MINISTRY OF EDUCATION AND TRAINING - MINISTRY OF INTERIOR

NATIONAL ACADEMY OF PUBLIC ADMINISTRATION

TO HONG NAM

STATE MANAGEMENT ON INFORMATION
TECHNOLOGY INDUSTRY IN VIETNAM
Major: Public management
Code: 9 34 04 03

SUMMARY OF THE DOCTORAL THESIS
IN PUBLIC MANAGEMENT

HA NOI -2019


The work is completed at:
NATIONAL ACADEMY OF PUBLIC ADMINISTRATION
Science instructor: 1. PhD. Chu Xuân Khánh
2. PhD. Lã Hoàng Trung

Reviewer 1: ……………………………………………………………
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Reviewer 2: ……………………………………………………………
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The dissertation will be defended before the Academy-level thesis review Council
Venue: Department for Doctoral thesis Presentation - Meeting room No.........

to improve state management on ITI in the coming time.
- To achieve the above-mentioned purpose, the dissertation defines
research tasks as: General analysis of some typical research projects related
to domestic and foreign state management on ITI; studying, analyzing and
supplementing some theoretical and practical issues to improve the state
management science base on ITI; analyzing the status of state management
on ITI in Vietnam, comparing to the development status of the industry;
draw results, limitations and their causes of state management on ITI;
proposing general and specific trends and solutions to continue to improve
state management of information technology in Vietnam.
3. Subjects and scope of research
- Research object are the organization and state management
activities on ITI in Vietnam.

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- The scope limited in the contents of state management on ITI
systems (institutions, organizations, teams, finance, supervision), focusing
on policies, strategies, planning, plans and programs; legal documents;
inspection and examination to eliminate violations; organizing the state
management apparatus on ITI in the field of manufacturing computer
hardware and computer software. The scope of space is Vietnamese
territory, focusing on central state management. The period of the thesis
survey, assess the situations is from 2009 - 2017; proposing the trends and
solutions to the year 2020 and vision to 2025.
4. Methodology and research methods
4.1. Methodology
- The methodology used for studying the thesis is dialectical
materialism, historical materialism and systematic theory.

management activities on ITI over the past time; proposes solutions to
improve policies, strategies, planning, legal documents, inspection and
organization of state management apparatus on ITI in accordance with the
actual situation in the coming time; It is also a valuable practical reference
for agencies, units and individuals operating in the field of ITI.
- New contributions of the thesis:
 New approach of the thesis: Comparing to the previous works, the
thesis approached by the method of public management science to study the
scientific basis, assess the real situations of state management of ITI, based
on that proposes solutions for completion. Thesis in-depth research on state
management of ITI in a systematic way, combining theory with practice.
Those are new contributions of the thesis.
 The thesis proposes a system of solutions to improve state
management on ITI in Vietnam. Accordingly that, the thesis is proposing to
improve the system of guidelines and policies; perfecting strategies,
planning, programs and plans; completing the system of specific legal
documents for ITI; proposing the establishment of the Information
Technology Industry Department on the basis of upgrading the Information
Technology Board under the Ministry of Information and Communications,
and at the same time consolidating the organizational apparatus in localities.
Those are new contribution of the thesis.
7. Structure of the thesis
In addition to the introduction, conclusions and recommendations, the
list of references and appendices, the thesis has 4 chapters including:
- Chapter1.Overview of research situation related to state
management of Information Technology Industry.
- Chapter 2. Scientific basis for state management of Information
Technology Industry.
- Chapter 3. Actual situation of state management on information
technology industry in Vietnam.

enterprises to develop ITI production ... Since the concept of ITI is defined
differently in each country, in each study, then the results of this study
should be stringed, valid for the study of state management contents.
1.2. Group of published studies related to state management of
information technology industry
Domestic research projects: There have been a number of doctoral
dissertations, scientific topics, articles researching solutions to develop the
manufacturing industry of hardware and software products in enterprises,
which mentioned a few contents related to activities of state management
on information technology industry. Most notably, in 2010, Tran Quy Nam

