In the early 1990s, Vietnam carried out a telecommunications revolution when switching from analog to digital technology, turning Vietnam from a country with outdared telecommunications into a pioneer in digital technology use.
Two decades later, the conditions are different, thus once again requiring reform. Traditional telecommunication services have declined and clients are switching to use OTT services.
Previously, telecom carriers always reported two-digit growth rates, but conditions are different now. In such conditions, telecom carriers need to find new driving forces for growth, while state management agencies need to find new orientations.
Minister of Information and Communications Nguyen Manh Hung has emphasized that 2024 will be the year of important transformations.
This will include shifting from: telecom to digital infrastructure; communications to digital economy infrastructure; information to digital technology; IT application to digital technology; automation to AI; finite information processing to limitless digital data processing to create new value; separate software to digital platforms; outsourcing and assembling to Making in Vietnam; service firms to industry and technology firms; exploitation enterprises to digital app R&D enterprises.
These are the trends and the new driving forces for telecom carriers.
He cited international airports as showing that revenue from digital apps accounts for over 50 percent of telecommunications revenue and makes up 10 percent per annum of their growth.
New 5G investment generates a 10 percent growth rate, but the growth does not come from 5G, but a 5G ecosystem. Encouraging network operators to create digital apps, digital transformation and a digital economy are the industrialization and modernization of the country. Digital transformation and digital applications in these industries are the ways to improve productivity, according to Hung.
To turn these goals into reality, the Ministry of Information and Communications (MIC) has granted licenses to establish networks and provide terrestrial mobile information services using 5G technology to telecom carriers.
According to the head of the Authority of Telecommunications Nguyen Thanh Phuc, with the successful auctions of the right to use radio frequency, MIC has officially licensed to establish networks and provide terrestrial mobile information services using 5G technology from April 11, 2024. Telecom carriers will quickly commercialize 5G nationwide in 2024.
Vietnam to lead 6G race
MIC has stated that Vietnam will deploy 6G and will be one of 10 countries in the world to establish 6G steering committees. At present, 6G network is still under research and is expected to come out in 2028 or 2030.
Researchers pointed out that 5G technology has been used in a many fields, such as self-propelled cars, unmanned vehicles and smart cities. The technology will still continue to operate well in the future with support from 6G.
The 5G network is developed with an aim to build information ecosystems with people at the center. Meanwhile, the 6G network will be the center for potential technologies in the future.
A representative of Viettel said the company has begun researching and manufacturing 6G devices and creating patents in 6G. Unlike Viettel, VNPT will focus on researching 6G ecosystem. MobiFone has also confirmed it has conducted research on 6G.
According to MIC Deputy Minister Pham Duc Long, there are five 5G device manufacturers in the world, and many powerhouses have set to work on 6G. Vietnam has set the goal of pioneering in 6G, together with developed countries, which means together researching, manufacturing and deploying.
“Vietnam will conduct research and contribute to the world’s 6G standards. MIC and businesses will together promote technology development. The state will invest in labs for tech firms to research and manufacture 6G devices,” he said.
“We need to lay down the first brick of the process right now to hope that we will gain success in 10 more years,” he explained.
Vietnam will be ‘green’ and ‘sustainable’
Nguyen Van Khoa, chair of VINASA (Vietnam Software and IT Services Association), said the world is under digital transformation and green transition, while the government of Vietnam has defined digital transformation and green growth as one of the two key factors of the economic restructuring and growth model.
Vietnam has been chosen for the semiconductor industry development, thanks to great advantages in its labor force and geopolitical position.
Thai Khang
