Rampant piracy, limited Internet access and an official insistence that imported software remains classified as 'cultural material' are preventing Vietnam's nascent information-technology industry from developing anywhere near its full potential, according to sources.
Microsoft estimates up to 98 per cent of its software in use in Vietnam is not licensed and the company's country manager, Ngo Phuc Cuong, said despite extensive consultations with government, little progress appears to have been made towards unravelling the multiple strictures that stunt the industry.
'Piracy remains an enormous problem, but even the government does not comply [to it's own laws] . . . most government offices work with pirated software,' he said.
An industry conference held in Ho Chi Minh City last month was told if piracy was reduced by 30 to 40 per cent, the output of software firms could be increased by as much as four times the existing output.
The situation has driven the country's software producers to the wall, with four of the biggest companies facing closure.
Mr Cuong said taxes on imported CD-Roms prevented local software developers from using existing Microsoft applications to expand their products, and that the Customs Department's insistence that all CD-Roms were 'cultural products' rather than industrial products imposed huge costs and delivery delays.
