Research object are the organization and state management activities on ITI in Vietnam. The scope limited in the contents of state management on ITI systems, 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.
Trang 1MINISTRY OF EDUCATION AND TRAINING - MINISTRY OF INTERIOR
NATIONAL ACADEMY OF PUBLIC ADMINISTRATION
Trang 2The 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: ………
……… ………
Reviewer 3: ………
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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
Building ……, National Academy of Public Administration No: 77 - Nguyen Chi Thanh street- Dong Da district - Ha Noi city Time: …………h………
The thesis can be found at the National Library of Vietnam
or the Library of the National Academy of Public Administration
Trang 3PREAMBLE
1 Reason to choose the topic
Firstly, the IT industry (ITI) is a knowledge-based industry, mainly of
which is exploiting human intellect, less in exploiting natural resources, and having high added value This is an economic sector where Vietnam has a comparative advantage with young human resources that diligent in working, good mathematical thinking However, in fact, the revenue of the information technology industry in our country is not high, not yet able to promote the available potential
Secondly, the ITI has an important role and is concerned by the Party
and the State, but the actions of state management of ITI and information technology has not kept pace with the development as well as the actual requirements
Thirdly, there have not been a specialist research project based on the
science of public management on state management for this high-tech industry
From the above analysis, the PhD student has chosen the topic "State management on Information Technology Industry in Vietnam" as his/her doctoral thesis in Public Management
2 Research purposes and tasks
- Researching and supplementing scientific basis on state management on ITI; from that basis, study the situation, propose solutions
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
Trang 4- 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
5 Scientific hypothesis and research questions
- The author set up some research questions to find the answer: (1) What are the characteristics and contents of state management of ITI? What are the factors affecting state management on ITI, the tendency
of state management on ITI ?
(2) How is the real situation of state management on ITI, results, limitations and its causes? Why is the state management on ITI in our country not yet catching up the development, not yet taking and promoting the role and creating conditions for development?
(3) How to improve the content of state management on ITI in Vietnam in the coming period?
- Scientific hypothesis: ITI plays an increasingly important role in economic development, competitiveness and national defense ITI of our country has not yet taken advantage of opportunities and competitive advantages, has not promoted the potentials State management on ITI has not kept pace with the development, therefore ITI of our country has not developed well enough to meet its potential
6 The scientific and practical significance of the thesis
Trang 5- The dissertation clarifies the theoretical issues of state management
of ITI in Vietnam, provides more scientific basis for the completion of state management on ITI in the coming period
- In practice, the dissertation analyzes and evaluates state 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
- Chapter 4 Guideline and solutions to improve state management
on information technology industry
Trang 6Chapter 1 OVERVIEW OF RESEARCH SITUATION
RELATED TO THE SUBJECT OF THE THESIS
1.1 Group of published studies related to the information technology industry
Domestic research projects: There have been a number of scientific topics (mainly of which are the Ministry of Information and Communication projects) to study the contents of information technology industry (including some of state management and production and business activities) such as: Research, propose objectives, implementation contents and solutions for development ITI in some localities; improve the efficiency
of investment in and development ITI in Vietnam in the period of
2011-2015 There are a number of research dissertations related to ICT from a business perspective, often focusing on software products such as building product strategy at the company CMCSOFT in the period 2013-2015 There have been journal articles and seminars on research on ITI mentioning about the different aspects of ITI (much concentrated in IT-Communications magazine) However, because the concept of ITI has not been really popular, the number of domestic research is still limited, the research contents often focus on rather narrow topics of ITI
Overseas research projects: Many relating research works, mainly focusing on factors for promoting IT product production There is a research project on human resource development, a study of the model of factors to promote software production for export, research on the importance of R&D, and research on combining public and private 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
Trang 7implemented 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
There have been research projects related to state management of information and communication technology, but not much, especially no research work on basic, systematic under the view of science of public management were found The researches have analyzed and proposed solutions for ITI development in general, including some contents related to state management activities; The contents of the study on state management
