Vietnam IT Industry Value 2002-2006 (Million USD)


average score. This index was published by ITU in May 2007, unlike the ICT-OI index in that it does not take into account education, but is based only on IT and telecommunications development indicators. This index in 2007 was ranked for 181 countries, Vietnam ranked 126/181 with a score of 0.29 - not reaching the world average score of 0.40. Compared to the previous ranking (ranked 123), Vietnam dropped 3 places although it increased 0.1 point (0.28 to 0.29). ITU also published a map of the world and each region in which the color of each country reflects the size/smallness of this index. The darkest (highest) are the regions of North America, Western Europe, Japan and Australia.

Networked Readiness Index (NRI 2006-2007): 7 ranks lower. Vietnam's NRI ranking in 2006-2007 was 82/122, 7 ranks lower than in 2006 (75/115).

E-Readiness Index (EIU Index 2007): increased by 1 rank. Vietnam ranked 65th out of 69 countries – increased by 1 rank compared to the previous year (3.73 points – increased compared to 3.12 points in 2006). Vietnam's position in the list in 2003 and 2002 was 56/60, 2004 was 60/65, 2005 was 61/65 and 2006 was 66/68.

In terms of government policy and vision, Vietnam is ranked 58/69.

Table 2.6: Vietnam in EIU's ranking over the years


Year

EIU Index Score

EIU Index Ranking

2001

2.76

58/60

2002

2.96

65/69

2003

2.91

56/60

2004

3.35

60/64

2005

3.06

61/65

2006

3.12

66/68

2007

3.72

56/60

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Vietnam IT Industry Value 2002-2006 (Million USD)


Source: EIU, 2000-2007


Report: Vietnam IT Panorama 2007, Ho Chi Minh City Information Technology Association


Vietnam's IT market in 2006 reached 1 billion 15 million USD, an increase of



22.6% - more than 3 times the world's general growth rate - in which hardware increased by 15.8%, software/services increased by 43.9%. Hardware spending did not grow high because hardware prices decreased quite quickly, software spending was affected by the decline of the government software market in 2006. Although the government software market grew slowly due to the slow implementation of the 2006-2010 plan, the growth rate of the software market was still high due to digital content services compensating. These are impressive growth figures, higher than the GDP growth rate and exceeding the average growth rate of Asia and the world.


Table 2.4: Vietnam IT market 2000-2006 (million USD)


Year

Market

software/service

Hardware market

Total (Million USD)

Growth (%)

2000

50

250

300

-

2001

60

280

340

13.3

2002

75

325

40

17.6

2003

105

410

515

28.8

2004

140

545

685

33.0

2005

198

630

828

20.9

2006

285

730

1015

22.6

Source: 2006 IT Panorama Report - Ho Chi Minh City Information Technology Association


IT industry: growth of 22.1%, of which software industry increased by 32%. The total value of Vietnam's IT industry (excluding consumer electronics and telecommunications industry) in 2006 was 1.74 billion USD - an increase of 22.1% compared to 2005.

The growth rate of the Software/Services Industry (32%) is still higher than the growth rate of the hardware industry, partly due to the contribution of the digital content industry and software outsourcing services to foreign countries.

Table 2.5: Value of Vietnam's IT industry 2002-2006 (million USD)



Year

Service software


Hardware


Total

Serving the domestic market

land

Processing/ Export

Total

2002

65

20

85

550

635

2003

90

30

120

700

820

2004

125

45

170

760

930

2005

180

70

250

1150

1400

2006

255

105

360

1380

1740


Source: 2007 IT Panorama Report – Ho Chi Minh City Information Technology Association

Vietnam's software/service industry achieved a turnover of 360 million USD in 2006, of which 255 million USD came from the domestic market (accounting for 70.1%) and 105 million USD from export processing (accounting for 29.9%), an increase of 44% over the previous year. Software export processing increased by 50%, the domestic software/service market increased by 41.6%.

The hardware industry reached 1.38 billion USD, mainly serving exports with a turnover of 1.233 billion USD and 147 million USD for the domestic market. The important contribution is 100% foreign-owned companies producing in Vietnam for export. Most domestic computer brands had 2006 sales of less than 5 million USD, only 2 leading Vietnamese computer brand manufacturers with sales exceeding 10 million USD still maintained a high growth rate, in which FPT Elead grew 35.8% with sales of 18.2 million USD, CMS grew 49.5% with sales of 13.9 million USD.