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implemented a ministerial-level scientific project in which proposed
solutions to promote Vietnam's ITI development in the period 2011-2015,
and some solutions to improve institutions and policies were proposed.
Overseas research projects: There have been a number of doctoral
dissertations, a master's dissertations, books and research articles related to
state management of ITI from different perspectives and conceptions of ITI,
including international research on ICT in Vietnam. Most of the studies
confirmed the role of state management in the development of ITI; a
research has focused on software outsourcing policy (Phalgunia Gupta);
There are studies focusing on the policy of developing the domestic
software market before exporting (Robert Schware); A research has focused
on policies to promote interaction with the Government, combining
research and production (Shiu Wan Hung); There are studies focusing on
foreign direct investment policies, promoting computer hardware
development (Felix B. Tan and Kallaya Leewongcharoen).
1.3. Comment, evaluation

industry in the direction of large-scale production, modern in which only
one or several stages of the entire process of producing goods to create
added value.
There are many different definitions, in this thesis, ITI is understood as
the industry of manufacturing IT products, including computer hardware
and computer software. Computer software is a special, invisible product
that cannot be used without being installed on computer hardware and can
be easily transmitted on the network. Software with hardware creates a
"complete" IT product.
2.1.2. The role of the information technology industry
IT is affirmed as an effective tool to create new development methods,
contributing to promoting industrialization and modernization, ensuring fast
and sustainable development of the country. Application is the market of
industry, whereas industry promotes applications, creates synchronous
infrastructure to promote the development of other economic sectors and
creates a foundation for developing the knowledge economy. Industry is a
market that uses IT human resources and vice versa high quality human
resources will promote industrial development. IT itself also creates a new
industry named information technology industry, which brings higher and
higher revenue, contributing significantly to the GDP of each country.
Right since the 2000s, our Party has advocated "Developing the
information technology industry into an important economic sector,
especially the development of the software industry". Development of the
ICT industry helps each country to master information systems, mastering
technology to produce hardware and software products. Therefore, the
country is not dependent on foreign firms for IT technology and products,
ensuring network information security, protecting national sovereignty over
cyberspace.

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organization; The team and manpower carry out management activities
(staff, civil servants, employees, employees implementing management);
Expenses and funding for management activities (public finance); The
process of checking, evaluating and supervising management activities. The
details including (i) To develop and to organize the implementation of IT
policies, strategies, planning, program for development ITI. (ii) To develop,

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to promulgate, propaganda, dissemination and organizing the
implementation of legal documents on ITI; (iii) Inspecting, examining,
resolving complaints and denunciations and handling law violations in the
domain of ITI; (iv) International cooperation on ITI; (v) Organizing the
state management apparatus on ITI; (vi) In addition, state management on
ITI also includes the following contents: Developing and promulgating
regulations on standards and quality applied in the field of ITI; Managing
information safety and security in ITI operations; Granting, temporary
suspending, suspending, revoking types of certifications and certificates on
ITI; Managing investment in ITI operations according to the law;
management and development human resource for ITI; Organization of
management and use of natural resources and national database on ITI;
management and implement statistical reports on ITI according to the law;
Mobilizing information infrastructure and ITI equipments for national
defense, security and other emergency cases as prescribed by law. In the
scope of the research, the dissertation has studied and proposed solutions to
improve state management of ITI in 4 contents: construction,
implementation of guidelines - strategies - projects - plans - programs, legal
documents, inspection-check-handling violations and organizing apparatus.
2.2.2. The role of state management for ITI

state management on ITI is still lacking, the quality is not high and slow to
be updated in accordance with the development of technology and the
actual situation; (v) Activities of inspection, examination, detection and
handling of violations in ITI face to many difficulties due to the lack of
legal regulations, the boundaries between traditional concepts are being
changed; (vi) Organizing the state management apparatus on ITI has been
implemented from the central to local levels but still thin, part-time and not
high quality, there is overlap of state management among agencies.
2.2.4. Factors affecting the state management of ITI
In this section, the dissertation analyzes subjective and objective
factors affecting the state management on ITI including: (i) Factors of
scientific and technological progress; (ii) Factors of Political environment;
(iii) Factors of Economic and social environment ; (iv) Elements of national
development history and national traditions and culture; (v) International
factors; (vi) In addition, other factors such as economic crisis in the country
and abroad; world political fluctuations; climate change and natural
disasters also have different impacts on state management on ITI.
2.3. Development trend of state management activities on
information technology industry
2.3.1. The trend of developing IT product manufacturing activities
In this section, the dissertation analyzes the development trends of IT
product manufacturing activities, including: (i) The number of people
working remotely will increase significantly; (ii) Cooperation becomes the
center of IT culture; (iii) The experience of users is increasingly important;
(iv) Tendency of fiber popularization; (v) Wireless and mobile trends; (vi)
Trend of using block chain technology; (vii) Trend of 3D printing to

