Country watch: Vietnam

Date: 27.04.2004

Goto page: 1 2 3 4 5

Internet and telecommunications

Number of Internet users

According to VNNIC’s statistics, the number of Internet subscribers in Vietnam reached 466,000 by June 2003, an increase of 45,000 subscribers over the same period in 2002.

Major Internet service providers and their market shares: VNPT: 65.25%, FPT: 21.09%, Netnam: 6.40%, Saigon NET: 3.56%, OCI: 2.04% and Vietel: 1.66%.

Based on the conversion rate of Internet users over subscription figures (1 leased line or ADSL equals 30 subscribers, one public Internet point of access equals 17 subscribers, 1 indirect subscribers via 1268, 1269 equals 0.6 subscribers and 1 subscriber equal 4 users), the number of Internet users in Vietnam now is about 1.9 million.

The growth rate of Internet users in 2002-2003 was about 50% a year, compared with the rate of 30% in 2001 and 100% in 2000. The high growth rate was due to more Internet service providers, allowing Internet access without subscription (dialing 1269) and the introduction of Internet cards with a lot of promotion activities.

Internet connection capacity

In August 2003, after adding 55 Mbps, the international Internet connection capacity was raised to 210 Mbps. At present the international Internet connection capacity ratio per capita in Vietnam, according to ITU’s calculations, is 600 Bps, higher than China (231 Bps), Cambodia (375 Bps), almost the same as Thailand and on par with the regional average. In the third quarter, another 360 Mbps would be added according to schedule. This is a fairly high growth rate, averaging 200%-250% a year.

Internet connection tariffs

During the past 12 months, Internet tariffs kept on declining. For those who use dial-up connections, the lower fee is thanks to lower telephone charge of VND40 per minute from VND40-120 per minute, which translates into Internet tariffs VND40 per minute lower.

Roadmap to reduce monopoly

In 2003 there were steps to gradually abolish telecommunications monopoly, allowing more businesses to provide telecom services. In April 2003, the Ministry of Post and Telecommunications granted telecom service licenses to five companies. Three of them were allowed to set up networks including the Military Telecommunications & Electronics Company (Vietel), the Electricity Telecommunications & Electronics Company (ETC) and Hanoi Shareholding Telecommunications Company (Hanoi Telecom). Vietel was licensed to provide international fixed telecommunications services, ETC – international fixed telecommunications and Internet Exchange provider (IXP) services and Hanoi Telecom – fixed and mobile domestic telecommunications services within Hanoi. In addition, Saigon Shareholding Telecom Service Company (SPT) was licensed to provide Internet connection services and the Maritimes Electronics & Information Company (Vishipel) – domestic and international long distance Internet telephony.

Vietnam now has 13 ISP (of these, VDC, FPT, SPT, Netnam, Vietel, One Connection, Hanoi Telecom have started formal operations), 6 IXP (VNPT, FPT, Vietel, ETC, SPT, Hanoi Telecom), 4 mobile phone service providers (VMS with its MobiFone network, GPC with Vinaphone network, SPT and Hanoi Telecom) and 3 domestic and international long distance fixed telephone companies (VNPT, Vietel and ETC). At present, applications from Internet Application Service providers OSP are being processed.

In July 2003, the Ministry of Post and Telecommunications granted Internet telephony service licenses to seven companies including VNPT, Vietel, Hanoi Telecom, FPT, One-Connection, Saigon Postel and District 10 Electronics Company. So, if we include the previously licensed companies (QTnet, Elinco and Techcom), Vietnam now has 10 Internet Application Service providers (OSP) and providers of Internet telephony.

The ministry has also permitted the introduction of new services such as wireless Internet connection, Internet telephony (PC to Phone), high-speed ADSL Internet connection, xSDL-WAN and new generation mobile phone technology using CDMA (decisions signed by the Ministry of Post and Telecommunications in June 2003).

Goto page: 1 2 3 4 5