DECISION

Decision No. 1755/QD-TTg of September 22, 2010, approving the Scheme to early make Vietnam a country strong in information and communication technologies

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 29, 2006 Law on Information Technology;

Pursuant to the November 13, 2008 Law on High Technology;

Pursuant to the November 23, 2009 Law on Telecommunications;

Pursuant to the November 23, 2009 Law on Radio Frequencies;

Pursuant to the Political Bureaursquo;s Directive No. 58-CT/TW of October 17, 2000, on stepping up the application and development of information technology for the cause of industrialization and modernization;

Pursuant to the Prime Ministerrsquo;s Decision No. 246/2005/QD-TTg of October 6, 2005, approving the Strategy for Development of Vietnamrsquo;s Information and Communication Technologies through 2010 and Orientations towards 2020;

At the proposal of the Minister of Information and Communications,

DECIDES:

Article 1. To approve the Scheme to early make Vietnam a country strong in information and communication technologies (below referred to as the Scheme) with the following principal contents:

I. OBJECTIVES

1. General objectives

To develop information technology human resources up to international standards; to build thenbsp; information technology industry, especially software industry, digital content and services, into a spearhead economic sector, making important contributions to GDP and export growth; to establish broadband telecommunications infrastructure nationwide; to efficiently apply information technology in every socio-economic, defense and security domain.

Information and communication technologies serve as an important driving force, helping to ensure the countryrsquo;s growth and sustainable development, raise transparency in activities of state agencies and save the time and funds for agencies, organizations, enterprises and people.

To achieve the annual turnover growth rate of 2-3 times the GDP growth rate or higher. By 2020, the ratio of information and communication technologies to GDP will be 8-10%.

2. Specific objectives

a) Information technology human resources

By 2015: 30% of information technology, electronic and telecommunications graduate students will be professionally qualified and have good command of foreign languages so as to be able to participate in international labor markets. The rate of Internet users will reach over 50% of the population;

By 2020: 80% of information and communication technology graduate students will be professinally qualified and have good command of foreign languages for participation in international labor markets. The total labor in the information technology industry will reach one million, including personnel working in the country and personnel as guestworkers. The rate of Internet users will reach over 70% of the population.

b) Information technology industry

By 2015: Vietnamese enterprises will be fully capable of designing and manufacturing equipment with gradual substitution of import details, stepping up research into the manufacture of integrated circuits, mastering the designing and production of a number of information and communication technology hardware products bearing Vietnamese brands to meetnbsp; domestic consumption and export demands. Vietnam will be among 15 countries leading in the provision of software and digital content processing services. The sizes and professionalism of Vietnamese software, digital content and information technology service enterprises will be raised so that they can compete in the domestic market. To create a number of hardware, software and digital content products bearing Vietnamese brands for the domestic market, then export;

By 2020: To form strong information and communication technology research and development organizations, especially technological research and development organizations of enterprises, which will be fully capable of conducting new hi-tech product research and development. Vietnamrsquo;s software industry and processing services will strongly develop, putting the country among 10 countries leading in software and digital content service provision. Vietnamese software, digital content and information technology service enterprises will dominate the domestic market and participate in export. Many products and solutions to serve the Statersquo;s and enterprisesrsquo; application of information technology will be researched, developed or localized from free open-source software.

Information technology industry, especially software industry and information technology-based services, will achieve the highest growth rate among techno-economic sectors and represent a high GDP ratio.

c) For broadband telecommunications infrastructure

By 2015: To basically complete the broadband network in communes and wards nationwide, connecting Internet to all schools; to cover 85% of the population with broadband mobile information waves; Vietnam will be ranked among 65 countries on the ranking list of the International Telecommunications Union (ITU);

By 2020: To complete the broadband network in almost all villages and hamlets; to cover 95% of the population with broadband mobile information waves; Vietnam will be ranked among 55 countries on the ranking list of the ITU (in the one-third group of leading countries).

d) Information universalization

By 2011: Almost all households will have telephone sets;

