Da Nang's information and communications industry sets a target for a 8.9% increase in revenue in 2024 compared to the previous year, of which software export will be the key product to promote the development of the information technology industry. Therefore, the city-based software firms are making efforts to remove difficulties and obstacles to achieve the aforementioned goal.

Software design activities at the FPT Central Co., Ltd. in Da Nang. Photo: CHIEN THANG

The Da Nang branch of the Kaopiz Software JSC boasts an ecosystem of products and programmes such as Kgo app, apps integrating useful features for car drivers, healthcare development, and automation.

Mr. Nguyen Trong Giap, Director of the Kaopiz Software JSC, said that like other IT firms, his company has been facing difficulties as seeing a significant decline in the number of software-related orders and projects from such main export markets as the US, Europe, and Japan since 2023.

Mr. Nguyen Trong Tin, General Director of the OneMore Communications & Technology JSC, said that his business has difficulty in recruiting human resources as qualified and skilled IT engineers with international work experience are not interested in a monthly salary of about VND20 million.

Meanwhile, new graduates do not have enough skills and experience in producing, upgrading, and maintaining software that meets international criteria.

Currently, the city has a number of areas with concentrated software businesses such as the Da Nang Concentrated IT Park and Software Park No. 1. However, the Da Nang Concentrated IT Park is located far from the city center, whilst the occupancy rate of the Software Park No. 1 reached 99% in 2023.

To meet development needs, many opinions say that the city needs to remove obstacles so that software technology businesses can soon participate in the common ecosystem.

The building of a centralised, interconnected space for software enterprises is a practical solution to promote the city's socio-economic development. If businesses can participate in the centralised and interconnected space, they will improve operational efficiency, competitiveness and promote innovation.

Through many meetings with businesses in the city, the municipal Department of Information and Communications has received many opinions on expanding the software development space as well as related policies to support digital transformation and develop creative space at the Software Park No. 2 which is expected to create jobs for about 6,000 people.

However, the Software Park No. 2 project cannot be put into operation due to procedural problems.

On February 1, 2024, the National Government issued Decree No. 09/2024/ND-CP to amend and supplement a number of articles of Decree No. 144/2016/ND-CP dated November 1, 2016 regulating a number of specific mechanisms on investment, finance, budget and management decentralisation for Da Nang.

In particular, the latest decree clearly defines the mechanism and characteristics in determining assets formed after investment as information infrastructure assets, and detailed regulations on management, use and exploitation of information infrastructure assets invested and managed by the State.

This opens up opportunities for domestic and foreign software technology businesses in the city to participate in a new, modern and convenient centralised ecosystem.

At the same time, software enterprises need to have specific solutions and strategies to overcome challenges and seize opportunities to promote their development. Included are improving product and service quality; investing in research and development; increasing exports and developing domestic market; cooperating with other businesses, universities, and research institutes to develop human resources and share experiences; and applying advanced management models to improve operational efficiency.

Director of the municipal Department of Information and Communications Nguyen Quang Thanh announced that the city has completed the technical facilities, supporting startups and developing the IT industry.

With the great efforts of businesses and the support of the Government, Da Nang's software industry can continue to grow strongly in 2024 and the following years, thereby contributing to boost the local socio-economic development.

Reporting by CHIEN THANG - Translating by M.DUNG