The city has for many yearsspearheaded the country’s economic development, contributing 24 percent of itsGDP, 18 percent of industrial production and 16 percent of exports.
However, it has faced manychallenges such as unsustainability of economic growth and rapid populationgrowth.
Nguyen Thanh Phong, Chairman ofthe municipal People’s Committee, said: “Transformation of the growth modelwith a focus on innovation and advanced technologies is imperative to ensurethe city’s development and maintain its leading economic role in the country.
“The rapid development oftechnologies during the fourth industrial revolution with technologies such asbig data, artificial intelligence and the internet of things offers a greatopportunity for the city to carry out its plans to become a smart city.
“This is also the basis for theeffective implementation of seven breakthrough programmes to fundamentallyaddress the city’s current challenges and orient its future development.”
The city in collaboration withthe World Bank organised a conference on domestic and international experiencesin AI research and application last September, which made recommendations forbuilding the foundation for an AI application eco-system in 2019-25.
AI would create the foundationfor the smart city, he said.
Becoming a smart and innovativecity would create a large market, offering motivation to IT firms to undertakeresearch and development to supply advanced technology solutions, he said.
This would also help attractinvestment, creating added value for the economy and promoting the rapid and sustainabledevelopment of the city, he added.
According to Secretary of themunicipal Party Committee Nguyen Thien Nhan, the city began to focus very earlyon information and communications technology.
It has built the verysuccessful Quang Trung Software City, the largest software park in the countrywith 165 businesses and more than 11,000 IT engineers and other workers, hesaid.
“HCM City is the only place inthe country that manufactures integrated circuits.”
He said labour productivity inthe ICT sector was almost double the city’s average, and the sector contributed4.44 percent to the city’s economy and nearly became its key economicsector.
“Recently the city decided tocreate an innovative start-up area to offer the best conditions to start-ups,and so choosing HCM City to develop IT is the right option for businesses,” hesaid.
According to the cityDepartment of Information and Communications, there are more than 5,600electronics and IT businesses in the city, or around 3 percent of allenterprises.
Le Quoc Cuong, the department’sdeputy director, said the electronics-IT sector has achieved high growth ratesin recent years, higher than the average rate of the four industries designatedas key by the city.
With the Government targetingto boost digital economic development, the sector has much potential fordevelopment, he said.
To enable electronics and IT tobecome the city’s key economic sectors, he said local authorities should urgethe Government to create a legal system that suits modern businesses.
Phi Anh Tuan, Vice Chairman ofthe HCM City Computer Association, said the city should develop appropriatepolicies for the development of IT firms, create conditions for small andmedium-sized enterprises to supply IT application services to the public sectorand support start-ups, especially those using new technologies.
Nhan said the development ofthe IT sector is very important, and relevant agencies should find ways toincrease the number of businesses in the sector./.