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.vn
Vietnam

Nguyen Trung Quynh

Overview

Vietnam is a developing country and a member of the Association of Southeast Asian Nations (ASEAN). The country has a surface area of 331,000 square kilometres and is located in the tropics. It has a total population of nearly 80 million, of which 75 percent are farmers living in rural areas. Vietnam’s GDP in 2000 was approximately US$32 billion. Beginning in 1986, it has implemented reform policies to shift from a centralised economy to a market economy with socialist orientation.

The Vietnamese economy is structured in terms of GDP in 2000 at current prices, as follows (Vietnam Statistic Yearbook 2000):

By economic sector:

• Service: 39.1 percent
• Agriculture, forestry, fishery: 14.3 percent
• Industry, construction: 36.6 percent

By ownership:

• State: 39 percent
• Household: 32 percent
• Collective: 8.5 percent
• Private: 3.3 percent
• Mixed: 3.9 percent
• Foreign-invested sector: 13.3 percent

Telecommunications and Internet access

In recent years, the telecommunications and Internet sectors of Vietnam have taken encouraging steps forward. As of June 2002, the total bandwidth of international Internet connection was 106 Mbps, comprising connections to Hong Kong at 56 Mbps, the USA at 14 Mbps, and Singapore at 32 Mbps.

Also as of June 2002, the number of Internet subscribers totalled more than 170,000, accounting for 0.22 percent of the population. However, the actual number of people using Internet services is much higher, accounting for 1.3 percent of the total population.
The development rate of Internet websites in Vietnam is relatively high for a developing country. But this rate has declined recently. Internet content, in both Vietnamese and English is becoming increasingly more diversified. Many government agencies have set up their own websites for publishing official information over the Internet. Many business enterprises are already using the Internet for promoting their business activities, seeking new partners, and for expanding the market for their products and services.

The total number of telephone subscribers connected since the beginning of 2002 is around 230,000, raising the total number of telephone subscribers to five million. This translates to 6.25 telephones per 100 inhabitants. Fixed-line telephones account for 69 percent.
Currently, Vietnam has 3 Internet access providers and 12 ISPs. Among the 12 ISPs, the top four have captured the following market shares: Vietnam Data Communications accounts for 56 percent, Financing and Promoting Investment 31 percent, Saigon Postel 7 percent, and Netnam 6 percent.

The Directorate General of Post and Telecom-munications (DGPT) is gradually reducing the charges for Internet and telecommunications services. It aims to lower local rates to match the average charges of countries in the region by 2003 in order to promote the Internet and telecommunications sectors, which in turn will contribute to the socioeconomic development of the country.

Telecommunications and Internet infrastructure

Although Vietnam already has a modern telecom-munications network that can provide various advanced telecommunications services, the reach of the network is still relatively limited. Internet access speed is slow, occasionally experiencing congestion, which in turn affects the rate of Internet penetration.

During the first six months of 2002, the number of Internet subscribers increased to 10,000, meeting only 6 percent of the plan for its popularisation. Adding the number of people accessing via Internet cards, the total number of new subscribers reached 35,000. The Internet access charge has been lowered to an affordable level (according to the charge-lowering roadmap of DGPT), but the growth rate of Internet subscribers did not meet the set targets owing to the limited content of Vietnamese websites. Users face difficulties searching for information they need in Vietnamese on the Web. Only a small number of them can use English to access foreign websites. Most of the users turn to the Internet for e-mail, leisure and chatting online.. . . . . the complete text of this chapter is available for purchase and immediate download as a PDF file, please click here for more information.

 
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