HANOI, VIETNAM – On August 12, 2024, the Ministry of Information and Communications (MIC) convened a crucial working session with various ministries, sectors, and relevant organizations to gather comprehensive feedback and refine the draft Law on Industrialization and Modernization of Information and Communications Technology (ICT). This proactive engagement is a key step in ensuring the legislation is robust and effectively addresses the evolving landscape of Vietnam’s digital economy before its submission to the Government and the National Assembly.
The meeting, held at the MIC’s headquarters, was presided over by Deputy Minister of Information and Communications Bui Hoang Phuong. In attendance were representatives from the Office of the Government, the Ministry of Planning and Investment (MPI), the Ministry of Finance, and the Ministry of Information and Communications itself. The presence of these key governmental bodies underscored the strategic importance of the proposed legislation in shaping Vietnam’s future technological trajectory.
This consultative approach follows a directive from the Prime Minister, emphasizing the MIC’s responsibility to collaborate with ministries, ministerial-level agencies, government-affiliated agencies, and other relevant entities in the development of the draft Law on ICT Industrialization and Modernization. This collaborative process aims to ensure the law is well-rounded and considers diverse perspectives.
The primary objective of the Law on ICT Industrialization and Modernization is to address existing gaps and inconsistencies within the current legal framework governing ICT development, as outlined in the Law on Information Technology. The new legislation is designed to create a conducive policy environment that not only spurs innovation and accelerates the growth of the ICT sector but also proactively mitigates potential risks associated with these activities.
Strategic Vision for Vietnam’s ICT Sector
The draft law envisions the creation of a legal framework that will foster the development of the ICT industry, transforming it into a significant contributor to the nation’s economic growth. A core tenet of the legislation is to facilitate the shift of Vietnamese ICT enterprises from basic assembly and integration towards higher value-added activities such as original design, innovation, and manufacturing. This strategic pivot aims to elevate the capabilities of the domestic ICT sector to a more sophisticated and competitive level.
Furthermore, the law seeks to establish a dynamic marketplace for ICT products and services, encouraging the development and production of technologically advanced and designed-for-manufacturing products within Vietnam. This focus on domestic production capacity is crucial for enhancing national technological sovereignty and reducing reliance on foreign supply chains.
The scope of the Law on ICT Industrialization and Modernization is broad, encompassing various facets of the ICT industry. This includes:
- ICT Activities: Covering the production, provision, and services related to ICT.
- Development of the ICT Sector: Ensuring sustainable growth and competitiveness.
- Rights and Responsibilities: Defining the roles and obligations of organizations and individuals involved in ICT activities.
Notably, the law will not cover activities related to the production and supply of ICT products and services specifically designated for national defense, security, or public health needs. The application of the law is intended to extend to all organizations, individuals, and entities that participate in or are related to the ICT industry.
Addressing Key Policy Pillars
Deputy Minister Bui Hoang Phuong highlighted the Ministry’s commitment to engaging with stakeholders, stating, "We invite representatives from ministries, sectors, and businesses to engage in direct dialogue and provide their valuable insights to finalize the draft Law on ICT Industrialization and Modernization." This emphasis on direct communication underscores the MIC’s desire for a participatory law-making process.
Ms. Pham Thu Hang, Deputy Director of the Legal Department at the Office of the Government, emphasized the need for the draft law to focus on two major policy directions: the promotion of investment and the establishment of a robust legal framework that ensures compliance and legal certainty.
"To develop the ICT sector, the most critical aspect is the promotion of investment – creating an attractive investment environment through policies, incentives, and related regulations," Ms. Hang articulated. "The MIC’s proposed incentives are aimed at elevating the ICT sector to the highest possible level, as these are the foundational industries that will drive growth during this period."
Fostering an Innovation Ecosystem and Investment Climate
Mr. Do Van Su, Deputy Director of the Department for Foreign Investment Cooperation under the Ministry of Planning and Investment (MPI), proposed the establishment of "ICT industrial parks" within the framework of the Law on ICT Industrialization and Modernization, aligning with the existing Law on Industrial Parks and Economic Zones managed by MPI. This proposal aims to create dedicated zones that offer specialized infrastructure and supportive policies for ICT businesses, fostering a concentrated ecosystem for innovation and development.