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management in the development of manufacturing electronic hardware
products, which is the role of general orientation and regulation, facilitating
production development.
2.4.3. The experience from India
The success of India's state management policy for software industry
must include four main points: (i) The human resources is abundant,
proficient in English language; (ii) Attracting many multinational

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companies to invest; (iii) Attracting a lot of overseas Indians; (iv) The
Strategic focusing for outsourcing services. The lesson from India's
experience is to promote investment attraction through building and
recognizing a series of centralized IT zones, developing high-quality human
resources to serve the domestic market.
2.4.4. The experience from Ireland
Ireland has built its National Development Plans and the Strategy for
Science Technology and Innovation of 2006-2013, launching The New
Software Economy strategy for software industry that focused on
developing new models and products based on cloud computing, therefore,
the software industry is quite successful. The Government set a strategy to
expand software parks and invest heavily in R&D through the Science
Foundation Ireland and the Venture Capital Fund (jointly funded by the
Government and businesses). The lesson for Vietnam is to develop and
implement national plans and strategies, focusing on attracting foreign
investment into software parks, focusing on R&D investment.
Summary of chapter 2
Chapter 2 studies the concepts, defines the scope of research, identifies
the characteristics and increasingly important role of ITI in Vietnam. On

3, 4, 5 of international software production quality management process and
other prestigious international certificates in the field of manufacturing
software, ensuring information security such like ISO 27001.
3.1.2. Situation of producing information technology products
Hardware - electronic products: The structure of hardware - electronic
products is seriously imbalanced, investment in specialized informatic
products only accounts for about 11.5%. The computer market including
desktop computers, laptops, tablets and smartphones with an average annual
growth of about 15-20%. About 80% of the desktop computer market is in
the hands of Vietnamese enterprises. However, production is getting
narrower because Vietnamese computer companies have not yet surpassed
the limits of assembling synchronized desktop models equipped for offices
and schools. Laptops, tablets, smartphones dominate the market but in fact
Vietnamese companies are almost leaving this market segment open.
About the software products, in recent years, Vietnamese units
producing software have provided many valuable products to the market,
notably the types of management software such as accounting software and
HR software, investment management software...Especially, many
specialized software for telecommunications and software serving eGovernment have been promoted by VNPT and Viettel groups. Other
Vietnamese software enterprises such as FSoft, CSC, TMA, Global
Cybersoft... have developed many software products and services based on
cloud computing, boosting outsourcing for Japanese , North American and
European market. Concomitantly, many open source software products
have been invested, developed and localized.
3.1.3. Situation of market of information technology products
Market of hardware-electronic products: Bringing the clear
characteristics of a production based on technology transfer platform. Due

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industry also increases year by year. However, after graduating, IT students
cannot immediately enter the labor market in an industrial environment due
to their lack of foreign languages and soft skills, so there is a shortage in
both quantity and quality. Short-term training on IT is diversified, providing
effective support for long-term training but not well controlled, especially
in quality.

