Directive No. 07/CT-BBCVT on Guidelines for the Strategy for the Development of Information Technology and Telecommunications in Vietnam for the period 2011-2020

DIRECTIVE OF THE MINISTER OF POSTS AND TELECOMMUNICATIONS

On Strategic Orientation for the Development of Information Technology

and Telecommunications in Vietnam during the Period 2011-2020

(referred to as the "Take-off Strategy")

Over more than 20 years since the renewal of the Posts, Telecommunications, and Information Technology sector in Vietnam, there have been comprehensive and remarkable advancements, rapidly increasing capacity, continuously modernizing, narrowing the development gap with countries in the region and worldwide, actively integrating into the international economy, ensuring national security and defense, and serving the industrialization and modernization of the country.

Since 1986, implementing the renovation cause proposed by the Sixth National Congress of the Communist Party of Vietnam, the Posts, Telecommunications sector boldly built and implemented a breakthrough strategy with the principle of transitioning from a state-subsidized mechanism to a mechanism of "self-borrowing, self-repayment, and self-responsibility." Quickly establishing a solid position, the sector continued to focus on implementing the "Acceleration" strategy during the period of 1993-2000 with the principle of "directly adopting advanced technology" and "using external resources to support internal development," achieving the goal of fully digitalizing the telecommunications network, developing new services, increasingly effective business operations, and expanding service coverage to rural areas.

Seizing opportunities and leveraging advantages, the Posts, Telecommunications, and Information Technology sector promptly implemented the "Integration and Development" strategy during the period of 2001-2010 with the principle of "maximizing internal strength, creating a deep and wide competitive environment, and international integration," reforming state management, production and business management, actively integrating into the international economy, contributing to successfully achieving the goal of joining the World Trade Organization (WTO), abolishing state monopoly, opening the market, and shifting to competition across all types of services.

Thanks to the successful implementation of the above two strategies, the Posts, Telecommunications, and Information Technology sector has made significant progress. The telephone density reached nearly 50% (exceeding the target of 35% set by the Tenth National Congress of the Communist Party of Vietnam), 100% of communes have telephones, the number of Internet users exceeds 20%, the average service radius of a postal point decreased below 2.3 km. Almost all state agencies and over 50% of enterprises have applied Information Technology. The proportion of civil servants proficient in using Information Technology and exploiting the Internet in central agencies is 70%. The Information Technology industry is developing at an increasingly rapid pace, hardware industry growing at an average rate of 20-30%, software and service industries growing at an average rate of 30-40%. Many leading global Information Technology and Telecommunications corporations have entered the Vietnamese market, creating many favorable conditions. Information Technology and Telecommunications are making significant contributions to enhancing management and business productivity, poverty reduction, narrowing the digital divide, ensuring national information security.

However, the results mentioned above still "do not match the potential and strengths of the sector and the requirements of national industrialization and modernization." (Excerpted from the Prime Minister's conclusion announcement at the meeting with the Ministry of Posts and Telecommunications on May 10, 2007), not fully utilizing and tapping into human potential in state management as well as enterprise management, labor productivity remains low compared to other countries in the region and globally. The system of documents and policies is still under completion and specific implementation, not fully releasing the potential of all economic components in the sector.

The process of national industrialization and modernization within the renovation process is undergoing significant changes and accelerating strongly, requiring the Information Technology and Telecommunications sector, as an economic-social infrastructure, to lead the way, quickly transition to the "take-off" phase, develop more powerfully, with higher quality, overcome the risk of falling behind, seize opportunities to venture out into the world, catch up with advanced countries in the region and globally. The trend of converging technologies and services in Telecommunications, Information Technology, and Telecommunications, along with globalization, is creating comprehensive breakthrough opportunities but also posing profound challenges in management, technology, investment, and business operations, demanding that the entire sector be prepared to grasp opportunities, develop collaboratively, and quickly shift to flexible, proactive, innovative, multi-domain, and multi-service operations.

With the important role of the sector as a service, economic-technical, economic-social infrastructure, and a prerequisite for international economic integration, the Vietnamese Information Technology and Telecommunications sector needs to continue developing towards updating modern technology, "cutting corners and taking the lead," ensuring smooth information connectivity between economies, enhancing competitiveness, and developing human resources sufficient in quantity, high in level and quality to meet domestic and international market demands.

