DECISION. Approving the strategy on Vietnam information and communication technology development till 2010 and orientations toward 2020

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1 THE PRIME MINISTER OF GOVERNMENT No: 246/2005/QD-TTg DECISION SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness Ha Noi, day 06 month 10 year 2005 Approving the strategy on Vietnam information and communication technology development till 2010 and orientations toward 2020 THE PRIME MINISTER Pursuant to the December 25, 2001 Law on Organization of the Government; At the proposal of the Minister of Post and Telematics in Report No. 2563/BBCVT-VCL of December 24, 2004, on the "strategy on Vietnam information and communication technology development till 2010 and orientations toward 2020," DECIDES: Article 1.- To approve the Strategy on Vietnam information and communication technology development till 2010 and orientations toward 2020 with the following principal contents: I. DEVELOPMENT VIEWPOINTS, OBJECTIVES AND ORIENTATIONS 1. Development viewpoints - Information and communication technologies constitute the first and foremost important instrument for achieving the millenium goals, forming an information society and shortening the national industrialization and modernization process. The wide application of information and communication technologies is a factor of strategic significance, contributing to economic and social development and increasing productivity and labor efficiency. The application of information and communication technologies must be associated with the renewal process and socio-economic development targets, be incorporated in political, economic, cultural, social, scientific and technological as well as defense and security programs and activities. - Information and communication technology industry is a spearhead economic sector prioritized, supported and encouraged by the State for development. The development of the information and communication technology industry will make an important contribution to the economic growth, promoting other branches and domains, and raising the national technological capacity in the national industrialization and modernization process. Developing the information content industry and software industry and accelerating the formation and development of an information society constitute an important priority orientation, which the State is particularly interested in. - Information and communication infrastructure is the socio-economic infrastructure enjoying priority for development and secured with modern technologies for effective management and efficient exploitation. Information and communication infrastructure must be developed one step ahead in order to lay foundation for the development and application of information and communication technologies. Investment in information and communication infrastructure must be intensive to bring about long-term benefits for the entire society. - Developing human resources for information and communication technologies is a key and decisive factor for development and application of information and communication technologies. The development of such human resources must ensure quality, coordination and quick restructuring in the direction of increasing professionallyqualified laborers and improving the national capacity of information and communication technologies. 2. Development objectives till To apply information and communication technologies widely in key economic branches and domains. To formulate, build and develop an electronic Vietnam with electronic citizens, an electronic government, electronic enterprises, electronic transactions and commerce to the above-average level of ASEAN countries. - Information and communication technology industry shall be a spearhead industry with an annual growth rate of

2 20-25% and total turnover of USD 6-7 billion by Information and communication infrastructure shall cover the entire country with huge flux, high speed and quality and low cost. By 2010, the national telephone density shall be telephone sets/100 people; the Internet subscription rate shall be 8-12 subscribers/100 people (30% of whom will be broadband subscribers), with the Internet use percentage of 25%-35%; the personal computer density shall reach over 10 computers/100 people. - The training at key information and communication technology faculties shall reach the quality and advanced level of ASEAN countries. Most of officials, employees and public servants, teachers at all educational levels, medical doctors, assistant-doctors, university and college students, students of professional secondary schools, vocational training schools and upper secondary schools, 50% of lower secondary schools and more than 30% of the population will be able to use applied information and communication technologies and exploit the Internet. 3. Development orientations toward 2015 and a vision toward To apply information and communication technologies widely in all domains, efficiently exploit information and knowledge in all branches. To build and develop an electronic Vietnam with electronic citizens, an electronic government, electronic enterprises, electronic transactions and commerce to the above-average level of ASEAN countries. To form an information society. - Information and communication technology industry shall see an annual growth rate of 20% and total turnover of some USD 15 billion. - Information and communication infrastructure shall develop vigorously, meeting the information exchange demand of the entire society. The telephone density shall be over 50 telephone sets/100 people, of which the density of fixed telephones shall be 20 sets/100 people and that of mobile phones shall be over 30 sets/100 people. - The training in information and communication technologies at universities shall reach the quality and advanced level of ASEAN countries. 80% of information and communication technology university graduates shall have adequate professional qualifications and foreign language knowledge to participate in the international labor market. The vision toward 2020: With information and communication technologies as the core, Vietnam will quickly go through socio-economic restructuring to become an advanced country in terms of development of a knowledgebased economy and an information society, which will significantly contribute to the successful realization of national industrialization and modernization. II. CONTENTS OF THE STRATEGY 1. Development and application of information and communication technologies a/ To form and develop electronic citizens To ensure that 80% of young people in cities, provincial towns and townships will be able to use applied information and communication technologies and exploit the Internet. To step by step introduce information and communication technologies into peasants' life, narrowing the numerical gap between rural and urban areas. People will have prompt access to information and knowledge through radio, television, the Internet and websites. To develop and universalize an electronic management system to over 80% of hospitals nationwide. To universalize informatics to more than 70% of medical workers. b/ To build and develop an electronic government To ensure a smooth and fast direction, administration and information exchange system from the central level to ministries, ministerial-level agencies, Government-attached agencies, provinces and centrally-run cities; over 50% of documents will be circulated online; a majority of state officials and public employees will have conditions to use s and exploit information for their jobs. 100% of Government agencies will have websites with full information on their respective activities, laws, policies, regulations, administrative procedures, working processes, investment projects, bidding and procurement. Citizens and enterprises will be able to quickly and

