VN’s IT industry maintains growth momentum

December 25, 2019 | 10:13 am GMT+7

In the past few years, information technology (IT) has always been the sector with the fastest and most impressive growth rate in Viet Nam, contributing significantly to the GDP growth and the state budget.


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

High growth rate
According to a report by the Ministry of Information and Communications (MIC), the IT sector is experiencing strong growth, with the electronic hardware, software and digital content industries having maintained a high growth rate, at an average nearly 30% per year.
Particularly, Viet Nam's outsourcing market has set a certain foothold on the world map. Viet Nam has been ranked sixth in the list of destinations for outsourcing in the world, released by   globally famous consulting firm A.T. Kearney.
In addition, research firm Tholons has rated Viet Nam in eight place among the leading suppliers of IT services. Meanwhile, Ho Chi Minh City and Ha Noi have also been among the world’s top 20 most attractive cities for outsourcing.
Viet Nam has become an attractive destination for high-tech investment, with the presence of most of the world’s leading IT firms, such as IBM, Microsoft, Intel, Apple, Toshiba and Samsung, among others. Besides, many of Viet Nam’s IT companies, including Viettel, FPT and VNPT, are well-known globally, and there are an increasing number of creative startups in this field.
Focusing on IT development
To promote IT development, the Government has issued many relevant policies, including 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, in addition to developing the IT human resources that meet international standards and establishing the broadband telecommunication infrastructure on a national scale.
Besides, the target program for the development of the IT industry until 2020, with a vision to 2025, has set the goal of Viet Nam being capable of developing and producing 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 the 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 has to import equipment, computers and mobile phones, Viet Nam has now become one of the leading exporters of IT products in the world thanks to its effective attraction and use of foreign direct investment (FDI) capital and promotion of domestic resources.