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Sat, Apr 22, 2006 - Page 10 News List

Gates visit brings kudos to Vietnam's high-tech industry

AP , HANOI

A street worker rests in front of a computer shop in Ho Chi Minh City, Vietnam, in this March 24 photo. Bill Gates is set to promote licensed Microsoft products in the country where an anti-piracy industry group says 90 percent of software is counterfeit.

PHOTO: AFP

Vietnam's fledgling high-tech industry got a major vote of confidence with the arrival yesterday of Microsoft Corp chairman Bill Gates, whose visit says much about the country's success in establishing itself as a new player on the technology map.

Vietnam has been anxious to jumpstart its high-tech sector, which got a big boost earlier this year when Intel Corp, the world's largest chipmaker, announced plans to build a US$300 million chip assembly and testing plant in the country.

"The decision of Intel [to build] a plant in Ho Chi Minh City, and now Bill Gates' visit is confirming the recognition of Vietnam's potential for IT development," said Truong Gia Binh, CEO and president of the Corporation for Financing and Promoting Technology, or FPT, the country's leading software and computer maker.

"This is a major opportunity for Vietnam," he said.

Gates, who arrived from Japan, was invited by Prime Minister Phan Van Khai, who made the offer when he toured Microsoft's headquarters during his visit to the US last summer.

Vietnam has clear ambitions of becoming another tech mecca like India and, with its young, literate work force, the idea isn't necessarily a pipe dream, said Nguyen Huu Le, chairman of TMA Solutions in Ho Chi Minh City.

"I think this year could be a watershed year. It's a critical year in terms of being able to get to the next level," said Le, a former Nortel executive who returned to Vietnam to set up his own software company.

Tech companies "are starting to take notice of Vietnam. Even a few years ago, they wouldn't even think about Vietnam, much less search it out," he said.

His company, which is doing outsourcing work for Nortel Networks Corp, Lucent Technologies Inc and NTT Electronics Corp, posted revenues of US$10 million last year, he said.

Vietnam's potential is undeniable, though the country remains at a relatively early stage of development, said Binh, who is also head of the Vietnam Software Association. There are about 800 active software development companies in Vietnam, which range in size from tiny hole-in-the-wall operations to full-fledged companies like FPT with its 8,000 staffers, he said.

"I'm very optimistic with what's happening in information and communication technologies in Vietnam," he said. "The point is whether the world is ready to accept Vietnam as the next China."

The challenge for Vietnam will be in devising an education and training system that better prepares technology graduates for industry demands, said Le.

Vietnam has also battled a bad reputation as one of the region's worst violators of intellectual property rights. It has the highest percentage of pirated software in Asia.

"The good news is that the new graduates are better than five years ago. The curriculum is better and the English is better, but still we are working for foreign customers, so we still need to invest a lot in terms of training [our workers]," said Le, who said he is seeking a license to set up a private university focusing on software engineering.

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