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3.2. Current situation of state management on ITI
3.2.1. Actual situation of guidelines, policies, strategies, projects,
plans and programs for development of information technology industry
- Guidelines and policies issued by the Government at resolutions have
shown relatively sufficient contents, affirming the important role of the
information technology industry and facilitating the development of the ITI.
However, guidelines and policies in general reflect political determination,
need to be institutionalized into legal documents, investment in resources to
become realization; some of guidelines are still slow to be textualized to
implement in practice. Some guidelines and policies are still general and
not specific and qualitative, such as strengthening, encouraging and
prioritizing, making it difficult to implement. The basic reason is that the
progress of science and technology in the IT field has changed rapidly,
substantially changing the mode of production, state management has not
kept up with the development of technology. The IT industry has many
different characteristics from traditional industries, hardware products
participating in the global value chain, software products can be easily
circulated in the network environment.
- Since 2005, there has been a "ITI development strategy" issued that
identifies long-term goals, indicating key solutions. However, this

some ministries, branches, localities and IT enterprises have not really
participated in the Program; There is still a lack of guiding documents on
norms, financial mechanisms and technical norms..
- The project to make Vietnam soon become a strong ICT country by
2020 (including ITI) has been approved by the Prime Minister since 2010.
The overall framework scheme, mainly demonstrating political
determination and tasks and solutions of the basic scheme already in
previous strategies, planning and programs. Therefore, the results of
implementing the Scheme is to synthesize the results of implementing these
strategies and plans. The major limitation is in the stage of organizing the
implementation that no action plan has been issued, so the ministries,
branches and localities have not really entered and spent a worthy
investment to implement the Scheme.
- The Target Program for the development of the ITI to 2020, with a
vision to 2025, was approved in 2015, continuing to inherit the successful
implementation of the programs for the 2007-2014 period, concomitantly,
updating and supplementing new content in accordance with the latest
regulations issued; integrating and using the resources of other ongoing
programs for ITI development. Although it was promulgated since 2015,
this Program has not been implemented yet, funding has not been allocated.
The main reason lies in the responsibility of the chairing agencies and
branches and the difficulties of the economy in the over time.
- The overall plan for the development of Vietnam's electronics
industry (including computer hardware production) by 2010 and the vision
to 2020 has been approved by the Prime Minister. So far this is the only
plan for the development of electronic industry (including computer

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start-up phase.
.
The main reason is due to: (i) The quality of strategies, planning,
programs and plans is not close to reality, lacking of feasibility, nonnormative and lacking of sanctions, so the implementation is still limited;
(ii) The resources to ensure implementation of strategies, planning,

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programs, plans, especially financial resources have not been met; (iii) The
domestic and international context changes, especially the rapid progress of
technology, the fierce competition of countries in the region..
3.2.2. Status of legal documents related to information technology
industry
- The National Assembly promulgated the Law on Information
Technology 2006 (IT Law), including the field of manufacturing computer
hardware and software products. The law stipulates the development policy
of ITI (Article 48) and stipulates that the competent state authorities issue
regulations and organize the implementation of activities to develop ITI
market (Article 49). By implementing IT Law, ITI has gradually become an
important economic sector. However, in fact, over 10 years of
implementation, some contents of IT Law are still unclear (Article 39,
Article 45); some contents had been handed over to the Government,
ministries and branches have not been normative (Article 49, Article 50);
there is also inconsistency between IT Law and some other Laws; the
regulations on ITI are inadequate and no longer suitable with the trend of
technology development. Regarding enforcement, there is overlap in the
implementation of state management on hardware industry; on software
copyright and intellectual property rights; lack of funds for implementing
approved programs and plans; small scale and potential of IT enterprises

The Inspectorate of The Information and Communication Industry
presides over the inspection, examination and handling of violations of ITI.
In general, the work of inspecting, examining and handling violations of ITI
has been implemented in recent years but still very limited in both terms of
quantity and level. Some reasons of limitation are such as the inspection
teams ara lack in quantity, not regularly updated to improve the
qualifications and support facilities are lacking and outdated; there is also
the overlap of functions and tasks of specialized inspectors relating to ITI;
The propaganda, dissemination and guidance of laws have not been
effective; regulations on violations have not been updated, sanctions are not
enough to deter.
3.2.4. Current status of international cooperation in state
management of information technology industry.
In the over time, cooperative relationships have been expanded, calling
for funding for the development programs of ITI, creating investment
opportunities, promoting trade for businesses, developing human resources
for ITI; participating in many trade agreements such as ITA, WTO and FTA
free trade agreements as well as signed cooperation agreements. However,
there are still many shortcomings such as the lack of international
experience in state management on ITI; has not created an open policy
environment in which administrative procedures reduced, preferentially
attracted foreign investment and technology transfer; slow in trade
promotion and human resource attraction. In the coming time, state
management of information and communication technology focuses on
addressing the above limitations, concluding negotiations on trade

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commitments, sending experts to deeply participate in international

been developed and issued, implemented and attained some important
results. Many localities have developed their programs and plans for ICT
application and development on the basis of national schemes and programs
suitable to their localities, in which capital sources are used local budget in
combination with supporting from the central budget.

