Resolution No. 07/2000/NQ-CP On Building and Developing the Software Industry for the Period 2000-2005

RESOLUTION

On Building and Developing the Software Industry for the Period 2000-2005

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The software industry is an important sector of information technology. The software industry includes activities related to the production, sale of products, and provision of software services. Developing information technology, particularly the software industry, is a priority policy of the Party and State, serving as a shortcut and proactive approach to industrialization and modernization, contributing significantly to national security.

To implement Resolution No. 49/CP dated August 4, 1993 of the Government on developing information technology in the country, over the past years, information technology has achieved significant accomplishments, initially being applied in various economic and technical sectors and taught within the national education system. The number of professionals with university-level qualifications in information technology has notably increased. Specialized computer networks have been established and effectively utilized in several socio-economic fields, contributing to state management work. However, up to now, there is still a lack of comprehensive policies and measures to encourage the construction and development of the software industry.

The basic advantages for developing the software industry in our country include: the global information technology market is continuously expanding; initial investment requirements are not large; Vietnamese people have the ability to quickly absorb this technology; overseas Vietnamese communities have many experienced experts in the software industry and a willingness to cooperate and invest in Vietnam.

However, the development of the software industry in our country still faces many difficulties and challenges: the domestic information technology market remains limited; telecommunications infrastructure does not fully meet the requirements for information technology development, including the software industry; the investment environment for the software industry in the country is not favorable, with a significant gap compared to neighboring countries; the general public's awareness of protecting intellectual property rights, especially copyright for software products, is still low..

I. VIEWS AND OBJECTIVES FOR BUILDING AND DEVELOPING THE SOFTWARE INDUSTRY

1. Perspective.

The software industry is a new economic sector with high added value and great prospects. The State creates all favorable conditions to encourage organizations and individuals from all economic sectors to participate in investment and development of this industry.

The State encourages and provides maximum incentives for the development of the software industry. Initially, emphasis should be placed on the form of export through outsourcing and service provision to foreign companies. At the same time, expand the domestic market, in the short term. Focus on developing software in certain areas that can quickly bring about socio-economic benefits, replacing imported software products. Quickly organize the export of software labor and packaged software to enable the Vietnamese software industry to gradually achieve a position in the world market.

Closely integrate scientific research, technological development, training, and production as a foundation for further development in the software industry sector. In particular, encourage organizations and individuals to invest in scientific research and technological development in this field.

2. Objectives.

Build the software industry into a leading economic sector with high growth rates, contributing to modernizing and sustainably developing socio-economic sectors, enhancing state management capacity, and ensuring national security.

Leverage the intellectual potential of the Vietnamese people, especially the younger generation, preparing a high-quality human resource base for the coming decades.

Strive to reach a production value of approximately 500 million USD by 2005.

II. CONTENT AND MEASURES FOR BUILDING AND DEVELOPING THE SOFTWARE INDUSTRY

1. Training Human Resources.

Utilize all forms of training, retraining, instruction, and enhancement to ensure that by 2005, there will be around 25,000 highly qualified specialists and professional programmers fluent in English.

The Ministry of Education and Training shall take the lead, in coordination with the Ministry of Science and Technology and other relevant ministries and agencies, to develop and implement plans for rapidly developing this human resource. Strengthen, expand, and improve the quality of software technology training within the national education system. Promote the widespread use of the Internet in universities and gradually in secondary schools to better serve training purposes.

Encourage domestic and foreign organizations and individuals to participate in training human resources for information technology, generally, and the software industry specifically, under the form of software service enterprises and other forms. Particularly focus on creating favorable conditions for graduates from other fields to continue training and enhancing their knowledge in information technology so they can participate in developing the software industry.

