ICT revenue drops on struggling economy

The ministry’s report showed that the sector earned a revenue of more than VND1.6 quadrillion (US$69 billion) in the January to June period, a drop of 8.66% against the same period last year and equivalent to just 39.6% of the plan for the full year.

The sector’s contribution to the gross domestic product (GDP) was estimated at nearly VND389.8 billion, falling by 7.2%.

Notably, the information and communications technologies (ICT) sector reported a drop of 10.35% in revenue against the same period to just VND1.45 trillion, or 38.83% of the plan for 2023.

The ministry said that the drops were attributed to difficulties in the global economy as the economic recession in many countries still hasn't eased, resulting in a weak consumption market for IT products.

The Ukraine conflict and the COVID-19 pandemic also affected the sector, which caused drops in IT exports from Vietnam.

Statistics showed that the ICT industry earned a revenue of US$52.2 billion in the first five months of this year, falling by 8% over the same period last year, mostly due to the decrease in the exports of hardware and electronic products. The export value of hardware and electronic products was estimated to be US$51.51 billion, falling by 9.56%.

In March and April, hardware and electronics exports dropped considerably by 22.8% and 22.4%, respectively.

Statistics from the General Department of Customs showed that the export of computers and components was estimated at nearly US$20.3 billion, falling by 15%, while the export of phones and components fell by 9% to US$21.4 billion.

Still, the sector saw increases in telecommunications services by 7.9% to VND74.47 trillion.

In the national digital transformation, as of June 18, more than 1.39 billion transactions were conducted by the national government service platform.

In addition, more than 849,290 enterprises participated in the small and medium enterprises support programme fro digital transformation (SMEdx), or 106.1% of the 2023 plan.