By 2015: 20-30% of households nationwide will have computers and access broadband Internet; over 90% of households will have television sets, of which 80% will be able to watch digital television by different modes;

By 2020: Almost all households nationwide can use digital services; 50-60% of households nationwide will have computers and access broadband Internet, of which 20-30% access optical cable broadband; almost all households will have television sets and be able to watch digital television by different modes.

e) For application of information technology

By 2015: To provide almost all basic online public services to people and enterprises at degrees 2 and 3 (receipt of dossier forms via internet and exchange of information, sending and receipt of dossiers via internet). Eighty percent of enterprises and social organizations will apply information technology to management, administration, production and business activities. To universalize information technology application in the education and health care systems. To step up the application of information technology in the fields of defense and security;

To initially apply information technology to the settlement of important socio-economic issues of wide impact, covering application of information technology to urban traffic management, food hygiene and safety, weather forecast...

By 2020, Vietnamrsquo;s e-government will rank good in the world. Vietnam will rank among the 1)3 group of leading countries in the United Nationsrsquo; ranking list on e-government readiness. Almost all basic public services will be provided online to people and enterprises at degree 4 (payment of service charges, receipt of service results via internet). All national key industries, enterprises and social organizations will apply information technology to management, administration, production and business activities.

f) Building information and communication technology enterprises and developing the information and communication technology market

To raise the efficiency of production and business activities of Vietnamese information communication and technology enterprises and groups such as Vietnam Post and Telecommunications Group (VNPT), the Army Telecommunications Group (Viettel), the Multi-Media Communications Corporation (VTC), the FPT Joint-Stock Company and the CMC group joint-stock company, in both service provision and industrial production. To form the Vietnam Multi-Media Communications Group (VTC);

To support and encourage the emergence of small- and medium-sized information and communication technology enterprises and boost the formation of big information and communication technology enterprises with efficient business and high competitiveness to become strong business groups, incrementally entering regional and world markets and establishing the ldquo;Vietnam information and communication technologyrdquo; brand;

By 2015: To develop information technology enterprises and groups of ASEAN level and scale, conducting business activities on the international market, including a number of enterprises each having turnover of over USD 10 billion;

By 2020: Many Vietnamese information technology enterprises and groups will conduct business activities with efficiency, reaching the world level and scale, including some enterprises each having turnover of over USD 15 billion.

II. GUIDING VIEWPOINTS

1. To speed up the development of Vietnamese information and communication technologies on the basis of inheriting and making full use of existing achievements and results, complying with information and communication technology development strategies, planning and plans, but creating breakthroughs in development with higher objectives and at higher rates.

2. To rationally develop both extensively and intensively, quantitatively and qualitatively on the basis of bringing into full play internal resources while making full use of international knowledge and resources.

3. To efficiently use state budget investments while attracting domestic and foreign enterprises as well as the entire society to participate in development investment.

4. To give highest priorities and incentives in accordance with law for high technologies, scientific and technological research and training to information technology parks, research and training institutions and enterprises and individuals providing information technology products and services.

III. TASKS

Task 1: To develop information technology human resources

1. To prioritize resources for realization of the Master Plan on development of information technology human resources through 2015 and orientations towards 2020 under the Prime Ministerrsquo;s Decision No. 698/QD-TTg of June 1, 2009.

2. To enhance the capabilities to inform, forecast and orientate the development of Vietnamese information technology human resources in response to domestic and international market demands.

3. To prioritize investment in physical foundations, create peculiar mechanisms with more autonomy given to a number of key information technology training and research institutions to reach international level. To step up training of high-quality information technology human resources and specialists in consulting and analyzing the design, construction and management of information technology systems.

4. To enhance training in information technology skills in society, contributing to raising the peoplersquo;s intellectual levels.

