Information technology (IT) firms have suggested the application of PPP (public private partnership) mechanism in implementing projects, hoping that this will create a breakthrough for the capital arrangement for the projects.
Information technology (IT) firms have suggested the application of PPP (public private partnership) mechanism in implementing projects, hoping that this will create a breakthrough for the capital arrangement for the projects.
The project on building up the national database on population management was assigned by the government to the Ministry of Public Security in 2007. However, over the last four years, the project still has been in the very first steps of implementation. Another project, the e-identity card one, assigned by the government to the Ministry of Public Security, is also in the same situation.
Explaining the tardiness, Nguyen Viet The, Director of the Information Technology Agency under the Ministry of Public Security, said that it is because Vietnam still does not have a specific mechanism on capital mobilization for the projects. Besides, relevant agencies still cannot join forces well to implement the projects, and they still do not have information standards.
However, managers of IT firms believe that no need to set up a specific mechanism on capital arrangement or to wait for the cooperation of relevant agencies, and that the current problems can be settled very quickly with the PPP mechanism.
Chu Tien Dung, Chair of the Quang Trung Software Park Development Company, said that if leaders of state management agencies have to spend time on building up projects, seeking financial sources and considering governance methods, the tardiness in project implementation is inevitable.
“It would be better to change the current concept. One should think this way: the State places orders with IT firms, then IT firms implement the projects that can satisfy the requirements set by the State, and then the State pays for the services it gets. If so, everything would be simpler,” Dung said.
He went on to say that if following this way of thinking, IT firms would have a market, while the State can save money, which should be seen as a wonderful method to cut down public investments – the thing that the government is striving to fight against the inflation and upgrade the investment efficiency.
Truong Dinh Anh, General Director of the Corporation for Financing and Promoting Technology FPT has affirmed that it is absolutely possible to settle the current problems in applying IT to provide electronic public services to citizens with the PPP mode.
Anh has announced that FPT is ready to carry out IT projects, even though the small scale ones, under the PPP mode, in order to create precedent for a new business model.
A manager of another IT firm has affirmed that the PPP mechanism implementation would allow to save 50-80 percent of operation costs in comparison with the traditional model.
Under the government initiated plan on making Vietnam into an IT power in the world, by 2015, Vietnam would have 80 percent of state agencies and enterprises utilizing IT in their management works and public service providing. If applying the traditional method, an agency would have to spend some 2500 dollars on average to buy hardware (servers, network devices), 2500 dollars more on software, 500 dollars a month for operation costs (electricity, transmission line, and pay to administrators), and some 250 dollars for support services and software upgrading.
Meanwhile, if the PPP mode is utilized and the projects can be carried out with cloud computing technology, the State will not have to spend money on the hardware, systematic software and commercial software, thus allowing it to reduce the operation fees, the software upgrading fees. Meanwhile, it will only have to pay the only kind of fee, depending on the used capacity, about 10 dollars per month.
However, Anh of FPT has affirmed that it will still take State agencies time to change their habits or procurement. Instead of buying technological solutions they now should get used to a new method: paying fees for services.
(Source: TBKTVN)
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Explaining the tardiness, Nguyen Viet The, Director of the Information Technology Agency under the Ministry of Public Security, said that it is because Vietnam still does not have a specific mechanism on capital mobilization for the projects. Besides, relevant agencies still cannot join forces well to implement the projects, and they still do not have information standards.
However, managers of IT firms believe that no need to set up a specific mechanism on capital arrangement or to wait for the cooperation of relevant agencies, and that the current problems can be settled very quickly with the PPP mechanism.
Chu Tien Dung, Chair of the Quang Trung Software Park Development Company, said that if leaders of state management agencies have to spend time on building up projects, seeking financial sources and considering governance methods, the tardiness in project implementation is inevitable.
“It would be better to change the current concept. One should think this way: the State places orders with IT firms, then IT firms implement the projects that can satisfy the requirements set by the State, and then the State pays for the services it gets. If so, everything would be simpler,” Dung said.
He went on to say that if following this way of thinking, IT firms would have a market, while the State can save money, which should be seen as a wonderful method to cut down public investments – the thing that the government is striving to fight against the inflation and upgrade the investment efficiency.
Truong Dinh Anh, General Director of the Corporation for Financing and Promoting Technology FPT has affirmed that it is absolutely possible to settle the current problems in applying IT to provide electronic public services to citizens with the PPP mode.
Anh has announced that FPT is ready to carry out IT projects, even though the small scale ones, under the PPP mode, in order to create precedent for a new business model.
A manager of another IT firm has affirmed that the PPP mechanism implementation would allow to save 50-80 percent of operation costs in comparison with the traditional model.
Under the government initiated plan on making Vietnam into an IT power in the world, by 2015, Vietnam would have 80 percent of state agencies and enterprises utilizing IT in their management works and public service providing. If applying the traditional method, an agency would have to spend some 2500 dollars on average to buy hardware (servers, network devices), 2500 dollars more on software, 500 dollars a month for operation costs (electricity, transmission line, and pay to administrators), and some 250 dollars for support services and software upgrading.
Meanwhile, if the PPP mode is utilized and the projects can be carried out with cloud computing technology, the State will not have to spend money on the hardware, systematic software and commercial software, thus allowing it to reduce the operation fees, the software upgrading fees. Meanwhile, it will only have to pay the only kind of fee, depending on the used capacity, about 10 dollars per month.
However, Anh of FPT has affirmed that it will still take State agencies time to change their habits or procurement. Instead of buying technological solutions they now should get used to a new method: paying fees for services.
(Source: TBKTVN)
