DECISION

APPROVING THE PLANNING ON DEVELOPMENT OF INFORMATION AND COMMUNICATION TECHNOLOGY IN THE CENTRAL KEY ECONOMIC REGION UP TO 2010, AND ORIENTATIONS TOWARDS 2020

THE MINISTER OF POST AND TELEMATICS

Pursuant to the Ordinance on Post and Telecommunications dated May 25, 2002;

Pursuant to the Law on Information Technology dated June 29, 2006;

Pursuant to the Government's Decree No. 90/2002/ND-CP dated November 11, 2002, defining the functions, tasks, powers and organizational structure of the Ministry of Post and Telematics;

Pursuant to the Government’s Decree No. 92/2006/ND-CP dated September 7, 2006, on the elaboration, approval and management of master plans on socio-economic development;
Under the Prime Minister’s authorization in the Government Office’s Document No. 116/TB-VPCP dated May 22, 2007, on the approval of plannings on development of information and communication technology in northern, central and southern key economic regions;

At the proposal of the director of the Planning and Finance Department,

DECIDES:

Article 1. To approve the Planning on development of information and communication technology in the central key economic region up to 2010, and orientations towards 2020, with the following principal contents:

I. DEVELOPMENT VIEWPOINTS, OBJECTIVES AND ORIENTATIONS

1. Development viewpoints

a) To develop telecommunications and information technology in service of national industrialization and modernization, contributing to developing the central key economic region into a dynamic development region of the country, playing the core role for growth and boosting the development of the Central Vietnam and the Central Highlands. To step up telecommunications and information technology development in Da Nang city as the pervasive core of development in the whole central key economic region and as a motive force for accelerating and supporting the development of the central provinces.

b) Telecommunications constitutes an important economic, technical and service sector of infrastructure which must be developed one step ahead and comprehensively in terms of network, technology and services so as to ensure network, technology and services so as to ensure network safety and inter-regional and national interconnection, properly serve economic zones, industrial parks and the whole society, contribute to speeding up economic restructuring towards modernization and sustainable development, create a motive force for socio-economic development in the region, improve the people's life, and effectively and promptly serve security and defense in any circumstances.

c) To develop the information technology industry into a spearhead industry of the central key economic region. To apply to modern technology and promote international cooperation in order to utilize capital sources and new technologies. Foreign investment plays the primary role in the development of the information technology industry, especially the hardware industry. To prioritize the development of software industry and content industry.

d) To widely apply information technology in economic, social, cultural, security and defense domain, prioritizing the development of e-government and e-commerce. To apply information technology with a view to renewing the organization, management modes and administration processes, effectively supporting management activities of local administrations and striving to build ''e-provinces and e-cities.'' To step by step provide information online to people and enterprises so as to attract investment and help people and enterprises work with state agencies in a quick, convenient, economical and effective manner.

2. Development objectives and orientations

a) Telecommunications development

- Objectives up to 2010

To build a modern telecommunications network infrastructure of large capacity, high speed and high reliability. To develop telecommunications to effectively and promptly serve socio-economic development, security, defense, and social order and safety as well as for search and rescue activities in the sea and areas frequented by storms and floods. To develop telecommunications services for marine economic development, offshore fishing, shipping activities and safety and salvage management in areas within the scope of assigned international responsibility; to build Da Nang city into a high-quality telecommunications service center providing a wide variety of efficient services in Central Vietnam and the whole country.

To maintain a growth rate of between 20-30%, higher than the national average rate. To speed up the expansion of mobile signal coverage in rural areas, narrowing the gap in service use between provinces and cities in the region. To accelerate the universalization of telephone and Internet services in rural, deep-lying and remote areas, especially in border communes. By 2010, all communes will have public telephone booths, 50% of communes will have public Internet access points; all districts and most communes in the region will be provided with broadband Internet services; the number of telephone sets per 100 inhabitants will be 40-45 (16-18 fixed telephone sets and 24-27 cell phones); 28-32% of the population will have access to Internet services (the telecommunications development targets of provinces and centrally run cities in the central key economic region up to 2010 are shown in Appendix 1).