5. To encourage the teaching in English for information technology students at universities.

6. To expand the form of on-line training on broadband telecommunications infrastructure.

Task 2: To develop the information technology industry

1. To prioritize resources for realization of programs on development of software, digital content and hardware and electronic industry under the Prime Ministerrsquo;s Decision No. 51/2007/QD-TTg, No. 56/2007/QD-TTg, No. 50/2009/QD-TTg and No. 75/2007/QG-TTg, while attaching importance to attracting investment in and boosting the development of information technology services and information technology-based services.

2. To increase investment capital sources for the information technology industry; to prioritize inclusion of funds in annual investment promotion programs for intensified attraction of foreign investment and transnational groupsrsquo; investment in information and communication technologies, particularly investment in new technologies and products as well as high added-value products and services.

3. To prioritize support investment for raising the operational capabilities and competitiveness of Vietnamese information and communication technology enterprises; to build up Vietnamese brands on information technology; to prioritize the inclusion of funds in annual trade promotion programs in order to support information and communication technology enterprises in advertisement and trade promotion, dominating the domestic market and expanding the overseas market.

4. To further invest in the development of information technology parks, enterprise nurseries and centers to provide information technology services for domestic and world markets.

5. To work out mechanisms of giving priority to Vietnamrsquo;s leading information and communication technology enterprises to be general contractors for major information and communication technology projects financed by state budget capital or capital originating from the state budget.

6. To raise the creative research capabilities and training of quality personnel for application of information technology in various industries.

7. To encourage leading telecommunications enterprises to increase their investment in the development of the information technology industry so as to raise the ratio of information technology industry revenue to the total turnover of enterprises.

8. To formulate and realize information technology industry development programs in the 2011-2020 period; to further improve the legal environment and policy mechanisms of breakthrough nature for the development of the information technology industry.

Task 3: To further develop and improve telecommunications and information technology infrastructure

1. To improve broadband telecommunications infrastructure

To make full use of the existing infrastructure, to build and expand the broadband network to communes, wards, villages and hamlets nationwide to meet peoplersquo;s demands and serve the Partyrsquo;s and the Statersquo;s direction and administration work.

To develop public internet access points at suitable places such as schools, commune cultural houses, border-guard stations, commune post and cultural locations and community education centers for installation of equipment in order to attract and create best conditions for people to exploit and efficiently use fixed telephone services and Internet access.

To opticalize and lay underground cables in order to ensure service quality and urban beauty, especially along main thoroughfares of big urban centers.

To implement the schedule for digitalization of terrestrial television transmission and broadcasting. To further expand the domestic and international broadband Internet to satisfy the societyrsquo;s demand: To effect the mobile phone networks of 3G and subsequent generations, to launch new Vinasat satellites, to upgrade and construct land and marine optical cable lines.

2. To further improve the exclusive telecommunications networks for Party and State agencies

To continue building exclusive telecommunications networks to serve Party and State agencies to communes and wards with a view to ensuring information safety and security and smooth connection for development of various services upon request.

3. To establish national database systems for the development of an e-government.

4. To build technical infrastructure to ensure national digital information safety

To proceed with the construction of a national network safety technical center; to research into and develop the national information safety assessment and examination system, online crime warning, detection, prevention and combat system, the system for certification and confidentiality of government information systems; to intensify the training of information safety experts for Government agencies and national key information systems.

Task 4: To formulate and apply appropriate supporting solutions for information universalization to households

To expand the operation of the public-utility telecommunications service fund and use the proceeds from radio frequency auctions to partially support the procurement of digital information devices for households with financial difficulties in order to improve the peoplersquo;s living standards and meet the Partyrsquo;s and Statersquo;s information and propaganda requirements.

To research into and develop digital information equipment to serve information access by the aged and disabled people.

Task 5: To efficiently apply information technology in state agencies, enterprises and the society

1. To continue realizing programs and plans on application of information technology in state agencies and enterprises under the Prime Ministerrsquo;s Decision No. 43/2008/QD-TTg, No. 48/2009/QD-TTg, No. 1605)QD-TTg of August 27, 2010 and No. 191/2005/QD-TTg.