MPI’s representative further suggested that investment policies within these ICT industrial parks should be reviewed by the competent authority to ensure they are competitive and attractive, potentially involving the comparison of incentive packages with international benchmarks. This proactive approach to investment promotion is seen as crucial for drawing in both domestic and foreign investment into Vietnam’s burgeoning ICT sector.
Key Issues and Stakeholder Input
During the working session, representatives from various ministries and sectors contributed valuable insights on several critical issues that need to be addressed in the draft law. These include investment incentives for the "made-in-Vietnam" ICT industry, VAT policies, and the legal framework for research and development, as well as policies for intellectual property protection.
One particularly pertinent issue raised was the need for clear incentives for the "band-dân" (a term that can refer to a specific type of Vietnamese engineer or technician, often in the context of skilled labor) industry, aiming to cultivate a workforce capable of meeting the demand for 50,000 skilled engineers. This points to a strategic focus on human capital development as a cornerstone of the ICT sector’s advancement.
The discussion also touched upon the complexities of Value Added Tax (VAT) and the legal and policy considerations for intellectual property rights, crucial for safeguarding innovation and encouraging further R&D investment. The provision of policies for intangible assets and the protection of intellectual property were identified as key areas requiring detailed regulatory attention.
Broader Implications for Economic Growth
The development of the Law on ICT Industrialization and Modernization comes at a critical juncture for Vietnam. The nation has been experiencing rapid digital transformation, with ICT playing an increasingly vital role in its economic development strategy. The global shift towards a digital economy necessitates a robust legal and policy framework to support and accelerate this transition.
The proposed law is expected to:
- Boost Domestic Innovation: By incentivizing R&D and the development of indigenous technologies.
- Enhance Competitiveness: Enabling Vietnamese ICT companies to compete on a global scale.
- Attract Foreign Investment: Creating a more favorable investment climate for technology-focused enterprises.
- Create High-Value Jobs: Driving the demand for skilled ICT professionals.
- Strengthen National Digital Infrastructure: Ensuring the resilience and efficiency of the nation’s digital backbone.
The consultative process, involving diverse stakeholders from government ministries, industry associations, and leading technology firms, is designed to ensure that the final legislation is comprehensive, practical, and forward-looking. The insights gathered are expected to refine the draft law, making it a powerful tool for propelling Vietnam’s ICT sector into a new era of growth and innovation.
The meeting concluded with a clear understanding of the key areas requiring further attention and refinement. The MIC expressed its commitment to working collaboratively to finalize the draft law, ensuring it effectively supports Vietnam’s ambitions to become a leading digital economy in the region. The next steps will likely involve further consultations and revisions based on the feedback received, with a view to submitting the finalized draft to the Government in the near future.
The comprehensive approach taken by the Ministry of Information and Communications in developing this landmark legislation reflects a strategic vision for Vietnam’s digital future, aiming to harness the full potential of the ICT sector for sustainable economic development and national prosperity. The insights shared during this working session are instrumental in shaping a legal framework that is both responsive to current needs and anticipatory of future technological advancements.
A Look Ahead: Cultivating a New Generation of ICT Professionals
A significant point of discussion revolved around the cultivation of a skilled workforce, particularly the goal of producing 50,000 engineers in areas such as semiconductor technology. Experts emphasized the need for a strong synergy between national policies, educational institutions, and the industry to achieve this ambitious target. This involves not only curriculum development but also the creation of practical training opportunities and incentives for graduates to enter and remain in the ICT sector.
The legal framework must therefore facilitate robust public-private partnerships in education and training, ensuring that the skills developed align with the evolving demands of the high-tech ICT industry. This includes fostering a culture of continuous learning and adaptation to new technologies.
The discussions also underscored the importance of intellectual property (IP) protection. In an innovation-driven sector like ICT, strong IP rights are crucial for incentivizing research and development, attracting investment, and enabling Vietnamese companies to commercialize their innovations effectively. The draft law is expected to provide clear guidelines on IP registration, enforcement, and the commercialization of patented technologies.
The collaborative spirit evident in this working session bodes well for the future of Vietnam’s ICT sector. By bringing together diverse perspectives and expertise, the Ministry of Information and Communications is laying the groundwork for a comprehensive and effective legal framework that will guide the nation’s digital transformation for years to come. The finalization of the Law on ICT Industrialization and Modernization is a critical step towards realizing Vietnam’s vision of becoming a leading digital economy and a hub for technological innovation in Southeast Asia.