With over 16 million Internet users, Vietnam has become the 17th largest Internet user country in the world, and 6th in Asia (after China, India, Japan, Korea and Indonesia). However, if calculated by the rate of Internet access, Vietnam is still in a rather modest position: 9th in Asia and 93rd in the world.

Table 2.6: Subscriber and user development 2003-2007 (according to VNNIC)


May

Number of subscribers

Number of users

May 2007

4,503,333

16,176,000



May 2006

3,541,000

12,912,000

May 2005

1,899,000

7,185,000

May 2004

1,124,000

1,709,000

May 2003

450,000

4,311,000


Source: Vietnam IT Panorama 2007, Ho Chi Minh City Information Technology Association


With such a growth rate, the demand for IT human resources is really urgent.

necessary. To have further development, the IT industry is in need of a lot of talent. To have more talent will largely depend on the training of human resources of the industry.

3.1.2 Basic views

Developing human resources for information technology (including human resources working in telecommunications enterprises, information technology industrial enterprises; human resources for information technology applications; human resources for training in information technology, electronics, telecommunications and people using information technology applications) is a key factor that has decisive significance for the application and development of information technology. Developing human resources for information technology must ensure quality, synchronization, and rapid structural transformation towards rapidly increasing the proportion of highly qualified human resources and enhancing national information technology capacity.

Developing human resources in information technology must be closely linked to the process of innovation in education and training, especially innovation in university education. Fundamentally and comprehensively innovate the training of human resources in information technology towards integration and achieving international standards, creating fundamental changes in training quality, meeting the requirements of information technology development to serve the cause of industrialization, modernization of the country and international economic integration.

Promote socialization and enhance international cooperation in training IT human resources, promote all domestic resources and mobilize foreign resources for IT human resource development.

Strongly develop IT human resources, ensure sufficient human resources to serve the needs of application and development of information technology, build a knowledge-based economy and society.


information, meeting the requirements of the country's industrialization and modernization and providing information technology human resources for the international labor market.

Modernize, improve the efficiency and competitiveness of the IT human resource training system, raise the level of IT human resource training in our country to reach international standards and participate in the international human resource training market. Gradually become one of the countries providing high-quality IT human resources for countries in the region and the world.

Promote human resource training for application and development of information technology to serve national defense, security and protection of the Fatherland.

Strengthen the building of teaching staff, improve the quality and quantity of IT, electronics, telecommunications lecturers in universities, colleges, vocational secondary schools and vocational training institutions. By 2015, at the university and college level, ensure that there is 1 IT lecturer for every 15 students; 70% of university lecturers and over 50% of college lecturers have a master's degree or higher, over 50% of university lecturers and at least 10% of college lecturers have a doctorate. By 2020, over 90% of university lecturers and over 70% of college lecturers have a master's degree or higher, over 75% of university lecturers and at least 20% of college lecturers have a doctorate.

Create a breakthrough in training quality. Strive to have university-level training in information technology, electronics, and telecommunications reach the advanced level in the ASEAN region by 2015; 80% of students in information technology, electronics, and telecommunications graduating from domestic universities have sufficient professional and foreign language skills to participate in the international labor market. By 2020, training in information technology, electronics, and telecommunications at many universities will reach international standards; 90% of students in information technology, electronics, and telecommunications graduating from universities will have sufficient professional and foreign language skills to participate in the international labor market.

Strengthen training, fostering, and building a team of IT teachers for general education institutions. By 2015, all high school and middle school students and 80% of primary school students will learn IT. Ensure IT is taught to 100% of students in general education institutions.


2020. Promote the application of IT in education and training. By 2015, 100% of teachers at all levels can use IT applications to support teaching.

Promote human resource training to meet the development needs of enterprises in the field of information technology and communications. From now until 2015, provide these enterprises with 250,000 people with expertise in information technology, electronics, and telecommunications. Of these, 50% have college or university degrees and 5% have a Master's degree or higher.

Strengthening human resource training for information technology application. From now until 2015, providing enterprises, state management agencies, socio-political organizations, research facilities, hospitals, etc. with 530,000 specialized information technology staff with college degrees or equivalent or higher.