2. To proceed with the application of information technology in state agencies, ensuring smooth direction and administration from the central government to urban districts, rural districts, communes and wards nationwide:

- To ensure technical infrastructure and information safety for the application of information technology in state agencies, including hardware, software, databases and confidentiality safety solutions, attaching importance to training of cadres and civil servants for efficient use of invested equipment and systems.

- Based on the assessment of the selection of prominent models of information technology application of provincial and district levels in localities in which good results have been obtained, to continue disseminating the successful models for widespread development nationwide.

- To deploy the integrated document management systems nationwide to serve smooth direction and administration work from central to local levels.

3. To realize programs, schemes, projects and policies on accelerated investment in the application and development of information technology in enterprises.

4. To realize schemes and projects on heightening the capability of application of information technology for people of all strata in the entire society, establishing a Vietnamese social network.

Task 6: To enhance the capability of research in information and communication technologies, mastering and incrementally creating technologies for the manufacture of new products

1. To enhance information technology research and development capabilities of research and training institutions as well as enterprises; to build a number ofnbsp; key common laboratories nationwide on chip technology, sensory technology, core software, open-source software, embedded software, digital content, Vietnamese language processing, and information safety.

2. The State prioritizes investment in creation research, buy or transfer new technologies in order to create products and services of Vietnamese brands with high competitiveness and exportability such as smart equipment, embedded software, electricity-saving equipment. To adopt support and investment mechanisms applicable to major Vietnamese information and communication technology enterprises participating in research and development and commercializing research results. To manufacture and)or assemble terminal equipment suitable to Vietnamrsquo;s conditions, circumstances and market demands.

IV. SOLUTIONS

1. To intensify public information and propagation for raising public awareness

To step up information and propagation in the mass media and at conferences and workshops in order to raise the awareness of agencies, units, enterprises and associations operating in the field of information and communication technologies as well as of people about the Schemersquo;s objectives, viewpoints and tasks for concerted action.

At the same time, the culture in information technology exploitation and use should be heightened from families to schools and the entire society, aiming for healthy, practical and efficient applications, thus contributing to the building of a civilized society and assurance of safety and security for every information technology user.

2. To actively mobilize social resources for investment in information and communication technologies, especially the development of broadband telecommunications infrastructure.

To encourage all economic sectors to participate in the construction, development and exploitation of broadband telecommunications infrastructure, diversifying information and communication technology services, especially funding mechanisms, technological solutions and business models in order to attract various economic sectors into the provision of information and communication technology services to deep-lying, remote, border and island areas and difficulty-stricken areas.

To commonly use public facilities, electricity supply, water supply and drainage, transport works for underground laying of information and television cable networks; to enhance cooperation among telecommunications enterprises for partial common use of telecommunications networks, works and equipment, ensuring thrift and efficiency in establishing networks and providing information and communication technology services.

3. To make intensive and selective breakthrough investment

To step up the Statersquo;s investment in programs and projects on information technology application and development, attaching importance to projects on training of high-quality information technology personnel, building and expanding broadband network to communes, wards, villages and hamlets nationwide for development of broadband Internet and developing exclusive telecommunications networks to serve Party and State agencies to communes and wards so as to ensure information safety and security and accelerate the application of information technology. To step up basic research and research into information technology application and development inside and outside enterprises.

To expand international markets while building a number of strong groups and ldquo;Vietnamese information and communication technologyrdquo; brands via information technology products and services with higher creation contents.

4. To formulate and finalize institutions

- To promulgate legal documents on information and communication technologies in order to bring into full play internal resources, boost competition and create conditions for all economic sectors to participate in development investment.

-To supplement and finalize investment management mechanisms suitable to peculiarities of information and communication technologies.

- To create a clear and favorable legal environment for offshore investment by Vietnamese leading information and communication technology groups and enterprises; to promulgate policies on opening the information technology service market in line with international integration commitments.

- To adopt policies to guarantee the intellectual property rights to information technology products in order to protect the interests of enterprises and encourage them to create new products.