on ITI scattered in different works, not yet be associated systematically and scientifically
Recognizing the aforementioned research gap, in their research, the PhD student approached under the public management science perception
in a systematic way, linking theory to practice; assessing the actual situation state management on ITI, thereby proposes some solutions to complete this activity in Vietnam
Chapter 2 SCIENCE BASIS ON STATE MANAGEMENT
FOR INFORMATION TECHNOLOGY INDUSTRY
2.1 Theoretical issues about ITI
2.1.1 Information technology industry concept
Trang 8There are many different definitions of IT, but most commonly, IT is
to use computers and computer software to convert, store, protect, process, transmit and collect information In the IT field, it can be divided into 5 main components: infrastructure, application, industry, human resources and information security
From an economic sector perspective, industry is a large-scale economic activity whose product becomes a commodity that is strongly supported by technological and scientific advances It is understandable that 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
Trang 9ICT contributes an increasing contribution to the country's GDP This
is considered a young and potential economic day with high growth rate that Vietnam has a competitive advantage in young manpower that diligent
in working and cheap compared to other countries in the region In particular, the industry of producing software products has high added value, attracting, creating more and more jobs for employees Those show that ITI's increasingly important role is infrastructure to promote the development of other economic and social sectors
2.1.3 Characteristics of Vietnam's information technology industry
In this section, the dissertation presents four main characteristics of ITI
in Vietnam: (i) ITI is a tech product manufacturing industry, knowledge products, high-automation hardware production while software manufacture can be implemented separately through virtual offices, via the network In Vietnam, the hardware industry is mainly implements the assembly stage while the software industry is mainly outsourcing for exports and supplies for domestic demand; (ii) Market software products is wide, direct competition in the international market Hardware products mainly participate in some stages of the global value chain; (iii) Large scale investments, especially investments in hardware production assembly, software brands and R&D In Vietnam, most IT enterprises are SMEs, start-
high-up enterprises and R&D investments are very limited; (iv) IT human resources are globally integrated, "moving" easily among countries in the region and the world In Vietnam, IT human resources lack in quantity and weak in quality
2.2 Contents of state management on information technology industry and influencing factors
2.2.1 Contents of state management on ITI
The content of state management on ITI is divided into 5 main groups, including: Institutional system including mechanisms, policies and legal documents; Organizational system and operational mechanism of the 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,
Trang 10to 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 plays an important role, deciding the development
of the information technology industry in our country, especially in the first phase of the current development, including: (i) The role of creating a stable environment and favorable conditions for production activities; (ii) The role
of promulgating the legal framework, implementing policies, encouraging support, control and arbitration in order to achieve the objectives of developing the ITI business; (iii) The role of preventing, overcoming, limiting the negative aspects of the market mechanism for the production of computer hardware and software products; (iv) Role of orientation for activities of manufacturing ITI, direct investment in some areas to lead the market; (v) The role of choosing to use highly effective management tools creating a strong motivation to promote the development of ITI
2.2.3 Characteristics of state management on ITI
In this section, the dissertation investigating the characteristics of state management of ITI in our country today includes: (i) IT as well as IT production activities are progressing very fast, many new technologies are
Trang 11constantly being created and therefore the state management has not held pace with the rapid development of new technologies; (ii) ITI is a high-tech manufacturing industry, the automation replaces people in almost every stage of assembly therefore the state management will be different from the one on previous traditional industries This is a challenge for the Vietnamese state management system, which originates from manual agricultural production, influenced by prolonged war; (iii) The ITI businesses has just been established in Vietnam for more than 10 years and
is in the early stages of development so that state management is still in the process of foundation and gradually improving; (iv) Institutional system of 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
Trang 12produce IT products; (viii) Network information security will be a major concern; (ix) Trend of Automation with robot
2.3.1 Trends of state management activities on ITI