The Information Technology and Telecommunications Development Strategy in Vietnam during the period 2011-2020 ("Take-off Strategy") reflects the spirit of proactively preparing positively and the strong will of the entire sector to decisively bring Vietnamese Information Technology and Telecommunications through difficulties and challenges, seizing opportunities brought about by the Information Technology and Telecommunications revolution, contributing to "quickly bringing our country out of underdevelopment; laying the foundation for Vietnam to basically become a modern industrialized country by 2020, successfully realizing the cause of industrialization and modernization linked with the development of a knowledge-based economy." (Excerpted from the report of the Central Committee at the Tenth National Congress of the Communist Party of Vietnam).

In the spirit of the proactive revolutionary initiative, promoting the glorious historical tradition of the entire industry, the Minister of Posts and Telecommunications issues directives to units, enterprises, and all officers, workers, and employees in the Information Technology and Telecommunications sector of Vietnam to seriously study, understand, and implement specific action programs to prepare for the successful construction and implementation of the "Take-off Strategy" period 2011-2020 according to the following basic contents:

1. The mottos and viewpoints of the strategy

The "Take-off Strategy" period 2011-2020 closely adheres to two mottos, which are:

- Prioritizing the development of high-quality and high-level Information Technology and Telecommunications human resources as a breakthrough;

- Quickly mastering the domestic market to gradually and firmly expand into regional and global markets as a decisive factor.

Along with these two mottos, three fundamental viewpoints need to be thoroughly understood and emphasized when building and implementing the "Take-off Strategy":

- Transitioning strongly from broad development to deep development; from quantity to quality; enhancing efficiency and productivity.

- Effectively utilizing external forces to strengthen internal forces. Internal forces must become the core and mainstay, while external forces play an important role.

- Promoting proactivity and creativity in all business activities under the socialist-oriented market economy mechanism, improving the overall competitiveness of the industry.

2. Basic orientation goals of the strategy until 2020

By 2020, Information Technology and Telecommunications in Vietnam will become an important industry contributing positively to GDP growth with an increasing proportion. Information Technology and Telecommunications in Vietnam will reach advanced levels among ASEAN countries, contributing to the successful implementation of industrialization and modernization, laying a foundation for the development of a knowledge-based economy and an information society.

Postal and Telecommunications infrastructure and Information Technology will meet service usage targets equivalent to the average level of developed countries, diversifying service types, keeping pace with technological convergence trends and services in Telecommunications - Information Technology - Telecommunications, forming an integrated network system based on new generation technology, broadband, large capacity, available anytime, anywhere with any access device, meeting application needs of Information Technology and Telecommunications, narrowing the digital divide, ensuring good national security and defense.

Widely applying Information Technology and Telecommunications and the Internet in all political, economic, cultural, social, and management fields to create strength and motivation for structural transformation, promoting economic growth, improving labor productivity, enhancing competitiveness, improving the quality of life for citizens, achieving Millennium Development Goals; contributing to building a transparent, effective, democratic, and people-serving state. Efficiently exploiting information and knowledge in all industries. Building and developing Vietnam's e-citizenry, e-government, and e-business, with e-commerce reaching the leading ASEAN country level.

The Information Technology and Telecommunications industry will become a key economic sector and an important link in the global production and supply chain, ensuring high-speed growth, modern technology, producing many products with increasingly high creative content. Some important industrial products in electronics, hardware, software will reach the level of developed countries worldwide. Vigorously develop the software industry, the content industry, attach importance to intellectual property rights and copyright.

Human resources in Information Technology and Telecommunications will reach the level of leading ASEAN countries in terms of quantity, quality, and level, meeting management, production, service, and application requirements domestically and internationally. Popularize, eliminate computer illiteracy, improve the level and skills in applying Information Technology and Telecommunications for the people, especially young people.

3. Solutions creating a foundation for the implementation of the strategy

a) Enhancing awareness of the role of Information Technology and Telecommunications:

Enhance awareness of the information society, knowledge-based economy, and the role of Information Technology and Telecommunications throughout society through various forms of propaganda and dissemination, particularly utilizing mass media effectively. Leaders at all levels must truly recognize that Information Technology and Telecommunications are important and prioritized sectors of the nation; pay attention to creating favorable conditions and strongly supporting the application and development of Information Technology and Telecommunications; set examples and lead in the application of Information Technology and Telecommunications.