- To adopt policies on support, marketing and use of Vietnamese products in state-funded information technology application projects.

- To adopt policies on supporting the use of information technology products and services for regions with difficult socio-economic conditions and deep-lying and remote areas as well as other social policy beneficiaries.

5. Specific mechanisms and breakthrough policies

a) Investment policies:

- To increase investment capital sources for development of information technology industry, research, development, trade promotion and investment promotion in information and communication technologies;

- To offer highest investment incentives for projects on development of broadband telecommunications infrastructure in rural, deep-lying, remote and border areas and islands and projects on construction of information technology parks;

- To encourage enterprises to participate in the process of developing the application of information technology in social life, state agencies, provision of information and online services for people and enterprises on the basis of cooperation between the Government and enterprises;

- To supplement and finalize investment management mechanisms suitable to information and communication technologies, removing difficulties and creating favorable conditions for fast implementation of information and communication technology projects invested by the State.

b) Financial policies:

- Taxation: To formulate tax preference mechanisms and policies for information and communication technologies and submit them to competent bodies for approval in the direction of applying the highest priority and preferences prescribed by the Law on High Technology on value-added tax, enterprise income tax, personal income tax, export duty and import duty to information and communication technology activities including investment, construction, information technology product and service provision, production and business activities;

- Capital sources: To diversify financial sources invested in information and communication technology activities, including:

+ State budget capital with direct preferential investment in the following projects or programs: Projects on infrastructure development or application of information technology to directly serve management and administration activities of Party and State agencies; programs and projects on planning on scientific research and technological development, construction of infrastructure of information technology parks; projects on training of information technology human resources under planning and plans; support in the supply of products or public services and public non-business services of the State in the field of information and communication technologies with a view to rendering assistance to poor people and difficulty-hit regions. To formulate separate expenditure items on information technology in the state budget contents as provided for by the Law on Information Technology;

+ ODA capital: To mobilize and use ODA capital for projects on development of information and communication technologies in accordance with law;

+ Credit capital: To prioritize the use of preferential state credit capital sources for investment projects on development of information and communication technology infrastructure and products;

+ Enterprise and social capital sources: To adopt appropriate mechanisms in order to mobilize investment capital of enterprises, organizations and individuals in the socialization of investment in the development of telecommunications infrastructure, information technology application, information technology industry and training of information technology human resources, the development of new products; research into and application of appropriate public-private cooperation models to the development of information and communication technology infrastructure and service provision;

+ Expansion of operation of the Public-Utility Telecommunication Service Fund and the use of funds earned from frequency auctions to support infrastructure development, universalization of the use of broadband telecommunications and Internet services and supply of audio-visual equipment, digital television-receiving equipment to people in deep-lying and remote areas under law.

c) Land and location policies: To exempt or reduce levies and rents for use of land for construction of telecommunications and information technology infrastructure facilities, particularly in deep-lying, remote and border areas and islands; to prioritize the selection and arrangement of clear grounds at convenient locations and with areas suitable to the requirements of building information technology parks with a view to strongly attracting investment and highly qualified human resourcesnbsp; in accordance with law.

6. To step up international cooperation

To step up cooperation with international organizations in information and communication technologies, coordinating in the exchange and training of technological experts and the management of information and communication technologies. To participate in regional, inter-regional and international projects on information and communication technologies. To create favorable conditions for foreign information and communication technology experts to work for Vietnam.

To make full of international cooperation for mobilization of foreign investment capital sources, especially ODA capital, aiming to step up the application of information technology in state agencies and to develop telecommunications infrastructure in deep-lying, remote, mountainous and island regions.

To concentrate on expanding international markets, diversifying information and communication technology services in order to raise the competitiveness of Vietnamese enterprises. To accelerate the merger or purchase of foreign information technology companies with a view to creating a brand-building breakthrough.

