Vietnam has held a comprehensive national workshop on the state of the country's nascent IT sector.

Participants highlighted some of the shortcomings currently plaguing the industry, including a lack of human resources, poor communication skills, high telecom service charges and a serious shortage of qualified managers.

Professor John Vu, chief engineer of the Boeing Group IT centre, recommended that Vietnam promote potential IT projects based on ability and skill, rather than focusing on the bottom line, or low-cost factor. 

"I urgently recommend IT firms in Vietnam to re-specify their positions to be based on ability, rather than low costs," said Vu.

Dr Le Hoang Minh suggested that the software industry would benefit from the creation of government investment funds. The director of the Software Technology and Digital Content Institute also emphasised that software companies had yet to receive financial support from the state for "adventure investment".

IT Agency chief Dr Nguyen Anh Tuan explained that Vietnam's policy on technology remained a "combination of the strategy of protecting domestic industries until they are eligible for competition". However, Nguyen noted that after joining the World Trade Organization, trade barriers and the majority of protectionist polices were lifted. As such, local businesses were unable to directly compete with multinational groups in local and international markets.

Despite these difficulties, Vietnam has still managed to attract the attention of Japanese IT corporations seeking a potential outsourcing hub. The Asian island currently shifts 17 per cent of its outsourcing projects to Vietnam, generating approximately ¥10-15 billion ($101-152 million) per year. Hoang Le Minh, a high-ranking government official, confirmed that the country planned to increase its outsourcing capabilities.

In addition, a number of Taiwanese PC firms have announced plans to establish a presence in the country, including Compal, Hon Hai Precision and Wistron Corp. International companies such as Canon, Sun and BT Frontline have also recently expanded their presence in the country. X

Check Out
Vietnam Bridge
IT Examiner