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BUSINESS REPORT

will be a few years before the 5G network is
as popular as 4G. “The deployment of 5G in
Vietnam is still in its early stages, so at this
point it will experience some difficulties, such
as the cost of equipment and services being
high, the number of terminals supporting 5G
being limited, and 5G not being popular
because of its high cost and narrow coverage
area,” the MobiFone representative said. “The
5G trial in Vietnam was when Covid-19 had
broken out, making it difficult to exchange
information and equipment. Developing 5G
will be a major effort and requires the deter-
mination of Vietnam’s telecommunications
and information industry as a whole and sup-
port policies from the government.”

Looking ahead
Industry 4.0 is making its presence felt all
around the world and 5G is an important piece of
infrastructure that will help Vietnam stay abreast
of trends thanks to its high speed and low latency,
which are essential for many sectors. Vietnam is
therefore taking proactive steps to get on board
the 5G train. The government’s orientation on
Industry 4.0 as well as the Decision on National
Digital Transformation to 2025 from the Prime
Minister are driving forces for operators to deploy
5G in the country. The MobiFone representative
noted that Vietnam is determined to catch up
with the world in Industry 4.0 by embarking on
the early deployment of 5G networks, so the
country should be proud to be one of the leaders
in the region in terms of commercial deployment.
Vietnam possesses certain advantages,
meanwhile, as it can produce much of the
equipment and infrastructure necessary for
5G. Viettel has succeeded in researching and
manufacturing core products, both software
and hardware, for 3G, 4G, and now 5G. “We
have moved from being a pure telecoms service
provider to a digital service provider, including
the foundations of Industry 4.0: AI, Big Data,
pHoto: VIet tUAN
3D, and robotics,” the Viettel representative
activities, in accordance with the national relates to issues such as frequency spectrum said. “Along with the provision of services,
orientation towards digital transformation.” planning orientation for 5G, the implementation Viettel has also built a set of tools and cyber
of frequency auctions, regulations on sharing security forces to ensure a safe environment
Issues to address infrastructure of the station, and transmission for businesses and people in the digital society.”
Though proactive steps have been taken in between carriers to reduce the costs of deploying VNPT has also had success in research and
deploying the 5G network, carriers will have and switching off 2G/3G signals,” the repre- development, mastering and manufacturing
to face certain challenges. According to a 5G sentative said. “The early issuance of circulars some 5G equipment. In the time to come, it
development report published by Cisco in late and guidelines are important in facilitating will produce some 5G network items, such as
2020, Vietnamese mobile service providers the early deployment of 5G in Vietnam.” Smallcell, FWA, and security systems, cutting
would have to invest $1.5-2.5 billion in infra- Of a similar mind, the Viettel representative investment costs. According to plans and the
structure development in 2020-2025 to launch said that incomplete policies on digital products previous development of the 3G/4G network,
and operate 5G services. “This is a large sum, and services is one of the factors behind the VNPT’s 5G network will make full use of the
so carriers must be cautious,” Ms. Nguyen Thi slow digital transformation process. “The biggest entire infrastructure of stations, power sources,
Phu Ha, Vice Chairwoman of the Committee business difficulty is not only in telecommuni- high stations, transmission, and part of the
for the Management of State Capital at Enter- cations but also in taking advantage of digital core network and database of 2G/3G/4G net-
prises, was quoted as saying. The VNPT rep- transformation with a foundation of 5G tech- works. “VNPT has also promoted signing
resentative agreed, saying that 5G investment nology,” he said. “I hope regulators will quickly infrastructure sharing agreements with other
is substantial while the Average Revenue Per complete policies on digital products and services, carriers and considered RAN Sharing solu-
User (ARPU) is low. facilitate the expansion of digital transformation, tions,” the VNPT representative said. “It will
VNPT also pays due regard to the legal and take full advantage of technologies like 5G.” continue to deploy 5G to bring the best of
framework. “A legal framework is needed that Many analysts, meanwhile, have said it benefits to society.” %

FEBRUARY 2021 | VIETNAM ECONOMIC TIMES | 31