- Orientations towards 2020

To build and develop an advanced, modern, effective, safe and reliable information and communication infrastructure with a wide coverage. To strongly develop the next generation network (NGN) in order to provide multi-services in a unified infrastructure. To accelerate the development of broadband connection networks in order to ensure the development of online applications such as e-government, e-commerce, distance training and medical examination and treatment, and other applications. Mobile telecommunications networks will be developed towards those of the third generation (3G) and subsequent generations. To develop services in line with the trend of converging radio and television, information and telecommunications technologies so as to meet the information sharing needs of the whole society. By 2020, the rate of use of telecommunications services will be equal to that of developed countries. The percentage of telecommunications services use in rural areas will be equal to that of urban areas.

b) Development of the information technology industry

Objectives up to 2010

To step by step build and develop the information technology industry into a spearhead one of the central key economic region, attaching importance to export, training cooperation, technology transfer and product processing with foreign companies. The information technology industry will record an average annual growth rate of 32-33%. By 2010, the total production value of the information technology industry will be about US$ 400-500 million, accounting for about 0.5-1% of the total industrial production value of the region.

- Orientations towards 2020

To strive for the target that before 2015, the information technology industry will become a spearhead economic branch of the region, developing sustainably and stably at a high rate with an export-led objectives and, at the same time, acting as a motive force for accelerating the industrialization and modernization process in the region and adjacent areas. By 2020, the production value of the information technology industry will account for around 10% of the total industrial production value of the whole region. To develop the central key economic region into a center for production of software, industrial electronic, telecommunication electronic and home electronic products.

c) Development of information technology applications

- Objectives up to 2010

To build a communication system in order to ensure smooth and prompt administration and exchange of information among state agencies which will serve as an effective tool for administrative reform. To computerize professional operations in state agencies. To build and effectively use information infrastructure and websites in service of the exchange, supply and sharing of information between agencies and organizations as well as individuals. To strive for the target that all cadres and civil servants can use e-mails and exploit information in service of their work.

To conduct and develop e-transactions and e-commerce along with the development of operation of organizations providing digital signature certification services. Websites of provinces and cities must supply and update adequate information on policies, laws, administrative procedures, working processes, investment projects, public procurement and bidding, online activities of various agencies and investment attraction information, which can be quickly and easily accessed and used by citizens and enterprises. A number of declaration, registration and licensing services may be provided online.

To intensify the application of information technology in enterprises. On average, 50% of big enterprises in provinces and cities will make tax reporting, statistics and declaration, make business registration and be granted business licenses and certificates online. Over 50% of enterprises will make customs declaration and registration and carry out customs procedures online. About 60% of big enterprises will possess skills for doing online business and conducting e-transactions, 70% of small- and medium-sized enterprises will be fully aware of the benefits of e-commerce and run certain online applications in their production and business activities.

- Orientations towards 2020

Before 2020, to complete the construction of large information infrastructure works in order to connect in central key economic region with neighboring areas, especially the outermost northern Central Vietnam, the southern central coast, the Central Highlands and the east-west corridor of the Greater Mekong region, and with the Vietnam-Lao-Cambodia border area. To ensure information safety and security for the application and development of information and communication technology. To widely information communication technology in all domains and effectively make use of information and knowledge in all domains. To build and develop an e-Vietnam with e-citizens, e-government, e-businesses and e-transactions.

II. PLANNING CONTENTS

1. Telecommunications development

To develop a switching network in the region, especially in big cities, new urban centers, economic zones, industrial parks, hi-tech parks and technical service centers.

To develop a north-south trunk transmission network running through the central region, ensuring network safety, inter-regional and national interconnection and smooth communication in any circumstances: To facilitate the construction of undersea fiber-optic cable lines.

To develop transmission networks in preparation for the development of industrial parks, hi-tech parks, technical service centers, airports, seaports, new urban centers and tourist sites. In border areas, it is necessary to ensure information safety, smooth communication and signal coverage in all communes and border-guard stations. To use fiber-optic cables for all networks with modern technologies in the region. To use advanced transmission technologies for inter-provincial, intra-provincial and local transmission networks. To build loop networks in order to ensure information safety. To prioritize transmission lines along National Highway 49: Hue – A Luoi; national highways 14B and 14 D: Tien Sa port - Vietnam-Lao border area; national highway 14E from Thang Binh to Kham Duc; and Quang Ngai - Kon Tum. To exploit and use satellites in order to ensure communication with remote areas and islands. To develop peripheral networks in the direction of high quality and modernization. By 2010, all local networks in cities and towns will be completely placed underground.

To step by step build optical access networks, especially in economic zones, industrial parks and hi-tech parks.

