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              Home Technology Computer Science

              Vietnam’s content industry takes its first steps in finding a direction

              by Sci
              June 21, 2006
              in Computer Science
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              Although not yet fully defined, much of the content in this industry has established its position in reality. However, choosing online gaming, online health care, or online education as development orientations remains a contentious issue.

              The digital content industry is a very new concept, and globally, there is no unified definition. Each country has a different understanding of this field. At a recent seminar organized by the Ministry of Information and Communications in Hanoi on this subject, South Korean expert Leo Hwa Chiang provided a simple definition: content combined with digital technology.

              In Vietnam, a draft law on information technology previously introduced the concept of the digital content industry but did not specify which fields it encompasses. However, the Ministry of Information and Communications asserts that this industry involves the design, production, publication, storage, distribution, and release of digital content products and related services. It includes many areas such as information retrieval, digital data, digital entertainment, online educational content, e-learning, digital libraries and museums, content development for broadband networks, and 3G mobile networks….

              congnghe
              Photo: assethouse.com

              The digital content industry does not include the provision of public services or free information pages. Most countries limit the definition of the digital content industry to those fields in which they have strengths or significant potential for development, affirmed Mr. Nguyen Trong Duong from the Ministry of Information and Communications.

              South Korea has emerged as a “Hollywood of the gaming world.” Therefore, it is no surprise that when asked about digital information content, the people of this country think of online games and mobile entertainment forms. The government also considers this one of the top priorities in developing the modern electronics industry.

              According to Mr. Leo Hwa Chiang, entertainment can be understood as digital content or both complementing each other. “Online games generate $2 billion in revenue for South Korea each year. Vietnam has favorable conditions in terms of infrastructure, human resources, and government support to develop this industry,” said Mr. Leo Hwa Chiang.

              The expert from South Korea also suggested training and skill development for online game developers by opening a gaming academy with two-year or shorter courses.

              However, for the Secretary-General of the Ho Chi Minh City Computer Association (HCA), Tran Lac Hong, this is not a good initiative. He believes that to develop the content industry, it must first be placed in the broader context of developing the software industry and also consider other factors such as experience and environment. “Vietnam should not rush to implement overly urgent measures without considering the overall context of the domestic software industry, which is currently very weak,” analyzed the HCA Secretary-General. “We should not be mesmerized by the results of another country’s achievements in a specific field. In my view, Vietnam needs to find a ‘clean’ industry so that the profits generated can compensate for lost value and correct mistakes made during development and investment.”

              Meanwhile, representatives from the American telecommunications group Motorola asserted that developing the content industry should prioritize issues related to online healthcare and education. They cited India and China as having been very successful in these fields. “We believe that with a good education system, a lot can be achieved. Online courses have the potential to expand access. Each day when people come home from work, they can go online to self-educate,” a Motorola expert expressed. “The issue is that Vietnamese people do not yet have the opportunity to self-learn and self-educate within their available time. Regarding healthcare, the Internet can help us connect to different regions.”

              Motorola’s viewpoints were supported by Ms. Le Ngoc Mo, Deputy Director of the Telecommunications Department at the Ministry of Information and Communications. “I appreciate Motorola’s recommendations, even though some may not be very practical. However, we cannot compare ourselves to South Korea or Singapore. We must identify our current position. Just like children at different ages need different types of milk or food, if we feed them too rich a diet while they are still young, they will not grow properly,” said the Ministry representative.

              From a marketing perspective, the content industry is an intersection of three groups: IT (Information Technology), Telecommunications, and input material production sectors like culture, design, and education. Mr. Nguyen Thanh Luu, a representative from a consulting company in Hanoi, expressed: “In terms of IT, Telecommunications, and broadband, Vietnam can easily address these issues. However, the education sector is currently weak, so it cannot develop a good e-learning system or export it. I believe we should focus strongly on the input production sector for the content industry.”

              Mr. Pham Hong Quan, Deputy Chief of the National Steering Committee for Information Technology, also agreed: “The Ministry of Science and Environment should be the midwife for this industry. The Ministry of Information and Communications needs to establish training centers and offer short-term courses on telecommunications and various other topics like CIO….”

              A representative from IDG Venture Capital stated that the digital content market in Vietnam will be very promising. This company may invest $100 million and expects its value to increase about 50 times. “We are interested in e-learning and e-health, but the government should also take measures to increase broadband and improve the policy structure to ensure that businesses in this sector can thrive,” this individual stated.

              From the perspective of an ISP that also offers online gaming services, Deputy Director of VDC, Nghiem Xuan Tinh, believes that the government should provide direction but not just set up a framework and leave it there for the sake of achievements. Mr. Tinh expressed hope that outlining a direction must have concrete effects. For instance, how will investment and deregulation look, and how much will taxes be reduced?….

              Foreign experts also agree that for the digital content industry in Vietnam, the focus should be on investing in training to develop a skilled workforce while also finding motivation for those involved in the industry, thus concentrating resources on specific fields.

              Globally, the digital content industry has exploded and developed strongly in the last five years. According to the international research and consulting firm PwC, in 2002, the total revenue of this industry worldwide was $172 billion and is expected to reach $430 billion by 2006, with an average growth rate of 30% per year.

              Nguyen Hang

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