Promoting Made-in-Vietnam IT Products

According to the Ministry of Information and Communications (MIC), the local IT industry has seen major development, with total spending on IT of US$3 billion in 2011, up 20 percent compared to 2010. In addition, conforming to the “Vietnamese prioritise using Vietnamese products” campaign and Resolution 11/NQ-CP regarding inflation-curbing measures and macroeconomic stabilization, government offices have gradually adopted Vietnamese IT products with better quality and more competitive price than imported ones. Consumers are also paying more attention to Vietnamese IT products. This is a good sign for IT products made in Vietnam. However, the majority of IT businesses in Vietnam are small and medium size enterprises (SME) which mainly do processing work, have low competitiveness and have yet to satisfy the demand of a growing local market which requires better quality products, especially given the current focus on cyber-security.

 

At the conference, Ms To Thi Thu Huong, working in the IT department of MIC, said that over the last five years, IT spending has reached the US$2.9 billion mark in 2011, twice as much as 2006, making the average annual growth rate 16.7 percent. The largest spending is still on the hardware sector with 88 percent, compared to 12 percent on the other two sectors. However, this dynamic has been shifted towards more spending on software and IT services. Spending on the hardware sector in 2011 only represented about 84 percent or US$2.4 billion. Most notably, the smartphone market in Vietnam has achieved 44 percent growth rate and is forecast to reach 51 percent in 2012.

 

Also according to Ms Huong, this is an appropriate time for IT businesses to devise their own strategies to approach the market in order to promote their own products. Local businesses have recently focused on developing core products such as email, one-door electronics and electronic offices, which are being rolled out in the majority of government offices because they meet all the requirements set forth by the MIC. Nevertheless, businesses also need to focus on quality, product design, service, and human resource management in order to improve the Vietnamese brand reputation.

 

Ms Huong pointed out that Vietnamese IT businesses have an advantage on their products being localised and having detailed instructions and easy-to-replace components. Therefore, there is a need in the near future to promote the Vietnamese brand and build a national brand for IT, develop the local IT industry so that Vietnam is recognised as a country having a variety of quality IT products and services.

 

Mr Nguyen Minh Hong, MIC Deputy Minister, said that the Government has issued specific instructions regarding investment prioritization, purchasing local IT products using Government funds. In order to maintain the growth rate, businesses should quickly grasp these changes to achieve suitable growth. Building a national brand among businesses, consumers and government agencies will help consumers to have a better understanding of the product and service variety so that they are better informed when it comes to purchasing Vietnamese IT products and services.

 

Besides, businesses need to focus on R&D activities to diversify the local IT products. The price should be competitive against imported products, and product quality as well as warranty and customer service should be improved. Businesses also need to introduce their products in Government-sponsored projects, devising their own strategies, goals and tactics to promote their products to a wider audience.

 

Regarding challenges facing Vietnamese IT products, experts believe Vietnamese IT companies mainly focus on assembling, which results in products of little variety and low competitiveness compared to imports. In addition, IT investors do not have enough information regarding local IT businesses, which makes it more difficult for Vietnamese IT products to find their own spot. Most importantly, there have not been any notable policies issued by the Government to support the Vietnamese IT industry, leading to some products losing their markets.

 

Several business representatives said that in order to develop made-in-Vietnam IT products, businesses should lobby for support from governmental agencies and consumers. Human resource should also be an area for improvement. In the near future, businesses need to invest capital to upgrade the professional skills of their employees and facilitate commercial transactions using specific and practical policies to help develop the potential of the Vietnamese IT market.