ICT revenue drops on struggling economy

July 7, 2023 | 07:38 am GMT+7

Revenue from the communications and information industry saw a significant drop in the first half of this year due to the difficult global and domestic economic situation, according to the Ministry of Information and Communications.


The ministry’s report showed that the sector earned a revenue of more than VND1.6 quadrillion (US$69 billion) in the January to June period, a drop of 8.66 per cent against the same period last year and equivalent to just 39.6 per cent of the plan for the full year.

The sector’s contribution to the gross domestic product (GDP) was estimated at nearly VND389.8 billion, falling by 7.2 per cent.

Notably, the information and communications technologies (ICT) sector reported a drop of 10.35 per cent in revenue against the same period to just VND1.45 trillion, or 38.83 per cent of the plan for 2023.

The ministry said that the drops were attributed to difficulties in the global economy as the economic recession in many countries still hasn't eased, resulting in a weak consumption market for IT products.

The Ukraine conflict and the COVID-19 pandemic also affected the sector, which caused drops in IT exports from Viet Nam.

Statistics showed that the ICT industry earned a revenue of $52.2 billion in the first five months of this year, falling by 8 per cent over the same period last year, mostly due to the decrease in the exports of hardware and electronic products. The export value of hardware and electronic products was estimated to be $51.51 billion, falling by 9.56 per cent.

In March and April, hardware and electronics exports dropped considerably by 22.8 per cent and 22.4 per cent, respectively.

Statistics from the General Department of Customs showed that the export of computers and components was estimated at nearly $20.3 billion, falling by 15 per cent, while the export of phones and components fell by 9 per cent to $21.4 billion.

Still, the sector saw increases in telecommunications services by 7.9 per cent to VND74.47 trillion.

In the national digital transformation, as of June 18, more than 1.39 billion transactions were conducted by the national government service platform.

In addition, more than 849,290 enterprises participated in the small and medium enterprises support programme fro digital transformation (SMEdx), or 106.1 per cent of the 2023 plan.