In March 1997, the internet debuted in Vietnam. At that time, the Vietnamese Government set up a coordinating board to develop internet services in Vietnam with a “tight management” policy. After a decade, Vietnamese internet services have made outstanding achievements. The management policy has also been loosened. According to Posts and Telematics Minister Do Trung Ta, the open policy is a core factor for the quick growth of internet services in Vietnam in recent years.
So far, Vietnam has 4.3 million internet subscriber equivalents, reaching a density of 18.64 internet accounts /100 inhabitants, higher than the regional and international average. Mr Ta said, the number of Vietnamese internet users already exceeded the Asian average of 8.4 per cent in late 2005, and surpassed the world average of 16.9 per cent in March 2007. Vietnam ranks 17th out of the 20 world-leading internet user nations. In Southeast Asia, Vietnam only stood behind Singapore and Malaysia, with respective user percentages of 56.3 per cent and 36.65 per cent.
According to the report released by the Ministry of Posts and Telematics, the internet reached 100 per cent of research institutes, universities, colleges, central hospitals, state-run economic groups and corporations, 98 per cent of high schools, 50 per cent of secondary schools and provincial hospitals. All 26 ministries and 56 out of 64 provinces and cities have websites. Internet services have also spread to post offices in rural areas.
At present, Vietnam has 26 internet service providers (ISP), the largest being VNPT, Viettel, EVN Telecom, SPT, Netnam and VNGT. According to statistical surveys, VNPT and Viettel have provided broadband ADSL and leased line services to all provinces and cities. With the current presence in 24 provinces, EVN Telecom, in addition to ADSL and leased line services, is providing community antenna television (CATV) and Code Division Multiple Access (CDMA) services. Other ISPs like FPT, SPT, Netnam and VNGT are only focusing on two largest cities in the country, Hanoi and Ho Chi Minh City. Among ISPs, VNPT is a pioneer in applying new technologies and solutions like NGN, ADSL, Wifi and Wimax. VNPT is also the first Vietnamese company to provide internet services outside the country, in Laos and Cambodia.
In recent years, internet charges have dropped sharply, attributed to open management policies and severe competition among ISPs. The dial-up access tariff dropped to the region’s lowest level of VND40/minute + VND40/minute of telephone subscription in 2004. The ADSL access tariff also fell below the regional average, with a popular monthly service charge of VND200,000-320,000, about three times lower than the rate in 2003 when ADSL debuted in the country. Mr Vu Hoang Lien, Director of VDC Co, a branch of VNPT, said the internet market is very competitive and many ISPs do not dare to provide internet services because the tariff has already fallen so low.
In infrastructure, international internet connections are being expanded to new locations and bandwidth is growing. At present, three international gateways are located in Hanoi, Ho Chi Minh City and Danang City, three major cities in Vietnam, directly connecting to the US, Hong Kong, Singapore, Japan, China, South Korea, Malaysia, Laos and Cambodia.
The Ministry of Posts and Telematics forecast that the internet users in Vietnam will reach 35-40 per cent of the population, including 30 per cent broadband subscribers. State managers argue that it is important to bring internet services to rural and remote areas. The ministry targets to activate internet services in 70 per cent of communes and 100 per cent of districts by 2010.