Article 2. Organization of implementation

1. The Ministry of Information and Communications:

a) To draw up detailed plans for implementation, monitoring and urging the implementation of the Scheme nationwide;

b) To annually review and report to the Prime Minister on the progress of implementation of the Scheme and propose timely and necessary measures to ensure the successful implementation of the Scheme;

c) Based on the socio-economic situation and information and communication technology development, to submit to the Prime Minister the Schemersquo;s contents to be necessarily updated and adjusted;

d) To assume the prime responsibility for, and coordinate with concerned ministries, sectors, localities and enterprises in, performing Tasks 2, 3, 4 and 5 of the Scheme, formulating mechanisms and policies to be submitted to competent agencies for approval.

2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Information and Communications in, balancing and summing up resources in the state plans for programs and projects on the Schemersquo;s implementation. To prioritize the arrangement of funds from investment promotion programs to attract investment in the information technology industry.

3. The Ministry of Finance shall assume the prime responsibility for formulating mechanisms and policies and guide the application of preferential levels prescribed by the Law on High Technology to information and communication technology enterprises meeting the conditions on hi-tech enterprises, and direct various budget levels to prioritize state budget expenditures for information and communication technologies.

4. The Ministry of Education and Training shall assume the prime responsibility for, and coordinate with the Ministry of Information and Communications and concerned ministries and sectors in, performing Task 1. To include the content of building up a culture in the exploitation and use of information technology in educational programs.

5. The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with the Ministry of Information and Communications in, performing Task 6 while stepping up the enforcement of regulations on guarantee of intellectual property in the field of information and communication technologies. To study and select a number of information and communication technology products for inclusion in the list of national products and submission to the Prime Minister.

6. The Ministry of Industry and Trade shall coordinate with the Ministry of Information and Communications in performing Task 2, prioritizing the arrangement of funds from national trade promotion programs to support information technology enterprises in trade promotion and brand advertisement on domestic and international markets. To accelerate information technology application in various industries and develop inter-sectoral applications.

7. The Ministry of Defense and the Ministry of Public Security shall draw up plans for information technology application and development in the defense and security domains, ensuring safety of telecommunications infrastructure, information security and serving combat tasks.

8. Ministries, ministerial-level agencies, government-attached agencies and central mass organizations shall, based on their respective functions and tasks, formulate plans for information technology application and development in line with the Schemersquo;s contents.

9. The Vietnam Institute of Science and Technology shall coordinate with the Ministry of Education and Training, the Ministry of Science and Technology and the Ministry of Information and Communications in performing Tasks 1 and 6.

10. Provincial-level Peoplersquo;s Committees shall coordinate with concerned ministries and sectors in formulating and implementing their local plans for information and communication technology development in line with the Schemersquo;s contents.

11. Enterprises, societies and associations operating in the field of information and communication technologies shall draw up action plans, propose innovations and prepare resources for formulation and realization of objectives and tasks of the Scheme, considering the Scheme implementation an important political task, regularly reporting on the situation and progress of implementation to the Ministry of Information and Communications for summarization and reporting to the Prime Minister.

Article 3. This Decision takes effect on the date of its signing.

Article 4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level Peoplersquo;s Committees, directors general and directors of information technology units or enterprises shall implement this Decision.

Appendix

LIST OF PLANS AND PROGRAMS FOR THE SCHEMErsquo;S IMPLEMENTATION

(To the Prime Ministerrsquo;s Decision No.1755/QD-TTg of September 22, 2010)

1. The master plan on development of information technology human resources through 2015 and orientations towards 2020 (under the Prime Ministerrsquo;s Decision No. 698/QD-TTg of June 1, 2009);

2. Programs and plans on the development of the information technology industry in the 2011-2020 period;

3. Program on development of broadband telecommunications infrastructure;

4. Planning on safe development of national digital information (under the Prime Ministerrsquo;s Decision No. 63/QD-TTg of January 13, 2010);

5. Program on introduction of digital information devices to households;

6. Programs and plans on application of information technology to activities of state agencies in the 2011-2020 period;

7. Program on scientific research and technological innovation capacity building in the field of information and communication technologies.