(Telecom) Telecom sees record-high growth
December 29, 2006
Source: Vietnam News

The Ministry of Post and Telematics, reporting record-high growth in 2006, plans a series of initiatives to improve the industry in the wake of membership in the World Trade Organisation (WTO).

The ministry will make initial preparations next year for a new law on telecommunications and issue new regulations related to the country's commitments it made during WTO negotiations.

The ministry, continuing its five-year strategy to 2010 for telecommunication and internet development , will publish a complete list of domestic information technology (IT) products, strategic IT products and open-source software products and broadcast network. Over the next few years, it will also adjust licensing procedures. This year, the post and telecom industry had a turnover of 40 trillion VND (2.5 billion USD), a year-on-year increase of 29 percent.

According to the Ministry of Post and Telematics's latest report, the sector achieved a record growth rate in the new number of phone subscribers, with more than 1 million users by November, doubling last year's figure. As a result, the country's telephone density was raised to 30 phones per 100 people. With such a growth rate, the percentage is expected to go up to 35-40 by 2010, according to the ministry.

The number of mobile phone users in the country should reach 16 million by the year-end, nearly two times last year's figure of 8.7 million.

The IT industry flourished this year as well, with more computer hardware, specialised and multi-purposed electronics available. The average growth rate in the industry was between 20 and 30 percent this year.

The software industry and software services turnover reached 250 million USD, of which 70 million USD was export value, up by 55.5 percent over last year's figure. The sector contributed 6,950 billion VND (434 million USD) to the State Budget, the ministry said.

Deputy Minister Tran Duc Lai attributed the post and telecom sector's development to policies of the Government and the ministry, a booming economy, and improved living standards.

The Government had also created several favourable conditions for the telecoms sector's companies to develop, Lai said. It injected large amounts of capital into the development of modern infrastructure at software technology areas, such as the HCM City-based Quang Trung Software Industry Park and the Ha Noi-based Hoa Lac Hi-tech Park.

The Government's policy of opening up the telecom and IT market was also an important factor that stimulated growth, he said. Telecoms and IT enterprises had also made great efforts in developing their business, he added.

"Most companies in the sector have increased investments in technology and improved their production capacity. They have also paid attention to diversifying their operations as well as their business models," Lai said.

IN 2006, the telecoms ministry managed to build the current legal framework for the telecoms and IT industry. It submitted 10 regulations, issued 52 decisions, 11 directives and five decrees, all of which aimed to create a uniform legal corridor for companies to develop and to attract direct investment.
 
 
 
 
 

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