecture of the system for this sector is also not available, lack of synchronous development facilities among units.

Budget - Needed!

According to Mr. Do Hoang Anh Tuan, Deputy Minister of Finance, the State needs to express a clear view on resources for IT, specifically by the budget rate for this field. This is also one of the recommendations of the National Steering Committee on IT proposed to the Government to overcome the problems that existed during the implementation of the second phase from 2006 to 2010. This number can be large or small but it is guaranteed. tell the units to plan and implement the medium and long-term overall program.

At the present time, Vietnam has become an attractive destination for world ICTs. Along with the opportunities, it also shows that we are facing fierce competition from both sides: prices from regional countries and quality from multinational corporations with rich experience .

Hung Hai

Update 13 December 2018
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