The information technology (IT) and telecoms sector has emerged as a bright spot amid the COVID-19 pandemic as companies have quickly optimised opportunities to move ahead and develop sustainably.

The information technology (IT) and telecoms sector has emerged as a bright spot amid the COVID-19 pandemic

According to the BIDV Securities Company (BSC), the pandemic has sped up digital transformation and investment in technologies at many businesses, while facilitating the sustainable development of tech enterprises that have pioneered providing solutions, platforms, services, and products for digital transformation.

The rising move towards digital transformation is expected to help such firms as FPT and CMC benefit from software exports.

FPT’s growth remained in the double digits last year despite the pandemic, with turnover at 29.83 trillion VND (1.29 billion USD) and pre-tax profit 5.26 trillion VND, increases of 7.6 percent and 12.8 percent, respectively. Net profit rose 13.1 percent to 4.22 trillion VND.

Of note, digital transformation contributed 3.21 trillion VND to turnover, up 31 percent against 2019.

In the tech sphere in particular, its turnover was some 13.9 trillion VND, up 23 percent year-on-year. Customer numbers also grew nearly 19 percent, while the number of projects worth millions of US dollars rose nearly 29 percent.

BSC said it hopes domestic enterprises with “Made in Viet Nam” products will be prioritised in the Government’s digital transformation project.

Tech bidding packages, it said, are expected to be stepped up this year thanks to public and annual investments in technologies.

Packages for 11 road routes will total 4 trillion VND, focusing on services such as smart transport, administration, management, and automated toll collection.

Fixed broadband and 5G services will also drive growth among businesses operating in the telecoms sector.

The Ministry of Information and Communications said the sector earned more than 130 trillion VND last year, up 0.3 percent against 2019.

Between 2016 and 2020, fixed broadband rose 15 percent each year while mobile broadband grew 22 percent.

As of January, Viet Nam had more than 1 million km of cable spanning all villages, communes, and wards. Mobile phone services covered 99.81 percent of the national population, while 98 percent of the population had access to 3G and 4G services.

According to BSC, major telecoms providers like Viettel, Vinaphone, and MobiFone will expand 5G services nationwide after partially launching services in Ha Noi and Ho Chi Minh City.

To promote 5G development, the ministry has proposed the Government issue a decree on radio frequency fee collections and the auction and transfer of the right to use radio frequencies.

The deployment of 5G service is hoped to accelerate the building of e-government while serving as a prerequisite for promoting telecoms infrastructure and helping businesses with digital transformation, BSC said.

Telecom firms posted strong growth last year despite COVID-19.

Specifically, Viettel’s total turnover exceeded 264 trillion VND, a year-on-year increase of 4.4 percent and representing 102.4 percent of the annual target.

Pre-tax profit was 39.8 trillion VND, up 4.1 percent and 103.9 percent of the annual target.

The group posted growth of 6.4 percent in the telecom sector; nearly double the global average.

Its overseas investment also rose 24.4 percent, or six times higher than the global average, earning it nearly 42 trillion VND.

The Viet Nam Post and Telecommunications Group (VNPT) also recorded positive growth, with total turnover hitting 162.7 trillion VND.

Source: VNA