IT Applications – Effective Tool for Businesses

IT Applications – Effective Tool for Businesses

While the application of IT in government management is still limited, there have been remarkable results in the business activities of many economic sectors, according to Dr. Mai Liem Truc, Deputy Minister of Post and Telecommunications. Dr. Truc cited the Phong Phu Textile Company in Ho Chi Minh City as an example, who won a US$4 million-contract in the US through cyber bidding.

Furthering this, Mr. Vu Hoang Lien – Director of Vietnam Datacommunication Company (VDC) – affirmed: “E-commerce must be commerce first of all” while Dr Quach Tuan Ngoc, Director of the Information Centre of Ministry of Training and Education, stated: “applying IT is for the sake of development of each field, not only for the sake of IT development.” However, as many have noted, there have been few supporting guidelines or professional consultations for businesses, each following their own policy.

“Basically, business methods of investment into IT is similar to that of other fields,” Mr. Hoang Quoc Lap – Acting Administrator of the National Committee for IT – said, adding that “in time, the government will provide guidelines for appropriate IT development as a proportion of the whole revenue of each enterprise”

According to a Vietnam Computing Association’s survey in more than 10,000 medium- and small-sized businesses, the computers used only account for 15 – 20% of the total amount of computers in the whole country. In addition, almost all of them use computers for the simple purposes of composing text, sending and receiving e-mail and exploring information on the Internet.

The IT personnel are also a problem, themselves. To date, there are only professional IT personnel working within specific software and computer trade enterprises, whereas there is a significant lack of IT support services in other businesses. There are too few personnel who have adequate knowledge of IT within the business sector. Graduate engineers and bachelors seriously lack IT know-how to support the requirements of their future job.

Mr. Nguyen Van Thao, Deputy General Secretary of Vietnam Chamber of Commerce and Industry complained, “The overall IT situation in Vietnam is neither comprehensive nor effective. It is a fact that we cannot deny.” He also pointed out that Vietnam IT is in a vicious circle and in order to strengthen the application of IT in business, training and knowledge must be enhanced. This in itself is major hurdle that the sector must confront in order for it to advance effectively.

Mr. Nguyen Hoang Luu, the Deputy President and General Secretary of Hanoi Small and Medium Enterprises, insisted, “There is no focus organisation that can help the government to plan and manage IT development and E-commerce policies. Although the National Committee for IT application has assumed this task, it still remains more of a program than a complete organisation.” Mr Luu also suggests that there should be a comprehensive training program for IT, especially in E-commerce of Vietnamese enterprises. Training is a key stage to help those enterprise leaders to acknowledge the importance of applying IT within their business. Once IT application has been widely adopted the enterprises themselves will become the driving force behind further technological adoption.

The construction industry, in particular, needs to focus on applying IT. Dr Dang Kim Giao, Director of Computing Centre of Ministry of Construction, suggested compulsory policies for enterprises to invest in IT development. According to him, each year, an enterprise must (and not should) invest a certain percent of revenue into IT development or into training personnel. According to a survey of the National IT Management Committee IT investment only accounts for an average rate of 0.05-0.08 per cent of total revenues. Prof. Do Trung Ta, Minister of Post and Telecommunication, pinpointed several barriers that prevent IT from developing, such as a lack of comprehensive awareness of the importance of IT for improving products’ quality and a lack of guidelines for the government and enterprises. “These insufficiencies not only prevent development, but also limit the advancement of enterprises which contribute to the economy,” said Mr. Pham Gia Khiem Deputy Prime Minister.

To apply IT effectively, there must be suitable policies. Mr Mai Liem Truc admitted that the problems are not only found in the legal frame but also in investment structure, as IT projects are part of an intellectual economy, which is difficult to integrate into the material economy of today. Furthermore, Vietnam also lacks policies to publicise IT usage in society. Enterprises are not fully aware of the importance of IT and consequently they have little knowledge of how to apply the policies. Mr Nguyen Van Thao also mentioned the lack of a CIO in each enterprise to drive change and IT development within the enterprise.

The above-mentioned matters were put forward at the second forum of the National Conference for IT, which was held in Da Nang on August 13 – 14, 2004. At the event, almost every enterprise hoped to receive clear guidelines in the near future. The need to improve the awareness of leaders of enterprise was also key issue. “Enterprise will fall behind if action is not taken,” Mr. Mai Liem Truc emphasised.

• Tan Khoa