IT in Enterprises: Supply and Demand yet to Meet each other

 

In order to have a panorama of IT application in Vietnamese enterprises in 2004 and 2005, VCCI co-operated with IDG Vietnam to conduct a survey on the following issues as hardware, software, IT services, Internet and website application, IT application, IT shopping tendencies, IT investment and expenditures in enterprises. At a seminar on ‘Supporting enterprises’ IT application for integration and development’ which was recently organised by VCCI, Nguyen Tri Thanh from the Enterprise Development Institute said that 2,233 enterprises from five major cities, including Hanoi, Ho Chi Minh City, Haiphong, Da Nang and Can Tho were surveyed. Of the figure, 13 per cent were macro enterprises with less than staff members, 45 per cent were small-sized with between 10 and 50 staff members, 26.2 per cent were medium-sized with between 100 and 500 staff members and the remainder, large-sized.

 

The survey shows that 67.1 per cent enterprises have used desktops. Of the figure up to 49 per cent use less than ten PCs while only two per cent use more than 100 PCs. On average, each enterprises with between 250 and 499 staff members has 52 PCs. Enterprises with less than 10 staffs have five PCs each, on average. Twenty per cent of surveyed enterprises use printers and only 7.5 per cent use laptops. The number of enterprises using peripheral devices is very low.

 

The picture for hardware is very optimistic. However, the use of software and the training in software application does not correspond with the hardware picture. The survey shows that most enterprises (79.2 per cent) have used professional software products, including accounting and human resources management. ERP (enterprise resource planning) solutions remain unfamiliar to Vietnamese enterprises with only 1.1 per cent of surveyed enterprises having used the solutions.

 

In recent years, more enterprises have given attention to the use of websites as a trade promotion tool. However, the survey results show that the number of enterprises using websites remains low as in such major cities as Hanoi and Ho Chi Minh City, where hi-tech has developed strongly, only around 30 per cent of enterprises have had their own websites. Only 2.7 per cent of surveyed enterprises have accessed e-commerce. Talking about the issue, Nguyen Van Thao, director of the Institute of Information Technology for Business, VCCI, said that the e-commerce floor of VNEmart (www.vnemart.com.vn) built by VCCI in 2003 had only 4,000 enterprises to take part in. Of the figure, around 2,000 are Vietnamese enterprises but they are less active as foreign enterprises from China and the US, which take part in the floor.

 

Enterprises’ investment and expenditures in IT mainly concentrate in hardware, accounting for 59.9 per cent while only 10.9 per cent is in software and 4.8 per cent in training. This implies a low investment and expenditures in software and training in comparison with hardware. Only 55 per cent of surveyed enterprises have use broadband Internet connections - ADSL, but the number of enterprises using websites is very low (30 per cent). This implies opportunities for IT enterprises to develop, which, in turn, will produce impacts on IT application in the local economy.

 

It is possible to say that one of the reasons for ineffective IT application among Vietnamese enterprises results from not good relations between application enterprises and IT service providing enterprises. Thao said that enterprises lacked information about benefits of IT application, IT products and services, and capability of providers. Thao went on to say that enterprises did not know how to tell about their requirements to service and product providers. Also, their investment structure is not proper.

In the mean time, IT solution and products providers lack information about their customers’ needs. Their marketing channels have yet to be effective enough to get access to application enterprises. In particular, their products and solutions are not effective. Customers complain that IT enterprises have just sold what they have but not what customers need.

The supply and demand have not met each other yet, support and consultancy enterprises’ role is very weak. In fact, the number of support and consultancy IT enterprises remains low and their activities remain constraint.

 

Many people say that to reach corporate users, IT enterprises should develop popular programmes at reasonable costs. This is an ideal target for both IT enterprises and their customers. However, the issue is whether these enterprises can provide solutions and products at popular prices or not?

 

IT fairs and exhibitions are considered as effective ways to link up the supply and the demand. However, many ideas suggest that the organisation of fairs and exhibitions within a narrow space with constrained time, not all enterprises which have the demand for IT solutions and products, especially small-sized enterprises in remote areas with limited budget, can attend the events. This is another reason for poor relations between IT enterprises and their customers, As a result, enterprises find it difficult to choose IT solutions and products, or they hesitate in making decision in IT investment. Also, the application of IT in enterprises’ activities remains difficult and ineffective.