In this section, the dissertation analyzes some trends of state management on ITI including: (i) "More dynamic", closer collaboration with IT enterprises and communities; "Smarter" to clearly define the limit, predict the future; (ii) More transparent; (iii) Decentralize and assign more responsibilities; (iv) Focus more on creating a legal corridor; (v) State management shifted from administrative to service, with the participation of the private sector; (vi) More support domestic IT enterprises
2.4 International experience on state management on information technology industry and lessons learned for Vietnam
2.4.1 The experience from Korea
Regarding the IT sector, Korea promulgated three laws namely Government Law (March 2001), Law on Promoting ITI (2009) and Law to promote the provision and use of public data (2013) The Law on promoting ITI focuses on creating a legal corridor, paving the way for regulations to promote the production of hardware, software and human resources The law also stipulates the following contents: Establishing a national agency specialized in ITI and sanctioning regulations in the field of ITI In addition, to promote software industry, Korea also has a specialized law on software industry Vietnam needs to study, summarize more than 10 years
E-of issuing and implementing IT Law in 2006, refer to the above laws E-of Korea to be able to amend and split into component laws to enhance the role of state management on ITI
2.4.2 The experience from China
China's success is due to the right development strategy such as attracting foreign investment, close links with the selected research institutions and importers The lesson for Vietnam is to found a right development strategy, focusing on developing concentrated IT zones to attract foreign investment; promoting the important role of state 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
Trang 13companies 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 that basis, analiazing in detail the contents of state management, the special important role of state management for ITI of Vietnam, analyzing characteristics, influent factors and development trend of state management
on ITI as well as the experiences from Korean, China, India, Ireland
Chapter 3 CURRENT SITUATION OF STATE MANAGEMENT ON THE INFORMATION TECHNOLOGY INDUSTRY IN VIETNAM 3.1 Current situations of production activities of information technology industry
3.1.1 The reality of the enterprises manufacturing information technology products
Electronic hardware enterprises: Most FDI enterprises are large oriented enterprises, modern and high-tech equipment and play an important role in the structure of the industry as well as export Most of Vietnamese enterprises are SMEs, mainly business on making assembly and trade service State-owned enterprises (SOEs) mostly have good infrastructure, average technological level and relatively efficient production and business activities, but in recent years growth has slowed down Private enterprises are small businesses, with only a few medium-
Trang 14export-scale businesses, although the growth of private enterprises is high, but the value-added is still very low due to limited financial and technological potential
Software enterprises: Most of Vietnamese software enterprises are still small and medium-sized companies, with limited competitiveness, production and quality management processes are low quality, higher levels expert teams are few, lacking marketing experiences Even so, Vietnam has a number of businesses that have attained certification of CMMI level
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 e-Government 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
Trang 15to not being proactive in technology and raw materials, domestic enterprises played a faint role, unable to regulate the market The market share of computers having an international brand is estimated at 15-30%, the share
of non-branded assembly computers is about 65-70% due to reasonable and flexible prices, while the domestic brand computers account for about 15-30% Particularly, more than 90% of the laptop market share in Vietnam are belonging to foreign brands The market share of Vietnamese brand laptops is only modest at around 10% but the quality is not too inferior to foreign computers The domestic market in the coming time tends to research product design, selecting components and attaching product labels, focusing on developing products of smart phones and cheap tablets with Vietnamese brand The export market mainly concentrates from the joint venture area through outsourcing and assembly activities
Market of software products: The domestic market mainly depends on the purchasing power of state-owned agencies and enterprises invested by the state budget because of determination to boost the application of IT in the agencies of the State and the Party Another reason is the pressure of the integration process which requires improving operational efficiency, automating production processes, improving competitiveness in the key industries Up to 70% of software enterprises are mainly orienting domestic markets that are the environment for enterprises to train and improve their capacity For overseas markets, Vietnamese software enterprises mainly provide software outsourcing services AT Kearney organization has rated Vietnam as the 10th most attractive country in software outsourcing The foreign market mainly focuses on North America, South Korea and Japan 3.1.4 Current situation of human resources for information technology
The number of long-term formal IT training institutions is relatively abundant, accounting for about two-thirds of all university training institutions The targets of admissions of university and colleges in IT 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