Contribution of ICT Sector to Vietnamese Economy: An Input-Output Analysis

Abstract

This article uses Input-output (IO) analysis to evaluate the impact of ICT on the Vietnamese economy. Two IO tables are used, including tables of 2007 and 2012. The results show that ICT sectors were small in Vietnamese economy and the spending on ICT products and services of an average sector of the economy was generally low. Regarding the impact on output of other sectors, the research results reveal that the ICT sectors' backward linkages were stronger than the forward linkages, i.e. the ICT generated more impact on sectors which provided it input rather than on sectors that used its products and services. The total output multiplying effect of the ICT was rather high; ICT was among the most influential sectors in Vietnamese economy. Among ICT sectors, the ICT manufacturing was the most pervasive which is followed by the ICT services and ICT media and content. The study implies that if Vietnam seeks to enhance the economy, the government needs to implement specific policies that facilitate ICT industry and ICT usage.