The year the country became a WTO member would witness strong growth in telecom services along with rapid growth in information technology (IT), Bui Thien Minh, deputy general director of the state-owned Vietnam Post and Telecommunication Group (VNPT), said.

Broadband Internet subscriptions are likely to reach 1 million against 300,000 last year. He added 6 million new mobile phone subscribers were expected to sign on.

The director of the telecom ministry's IT Industry Department, Nguyen Anh Tuan, forecast IT hardware production to develop since the sector was becoming more attractive to foreign investors.

An output target of US$6-7 billion by 2010 was achievable since the Intel Vietnam chip assembly and testing plant alone would contribute $5 billion once it became operational in 2009, he said.

General director of Microsoft Vietnam, Christophe Desriac, said 2007 would also see the development of the software market and software processing for some US and Japanese companies.

David Knapp, general director of Motorola Vietnam, said the country's accession to the WTO would help increase local demand for ICT services.

However, Minister of Post and Telematics Do Trung Ta said to capitalize domestic firms should become more familiar with international regulations and business practices in the telecom industry.

They should also improve service quality and human resources, he added.

In 2006 a record 10 million new telephone subscribers – to both mobile and landline services – were added, a year-on-year increase of 188 percent, which took the total number of phones in Vietnam to 25.8 million.

The software industry, which comprises 720 developers employing 25,000 programmers, generated revenues of $350 million last year, up 3 percent year-on-year, and exports of US $70 million.

The ICT sector attracted $2 billion worth foreign investment and $500 million from Official Development Assistance (ODA) last year.

Source: VNA