Vietnam’s Ministry of Information and Communications Holds Crucial Consultation on Draft Law on Information Technology Industry Development
HANOI, VIETNAM – On August 12, 2024, the Ministry of Information and Communications (MIC) convened a significant working session with representatives from various ministries, sectors, and relevant industries. The primary objective of this meeting was to solicit expert opinions and feedback to finalize the draft Law on the Information Technology Industry before its presentation to the Prime Minister and the National Assembly. This legislative initiative aims to create a robust legal framework to foster the growth of Vietnam’s burgeoning IT sector.
The consultative meeting, held at the MIC’s headquarters, was presided over by Minister of Information and Communications, Mr. Bùi Hoài Phương. Attendees included high-ranking officials from the Office of the Government, the Ministry of Planning and Investment (MPI), the Ministry of Finance, and other key ministries and agencies involved in the development and regulation of the IT industry. This collaborative effort underscores the government’s commitment to ensuring that the upcoming legislation is comprehensive, practical, and effectively addresses the evolving landscape of information technology.
Prior to this meeting, as indicated by the Secretary of the Government, the MIC had been actively engaged in the drafting process. The ministry, in collaboration with other ministries, ministerial-level agencies, parallel agencies, and relevant organizations, had undertaken the significant task of developing the draft Law on the Information Technology Industry. This proactive approach highlights a strategic effort to formalize and elevate the importance of the IT sector within the national economic framework.
The draft Law on the Information Technology Industry is specifically designed to resolve existing inconsistencies and gaps in the current regulations governing the IT industry within the broader Information Technology Law. The proposed legislation seeks to establish a clear and comprehensive legal foundation that not only promotes the development of the IT industry but also encourages innovation, enhances competitiveness, and mitigates potential risks associated with IT industry activities. A key focus of the draft law is to incentivize proactive policy development aimed at driving growth and dynamism within the sector.
Strategic Objectives of the Draft Law
The draft law is envisioned to create a conducive legal environment that actively promotes the development of the information technology industry. Its ultimate goal is to transform the IT sector into a significant economic engine contributing substantially to the nation’s overall development. The legislation aims to facilitate the transition of Vietnamese IT enterprises from basic assembly and integration to higher value-added activities such as research, design, innovation, and production of core IT products and services. Furthermore, it intends to cultivate a dynamic market for the IT industry, thereby driving the development of domestically designed and manufactured IT products.
The scope of the draft Law on the Information Technology Industry is extensive, encompassing various facets of the sector. It will define and regulate IT industry activities, including the production and provision of IT products and services. Crucially, it will ensure the sustained development of the IT industry and clearly delineate the rights and responsibilities of all stakeholders, including organizations and individuals involved in IT industry activities. This broad scope is intended to provide a holistic framework for growth and oversight.
A significant aspect of the draft law is its exclusion of specific regulations for production, supply of products, and IT services dedicated to national defense, security, and essential medical needs. This ensures that the primary focus remains on fostering the broader commercial and developmental aspects of the IT industry. The application of the Law on the Information Technology Industry is expected to extend to all government agencies, organizations, and individuals participating in or having interests related to the IT industry.
Consultative Process and Key Stakeholder Engagement
The current stage of drafting the law is characterized by an intensive consultation process, with the government aiming to present the finalized draft to the Prime Minister and the National Assembly in the near future. Minister Bùi Hoài Phương emphasized the Ministry of Information and Communications’ desire for active participation from representatives of ministries, sectors, and industries. He stated the intention to engage in direct dialogue, discussion, and exchange of ideas to refine the draft law. This open approach signifies a commitment to incorporating diverse perspectives and ensuring the legislation is well-received and effective.
During the meeting, Ms. Phạm Thuý Hạnh, Deputy Director of the Legal Department at the Office of the Government, highlighted two central policy directions for the draft law. The first concerns investment attraction, while the second addresses the establishment of a robust legal framework that fosters innovation. "To develop the IT industry, the most important aspect is investment attraction, economic mechanisms, policies, and related incentives. The MIC’s proactive approach aims to create the highest level of support, as these are the foundational elements for development, especially in the current phase," Ms. Hạnh remarked, underscoring the critical role of government support and policy in nurturing the sector’s growth.
