Vietnam is Set to Become a Strong ICT Player

The Danish Federation of Small and Medium-Sized Enterprises and Axis Research Ltd., Vietnam has concluded in a sector study prepared for Danida that the Vietnamese government is opening up for ICT companies and foreign investors are recommended to pay close attention to Vietnam in the near future, because the country’s is becoming an internationally highly competent ICT player on the global market.
With impressive ICT annual growth of 33% in 2004 and 21% in 2005, Vietnam is making up for late entry into the ICT sector. While both Asia and the rest of the world achieved mere single-digit growth in 2005, Vietnam continued on a track of becoming one of the leading ICT countries. Why? Firstly it was a result of the “Strategy of ICT development” approved by Minister Phan Van Khai in 2004; secondly due to Vietnam’s membership into WTO. All leading to more foreign investors doing business in Vietnam, states the report.
The ICT sector possesses some key competencies that will help attract foreign investors and sustain steady growth. Cost efficiency and a determination to learn are among the biggest competencies of ICT labour forces. Further, the government is making it very attractive for foreign investment in the ICT industry, partly because of the tax level, but also more generally because of their sheer determination and commitment to this sector.
The study does mention some weaknesses needing prompt attention. Even though labour is plentiful in quantitative terms, both lack of high quality and poor English competencies, translate to not measuring up to international standards. The infrastructure is also a barrier; specifically, there is unstable electricity, Internet etc. needing improvement to meet the fast growing market’s requirements. Overall, Vietnam is lagging behind in some areas, but the Vietnamese government together with local ICT entrepreneurs have reason to feel quite confident regarding making all necessary changes for the country to become a highly competent ICT player on the world market.

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