Vietnam - PPP answer to stalled IT projects

Industry insiders are weighing over promoting public-private partnership investment in information technology field.

A project on building a national database on population management was given to the Ministry of Public Security (MPS) in 2007 by the government. However, four years later the project is still on the drawing board.

Another MPS project promoting electronic identity card usage is in a similar situation.

The delay, according to MPS’s Information Technology Department chief Nguyen Viet The, was due to the lack of specific capital scheme, unified information standards and loosened cooperation between relevant bodies.

However, information technology (IT) executives claim the public private partnership (PPP) investment model is the answer.

According to Quang Trung Software City Company Limited chairman Chu Tien Dung, delays could not be resolved if IT managers were busy with things like drafting investment projects and seeking funds.

“It will be easier with a new get tough approach in handing projects with IT applications. Accordingly, the state would order firms to execute contracts and later pay them for the services it procures,” said Dung.

FPT director Truong Dinh Anh said state difficulties in handing IT projects involving with electronic public services provision could be settled via PPP model. Anh said his firm would be eager to hook into one such project to help kick into gear a fresh business model in the IT field.

According to an IT firm executive, PPP model could save 50-80 per cent of operating costs compared to traditional investment models.

For example, in light of IT master plan to turn Vietnam into a strong ICT nation, by 2015 80 per cent of government bodies and businesses will use IT progress in the provision and management of public administrative services.

If using traditional methods, each administrative unit will need to spend around $2,500 on hardware items, another $2,500 on software, $500 on operating costs and $250 on software upgrade and associated support services each year.

Meanwhile, through joining hands with firms to secure these targets based on cloud computing technology, the state will have no need to spend on hardware and software and lower expenses on operating costs and software upgrade. It is only required to pay a single usage fee of around $10 per month per person based on actual number of people using the service.

Duc Huy | vir.com.vn

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