Continuously improve knowledge and skills in using IT applications for the whole society. By 2015, all cadres, civil servants, and public employees at all levels, 100% of medical staff, 80% of employees in enterprises, and over 50% of the population will be able to use IT applications. Ministries, branches, provinces, and centrally run cities will have IT directors who are trained according to State regulations. By 2020, 90% of employees in enterprises and over 70% of the population will be able to use IT applications.

3.2 Key solutions to promote training of IT human resources in the coming time

3.2.1 Expanding information technology human resource training channels

- Increase the number of students in formal training schools

We are lacking high-quality human resources, but even more lacking IT "workers". "Socialize" the issue of training IT human resources, focus on compensating for the shortage of human resources below university level, and innovate in the long term thinking of training high-quality human resources. Create conditions for the establishment of vocational colleges and vocational universities. The process of expanding training will entail the need to issue quality standards early, as well as requiring changes in mechanisms.

- Encourage organizations and individuals from all economic sectors,


Foreign IT experts participate in training IT human resources, encourage investment in private universities and colleges specializing in IT.

There should be a more open and flexible policy in establishing IT training schools to mobilize maximum resources from the State, businesses and society to invest in this field. It is necessary to allow schools more initiative, autonomy and self-responsibility in issues such as quotas, admission methods, programs, textbooks and tuition fees.

- Promote CIO training from low to high levels to be compatible with the CIO generation of AFTA, APEC, WTO... CIO training needs to ensure 4 conditions: the ability to search and collect information, have an understanding of information technology, grasp and master information, and have the ability to reason based on information to make decisions. CIO training can focus on two directions: IT experts learn about state management, those who are undertaking state management functions learn about IT. The source of CIO training needs to come from the businesses themselves, that is, engineers from other industries, when trained in IT, understand the nature of IT and have existing professional knowledge, they will be successful leaders.

- Support and promote the informal training model. This system has contributed significantly to the training of IT human resources. However, the training certificates have not been recognized by the State. This causes disadvantages for graduates of these centers when they work in enterprises and State agencies. The State needs to study and promulgate policies to recognize the equivalence between the certificates of these training centers and the degrees in the formal training system. It is necessary to develop a program and organize an exam to grant a practical college degree (no need to study, just pass the exam to be granted a degree). Universities should also study to connect with high-quality centers for training.

- Strengthening IT training for other industries: Our basic IT programs are generally only at a fairly simple level, with little practice time, and students have almost no practical skills. IT programs for majors are much more difficult, except for a few specific engineering industries, the vast majority of these programs have not been systematically developed. We


There is almost no IT training program for many majors: economics, education, social sciences and humanities. Therefore, it is necessary to further increase the duration of IT subjects for students. The IT program for each major needs to be carefully designed according to the characteristics of each major. Strongly deploy training for some new majors such as "economic information systems", medical-informatics, bio-informatics, chemistry-informatics... c) Training 2 degrees in IT for graduates from other majors. In fact, through the framework program built since 2003, some majors such as mechanics, electricity-electronics... have partly demonstrated the idea of ​​increasing the content of IT knowledge and skills and in the framework program system there are also some new majors such as "economic information systems", but in general, most of the programs have too little IT content.

- Promote short-term training courses to update knowledge. These training courses play a very important role in developing IT human resources. For IT experts: project administrators, design experts, building comprehensive solutions and marketing forces in the Hightech field can only be trained through work experience, along with short-term training courses. However, the scale of these courses is still limited. The cost of participation is often quite high, while many businesses and managers have not yet fully realized the importance and benefits of this investment. There is a need for propaganda measures to further promote the organization of these training courses. The State needs to have a support mechanism to reduce costs, and needs to promote short-term training courses to improve qualifications and update professional knowledge for IT human resources.

3.2.3 Strengthening IT human resource training according to international standards

- Schools need to increase investment in IT infrastructure, teaching equipment, especially high-quality computer systems.

It is necessary to equip electronic learning facilities, modern network infrastructure, broadband Internet connection for all universities to create more opportunities for students to go online to collect documents, become more familiar with e-commerce and students may have to be free or only have to pay a certain fee; ensure the ratio of students

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