3 easily search information on activities of administrative agencies. Financial, banking and customs information systems will reach a level equivalent to that of advanced regional countries. The systems of information on population, officials and public employees, natural resources, environment and statistics will be updated adequately and regularly. A number of declaration, registration and licensing services will be provided online through information systems of urban districts and provincial/municipal services. To form an electronic government in Hanoi and Ho Chi Minh city at an above-average level of the region. To accelerate the application and development of information and communication technologies in defense and security in service of the cause of defending the Fatherland. c/ To build and develop electronic enterprises To vigorously apply information and communication technologies to economic service branches of high international integration such as telecommunications, banking, customs, aviation, tourism, taxation, etc., ensuring that the management capability and service quality of such branches will reach the advanced level in the region. 50%-70% of enterprises will apply information and communication technologies to their management and administration activities, advertisement for their brands, marketing, market expansion, supervision, automation of processes of manufacturing, designing, inspecting and assessing the quality of products. More than 50% of enterprises in Hanoi and Ho Chi Minh city will submit statistical reports, carry out tax declaration, registration and get business registration certificates through electronic networks. More than 40% of enterprises will make declaration, registration and get customs permits through electronic networks. d/ To develop electronic transactions and commerce To form, and accelerate the development of, an environment of electronic transactions and commerce. To establish electronic commercial transaction floors, value added networks and systems for management of supply chains. To ensure that 25%-30% of all economic transactions shall be carried out through the system of electronic transactions and commerce. The value of electronic transactions and commerce shall increase tenfold compared with Development of information and communication technology industry To develop the software industry and information content industry while expanding and developing the communication network. To maintain the growth rate of the software industry and information content industry at an average level of 40%/year to achieve a total turnover of some USD 1.2 billion by To strive to turn Vietnam into a regional center for assembly of electronic, computer and telecommunication equipment, production of several types of components and spare parts, designing and manufacture of new equipment. The computer hardware industry shall grow at an average rate of 20%/year and earn a total turnover of some USD 3 billion by The telecommunication equipment production industry shall see an average growth rate of 22%/year and a total turnover of some USD 700 million. The electronic industry (civil and industrial) shall growth at an average rate of 22%/year and earn a total turnover of some USD 2 billion. Personal computers, mobile phones and softwares of Viet-namese brands shall hold dominant market shares and gain export turnover of no less than USD 1 billion. 3. Development of information and communication infrastructure To build information and communication infrastructure to meet the information exchange demand of the entire society. Vietnam's telecommuni-cation and Internet infrastructure shall be equipped with modern technologies, develop quickly, provide users with a wide range of quality services, ensuring information safety, confidentiality and charge rates below or equivalent to the average level of countries in the ASEAN+3 region. To create conditions for all economic sectors to participate in the provision of telecommunication and Internet services. To support new enterprises to hold 40%-50% of the telecommunication and Internet market shares by All ministries, branches, state administrative agencies, provincial and district administrations will be connected to the broadband Internet and the Government's wide-area network. 100% of communes nationwide shall have telephones; 100% of commune post and cultural spots and community educational centers will be connected to the Internet; 100% of districts and many communes throughout the country will be provided with broadband services at charge rates below or equivalent to the average rate of countries in the ASEAN+3 region; 100% of research institutes, universities, colleges, professional secondary schools and supper secondary schools will be able to access high-speed Internet; more than 90% of lower secondary schools and hospitals will be connected to the Internet.

