~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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Vietnam's software makers welcome Clinton's visit

HANOI - A son-in-law of communist Vietnam's most famous general sees U.S. President Bill Clinton as an ally in a battle to put his country on the global IT map. Truong Gia Binh, son-in-law of America's Vietnam War nemesis Vo Nguyen Giap, said Clinton's historic three-day visit to Vietnam from Thursday would be a big event for his software and Internet firm.

Binh and a group of other Russian-trained scientific pros had launched the Corporation for Financing and Promoting Technology (FPT) in 1988. Twelve years later, FPT says it is Vietnam's biggest software firm. Binh said FPT has a 30 percent share of a fledgling Internet market and has become a software exporter with revenues projected at $50 million this year and profits of about five percent of that. "It is a very big event for us," Binh said at the weekend of Clinton's visit. "People know about Vietnam for agriculture, rice, and coffee, but I don't think they are aware of Vietnam's software development. This is an excellent opportunity. "The U.S. is a superpower in technology and economy and should contribute a lot to the growth of Vietnam and Vietnam also could be a very good partner in the new economy and with U.S. business."

Binh said he would be meeting U.S. business delegations travelling to Vietnam at the same time as Clinton to discuss cooperation. And he said FPT would sign an e-commerce deal with MeetChina.com, a U.S.-based online sourcing firm, this week. FPT's marketing director Le Hong Son said FPT's software export contracts were currently worth $1.4 million. Binh said FPT and the software export industry in Vietnam in general were looking for rapid expansion. "The target is $500 million from the software industry by 2005. I think that's quite a good speed. Now it's still very small," said Binh. Binh said Vietnam was lagging about five years behind its regional software competitors such as India and the Philippines, but could catch up fast given its 20 percent comparative advantage in wages and highly educated workers. "With the new economy, there are no borders," he said.

Binh said FPT had 29,000 Internet subscribers, a 30 percent share of a Vietnamese market that was doubling annually. He said that while technically government-owned, FPT had no obligations to the state beyond its tax bill. Later in the year, or in the first quarter of next year, it planned to "equitize" by making its nearly 1,000 employees shareholders. It was also considering a stock market listing in two or three years. Binh was not comfortable discussing implications of Vietnam's current strict controls on information, including Internet censorship, which analysts have highlighted as obstacles to its ambitions.

"I think the situation will change, but not so fast," he said. "It is one of the top factors for development in the information age, but still Vietnam has to be concerned about cultural issues." Binh said he believed the global IT explosion had helped prompt a revival of Vietnam's reform process this year, including a landmark trade pact with the United States. "I think the government has certain concerns and the government is also interested in using the Internet as a tool for development. It will think how that should be done," he said.

Binh said General Giap, famed victor over the French at Dien Bien Phu in 1954 and commander of communist forces during the Vietnam War, was an IT enthusiast.

By David Brunnstrom - Reuters - November 13, 2000.