b) Improving mechanisms, policies, and laws

Review and perfect legal regulations, mechanisms, and policies to create a favorable environment supporting the application and development of Information Technology and Telecommunications to meet requirements for comprehensive international economic integration, ensuring national sovereignty, and national security; strengthen and promote internal forces, encourage healthy competition among businesses; create equal opportunities for all economic sectors to participate in the market; perfect the socialist-oriented market economy institutions in the field of Information Technology and Telecommunications and keep up with technological and service convergence trends in Telecommunications - Information Technology - Telecommunications.

c) Implementing strategies and planning well

Develop and implement strategies and plans to use investment capital, natural resources, and other national resources efficiently and economically, ensuring the successful achievement of national socio-economic development goals, maintaining national sovereignty. Each specific field needs to develop strategies and plans to fully leverage independence, autonomy, and creativity.

d) Strengthening the organizational structure of state management; Reforming enterprise models;

Strengthen the state management machinery for Information Technology and Telecommunications according to a multi-sectoral management model suitable with the trend of technology convergence and services in Telecommunications - Information Technology - Telecommunications. Organize the state management machinery reasonably based on clearly distinguishing organizations responsible for policy-making and law-making from those responsible for law enforcement; ensuring the formation of a strong state management system according to the principle of "management capacity leading development requirements."

Reform organization, improve procedures, enhance management capabilities, labor productivity, business efficiency, and competitive strength of Postal, Telecommunications, and Information Technology enterprises. Study and apply new innovative enterprise models with different forms to diversify ownership structures. Form strong economic groups, establish alliances, and closely link enterprises within the Postal, Telecommunications, and Information Technology sectors.

d) Expand and develop the Information Technology and Telecommunications market.

Leverage the strengths of all economic sectors, quickly dominate the domestic market, gradually expand to regional and global markets, while enhancing the construction and enriching the image of the "Vietnamese Information Technology and Telecommunications" brand. Focus investment on developing Vietnamese Information Technology and Telecommunications products and services with increasingly high levels of innovation. Key enterprises in Postal, Telecommunications, and Information Technology must ensure plans and timelines to strengthen competitiveness, transition to diversified business operations where Information Technology and Telecommunications remain the core business with high specialization.

e) Develop human resources strongly.

Improve the unified and professional training program system for Information Technology at all educational levels nationwide, enhance the quality of teachers, infrastructure, and international cooperation in Information Technology and Telecommunications training, ensuring the provision of highly qualified human resources.

Promote activities to enhance the qualifications of civil servants and workers in enterprises, particularly improving their application skills of Information Technology and Telecommunications in state management and production and business activities.

Encourage and create conditions for the development of socialized models, demand-based training models, enterprise-institute-school collaboration models, joint venture models, and international linkage models to provide the market with sufficient, highly qualified, and internationally certified Information Technology human resources.

Implement special policies and incentives to attract talent, encourage experts both domestically and internationally, especially overseas Vietnamese with expertise, experience, positions, and favorable conditions in the Information Technology and Telecommunications sector to actively contribute to the development of the Information Technology and Telecommunications industry.

g) Attract investment and mobilize capital.

Create an environment nurturing, developing, and welcoming the scientific and technological revolution, ready with physical infrastructure, logistics, and human resources to attract major global Information Technology and Telecommunications corporations to invest and conduct research and development activities in Vietnam.

Mobilize investment capital from domestic and international sources, prioritizing bank credit, stock market capitalization, savings, ODA, etc., for the development of Information Technology and Telecommunications.

4. Implementation organization

All units and enterprises in the Information Technology and Telecommunications sector shall organize the study and dissemination of the contents of this Directive, viewing the implementation of programs, action plans, proposals for initiatives, and preparation of resources for the successful construction and execution of the "Take-off Strategy" phase 2011-2020 as a significant political task; regularly report on the situation and progress to the Ministry of Posts and Telecommunications.

Units under the Ministry shall review, build, and perfect regulatory legal documents, establish synchronized mechanisms and policies to create a supportive environment for the application and development of Information Technology and Telecommunications according to the spirit of this Directive.

Enterprises in the Information Technology and Telecommunications sector shall grasp the situation and trends of Information Technology and Telecommunications development in the upcoming period, base on the content and spirit of this Directive, prepare material conditions, organizational structures, human resources, and physical resources, build schedules and plans to participate in the successful construction and implementation of the "Take-off Strategy" phase 2011-2020.

Entrust the Institute of Postal, Telecommunications, and Information Technology Strategy to lead the research and construction of the "Take-off Strategy" phase 2011-2020, develop the planning for the development of Vietnamese Information Technology and Telecommunications until 2020, and related documents and policies to concretize this Directive./.