4 4. Development of human resources for information and communication technologies The information and communication technology training in key universities shall reach the advanced level and quality of ASEAN countries in all aspects of knowledge, skills and foreign languages. 70% of information and communication technology graduates from key universities will have adequate professional qualifications and foreign language knowledge to be able to participate in the international labor market. 100% of university, college and professional secondary school graduates will be able to use computers and the Internet in their work. By 2010, more than 100,000 people will have a college, university or higher degree in information and communication technologies, 20% of whom will reach the regional or international level. To ensure that 100% of universities, colleges and upper secondary schools will have their own websites. To raise the quality and quantity of information and communication technology lecturers in universities, colleges and professional secondary schools so that every lecturer will teach less than 15 students. Teacher-training universities and colleges will supply enough informatics teachers for schools throughout the country. Most of officials, public employees and servants, teachers at all educational levels, medical doctors, assistant-doctors, university and college students, students of professional secondary schools, vocational training schools and upper secondary schools, 50% of lower secondary school pupils and a section of the population will be trained in the application of information and communication technologies and exploitation of the Internet if they so wish. Most of ministries, branches, provinces and cities will have leaders to manage information, who will attend complementary and training courses on information and communication technology management programs at an equivalent regional level. III. MAJOR SOLUTIONS AND KEY PROGRAMS 1. Major solutions a/ To raise public awareness To raise public awareness about the role and position of information and communication technologies in all national economic branches, security and defense and improve the capability to use information and communication technologies through popularizing and disseminating fundamental knowledge about such technologies on the Internet and mass media. To launch a deep and wide revolutionary movement for the entire nation to advance into an information society and a knowledge-based economy so that the country will become a big school, to promote an information-sharing culture and form a lifelong learning society. b/ To raise the capability to apply and develop information and communication technologies - For the society: To promulgate policies of state investment in the application of information and communication technologies, policies to attract transnational companies, international organizations, non-governmental organizations, domestic and foreign companies to invest in the development of information and communication technologies. To concentrate investment on a number of key projects which may create a breakthrough, and lay a foundation for development of electronic citizens, an electronic government, electronic transactions and commerce. In the immediate future, to prioritize development of an electronic government. To give priority to investment in material foundations for a number of information and communication technology-training establishments at a level equivalent to that of advanced regional countries so as to ensure the quality of training and scientific research on information and communication technologies. To promulgate specific regulations and criteria for people who must use information and communication technologies, such as officials, public employees, college and university students. For those who are not obliged to use information and communication technologies, the State shall adopt policies to encourage them to apply information and communication technologies. - For domestic information and communication technology enterprises: To adopt tax and financial policies, investment preferences and supports for enterprises producing enterpriseadministration softwares; special policies to encourage and support small- and medium-sized enterprises to apply information and communication technologies, policies for use of domestic products and services for Government projects on the application of information and communication technologies; and policies to encourage enterprises