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- The system of legal documents has been gradually improved,
creating a synchronous and favorable legal framework for developing ITI. It
can be said that the full basic legal environment is gradually being
improved and updated to create a more favorable corridor for developing
ITI. The state management apparatus on ITI has been deployed from the
central to local levels with clear and transparent decentralization of
functions and tasks.
3.2.7. Limitation, inadequate and basic causes
- The guidelines and Policies of the Party and the Government are
still slow to be legalized, some guidelines are generally qualitative and
difficult to implement.
- Strategies, plannings specialized for ITI have not been issued,
currently being integrated with ICTs, many qualitative contents are difficult
to enforce, the promulgation of strategies and planning are still formalism.
Moreover, these strategies and plannings issued over 10 years are no longer
relevant now. The programs and plans of ITI development have been
issued, updated and implemented with initial results, in the period from
2015 is hardly implemented.
- The system of legal documents on ITI is lacking, or slow to issue,
not keeping up with the actual situation (especially the documents
specialized for ITI development). The system of legal documents on ITI

planning, legal documents are not high; (iv) The apparatus of state
management is thin and the quality of human resources is limited and
lacking in the connection between state management with enterprises and
associations.
Summary of chapter 3
Chapter 3 summarizes and assesses the situations of ITI production
activities from 4 key aspects including enterprises, products, markets and
human resources, showing an overall picture of the information technology
industry in our country. The impact on ITI production activities includes
many different factors, Chapter 3 has deeply integrated, analyzed the actual
situation of state management on ITI from 4 aspects of state management
including guidelines - policies, strategies - planning - schemes - programs plans, legal documents and organizing state management apparatus.
Concomitantly, Chapter 3 has deeply analyzed the results, limitations and
the basic causes that state management activities have achieved, have been
encountered in recent years. The results of research in Chapter 3 combined
with the results of research on trends and experiences in Chapter 2 will be
the basis for proposing solutions to improve the state management on ITI in
Chapter 4.

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Chapter 4
ORIENTATIONS AND SOLUTIONS TO CONTINUE
COMPLETING THE STATE MANAGEMENT ON THE
INFORMATION TECHNOLOGY INDUSTRY
4.1. Viewpoints and orientations to complete the state
management on the information technology industry
The point of view: (1) Based on the Party and State guidelines; (2)
promoting to develop ITI into an economic and technical sector with rapid


4.2. Some solutions for continuing to improve the state
management on information technology industry
4.2.1. General solutions
Completing the ITI development policy in the direction of
continuously updating and supplementing in accordance with the actual
situation; more specific, more feasible to be able to institutionalize legal
documents as a basis for practical implementation, including: the policy of
developing IT enterprise; IT product development policy; the policy of
attract investment in manufacturing IT products; the policy of developing
IT product market; the policy for developing IT human resources.
4.2.2. Some of specific solutions for continuing to improve the state
management on information technology industry in Vietnam
4.2.2.1. The solutions to improve policies, strategies, planning, plans
and programs for development of information technology industry
Developing strategies, planning, plans for ITI development separately,
overall and synchronously, avoiding integrating with ICT development
contents as before; Reviewing, adjusting and updating in accordance with
current practical conditions of ICT development strategies; Improving the
quality of strategies, planning, programs and plans for ITI development;
Reviewing, modifying and supplementing to ensure ITI is an important
content that must be included in strategies, plannings, plans and program
for socio-economic development; Developing detailed planning of
concentrated IT zones; Focusing on drastically implementing the target
program for the development of the ITI industry until 2020 which has been
approved.
4.2.2.2. Completing the system of legal documents related to the
information technology industry
Completing the system of legal documents towards urgently
supplementing the missing documents, legalizing the guidelines and