HCM City IT: Reaching New Heights

HCM City IT: Reaching New Heights

The Ho Chi Minh City information technology (IT) industry, together with its thriving economy with a basically complete infrastructure and superstructure, has step by step integrated both internationally and in the region. The family-scale use of IT products and equipment as well as internet has been a solid foundation for overall IT applications for the whole of society.

The IT industry of Ho Chi Minh City has reaped initial successes with the opening of the Quang Trung Software City, E-Town and SSP and the increasing wide-range establishment of both foreign-invested and local-invested enterprises engaged in software production and e-business. These achievements have also provided momentum for the implementation of the Project 112 related to applying computer science to administrative system. The City has opened a website for enterprises to register business online, opened a website to provide information about the City and, on April 15, 2005, it launched an information site in English version. Each department or branch has its own website to provide useful information about its related activities for enterprises and investors. Online talks between municipal leaders and citizens have filled the gap between the authorities and the people.

In business, IT application has helped improve propriety and management transparency, optimise production activities and production cost savings and a better working environment. However, IT application for small and medium-size enterprises (SMEs) is still limited. Most of them are unaware of the strong points of IT. Hence, the International Data Group (IDG) and the Vietnam Chamber of Commerce and Industry (VCCI) are joining forces to carry out the first national survey on “IT applications in SMEs and supporting strategies for IT applications in SMEs.” According to a report, Vietnam has about 500,000 enterprises which are a vital driving force for the development of the national economy. SMEs proliferate in developed countries while SMEs in Vietnam account for a quite small proportion.

As regards investment attraction, for many years now, Ho Chi Minh City has shown great interest in the overseas Vietnamese community or Viet Kieu (about 3 million) who are considered a bridge linking Vietnam with the rest of the world. In addition, Viet Kieu are also reliable distribution representatives for Vietnamese commodities exported to countries where they are living. In practice, companies and business households have advantages over others in seeking customers and markets for exported goods with unimaginably low costs. Viet Kieu also provide much needed capital to local industry, about USUS$3 billion in 2004 alone. This capital channel is very important for the City. Therefore, the City should actively build up warm and close relations with Viet Kieu communities to create favourable conditions for them to contribute intellectual capital and financial sources to the City and to the nation as a whole. In the meantime, a better investment environment should be set up to make them feel secure in long-term business here.

Many software development enterprises have had to retrain their staff due to overlapping and ill planned training programmes and this reality has slowed down their overall development and reduced their competitive edge. An open education background to attract well-known international schools into Vietnam is a new way of attracting “overseas study” to Vietnam with lower fees. RMIT is a typical example in training a society-needed work force. Vietnam needs a work force of international standard before entering the WTO to be able to compete with foreign countries. The opening of international education also encourages the development of ational education. By cooperation with foreign institutions, local schools can improve their training quality.

• Song Phuong