The information technology (IT) sector should be prioritized to attract foreign direct investment (FDI) in the 2011-2020 period, according to the Ministry of Planning and Investment (MPI).

The ministry said the industry currently accounts for a small proportion (2 percent) of the country’s total FDI, which is much lower than other sectors such as processing and manufacturing, real estate, hotel and restaurant services.

MPI statistics show that, in the first nine months of this year, IT ranked third out of 10 sectors in the number of projects, but only sixth in the amount of registered capital.

The sector has attracted 680 FDI projects, with total registered capital of US$4.8 billion.

Deputy Head of the MPI Foreign Investment Agency, Nguyen Ba Cuong, said IT will be a key sector for the country’s FDI strategy in this period, along with support industries, agriculture and services.

Mr Cuong said the Government will give priority to projects offering highly competitive products that can be part of the global production network.

He added that Vietnam will not grant licenses to projects that waste energy or natural resources, or those that use outdated technologies and pollute the environment.

Figures from the Ministry of Information and Communications (MIC) showed that over the past 10 years the IT sector has seen a 25 percent growth rate, three to four times higher than that of the national GDP, and IT applications are widespread throughout the country.

Around 25 percent of the population has used the internet and several public services are operating online, which has contributed to the country’s socio-economic development.

The sector’s average annual growth rate for the 2010-15 period is expected to be 25 percent.

IT is a high value-added industry, especially software and digital content which are growing at a yearly rate of 35 to 40 percent.

Acting head of the MIC Information and Technology Department, Nguyen Trong Duong, said FDI for the sector has not met its potential though investment has increased.

Duong said the country should spend 25 percent of its annual investment on promotion to attract FDI from multinational groups, especially for new and high value-added products.

Vietnam has around 500 businesses operating in the software industry, half of which are wholly foreign-invested enterprises.

Under the new IT zone development plan, by 2020, the country aims to have 23 industrial parks covering an area of 2,000ha designed to attract foreign investors.

He said the Government will build transport, water and electricity systems around the zones, and infrastructure within the zones will be constructed by both foreign and domestic investors to develop the areas quickly.

The country currently has some IT zones available for investment including the FPT Group in Danang and Hoa Lac in Hanoi.

VNA