No. 07/2000/NQ – CP
/ Independence –Freedom - HappinessHanoi, June 05, 2000
Resolution On the establishment and development of the Software Industry in the period of 2000 – 2005
The software industry is very important in the IT field. This industry includes the production of and trading in software products, and providing software services. The development of IT, especially the software industry, is a plan that both the Vietnamese Party and the State are interested in and are giving it a high priority. It is seen as one of the shortest ways to the State's national industrialization and modernization goals, and makes an important contribution to national security.
After the Government's promulgation of Resolution No. 49/CP on 4 August 1993 on IT development in Vietnam, the IT field has achieved significant progress. IT was initially applied to technical and economic sectors and was taught in the national education system. The number of IT specialists with university degrees has significantly increased. Specialized computer networks have been established and brought into full play in several socio- economic sectors as well as State management. Nevertheless, Vietnam is still lacking of synchronized policies and measures to fully encourage the establishment and development of the software industry.
The development of this industry in Vietnam has several favorable basic conditions: an expanding IT world market; minimal initial investment required; quick application of IT by Vietnamese users; many.experienced IT specialists of Vietnamese communities in foreign countries who want to cooperate and invest in the IT field in Vietnam.
However, the development of the software industry in Vietnam still faces many difficulties and challenges: the domestic IT market is limit; telecommunication infrastructures have not been able to meet demands for the development of IT in general, and the software industry in particular; the investment environment in Vietnam is not favorable and has big gaps compared with those of neighboring countries; social consciousness of intellectual property is low, especially copyrights for software products.
I. Overview and objectives of the establishment and development of the software industry
1. Overview
The software industry is a new economic sector with high added-value content and good prospects. The State of Vietnam is trying its best to create favorable conditions for organizations and individuals from all economic sectors to invest in, and develop, this industry.
The State of Vietnam offers its biggest incentives and preferencials to the development of the software industry. Initially, attention shall be given to exports through contract-manufacturing and service-providing. At the same time, domestic markets shall be expanded, in which the development of software in some critical sectors shall be focussed to replace imported software. The export of software labors and packaged software shall be implemented as soon as possible so that the Vietnamese software industry will gradually obtain a solid position in the world market.
Promotion shall be amongst a combination of scientific research, technology development, training, and production, as premises for further development of the software industry. Special encouragement shall be offered to investors in scientific research and technology development in this field.
2. Objectives
Raising the software industry into a key economic sector with a high growth rate and significant contribution to the modernization and sustainable development of different socio-economic sectors, for the improvement of State management and protection of national security.
Bringing into full play the human resources of Vietnam, especially the young generation; preparing high quality human resources for coming decades..Reaching a production value of about USD 500 million by the year 2005.
II. Contents and methods of establishment and DEvelopment of software industry
1. Training
All forms of training will be developed so that by 2005, Vietnam will have about 25,000 highly qualified IT specialists and professional programmers with a good command of English.
The Ministry of Education and Training (MoET) will plan and coordinate with the Ministry of Science, Technology and Environment (MOSTE) and other relevant ministries and branches to map out and deploy this urgent plan of human resource development. Training on software technology will be extended and improved in the national education system. The extensive use of Internet will be encouraged in universities, and step-by-step in schools, to accelerate IT training activities.
Domestic and foreign organizations and individuals are encouraged to participate in training for the IT field in general and the software industry in particular under the form of software service enterprises or others. Efforts will be made to create favorable conditions for graduates of other specializations to enjoy further IT training to be made capable of participating in the software industry development.
2. Development of a good investment environment
Investments in the software industry are especially encouraged. The State of Vietnam offers its highest preferentials to enterprises in the software industry. Software products and services produced and sold in Vietnam will not be subject to the Value Added Tax (VAT). In cases of export, the tax rate of 0% will be applied and taxes will be returned as stipulated by law. Additionally, most.preferential rates of corporate income tax will be offered to the software industry in accordance with the amended Law on Domestic Investment Encouragement and the Law on Foreign Investment in Vietnam. The State of Vietnam also has a policy of refunding to software producers part or all of their paid corporate income tax for re-investment. In terms of income tax for high-income earners who directly participate in the software development, preferentials will also be offered. Software enterprises are entitled to enjoy the highest preferentials in terms of credit and land use as prescribed by law.
The MOSTE will plan and coordinate with the Ministry of Finance (MOF) and other relevant ministries and branches in establishing and issuing a Regulation of Organization, Management and Operation of the Venture Capital Fund for high- technology development, especially software technologies.
Research will conducted to establish a direct connection port with the Internet in HoaLacHigh-TechnologyPark and Quang Trung Software Industrial Zone (Ho Chi Minh City) so that software enterprises will be able to have full and easy access to high-quality Internet services at prices competitive with other regional countries.
The Ministry of Planning and Investment (MPI) will plan and coordinate with the MOF, MOSTE, other relevant ministries, branches and provincial people's committees to calculate and balance domestic and foreign sources of capital for annual and five-year plans relating to software investment projects; seek to attract foreign direct investments (FDI) and official development aids (ODA) for such projects.
Favorable conditions will be created for associations connected with the software industry to contribute to its establishment and development and copyright protection activities in the same field..The Committee of Overseas Vietnamese will coordinate with other relevant ministries and branches to create favorable conditions for overseas Vietnamese to cooperate and assist domestic organizations and individuals in market development and technology transfer; encourage overseas Vietnamese to invest, produce and trade in software in Vietnam.
3. Improvement of legal effectiveness and efficiency
The Ministry of Justice (MOJ), MOSTE, Ministry of Culture and Information, and other relevant ministries and branches will quickly carry out the following:
- Check relevant laws relating to software production, trading, service providing and copyright and submit to competent State authorities for necessary amendments and additions.
- Improve capabilities and the efficiency of operation of State management bodies in information security.
- Work out and deploy legal training programs for legal officers and consultants on copyright protection for software products.
- Promote extensive propaganda and education in the public arena to improve people's consciousness in respecting and protecting copyrights for software products. Implement the protection of copyrights in this particular field.
- Study and issue appropriate policies on publishing activities; inspect the export and import of software products.
- Announce statistical data on the IT industry in general, and the software industry in particular, according to the national economic system.
4. Market expansion
The Ministry of Trade (MOT), Ministry of Foreign Affairs, MPI, MOSTE and other relevant ministries and branches will organize commercial promotional activities and help software producers open branches and representative offices at home and abroad, and to invest in other countries and export software labors.
Organizations and individuals of all economic sectors are to be encouraged to invest in IT applications, and use products and services of the domestic software enterprises. Favorable conditions will be created for foreign software developers to invest and open branches and representative offices in Vietnam.
III. Implementation schedule
1. The MOSTE will plan and coordinate with the MPI, MOF, MOI (Ministry of Industry), MOT, MET, General Department of Post and Telecommunications and other relevant ministries and branches to carry out and take responsibilities for the Government for:
a/ Completing the Project of Establishment and Development of the Software Industry for the period of 2000 - 2005, and to submit to the Prime Minister (PM) for approvals;
b/ Submissions to the PM to issue decisions on policies of investment encouragement and software industry development;
c/ Organize the execution of this Resolution; supervise, inspect and make periodical reports on the execution of this Resolution to the PM.
During such execution, if there are any problems, requests for the PM's instructions must be submitted in a timely manner.
2. Ministers, heads of bodies of ministerial level, heads of bodies of the Government, Chairpersons of peoples' committees of central provinces or cities shall be responsible for executing this Resolution.
On behalf of the GovernmentPrime Minister
(Signed)
Phan Van Khai