Open “big playground” for the country
November 19, 1997 went into Vietnamese Internet history with the opening ceremony of Internet opening button, bringing Vietnam to connect with the world’s information highway. At that meaningful event, NetNam – formerly known as Varenet network of the Information Technology Institute, VNPT and FPT, Saigon Postel received the license and became the first Internet service providers (ISPs) in Vietnam. .
Vietnam Internet history will never forget the people who have devoted their efforts to bringing the Internet to Vietnam like: TS. Mai Liem Truc, Mr. Tran Ba Thai, TS. Chu Hao; GS. Dang Huu, former Deputy Prime Minister Nguyen Khanh, Prof.-Dr. Do Trung Ta, GS. Bach Hung Khang, GS. Phan Dinh Dieu, Mr. Vu Hoang Lien, TS. Truong Gia Binh …
Over the past 20 years, Vietnam has built a modern infrastructure on par with many countries in the world. Vietnam has connected with many international sea optical cable routes: AAG, SMW3, IA, APG and AAE-1; Millions of kilometers of fiber optic cable, ADSL connected to 100% of communes and wards nationwide with an average Internet connection speed of 9.5 Mbps, ranked 58th in the world; Vietnam currently has more than 400,000 “.vn” domains, affirming the strong development of the Internet …
As of June 30, 2017, Vietnam had 64 million Internet users, equivalent to 67% of the nation’s population. With this number, Vietnam is the country with the 12th highest number of Internet users in the world and the sixth among 35 countries / territories in Asia (according to Internetworldstats).
After 20 years, Vietnam is a country with 2G, 3G and 4G telecommunications infrastructure covering nationwide with a system of more than 150,000 BTS. The proportion of mobile users reached more than 128 million subscribers, of which more than 36.2 million mobile broadband subscribers and nearly 11 million Internet subscribers.
These figures show that the telecommunications infrastructure – Internet is the launching platform for Vietnam’s economic development and international integration.
Internet like a popular meal
Surely 20 years ago, the generation of people paving the way for the Internet to Vietnam could not imagine the Internet has changed deeply and widely the Vietnamese socio-economic life as it is now. Almost every industry, economic sector is associated with the development of the Internet, all use Internet applications in operating, production – business activities.
Thanks to the Internet, Vietnam has formed new industries such as software manufacturing industry, digital content industry, entertainment industry … With the Internet, e-commerce, tourism, agriculture and press industries. – publishing, advertising … developed strongly.
Today (November 22), in the framework of the 20th Anniversary of Vietnam Internet and Internet Day 2017, the Seminar “Internet: The foundation for Vietnamese enterprises to integrate into the digital economy” took place.
The speakers, experts, managers frankly recognize, analyze and evaluate the opportunities and challenges that are posing for Vietnam’s Internet industry. On that basis, making recommendations and suggestions to the Government to ensure the Internet market can develop sustainably in the coming decades.
In the field of state management, e-government has been built with nearly 125,000 online public services, including nearly 1,400 level 4 public services in areas such as taxes, customs, and business registration. , education…; The e-government system and smart city are being built in many localities. The Internet has become the breath of life.
Internet has narrowed the urban and rural gap. Thanks to the Internet, goods and products are marketed, promoted and exported abroad with just a few clicks. Not stopping there, many traditional business models have been converted to business models based entirely on the Internet such as catering services, hotel rooms, hotels, buying airline tickets …
After 20 years of development, Vietnamese people have not only mastered a wide-ranging, high-speed technology infrastructure, the system of BTS 3G, 4G covered nationwide, but also formed a generation of large technology enterprises. Strong as VNPT, Viettel, MobiFone, FPT, VNG, VCCorp, CMC, NetNam … to master new technologies, creating strong digital content industries in Vietnam.
The Internet has set the stage for many waves of technology start-ups going strong with startups, from PCs, software, digital content and now on the world’s most advanced technology platform. like virtual reality, artificial intelligence …
According to the report of the Ministry of Information and Communications, in 2016, the total revenue generated by the Information and Communication Industry reached more than 1,337 million billion VND. In particular, the total revenue generated from the IT sector is estimated at VND 939,400 billion, the total revenue generated by the telecommunication sector is estimated at VND 365,500 billion and the total revenue generated from the press sector is estimated at VND 13,912 billion …
Challenges in the new era
Although achieving many brilliant achievements after 20 years of Internet access to Vietnam, but at the present time, the digital content industry in Vietnam is stalled, the market share falls into the hands of foreign companies, with 95% of the market share of the social network. The association belongs to Facebook, YouTube, 98% of search engine market share belongs to Google; e-mail is 98% of Gmail, Yahoo; 80% of e-commerce market share is from foreign enterprises.
