DECISION

APPROVING THE PLANNING ON DEVELOPMENT OF INFORMATION AND COMMUNICATIONTECHNOLOGYINTHE SOUTHERN KEY ECONOMIC REGION UP TO 2010, AND ORIENTATIONS TOWARDS 2020

THE MINISTER OF POST AND TELEMATICS

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

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

Pursuant to the Government's Decree No. 90/2002/ND-CP of 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 of 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 of May 22, 2007, on the approval ofplannings 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 southern 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 southern key economic region into a major economic, financial and commercial center of the country and the Southeast Asia and a bridge for efficient economic integration and cooperation with regional countries. To step up telecommunications and information technology development in Ho Chi Minh City as the pervasive core of development in the whole southern key economic region and as a motive force for accelerating and supporting the development of the southern 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 safety and inter-regional and national interconnection, properly serve industrial parks, export-processing zones 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 as a premise for the development of other industries.

To make shortcuts to modern technologies, promoting labor advantages and accelerating international cooperation so as to utilize capital sources and new technologies. Foreign investment plays a primary role in the development of the information technology industry, especially the hardware industry.

d/ To widely apply information technology in economic, social, cultural, security and defense domains, 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 oflocal 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 modem telecommunications network infrastructure of large capacity, high speed and high reliability. To develop Ho Chi Minh City into an international high-quality telecommunications service center. To develop telecommunications in service of marine economic development, oil and gas industry, offshore fishing, shipping activities and salvage safety management. To maintain a growth rate of between 20-30%, higher than the national average. To speed up the expansion ofmobile signal coverage in rural areas. By 2010, to deploy telephone and Internet services in villages. By 2010, the number of telephone sets per 100 inhabitants will be 70-76 (22-24 fixed telephone sets and 48-52 cell phones); 45-50% ofthe population will use Internet. All rural districts and most communes will be provided with broadband Internet services (the telecommunications development targets of provinces and centrally run cities in the southern 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 ofconverging 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 oftelecommunications services will be equal to that of developed countries. The percentage of telecommunications service use in rural areas will be equal to that of urban areas.

b/ Development of the information technology industry

- Objectives up to 2010

To develop the information technology industry into a spearhead economic branch of the region, developing sustainably and stably at a high rate with an export-led objective. To concentrate efforts on developing the information technology industry in Ho Chi Minh City for the city to become an information technology center in the Southeast Asia. The information technology industry will record an average annual growth rate of 23-24%. By 2010, the total production value of the information technology industry will be about USD 3.4-3.7 billion, accounting for about 10% 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 major economic branch, serving as a foundation for the common development and 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 20% of the total industrial production value of the whole region. The southern key economic region will become a center for production of electronic accessories and software.

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 with the 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 ofdeclaration, registration and licensing services may be provided online.

To intensify the application of information technology in enterprises. In Ho Chi Minh City and Binh Duong and Dong Nai provinces, 60% of enterprises 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:

By 2015, to complete the construction of large information infrastructure works in order to connect the southern key economic region with neighboring areas, especially the Mekong River delta, the southern Central Coast and the Central Highlands. To ensure information safety and security for the' application and development of information and communication technology. To widely apply information and 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 Ho Chi Minh City, cities, towns, industrial parks, hi-tech parks, technical service centers, Tan Son Nhat airport, ports, satellite towns surrounding big cities and new urban centers.

To build transmission networks in preparation for the development of industrial parks, hi-tech parks, technical service centers, airports, ports, new urban centers and tourist sites. To raise transmission capacity to meet the increasing needs of broadband services. To facilitate the construction of undersea fiber-optic cable networks. To usefiber-opticcables 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 expressways: Ho Chi Minh City - Long Thanh - Dau Giay - Da Lat; Ho Chi Minh City - Long Thanh - Vung Tau; Ho Chi Minh City - Can Tho; Ben Luc - Nhon Trach - Long Thanh; national highway 22: Ho Chi Minh City - Moc Bai; national highway 50: Ho Chi Minh City - Go Cong - My Tho; national highways N l and N2: Chon Thanh - Trang Bang - Moc Hoa - Cao Lanh. To exploit and use VINASAT satellites in order to ensure communication with remote areas and islands. To develop peripheral networks toward high quality and modernity. By 2010, all local networks in cities and towns will be placed underground.

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

To develop and modernize the coastal communication system. To supply additional equipment to modernize coastal communication stations, including two coastal communication stations in Ho Chi Minh City and Vung Tau. To expand the seaward coverage ofpublic 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 ofadded value services.

2. Development of the information technology industry

To develop the southern key economic region into a center for hardware industry in the Southeast Asia with such products as computers, industrial electronic, telecommunications-electronic, and household electronic equipment, audio-video equipment, electronic components, accessories, circuit boards, chips and materials. To switch from assembly to designing and manufacture of some products of Vietnamese brands (computers, industrial electronic and telecommunications electronic equipment and audio-video equipment). To carry out product restructuring along the line of raising the proportion of products of high technological content and added value. To strive to increase the proportion of special-use electronic products to 50% of the total number of electronic products, diversify products and boost export. To develop subsidiary industries and the manufacture of electronic components and materials.

To concentrate efforts on developing the manufacture of products of high technological and intellectual content, requiring less labor (manufacture of semi-conducting materials and electronic chips) in Ho Chi Minh City and other big urban centers like Bien Hoa and Vung Tau. To develop 3-5 strong hi-tech enterprises in the Southeast Asia. To develop industrial parks specialized in hardware and electronic products in Dong Nai and Binh Duong provinces. To attract investment for hardware industry development in industrial parks in Ho Chi Minh City, Binh Duong, Dong Nai and Ba Ria - Vung Tau provinces. On the basis of land and workforce advantages, to facilitate and call for investment in the construction of large and well-equipped plants for assembly and manufacture of complete hardware and electronic products in Binh Phuoc - Tay Ninh - Long An and Tien Giang provinces in the post-2010 period.