Mr. Đỗ Văn Sỹ, Deputy Director of the Foreign Investment Agency under the Ministry of Planning and Investment (MPI), offered a perspective from the investment promotion standpoint. He proposed the development of policies for "IT parks" within the Law on the Information Technology Industry, aligning them with the Law on Industrial Parks and Economic Zones, which is also overseen by the MPI. This suggestion aims to create dedicated zones that foster innovation and attract investment by providing specialized infrastructure and regulatory advantages.
Addressing Investment and Innovation
Regarding investment policies within IT parks, the MPI representative requested that the draft law include provisions for consultancy companies with expertise in comparative international regulations. This is intended to ensure that the legal framework for IT parks is aligned with global best practices and effectively attracts foreign investment. The inclusion of such provisions would demonstrate a commitment to international standards and facilitate the integration of Vietnamese IT parks into the global economic landscape.
The consultative meeting also served as a platform for representatives from various ministries and relevant industries to offer valuable insights on numerous critical issues within the draft Law on the Information Technology Industry. Discussions revolved around investment incentives for the semiconductor industry, VAT policies, and the legal framework for research and development, as well as policies related to intellectual property. These discussions are vital for ensuring that the law addresses the multifaceted needs of the IT sector.
Background and Context: Vietnam’s IT Ambitions
Vietnam has set ambitious goals for its IT industry, aiming to become a regional hub for technology and innovation. The country has witnessed significant growth in its IT sector over the past decade, driven by a young, skilled workforce, increasing foreign direct investment, and government support. However, the existing legal framework has not always kept pace with this rapid development, leading to inconsistencies and challenges. The drafting of the Law on the Information Technology Industry is a direct response to these needs, aiming to provide a stable and predictable environment for businesses to thrive.
The Vietnamese government recognizes the IT industry as a key driver of economic growth and digital transformation. Initiatives such as the National Digital Transformation Program and policies promoting Industry 4.0 technologies underscore this commitment. The proposed law is a crucial component of this broader strategy, seeking to create a dedicated legal foundation that can effectively support the sector’s continued expansion and competitiveness on the global stage.
Economic Implications and Future Outlook
The successful enactment of the Law on the Information Technology Industry is expected to have profound economic implications for Vietnam. By providing clear regulations, incentives, and a supportive ecosystem, the law is anticipated to attract further domestic and foreign investment, stimulate innovation, create high-value jobs, and boost exports of IT products and services. This, in turn, will contribute significantly to Vietnam’s economic diversification and its transition to a knowledge-based economy.
The inclusion of provisions for IT parks and the focus on research and development are particularly noteworthy. These elements signal a strategic shift towards higher-value activities, moving beyond basic services to embrace innovation, design, and advanced manufacturing. This ambition aligns with Vietnam’s broader vision of becoming a technology powerhouse in the region.
The collaborative approach adopted by the Ministry of Information and Communications, involving various government bodies and industry stakeholders, suggests a strong commitment to developing a comprehensive and effective piece of legislation. The insights shared during the consultation are expected to shape the final draft, ensuring it is practical, forward-looking, and capable of addressing the complex challenges and opportunities within Vietnam’s dynamic IT sector.
The article shared alongside the main report, "How to Realize the Goal of 50,000 Vietnamese Semiconductor Engineers," highlights the specific challenges and strategies related to nurturing specialized talent within the IT ecosystem. Experts suggest that achieving such a goal requires a close synergy between the state, educational institutions, and businesses to ensure a well-trained workforce that can meet the demands of advanced technology sectors like semiconductors. This focus on human capital development is a critical aspect that the new IT industry law is expected to support.
As the legislative process moves forward, the successful implementation of the Law on the Information Technology Industry will be crucial for realizing Vietnam’s aspirations in the digital economy and solidifying its position as a significant player in the global technology landscape. The ongoing dialogue and refinement of the draft law demonstrate a determined effort to build a robust and future-ready IT sector.
