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. Vietnams 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..
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