The United Nations Development Programme (UNDP), through the Asia-Pacific Information Development Programme, has combined with Cisco to implement the Cisco network institute programme in remote areas in Asia in recent years.

UNDP and Cisco have also dispatched volunteers to those areas to assist local participants in this programme. The volunteers are already working in Bangladesh, Cambodia, China, India, Indonesia, Mongolia, Nepal, Sri Lanka, Thailand, and now Vietnam.

So far, around 10,000 education organisations worldwide have used the Cisco network institute programme, with a total of over 380,000 trainees from 160 countries having completed the programme.

The programme is now available at 13 universities in Hanoi, HCM City, Da Lat and Hue, and has enrolled 1,000 students. To date, more than 1,300 Vietnamese students have graduated from the programme.

A UNDP volunteer recently arrived in Vietnam to implement the programme in Can Tho, Da Lat, Da Nang and Hue, helping locals improve their understanding of the value of the Internet and IT.

“UNDP is committed to bridging the digital divide in remote areas. UNDP is glad to have the commitment of a world leading firm on Internet like Cisco Systems to support our efforts,” said Subinay Nandy, Acting Resident Representative of UNDP in Vietnam.

The Cisco network institute programme, began in 1997 based on the community investment foundation, and has become a model for cooperation between the private and public sectors. As a ‘research room’ for e-learning, the curricular of this programme uses Internet-related technology to transmit knowledge on design methods, development and implementation of network systems.

This week Cisco will hold its annual meeting in Hanoi, drawing 120 experts from 80 leading education organisations in Asia-Pacific.

Hoang Hung

The service sector in Vietnam needs a great more deal of attention. (Photo Hoang Huong)

Last week the United Nations Conference on Trade and Development (UNCTAD) released a report on global FDI it had conducted, revealing telling global rankings. According to the report, Vietnam ranks the 50^th among 144 countries on the Inward FDI Performance Index.

The report attributed the FDI upswing in Vietnam to worldwide economic recovery.

Vietnam, together with other Asian countries, can look forward to increasing FDI inflow as a result of the trend toward shifting of production facilities from high-cost to low-cost locations.

Though obvious advances in recent years were recognised, the report showed that Vietnam still has to resolve the many issues that threaten FDI interest. Location uncertainty and the lack of transparency in policies, only serve to compound the frustrations investors experience with complicated administrative procedures.

FDI quality was a serious issue highlighted by Jonathan Pincus, United Nations Development Programme (UNDP) Country Economist.

“FDI quantity is not the most important target, I think that quality matters more now,” he said. The country has been advised to focus on FDI attraction in fields that create more jobs, transfer advanced technology and promote exports.

For example, the service sector in Vietnam needs a great deal more attention.

While there is an obvious trend to shift investment from production to the service sector, Vietnam lags behind in the area, said Christina Hernander, Senior Technical Advisor with the UNDP.

The UNCTAD report indicated that the service sector is responsible for 60% of global FDI value, estimated at $4,400bil. From 1990-2002, FDI flow into energy sectors increased from $10bil to $144bil worldwide, while the telecommunications, warehouses and transport rose to $476bil from $29bil.

In developed countries, the service sector contributes 50-70% or higher to GDP, however, the sector claims just 40% in Vietnam.

Vietnam is yet to map out a workable plan for service sector development, experts say. Development strategies have been devised for every branch of the service sector; however, these strategies are not interlinked and often run counter to common comprehensive development.

In the report, Vietnam is cited as an example of efforts to improve the investment climate, having established the Foreign Investment Agency (FIA) to attract FDI.

The agency exists within the Ministry of Planning and Investment, from where it supervises foreign investment activities and reviews and improves the country’s foreign investment policy. A series of new policies have been adopted and more are being drawn up to meet promises of a fair and equal playing field for both domestic and foreign enterprises.

FIA officials are optimistic about FDI prospects in Vietnam, forecasting recovery in FDI capital attraction. So far this year, total registered capital from 860 new or expanded projects has reached $2.97bil, an increase of 41% over the same period of 2003. Disbursed capital also increased 5% over the same period.

The FIA has forecast high FDI flow this year, estimating $3.35bil. The agency has received applications for 44 investment projects, whose funding will total $2.2bil.

Kim Chi – Huong Tran