Software For Hard Times

Even socialist Vietnam wants in on the information bandwagon, betting that info-tech exports will spark a hike in prosperity

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But for Vietnam to develop its potential, Hanoi needs to remove a few obstacles--starting with inadequate Internet access. Connections are slow, partly because of government efforts to block sites considered politically harmful and partly because of the narrow bandwidth of international lines. High taxes even on meager wages also push up costs. "To get $4,000 in someone's pocket, you have to pay $20,000," notes Frederick Burke, a lawyer with Baker & McKenzie in Ho Chi Minh City.

Hanoi is working on changes. Its new software parks will offer Internet access via dedicated gateways and thus keep politically sensitive technology out of general use. Park tenants are being offered incentives that include lower personal-tax rates for programmers.

If all that happens, Hanoi's efforts may push one of the world's last communist countries that much closer to a free-market economy. Says Nhan of the People's Committee: "If we can't make the whole society happy at once, why shouldn't we do it step by step?" Or one click at a time.

--With reporting by Huw Watkin/Hanoi

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