To develop mobile communication by expanding signal coverage to all communes along national highways, provincial and district roads, and raising coverage quality. To strongly develop the provision of broadband Internet services. To boost the universalization of Internet services in all villages in the region, attaching importance to the development of Internet services in schools and providing broadband Internet services in commune cultural-postal points.

To develop the coastal communication system by intensifying connection with public telecommunications networks. To supply additional equipment to modernize coastal communication stations. To expand the seaward coverage of public land mobile networks. To build an exclusive communication network in service of marine management work.

To develop an equal and fair competitive market. To create conditions for telecommunications and Internet enterprises to cooperate with one another for mutual development. To create conditions for all economic sectors to invest in and provide telecommunications and Internet services, especially in the resale of services and provision of added value services.

2. Development of the information technology industry

To create an open and favorable investment environment for investors, especially transnational conglomerates, to invest in developing the hardware industry in industrial parks in the region and in industrial parks within economic zones of Chu Lai (Quang Nam province), Dung Quat (Quang Ngai province), Nhon Hoi (Binh Dinh province) and Chan May - Lang Co (Thua Thien - Hue province). To develop Da Nang city into a regional center of information technology industry. Major products of the region's hardware industry will be computers, telecommunications-electronic, household electronic and industrial electronic equipment, and electronic components and accessories. To step and step receive and master modem technologies, switching from assembly to manufacture of electronic and telecommunication equipment in service of the region's heavy industries such as shipbuilding, oil refinery and other industries. To develop subsidiary industries and expand the manufacture of electronic components and details for import substitution and export.

To put software industrial parks in Da Nang and Thua Thien -Hue into effective operation; to build a software industrial center of Quang Nam province in Chu Lai open economic zone and a software industrial center of Binh Dinh province in the hi-tech park within Nhon Hoi economic zone. To develop 2-3 strong enterprises engaged in software processing, digital information content and information technology services. To support the formation of enterprises providing digital information content for the development of other economic branches, especially tourism. To attach importance to the development of local human resources, with Da Nang, Hue and Quy Nhon cities becoming training centers at various degrees (training technical workers and human resources intermediate, collegial, graduate and postgraduate levels) up to regional and international standards in order to meet the development requirement information technology industry, especially software and content industry.

3. Development of information technology applications

a) Application of information technology in state management

To develop technical infrastructure for information technology, attaching importance to the project on building a local-area network of the Government. To continue building an information system for management work of provincial-level administrations; to upgrade and expand information systems from provincial-level professional agencies to districts. To step by step apply information technology in commune-level agencies. To concentrate efforts on directing the proper implementation of the following activities:

+ Completing the construction of an information system for direction, administration and management work from the Government to provincial/municipal People's Committees in the region;

+ Building the region's information systems and databases, especially databases on enterprises, natural resources and environment and statistics in service of state management and socio-economic development in the region on the basis of the national information system and integration with databases of ministries, branches and localities;

+ Building and perfecting financial, banking and customs information systems;

+ Applying information technology to personnel management, residence management and other public administrative services;

+ Boosting the application of information technology in activities of state agencies in Da Nang city and other provinces in the region.

To provide online public administrative services in provinces and cities which satisfy conditions on human resources and Internet user density. To concentrate efforts on directing the online performance of such jobs as receiving and settling complaints; conducting business registration; granting land use and house construction permits; making tax declaration and collecting tax; making customs declaration, registration and licensing; making registration of means of transport; and conducting bidding for procurement of public assets.

b) Application of information technology in production and business

To encourage and support enterprises to apply information technology. To boost the dissemination of information technology applications and e-commerce among various organizations, people and citizens. To facilitate the development of e-commerce and encourage online transactions.

c) Application of information technology in education, training and healthcare

To actively renovate teaching and learning methods on the basis of applying information technology. To promote distance education online. To supply more computers and install computer networks in schools. To step by step include informatics into intra-curricular programs of all degrees of general education. To intensity the application of information technology to education administration, step by step building an information system for education administration. To develop and universalize electronic management systems in hospitals in the region. To step by step build a system of medical and healthcare information and knowledge. To implement programs on coordination in medical treatment and distance healthcare among hospitals in a province and between provincial hospitals in the region and central hospitals.

d) Application of information technology in service of rural development

To build a program on raising public awareness about, and popularizing knowledge on, information technology. To step by step apply information technology in the provision of scientific and technological information for rural socio-economic development. To accelerate the use of geographic information systems (GIS) in the agricultural and forestry planning and the forest and land management. To further implement the program on informatics universalization and knowledge networking for rural youths so as to step by step introduce information technology to peasants and narrow the gap between rural and urban areas.