5 to increase investment in the application of information and communication technologies. To support industrial information and communication technology enterprises, adopt preferential policies for the application of information technology to industries, encourage the creation of information and communication technology products of Vietnamese brands. To prioritize and support new enterprises to participate in the telecommunication market. To adopt policies to encourage enterprises to develop information and communication technologies in rural, deep-lying and remote areas. To create conditions for telecommunication enterprises to share the existing infrastructure, raise the production and business efficiency of the entire information and communication technology industry. c/ To improve the capability and effectiveness of state management over information and communication technologies To consolidate central and local state apparatuses for management of information and communication technology, ensuring the strict observance of the principle "management capability must keep pace with development." To create information management titles, build up and foster a contingent of information and communication technology managers at all levels and adopt a reasonable treatment regime for them. To quickly build a system for management of the application of information and communication technologies. To include in the state budget separate expenditure items for information and communication technologies. To set and unify management and technical criteria on information and communication technologies. To study and elaborate regulations on the obligation of officials to use information and communication technological facilities in their work, as well as regulations on exploiting, updating and sharing information. d/ To mobilize capital sources for implementation of the strategy To mobilize domestic and foreign capital sources for implementation of every part of key programs. To gather capital for implementation of national, ministerial, branch and local priority projects. To actively look for ODA capital sources, particularly create the most favorable conditions for the attraction of FDI capital for implementation of big projects. To strive to set aside 1% of budget by 2010 for investment in the application and development of information and communication technologies and raise the total investment therein from economic sectors and capital sources to 2% of GDP. To adopt special policies to attract investment capital from economic sectors for the application and development of information and communication technologies. To create a favorable environment for Vietnam to become an attractive and reliable investment destination for foreign investors, especially for large information and communication technology conglomerates. To encourage all economic sectors and forms of foreign investment, including 100% foreign investment, to participate in development of information and communication technologies. e/ To develop human resources for information and communication technologies To revise training programs on information and communication technologies, resolutely cancel outdated programs. To compile new curricula on information technology training, increase time for practice on information and communication technology study subjects. To adopt appropriate regimes for each type of information and communication technology-training establishments so as to achieve human resource training targets. To encourage universities to teach information and communication technologies in English, adopt policies to attract foreign teachers. To enhance university programs in English for information and communication technology students so that they can study English for one year and study their disciplines in English for three or four years. To select for overseas training outstanding students or university graduates working in the field of information and communication technologies who have prospects for development and adequate educational levels so that they can become information and communication technology experts or managers. Enterprises shall cooperate directly with big foreign information and communication technology companies for development of human resources for information and communication technologies and training of high-level experts in information and communication technologies. f/ To develop the research and development system To raise the research and development capability of information and communication technology research institutions. To adopt policies on preferential treatment for information and communication technology experts

6 and special preferences for international companies to set up information and communication technology research centers in Vietnam. To boost association in research between information and communication technology enterprises, universities and research institutes, encourage enterprises to invest in research and development activities. To develop scientific and technological research programs on information and communication technologies in order to create national potentials and technological capacity. g/ To perfect the legal environment in support of the development and application of information and communication technologies To expeditiously elaborate and finalize legal documents to create an environment in support of the application and development of information and communication technologies. To adopt mechanisms and policies to ensure a fair competition environment for information and communication technology enterprises of all economic sectors. To accelerate fair competition in the telecommunication and Internet market. To clearly identify production and business activities and public-utility activities in the telecommunications domain. h/ To enhance domestic and international cooperation and association To take advantage of supports, shared information, knowledge and experience, and transferred technologies in research, management, production, business and training, of transnational companies, research institutions, consultancy centers and specialists, especially overseas Vietnamese. To regularly consolidate and promote close relationship, cooperation and association between the State, enterprises and users, paying due attention to small- and medium-sized enterprises. To promote the role of professional information and communication technology associations in accelerating the application and development of information and communication technologies. i/ To develop information and communication technology market To open the telecommunication and Internet market, take initiative in international integration. To strongly switch to a competitive market, create conditions for all economic sectors to participate in the provision of telecommunication and Internet services. To adopt policies on supports for new enterprises to hold 40%-50% of telecommunication and Internet market shares by To expand the information and communication technology market to foreign countries. To develop an information and communication technology labor market (especially the labor force producing softwares and information contents), support and create conditions for the export of software-producing laborers and attract international information and communication technology experts into Vietnam. 2. Key programs The strategy on Vietnam information and communication technology development shall be implemented through the following five key programs: a/ The program on formulation of an institutional and legal environment and policies to accelerate the application and development of information and communication technologies - National-level priority projects on enhancing the capability to manage information and communication technologies. + To formulate a system of legal documents and policies for the creation of an environment conducive to the application of information and communication technologies; develop information and communication infrastructure, human resources for information and communication technologies, information and communication technology industry and e-commerce; + To build a national standard system of information and information and communication technologies. - Other projects + To formulate institutions and mechanisms for management and administration of the application of information and communication technologies;

