Identified as one of Da Nang’s economic spearheads, the information technology (IT) industry has achieved many outstanding results over recent years. In particular, digital transformation is increasingly developing, significantly contributing to realising the city's socio-economic goals.

The field of IT always keeps the momentum of development and growth. Programmers are seen at the Unihack 2023 competition. Photo: M.Q

Stable growth secured

The information and communication industry has continuously grown steadily over the years. Specifically, in the 2021 - 2023 period, the total revenue of this highly lucrative industry is estimated at over VND 48,155 billion, up 6.36% year-on-year. Outstandingly, software export turnover is projected at US$ 376.5 million, up 16.5% year-on-year.

In 2022, the scale of added value of the whole industry at current prices reached VND 9,079 billion, a rise of nearly VND 859.7 billion as compared to 2021, accounting for 7.2% of the GRDP structure of the entire economic sector.

So as to get the above-mentioned results, besides the efforts exerted by information and communication enterprises, the city has issued many guidelines and policies to encourage the development of the IT industry.

Focus was placed on fostering the quality of human resources, creating a favourable environment for investors, paying attention to investing in developing information and communication technology (ICT) infrastructure and promoting digital transformation so that the IT industry acted as a solid spearhead.

With regard to infrastructure, the city currently has three concentrated IT parks that have been recognised by the Prime Minister. Besides, Phase 1 of the Da Nang Software Park No. 2 is currently under construction and there are three IT parks being implemented at the stage of investment policy, namely the Creative Space project in Hoa Xuan Ward, Cam Le District, Da Nang Bay IT Park project in Lien Chieu District and Viettel Da Nang building in Hai Chau District.

The city also houses a shore fiber optic cable station in Hoa Hai Ward, Ngu Hanh Son District, which is an important international transmission station of the national telecommunications network.

The city’s MAN (Metropolitan area network) has a total length of over 450km underground fiber optic cable, connecting to 175 State agencies, administrative units and public non-business units, connecting to Da Nang IT Park and the Hi-tech Park.

Also, the city has completed 3G, 4G, and fixed broadband Internet coverage in 100% of the total residential areas, developed 5G network coverage in the city centre and concentrated IT parks. Fiber optic transmission infrastructure ensures to provide 100% of high-speed bandwidth needs for IT businesses.

In order to develop high-quality IT human resources, the Da Nang government has issued plans on human resource development for digital transformation by 2025 in various groups of subjects: State agencies, technology businesses and those using digital technology; educational and training establishments and the social community.

As of June 2023, the city had housed 2.3 digital technology enterprises per 1,000 inhabitants, nationally ranking second, after the southern metropolis of Ho Chi Minh City, more than three times the national average rate of 0.7 digital industrial enterprises /1,000 people in the country.

The city's total IT workforce is about 47,500 people, accounting for 7.7% of the total local workforce. The city will continue to attract digital technology experts, high-quality IT human resources, large technology corporations and enterprises, and supplement training content on digital transformation into training programmes at graduate, undergraduate and vocational training levels so as to increase the quality of digital human resources.

Employees work at the FPT Da Nang Software Company Limited. Photo: M.Q

Digital transformation mark

The digital transformation process has achieved some initial results on three pillars: digital government - digital economy - digital society, contributing significantly to the process of the city’s recovery and socio-economic development. As for digital government, the city exceeded its online public service targets and began using digital data in directing, operating and providing public services in the direction of digital services.

Da Nang's digital economy in 2022 accounts for 19.67% of the city's GRDP in comparison with the national target of 16% in which the IT industry recorded a high annual growth rate whilst the national average was over 20% year-on-year.

Regarding digital society, many of Da Nang's results have exceeded the national target on digital transformation by 2023 such as 95% of mobile phone subscribers using smartphones (national target of 80%); 99% of households having broadband fiber optic internet (national target 85%); the number of active transaction accounts at banks or other authorized organisations of people aged 15 and above in the city being more than 3.55 million.

From the above-mentioned highly-encouraging results, the National Committee on Digital Transformation has praised Da Nang for having created a fundamental change in public awareness with the application of the "3 needs" action motto.

Firstly, there was the exemplary behaviour and involvement taken by the entire political system, the highest determination of the municipal administration, agencies, the pioneering role of each cadre, civil servant, public employee, Youth Union member, and community digital technology group. Secondly, it was necessary to develop a comprehensive strategy and communication plans on digital transformation for consistent implementation throughout the city. Thirdly, publicity on digital transformation on approachable media.

Mr. Tran Ngoc Thach, the Deputy Director of the Da Nang Department of Information and Communications, said that to develop the IT industry and digital transformation, the municipal administration has released plans  to implement projects such as Promoting digital transformation in Da Nang to 2025, with a vision towards 2030, Smart City project in the 2022 - 2025 period, with a vision towards 2030, Digital Transformation Communications project in Da Nang for the 2022 - 2025 period, and most recently, Developing the IT Industry project until 2030.

Accordingly, some main solutions can be mentioned such as enhancing public awareness, developing infrastructure, human resources, and IT applications; attracting more investment and external resources, beefing up cooperation in product development, trade promotion and scientific research, thereby perfecting mechanisms and policies for IT development and digital transformation, a solid step to affirm the solid spearhead of the IT industry.

Da Nang's IT and digital transformation awards For 12 consecutive years (2009-2021), Da Nang secured its top position in the Viet Nam ICT Index, the rankings on the readiness for information and communications technology (ICT) development and applications. For three consecutive years (2020-2022), the city ranked first among provinces and cities in the Provincial Digital Transformation Index (DTI) and won the Viet Nam Smart City Award. For two consecutive years (2022-2023), it was honoured as a typical locality implementing the 4.0 industrial revolution and digital transformation at ‘Top Industry 4.0 Viet Nam - I4.0 Awards.

Reporting by MAI QUE - Translating by A.THU