III. PRINCIPAL SOLUTIONS

1 Mechanisms and policies

a) Mechanisms and policies on telecommunications development - - Inter-sectional coordination

To promulgate inter-sectional regulations on coordinated planning and construction of infrastructure networks. Projects on building traffic works must be notified to all enterprises licensed to set up telecommunications networks. Telecommunications enterprises shall, based on their demands and capacity, elaborate projects on building telecommunications networks, clearly determining the construction schedule, land use needs and solutions related to traffic works, and send these projects to investors of traffic works six months before the commencement of the construction. Electricity authorities shall notify telecommunications enterprises of plans on building electricity transmission lines and fiber-optic cable systems on electricity transmission lines. Telecommunications enterprises shall take the initiative in negotiating with electricity authorities on the mechanisms for joint-investment in and joint-use of fiber-optic cable lines on electricity transmission lines.

- Coordination between branches and localities

When reviewing and elaborating master plans on socio-economic development, local administrations shall identify plannings on development of telecommunications networks as an integral part of these master plans. Provinces and cities shall notify telecommunications enterprises of plans on the construction of urban centers. Telecommunications enterprises shall formulate projects on building networks, clearly stating the schedule for coordination in the construction of work items and solutions related to traffic works, and send these projects to local administrations six months before the commencement of construction. Provinces shall create favorable conditions for enterprises that have projects on building information lines to or auxiliary works in industrial parks. To offer incentives related to land rents and service-providing rights to projects on building networks and service points in industrial parks and tourist sites. Telecommunications enterprises that provide local services shall take every opportunity to place local networks underground according to urban development and traffic renovation plans. If several enterprises have the same demand for construction of peripheral cable lines, they shall use a common infrastructure.

- Service resale and common use of telecommunications infrastructure

To encourage all economic sectors to participate in providing services in the form of agency or service access point. To encourage and impose no restriction on the resale of services by telecommunications enterprises in industrial parks, export-processing zones and hi-tech parks on the basis of hiring national and international long-distance channels. To encourage enterprises to take the initiative in elaborating plans on the common use of infrastructure after their investment projects and plans on network development are approved. The following forms of common use of infrastructure are encouraged: joint-investment in building switching systems, power sources, transmission equipment and capacity sharing according to investment proportion, lease of cables, cable fibers, antenna masts, cable culverts, tanks and pipes, long-term lease and transfer of the right to use telecommunications systems. To step by step apply a mechanism for separating local loop circuits. To study and develop a model of joint-stock company providing network infrastructure.

- Renovation of the organization and management of enterprises' production, business and operation.

To adopt policies to encourage enterprises to invest in infrastructure, expand networks and services to rural, deep-lying, remote and difficulty-stricken areas and execute projects on development of coastal information networks. To effectively use the public-utility telecommunications service fund for exceptional difficulty-stricken areas. To formulate particular mechanisms and policies for the key economic region, including mechanisms on bidding for procurement of devices for network infrastructure development, policies for charges and charges for service connection between regional operators and incentive policies for investment in infrastructure development; to step by step abolish inter-provincial fixed telephone charges and apply reasonable service charges for the whole region.

- Assurance of information safety and security

To elaborate and perfect regulations on assurance of information safety and security in telecommunications networks and the Internet. To build, perfect and improve the capacity of a system for responding to and overcoming computer incidents and fighting computer crimes. To apply crytographical technologies and solutions in order to increase the reliability and safety of transactions on telecommunications networks and the Internet.

b) Mechanisms and policies on development of the information technology industry

To create an open and favorable investment environment for foreign investors, especially transnational conglomerates that invest in the information technology industry in industrial parks in the region. To create an association between industrial parks, export-processing zones, enterprises and research institutes and universities in the central key economic region so as to contributing to imbuing products with higher intellectual content.

c) Mechanisms and policies on development of information technology applications

To encourage all economic sectors to invest in the development of information technology applications, encouraging the expansion of successful models of information technology application. To organize public bidding for information technology and procurement projects of state agencies. To soon promulgate information technology quotas.

d) Policies and mechanisms on human resource development

To study and formulate mechanisms and policies to encourage all economic sectors to invest in the development of information technology human resources, outsourcing policies for information technology application projects of provinces and cities, policies to attract skilled information technology Vietnamese currently working abroad; incentive policies for outstanding managerial, economic and technical experts; incentive policies to promote the capacity of local information technology staff, policies to attract local people who are currently studying, researching and working in schools, research institutes and production establishments in the North and the South to return to work in the region.