7 + To create premises and a cultural environment suitable to an information society and a knowledge-based economy. b/ The program on acceleration of the application of information and communication technologies, development of an electronic Vietnam - National-level priority projects on building foundations for development of electronic citizens and electronic enterprises. + To universalize informatics to 20 million people; + To train 30,000 experts in information and communication technologies; + To establish one million websites in service of the community; + To produce one million equipment for Internet connection at low costs; + To formulate a number of typical models on the application of information and communication technologies in enterprises. - National-level priority projects on building foundations for development of an electronic government + To standardize the system for archival and exchange of electronic information in state agencies; + To develop softwares for common-use and important national databases; + To build up a system to guarantee information security, safety and confidentiality; + To develop information technology in order to create premises for an electronic government and raise the capability of state management of information and communication technologies; + To train and foster information and network administrators; + To formulate a typical model on renovation and computerization of administration and administrative management processes of administrative management agencies; a number of typical models on basic online public administrative services; and a typical model on electronic procurement for government agencies. - Ministerial, branch and local priority projects + To computerize the operation system of Party agencies; + To apply information technology to the National Assembly's bodies; + To computerize the state administrative management; + To build a system of financial information and apply information and communication technologies to financial management and activities; + To build a system of banking information and apply information and communication technologies to banking management and activities; + To build a system of economic and social statistical information; + To build a system of information on land, natural resources and environment; + To build a system of information on population, labor, war invalids and social welfare;

8 + To build a system of information on agriculture and rural development; + To build a system of information on Vietnamese industry and industrial products; + To build a system of laws and regulations; + To build a system of cultural and social information; + To build a system of scientific and technological information; + To build a system of information on education, training, vocational training and employment; + To build a system of information on healthcare and community health care; + To build a system of information on Vietnamese post, telecommunications and information technology; + To build a system of customs information and apply information and communication technologies to customs management and activities; + To build a system of information on Vietnamese trade and enterprises; + To build a system of information on management of identity cards, proceeding to grant electronic identity cards to the entire population; + To build an electronic government in Hanoi; + To build an electronic government in Ho Chi Minh city; + To build an electronic government in Da Nang; + To apply and develop information and communication technologies in the people's police force; + To apply and develop information and communication technologies in defense; + To apply and develop open-source software. - Other projects + To build a system of information in support of aquaculture and coastal development; + To build a system of information on land, people, history and tourism; + To build a system of information on communi-cations and transport; + To apply information and communication technologies to management, administration and professional activities of the Planning and Investment Ministry; + To apply information and communication technologies to management, administration and professional activities of the Ministry of Home Affairs; + To apply information and communication technologies to management, administration and professional activities of the Ministry of Foreign Affairs; + To apply information and communication technologies to management, administration and professional activities of the Construction Ministry; + To enhance supports for small- and medium-sized enterprises to apply information and communication

9 technologies; + To enhance the application of information technologies in order to raise the competitiveness of Vietnamese industrial products; + To elaborate and implement an e-commerce promotion program, participate in the e-asean program on e- commerce in preparation for international integration; + To universalize informatics, raise public awareness and knowledge about the role of information and communication technologies, the knowledge-based economy and information society. c/ The program on telecommunication infrastructure and Internet development - National-level priority projects on building foundations for development of the capability to access information and knowledge + To establish a government wide-area network. To connect broadband Internet to all ministries, branches, state administrative agencies, provincial and district administrations; + To connect broadband Internet to all research institutes, universities, colleges, upper secondary schools and hospitals at the district level. To step by step build up a high-speed network linking universities and scientific research institutions throughout the country. + To develop a system of commune post and cultural spots and public Internet access spots. To provide Internet services to all commune post and cultural spots and community education centers, in service of the application of information and communication technologies to agriculture and rural development. d/ The program on development of human resources for information and communication technologies - To raise the quality of university graduate and postgraduate training on information and communication technologies; - To support the development of associated training programs on information and communication technologies with foreign universities; - To organize specialized information and communication technology training and fostering courses; - To raise the quality of information and communication technology training at the professional secondary and vocational level; - To teach informatics and application of information and communication technologies at schools; - To develop a network of applied education and training services on the Internet; - To ensure that 100% of upper secondary schools will use the Internet; - To connect lower secondary schools with the Internet. e/ The program on development of information and communication technology industry - To elaborate an overall plan for development of Vietnam information and communication technology industry; - To plan information and communication technology-industrial parks; - To create markets and brands for Vietnamese information and communication technology products, support information and communication technology enterprises to participate in the international market; - To set up venture investment funds to attract investment capital for development of the information and

