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  • Vietnam ICT Market - The Right Place • The Right Time
  • Government's Strategy & Support
  • The Hottest: 3G & WiMax
  • Vietnam - A Strong Market for Mobile Service
  • Successful Launch of Vinasat-1
  • Samsung Electronics-Vietnam Opens Factory
    • June 4, 2008
    Vietnam ICT Market - The Right Place • The Right Time


    According to General Statistics Office of Vietnam, the first quarter of the year 2008 as compared with the same period last year, the rate of GDP increased 7.4%. The Vietnam Government has set a target of achieving a GDP growth rate of around 9 percent for 2008. In the employee sector, the basic salary increased by 20% from Jan 2008. According to the April Report of the Asia Pacific Telecommunications Insight, increasing establishment of global companies in Vietnam also boosted local staff income in which a significant portion as much as US$10 - US$20 being spent on their home internet bills, accessing multimedia content including games and downloads. Therefore, increasing disposable income is expected to be spent on telecom and IT products/ services, along with the continuous economic growth of the country.

    According to a survey published on 9 April 2008 by the World Economic Forum (WEF), Vietnam ranked 73 on the list of "most networked economies," rising nine places from last year. The survey measured how prepared the economies are to use information and communication technology (ICT) as well as quality of infrastructure and current usage. Obviously, Vietnam's economy and ICT market is growing rapidly and it is ready to become the hottest and most attractive ICT market of the world.

    (Source: Vietnam Economic News, General Statistics Office of Vietnam, Thanhnien News.com)



    Government's Strategy & Support
    According to some recent reports in the Asia Pacific Telecommunications Insight, the Vietnam government is also aware of the necessity for an upgraded broadband network to aid economic development. With the Vietnam Internet Centre (VNNIC) announcing there were more than 17 millions internet subscribers, representative of penetration rates of 20.8%, as of October 2007. This would indicate that, in the first 10 months of 2007, there were 3.2 millions net additions, or 320,000 net additions per month. Capital injections of VND100 millions by the government into developing the broadband sector will contribute to raising penetration rates by 2010. This reflects the government's commitment to bring ICT technologies to everyone in Vietnam and support the growth of the market.


    (Source: Asia Pacific Telecommunications Insight)



    The Hottest: 3G & WiMax
    The Third Generation Technology (3G) and Wimax are now considered the most advanced technologies in Vietnam and many telecom providers are rushing to obtain the technology deployment licenses and begin to pilot Wimax projects in the country.

    The Ministry of Information and Communications (MIC) will organize a competition to present 3G licenses in August this year, and telecom providers will have to compete for only four licenses. According to Le Doan Hop, the Minister of Information and Communications, the ministry would only give 3G licenses for those enterprises that have adequate network infrastructure and finance.

    In the face of forthcoming development of 3G technology in Vietnam, many foreign technology providers have recently flocked to the country to grasp the available opportunities. Recently, VNPT has invested US$1bil to establish the Next Generation Network (NGN) for accommodating 3G technology. Ericsson AB, the world's largest maker of wireless networks, established a unit in Vietnam to establish 3G, the Vietnam Investment Review reported. Leading world telecom giants, including Nokia, Siemens, and France Telecom, have showed keen interest in Vietnam's potential development of 3G technology by showcasing 3G equipments and technology at many information technology exhibitions.

    In early March this year, the ministry granted the right to deploy the Wimax technology on a trial basis for EVN Telecom, Viettel, VinaPhone, and MobiFone to test Wimax in many localities nationwide.

    (Source: ThanhnienNews.com, VietNamNet Bridge)



    Vietnam - A Strong Market for Mobile Service
    The Vietnam mobile service market presents considerable future opportunities for growth. According to a study released by the Altimo Foundation, Vietnam's mobile market is set to grow three times faster than Britain's in the next five years, mobile penetration rate is set to grow 23.5% per year in the 2008-2013 period. The number of mobile subscribers in the market is estimated at around 34 millions, but this represents a penetration rate of just 39%, so there is great potential for the market to grow.

    Demand on mobile service also shows remarkable increase. According to Vietnam Posts and Telecommunications Group, mobile-telephone demand has been rising by as much as 70 percent per year in Vietnam. More than 800,000 new mobile users are expected to be added each month in 2008. A recent report by Asia Pacific Research Group also claims that Vietnam's highly literate and youthful population has made the country a strong market for potential investment, particularly in mobile services. Continued competition and reduced mobile call tariffs are driving subscriber growth into double digits, and the rapid adoption of VAS services such as SMS-based content (including caller ringtones, games, wallpapers, mobile news, etc.) makes Vietnam an attractive market for content developers too.

    In view of this, many market leaders are seeking investment opportunities in this most exciting emerging market. For example, Taiwan's Chunghwa Telecom expresses its interest in entering the market. This implies enormous business opportunities for mobile phone and components manufacturers and suppliers.

    (Source: Vietnam News, Asia Pacific Telecommunications Insight, Bloomberg.com, DevelopingTelecoms.com)



    Successful Launch of Vinasat-1
    Vietnam joined the Asia-Pacific Satellite Club in the morning of April 19 with the successful launch of the country's first satellite, Vinasat-1. According to Deputy Minister of Information and Telecommunications, the country has entered negotiations for a position in orbit for its second satellite, Vinasat-2, which is slated to launch in the next seven to eight years.

    Vinasat-1 will help Vietnam's ICT industry enters to a new age for bringing more and more innovative services and solutions to the end-users and consumers. It will allow 100 percent of Vietnam's rural communities to be equipped with telephones and televisions, improve broadband Internet access in rural parts, help bringing Internet to the masses in Vietnam. According to figures from the General Statistics Office, about 73 percent of Vietnamese live in rural areas, it represents a significant opportunities in these areas for communication service.

    Since the satellite can support all of today's communications needs such as transactional and multimedia applications, video, voice and cellular networks, setting up or expanding of satellite networks is necessary to support the new services. There would be a great demand for satellite networks-related products, service and equipment such as terminal components and antennas.

    (Source: TelecomAsia.net, Bloomberg.com)



    Samsung Electronics-Vietnam Opens Factory
    The Samsung Electronics Vietnam on March 25 got licensed for investing in a 670 million USD project in Bac Ninh province, north of Hanoi. This world's second largest handset provider after Nokia plans to establish a plant producing cell phones, telecommunications equipment, electronics parts and accessories with an annual capacity of 60 million items.

    The Samsung factory will buy 40 percent of materials from domestic suppliers and provide jobs for over 20,000 local workers. Once put into operation scheduled for 2010, the factory is projected to earn between 2 and 5 billion USD a year, mostly from exports.


    (Source: Vietnam News Agency)
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
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