Regarding online advertising, the two largest social networks, Facebook and YouTube, account for 80% with revenue of USD 350-400 million / year … Meanwhile, revenue and contribution of digital content industry in Vietnam are being decline. In 2016, it was only 739 million USD, down nearly 50% compared to the level of over 1.4 billion USD of 2012.
Hot stories in recent years such as Facebook and Google have a large market share of advertising, e-commerce has been acquired by foreign countries; Smart travel like Booking, Agoda, Traveloka … are overwhelming domestic enterprises; Grab’s new technology taxi, Uber took the market share of traditional taxis, or the story Alibaba is ambitious to acquire Vietnam’s electronic payment industry … are hot issues for digital content enterprises.
Mr. Nguyen Thanh Hung, General Director of VTC Intecom commented: “Technology is developing fast, but management policy has not caught up. When Vietnamese enterprises are under strict management, while there is no management solution with foreign enterprises, it has accidentally created a “reverse protection” for foreign businesses. Therefore, it leads to unfair competition with Vietnamese enterprises, helping foreign content service applications to develop very quickly. From the perspective of users, digital content is growing, but Vietnamese businesses feel increasingly low on their own yard.
For example, cross-border services such as Facebook, Google provide such a super-TV channel, super newspapers, super-ads, huge profits, but don’t need content licensing, while businesses Vietnam wants to do social networking or digital content must go through “forest license”.
CEO of VCCorp, Mr. Nguyen The Tan said that the management mechanism is “binding” digital content enterprises in Vietnam. The characteristics of the digital content industry are making new products, not having regulations in the past, but if you want to have a license to do something like in the past, the big companies when you are unsure of being licensed Then again, it was hindered by creativity.
“Global businesses like Google and Facebook go directly to Vietnam to compete, not need personnel, do not need to organize and overcome all barriers to compete across borders and do business right on their land. They have modern technology, are free to create, while Vietnamese businesses lose everything. Gradually they will occupy the market share of Vietnamese enterprises, when it takes up 70-80% of the market share, then we will lose everything, ”Mr. Tan said.
In order for Vietnam’s Internet, digital content and mobile applications to grow sustainably, even strong enough to reach the world in the next 5-10 years, the market is in desperate need. policies and solutions from the State and management agencies. Domestic enterprises are waiting for a fair and fair competition mechanism with foreign businesses, when the two sides stand on the same stage, enjoy benefits and have similar responsibilities. It is also the approach that many countries around the world have adopted, when they always try to create a market with many service providers coexist.
Comments – Comments:
Don’t miss the second chance of the Internet as an IoT
Mr. Mai Liem Truc, former General Director of the General Department of Post and Telecommunications
We must not miss, not slow in the industrial revolution 4.0. It is necessary to create trust for the country, for leaders, for every citizen and every business that Vietnam can do this. Don’t be too anxious and therefore limit development. The prohibition thinking is out of date. 20 years ago, our generation was brave to bring Internet into Vietnam, there is no reason 20 years later, we still keep the fear of missing the second chance of Internet is IoT.
Internet has brought Vietnam out of the oasis
Mr. Truong Gia Binh, Chairman of FPT
20 years ago, the Internet opened up new living space, digital space for each person, including communication, working, studying and entertainment spaces. The Internet has brought Vietnam out of the oasis of isolation from the IT world. Today, in the era of industrial revolution 4.0, the Internet is the infrastructure of this revolution. Opportunities for businesses are huge.
Competition brings new efficiency and vitality
Dr. Vo Tri Thanh, former Deputy Director of the Central Institute for Economic Management
The fact that we open and allow competition is indispensable, competition itself brings new efficiency and vitality, so in the long term, there is no reason that Vietnam does not open its competition. The problem is how open speed is to adjust the cost of mitigation and healthy competition so that Vietnamese and local businesses gradually learn and grow is the art of management.