Using modern technology

After five years of self-renovation (from 1997-1992) in terms of theoretical and economic thinking, organisations and business activities, have taken on the responsibility to use advanced technology, thereby propelling the telecommunications sector forward through the 1993-2000 period.

In the first phase of the strategy, from 1993 to 1995, the sector focused on implementing business co-operation contracts with big international groups in the form that foreign partners contributed investment capital and got dividends and Vietnam acted as the owner. As a result, the telecommunications network received large investment and was gradually modernised on a national scale.

By late 1995, telephone density reached one unit per 100 people, five years ahead of schedule.

The second phase of the strategy, from 1996 to 2000, the sector concentrated in increasing network capacity, developing new services, and expanding service coverage to rural areas. By 2000, telephone density increased five times against that in 1995.

In the 2001-2010 period, the sector’s development strategy has shifted to “Integration and Development,” aiming at continuing development, renovating management, diversifying services, strengthening the application and development of information technology, lowering costs and taking an active part in integrating into the international economy.

On April 29, 2003, business monopoly in Vietnam’s telecommunication market was abolished, creating a busy telecommunication market with sharp growth of over 20% annually and sharp decrease in telephone charges. By late 2005, according to the World Bank, Vietnam’s telecommunication charges were equal to those in regional countries.

In the competitive market, phone users have many options to select.

Up to date, telephone density reaches over 20%, up four times against that in 2000 and 2.5 times against the target set in the 9th National Party Congress’s Resolution. Internet users also reached 14%, exceeding the target set for 2010. All communes in the country has access to telephone. Up to 91% of the communes receive the Party’s daily newspaper and 80% of the communes has communal cultural and postal centres.

It is expected that the sector’s major development targets by 2010 will double those of 2005. The sector is working out a “take off” strategy for the 2011-2020 period which targets that Vietnam will reach average standards of G7 countries by the late years of the strategy.

Combining internal and external strength

In the early days of the renovation process, the telecommunication sector co-operated with leading international groups to attract foreign investment and advanced technology. So far, as many as US $2 billion has been attracted to develop domestic telecommunication network. Priority is given to investment in economic, political and trade centres, localities with high demand and bring about large revenue so that benefits will be used to invest in other remaining areas.

The opening of the telecommunications market in Vietnam has been carried out under a thoroughly worked-out roadmap.

In 1995, the establishment of Military Telecom Company (Viettel) and Saigon Postel Corporation (SPT) and the Vietnam Post and Telecommunications Corporation (VNPT) started the competition between State-owned enterprises.

From 1997 to 2003, the competition was carried out according to different sections. It was first carried out in the internet service, then in the field of international and long distance calling service using Voice over Internet Protocol (VoIP) and postal delivery service. In 2003, the enterprise monopoly was abolished, creating a competitive atmosphere in all fields of services.

Currently, along with State-run VNPT, there are seven enterprises that own network infrastructure including Viettel, SPT, Vietnam Shipping Telecommunication Company (Vishipel), Electricity of Vietnam subsidiary (EVN Telecom), Hanoi Telecom Company, FPT Telecom, Vietnam television technology company, VTC, and more than 20 enterprises of different economic sectors providing services.

The government and the Ministry of Telematics have worked out policies to help new enterprises to develop and expand their market.

VNPT has seen sharp growth. Its total assets has increased from VND 2 trillion in 1995 to VND 44 trillion in 2005.

All these have contributed to national strength in its process to become a WTO member.

Thanks to its great development in the telecommunications and information technology sector, Vietnam has been selected to be members of the executive boards of the Universal Postal Union (UPU) and International Telecommunication Union for years now.

Developing human resources

According to the World Economic Forum (WEF), Vietnam is among the world’s leading countries in terms of internet and telephone development growth. The country also ranks 13th in Asia in information technology application.

To ensure its sustainable development, the sector pays much attention in developing its human resources. The sector’s training network includes the Institute for Posts and Telecommunications Technology, the Vietnam-Korea Friendship Information Technology College, four other schools on post and telecommunications and information technology and various other training forms including distant-training and over-internet training.

The sector also owns three hospitals and three convalescence centres to give care to the workers’ health.

Through joint-ventures and self-research, the sector’s enterprises have produced industrial products using advanced technology, meeting domestic demand and for exports. Key products include electronic switchboards, peripheral devices, digital transmission devices and optical cable, among others. Computer hardware industry has increased by 20% annually in recent years while software industry grows faster, at 30% annually.

The sharp development of the posts and telecommunications sector has made a significant contribution to national socio-economic development, ensuring security and defence.

The co-operation with major world’s leading groups such as Alcatel, Siemens, Motorola, Ericsson, France Telecom, NTT, KT, SK, Hutchison, NEC, LG, IBM, Qualcom and most recently Intel and Microsoft will add more attraction to the country’s post and telecommunications market.

The growth of the sector will surely contribute to basically turning Vietnam into an industrial nation by 2020 as targeted in the Party’s resolution.

By Prof., Dr. DO TRUNG TA
Member of the Vietnam Communist Party’s Central Committee
Minister of Telematics

Source: Nhandan