2. Establishing a Favorable Investment Environment.

The software industry is a sector particularly encouraged for investment. The State applies the highest current incentives to software enterprises. Products and services provided domestically are exempt from value-added tax; if exported, they are subject to a zero percent tax rate and eligible for tax refunds according to the law; the highest tax incentives regarding corporate income tax are applied according to the Law on Encouraging Domestic Investment (amended) and the Law on Foreign Investment in Vietnam. The State implements a policy of reinvestment support for software enterprises, up to the amount of corporate income tax paid to the state budget, to facilitate further development. Apply preferential personal income tax regimes for professional workers directly involved in developing the software industry. Software enterprises enjoy the highest credit incentives and preferential land use terms according to the law.

The Ministry of Science, Technology and Environment shall take the lead and coordinate with the Ministry of Finance and relevant ministries and sectors to establish and promulgate regulations on the organization, management, and operation of the Venture Capital Fund for High-Tech Development, particularly software technology.

Study and set up direct connections to the international internet system at Hoa Lac High-Tech Park and Quang Trung Software City (Ho Chi Minh City) so that software businesses can fully and easily access high-quality internet services at competitive prices compared to other countries in the region.

The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance, the Ministry of Science, Technology and Environment, relevant ministries, sectors, provincial people's committees under the central government to calculate and balance domestic and foreign capital sources for annual and five-year plans for software industry development projects; find ways to attract foreign direct investment (FDI) and official development assistance (ODA) funds for software industry investment projects.

Create favorable conditions for associations operating in the software industry to make substantial contributions to the construction and development of the software industry and protect copyright in this field.

The Overseas Vietnamese Committee shall coordinate with relevant ministries and sectors to create all favorable conditions for overseas Vietnamese to cooperate and support individuals and organizations in the country in promoting markets, transferring knowledge and technology. Encourage overseas Vietnamese to invest, produce, and operate in the software business in Vietnam.

3. Enhance the effectiveness of laws.

The Ministry of Justice, the Ministry of Science, Technology and Environment, the Ministry of Culture, Sports and Tourism, and relevant ministries and sectors shall promptly implement the following tasks:

- Review and amend or submit to competent state agencies for amendment and supplementation of legal normative documents related to production, business, service provision, and author rights regarding software to encourage investment and development of the software industry.

- Strengthen the capacity and effectiveness of state management agencies in the field of information security.

- Develop and implement training programs to enhance knowledge of legal protection of author rights for software products for judicial staff and legal advisors.

- Vigorously promote propaganda, dissemination, and education throughout society to raise awareness of compliance with laws, respect for, and protection of author rights for software products. Enforce the protection of author rights in this field.

- Study and issue appropriate policies on publishing, inspecting exports and imports of software products.

- Publish statistical data on the information technology industry in general and the software industry in particular according to the national economic classification system.

4. Expand the market.

The Ministry of Trade, the Ministry of Foreign Affairs, the Ministry of Planning and Investment, the Ministry of Science, Technology and Environment, and relevant ministries and sectors shall organize trade promotion and create conditions for domestic software industry enterprises to open branches and representative offices both domestically and abroad, invest abroad, and export software labor.

Encourage agencies, organizations, and individuals from all economic sectors to invest in applying information technology, using products and services of domestic software industry enterprises. Create conditions for foreign software industry enterprises to invest, open branches, and representative offices in Vietnam.

III. IMPLEMENTATION

1. The Ministry of Science, Technology and Environment shall take the lead and coordinate with the Ministries of Planning and Investment, Finance, Industry, Trade, Education and Training, the General Post Office, and relevant ministries and sectors to be responsible before the Government:

a) Complete the Project on Building and Developing the Software Industry for the 2000-2005 period and submit it to the Prime Minister for approval;

b) Submit to the Prime Minister for issuance of decisions on policies encouraging investment and development of the software industry;

c) Implement this Resolution; monitor, urge, inspect, and compile reports to the Prime Minister periodically.

In the process of implementation, if there are difficulties, they must promptly seek guidance from the Prime Minister.

2. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally governed cities shall be responsible for implementing this Resolution./.