To prioritize the development of the software industry and content industry on the basis ofmaking use of human resource advantages and cooperative relations between Ho Chi Minh City, cities and provinces in the region and overseas Vietnamese. To develop the southern key economic region, with Ho Chi Minh City playing the core role, into a center for the manufacture of software and provision of information technology services in the Southeast Asia. To attract investment in the development of software industry in Quang Trung software park, Ho Chi Minh City hi-tech parks, Saigon software park and other hi-tech parks. To accelerate investment in the construction of infrastructure in order to call for projects on software manufacture for export. To enhance the training of high-quality human resources in the information technology field in order to satisfy development requirements of the information technology industry in general and software industry and content industry in particular. To study and build an information technology science and technology transfer center and a center for training high-quality human resources for the whole region.

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 provincial-level administrations' management work; 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 ofan 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 population, 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 perfectingfinancial,banking and customs information systems;

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

+ Applying information technology to the management ofurban construction planning, striving to build a unified database on plannings and implementation of plannings;

+ Intensifying the application of information technology in activities of state agencies in Ho Chi Minh City and other localities 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; registering means of transport; and 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, facilitate the development of e- commerce and encourage e-transactions. To support the formation of standard models on information technology application in production and business activities and on the development of e-commerce and e-transactions in Ho Chi Minh City, draw experiences for wide application to enterprises in the region and the whole country. To set up enterprises specializing in providing consultancy on and realizing information technology application ideas and solutions.

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 distant education online. To supply more computers and install computer networks in schools. To step by step include informatics into the formal curricula of general education levels. To intensify 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 distant healthcare among hospitals in the provinces and between 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 agricultural and forestry planning and 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 farmers and narrow the gap between rural and urban areas.

III. MAJOR SOLUTIONS

1. Mechanisms and policies

a/ Mechanisms and policies on telecommuni cations 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. Telecommuni cations enterprises shall, based on their demands and capacity, formulate projects on building telecommunications networks (fiber-optic or copper- core cables), 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 cables along electricity transmission lines. Telecommunications enterprises shall take the initiative in negotiating with electricity authorities on the mechanisms for joint investment in andjoint use offiber-opticcables along electricity transmission lines.

- Coordination between branches and localities

Local administrations shall notify telecommuni cations enterprises ofplans on 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 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 linking 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. If several enterprises have the same demand for construction ofperipheral 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 ofagency 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 ofhiring 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. To step by step apply a mechanism for separating local loop circuits. To study and develop a model ofjoint-stock company providing network infrastructure.

- Renovation of the organization and management ofenterprises' 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. 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 on service 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 telecommuni cations networks and the Internet. To build, perfect and improve the capacity of a system for responding to and overcoming computer problems and fighting computer crimes. To apply encoding 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 a link between industrial parks, export-processing zones, enterprises and research institutes and universities in the region so as to contributing to imbuing products with a 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, especially e-commerce. To encourage the expansion of successful models of information technology application. To support and encourage enterprises to apply software systems to business, resources management. To organize public bidding for information technology and procurement projects of state agencies. To soon promulgate information technology criteria.

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 localities; policies to attract skilled Vietnamese currently working in the information technology field abroad; and incentive policies for outstanding managerial, economic and technical experts so as to meet the requirements of international integration and competition and attract quality laborers for telecommunications and information technology development.

2. Capital mobilization

To further attract investment capital sources for the development of telecommunications and information technology in the southern 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 ofpublic services. To effectively use the public telecommunications service fund. To formulate and implement a program on calling for investment from world leading information technology enterprises. To introduce incentive 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-govemment- related projects. To ensure 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 southern 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 telecommuni cations and information technology. To rearrange the information technology industry's workforce by gradually relocating establishments turning out products of low added value and using a large number of laborers to industrial parks of provinces where land rents and labor costs are lower. To conduct propaganda in order to improve the awareness about and understanding and use 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 ofchief information officers in state agencies. To accelerate informatics teaching and learning in upper and lower secondary schools.

4. Science and technology development

To concentrate efforts on R-D activities and transfer ofnew technology. To boost the socialization of scientific and technological activities. To improve the operation efficiency of science and technology organizations. To effectively use venture investment funds in the domain of science and technology. To design a mechanism for coordination between universities or research institutions and enterprises in the execution of telecommunications and information technology research schemes.

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 supply and 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 southern key economic region; inspect the implementation ofthe 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 southern 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 incorporate contents ofthis Planning into their annual and five-year plans.

3. Telecommunications and information technology enterprises 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 southern key economic region and the schedules on implementation ofthe Planning in the localities and other branches.

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 1

TELECOMMUNICATIONS DEVELOPMENT TARGETS UP TO 2010 OF PROVINCES AND CENTRALLY RUN CITIES IN THE SOUTHERN KEY ECONOMIC REGION
(Issued together with the Post and Telematics Minister's Decision No. 14/2007/QD-BBCVT of June 15, 2007)

APPENDIX 2

LIST OF KEY PROJECTS ON DEVELOPMENT OF TELECOMMUNICATIONS AND INFORMATION TECHNOLOGY IN THE SOUTHERN KEY ECONOMIC REGION
(Issued together with the Post and Telematics Minister's Decision No. 14/2007/QD-BBCVT of June 15, 2007)