2. Capital mobilization

To further attract investment capital sources for development of telecommunications and information technology in the central key economic region. To mobilize and optimize the use of domestic capital sources for investment in telecommunications development. To attach importance to the sources of capital mobilized through the equitization of enterprises and resale of services. To use ODA capital to support the development of telecommunications in rural, mountainous, deep-lying and remote areas as well as the development of public-utility services. To effectively use the public-utility telecommunications service fund. To formulate and implement a program on calling for investment from world leading information technology companies. To introduce incentives policies for investment projects of high intellectual content and using high-quality local human resources and projects involving plans on transfer of technology to the Vietnamese party. To attach importance to the attraction of foreign capital from overseas Vietnamese for development of software industry.

To concentrate state capital on key information technology projects which are of high intellectual content and high added value. To mobilize different capital sources for the application of information technology, especially e-government-related projects. To allocate funds for the execution of key projects and the building of infrastructure for information technology application. (Key projects on development of telecommunications and information technology in the central key economic region are listed in Appendix 2).

3. Human resource development

To increase the training of high-quality human resources for the development of telecommunications and information technology. To conduct propaganda in order to improve the awareness about and understanding and capacity of information technology applications among cadres, civil servants, employees, citizens and enterprises. To boost education socialization, attracting investment capital for information technology training. To step up the training of chief information officers in state agencies. To accelerate informatics teaching and learning in upper and lower secondary schools.

4. Science and technology development

To boost the socialization of scientific and technological activities. To improve operation efficiency of science and technology organizations, combining science and technology development with production and business efficiency on the basis of improving the sense of autonomy and accountability of science and technology organizations. To effectively use venture investment funds in the domain of science and technology in order to finance the realization of business ideas, development of new products and production projects which have great potential but involve risks and R-D projects in telecommunications and information technology.

To design a mechanism for coordination between universities and research institutions as well as enterprises in the execution of telecommunications and information technology research schemes, facilitating enterprises in researching and developing new products. To encourage scientific and technological cooperation in various forms with foreign organizations and companies in transferring advanced management and production technologies in telecommunications and information technology.

Article 2. Organization of implementation

1. The Ministry of Post and Telematics shall assume the prime responsibility for, and coordinate with concerned ministries, branches and provincial/municipal People's Committees in, directing enterprises to develop their telecommunications network infrastructure in accordance with other branches' plannings, especially plannings on traffic, urban centers, industrial parks and water drainage systems; coordinate with concerned ministries and branches in elaborating and proposing policies to boost the development of telecommunications network infrastructure and information technology industry and encourage the application of information technology in the central key economic region; inspect the implementation of the Planning and periodically sum up and report the implementation results to the Prime Minister.

2. People's Committees of provinces and centrally run cities in the central key economic region shall elaborate (or adjust and supplement) plannings on development of telecommunications and information technology in their respective localities according to the orientations set in this Planning; and include the realization of this Planning in their annual and five-year plans.

3. Enterprises operating in the telecommunications and information technology domain shall base themselves on this Planning to elaborate their business strategies and plans in conformity with the orientations on telecommunications and information technology development in the central key economic region and the schedule on implementing the Planning in their respective localities.

Article 3.

This Decision takes effect 15 days after its publication in CONG BAO.

Article 4.

Ministers, heads of ministerial-level agencies and government-attached agencies, presidents of provincial/municipal People's Committees, and concerned units shall implement this Decision.

APPENDIX I

TELECOMMUNICATIONS DEVELOPMENT TARGETS UP TO 2010 OF PROVINCES AND CENTRALLY RUN CITIES IN THE CENTRAL KEY ECONOMIC REGION
(Issued together with the Post and Telematics Minister’s Decision No. 13/2007/QD-BBCVT dated June 15, 2007)

APPENDIX II

LIST OF KEY PROJECTS ON DEVELOPMENT OF TELECOMMUNICATIONS AND INFORMATION TECHNOLOGY IN THE CENTRAL KEY ECONOMIC REGION
(Issued together with the Post and Telematics Minister’s Decision No. 13/2007/QD-BBCVT dated June 15, 2007)