10 communication technology industry, especially software industry and production of information contents; - To develop the software industry and services, boost the export of software products, develop small- and medium-sized software enterprises; - To develop the production and provision of Vietnamese language information, accelerate the use of Vietnamese language in websites; - To develop the Vietnamese brand-computer production industry and smart terminal devices to meet the domestic and export demands; - To raise the quality and boost the export of electronic products, develop auxiliary industries and the production of components; - To raise the capacity of production of telecommunications equipment, especially cell phones, meeting the domestic demand and creating products for export. Article 2.- Organization of implementation 1. To assign the Ministry of Post and Telematics to assume the prime responsibility for, and coordinate with the Ministry of Home Affairs and concerned agencies in, elaborating and submitting to the Prime Minister for approval a scheme on establishment of a national board for coordination in information and communication technologies and information society, a planning on development of Vietnamese information and communication technologies, a planning on development of Vietnam information and communication technology industry, policies and mechanisms to encourage and facilitate the development of information and communication technologies, studying and formulating a strategy on development of an information society in Vietnam; to assume the prime responsibility for, and coordinate with the ministries, branches and provincial/municipal People's Committees in, elaborating detailed contents, organizing the implementation of key programs on formulation of institutional and legal environment and policies to accelerate the application and development of information and communication technologies, develop an electronic Vietnam, the program on development of telecommunication infrastructure and the Internet, and the program for development of information and communication technology industry; to elaborate an implementation plan for the period and annual plans compatible with this strategy; to review the overall situation of implementation of the strategy in the ending year. 2. To assign the Planning and Investment Ministry to assume the prime responsibility for, and coordinate with the Finance Ministry and the Ministry of Post and Telematics in, balancing and incorporating resources in the State's five-year and annual plans for key programs as well as national, ministerial, branch and local priority projects; to map out solutions implementing policies on mobilization of domestic and foreign capital sources for the application and development of information and communication technologies. 3. To assign the Finance Ministry to assume the prime responsibility for formulating mechanisms and policies to ensure conditions for priority arrangement and adequate allocation of funding for key programs as well as national, ministerial, branch and local priority projects. 4. To assign the Trade Ministry to assume the prime responsibility for, and coordinate with the Ministry of Post and Telematics and concerned ministries in, elaborating and implementing a project on establishment of markets and brands for Vietnamese information and communication technological products. 5. To assign the Ministry of Education and Trading to assume the prime responsibility for organizing the implementation, inspecting and assessing the results of implementation of the program on development of human resources for information and communication technologies. 6. To assign the Ministry of Science and Technology to assume the prime responsibility for, and coordinate with the Ministry of Post and Telematics and concerned ministries in, formulating mechanisms and policies to accelerate the research and development of information and communication technologies. 7. Ministries, ministerial-level agencies, Government-attached agencies and provincial/municipal People's Committees shall, basing themselves on this strategy, elaborate overall plans for the period and annual plans on the application and development of information and communication technologies. To carry out activities of application and development of information and communication technologies according to their respective operation plans. To ensure investment and execute investment projects already approved by

11 competent authorities in accordance with the set tempo. Underway projects should be adjusted to suit the spirit and contents of this strategy. Article 3.- This Decision takes effect 15 days after its publication in "CONG BAO." Article 4.- Ministers, heads of ministerial-level agencies, heads of Government-attached agencies, and presidents of provincial/municipal People's Committees shall have to implement this Decision. THE PRIME MINISTER OF GOVERNMENT PRIME MINISTER (Đã ký) Phan Van Khai

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