VNPT - major stakeholder in digital

divide closing in Vietnam

Seoul, June 23-24, 2005

Ms. Nguyen Thi Minh Van

Vietnam Posts and Telecommunications Corp.
Agenda
I. Introduction
II. Project information
III. Partners and roles in project
implementation
IV. Benefits, barriers
V. Lessons
VI. Conclusion
I. Introduction

1. Short video about VNPT

2. Key statistics of Vietnam

- Population: over 81 million, 80% in countryside
- Nominal GDP: US$44.3 billion (2004)
- Per capita income: US$500 (2004)
 I. Introduction

3. ICT statistics by May 2005

- Telecommunications network capacity:
+ International capacity: 800 Mpbs
+ Domestic capacity: over 20 Gbps
- Telephone subscribers: over 11 million (fixed: 52.7%;
mobile, limited mobility: 47.3%) => Teledensity: 13.5%
- Internet capacity: 1 Gbps
- Internet users: 7.1 million => penetration rate: 8.7%
- Broadband (ADSL) on trial December 2002;
official launch: July 1, 2004
- Capacity: 2,300 Mbp; subscribers: 55,000
I. Introduction

4. Short video about telecommunications network capacity

5. Legal environment
- P&T Ordinance
- Directive 58
- Others…
+ level playing field for new players, new services
+ reduced charges
I. Introduction

6. Ambitious plans for 2010

- Telephone access for 100% of communes (to be
realized by end 2005)
- Reaching regional level of telephone, Internet
penetration rate
- PC skills and Internet connection for 100 percent of
universities and colleges, 100 percent of high schools, 50
percent of secondary schools
- Optical fiber and broadband links nationwide; 30
percent of subscribers capable of using broadband services
II. Project information

1. Objectives: Wider access to ICT facilities and services to

population, especially the have-nots
- Establishing telecenters in all local communities, esp in
countryside to provide free library, posts and telecoms services
to local citizens
- Giving PC and Internet skills training and access to
universities, colleges, high schools
II. Project information

2. Outcome (May 2005)

- Telephone, PC and Internet penetration rates improved
in rural and urban areas; countryside having better
awareness and wider access to ICT services in local
venues
- More than 7,200 telecenters (literally called village post
office and cultural place in Vietnamese) established and
operating nationwide, providing newspapers, books and
legal document reference, posts, telecommunications,
Internet and IT services with local employee paid by VNPT
- 2,000 telecenters given PC and Internet access

Short video about telecenters…

II. Project information

- 90 percent of universities and colleges in 59/64 cities and

provinces given Internet access, 50 percent of high
schools provided with Internet connection (very much
close to goal set by the Government for 2010)

Short video about IT, Internet

III. Information on the multistakeholder partnership

1. Principle of project implementation

- Concrete targets set for certain periods
- Partnership key to success

2. Partners
- Government
- MPT
- Private sector and ICT firms
- Related sectors: education and training, media,
administrative local authorities
- Foreign firms and organizations
- The have-nots
III. Information on the multistakeholder
partnership

3. Roles of stakeholders
- Government: State budget for digital divide
closing; more effective legal environment, facilitating
service providers in doing business and reducing
costs
- MPT: State management body overseeing the P&T
sector, creating favorable conditions in terms of
human resource development and finance
- Private sector and ICT firms: donations in cash,
PCs, labs, training courses and materials for project
staff, facilities and beneficiaries
III. Information on the multistakeholder
partnership
- Related sectors:
+ Education and training: co-operating in carrying
out the project in their competence, joining forces in
terms of finance and staff to help establish EduNet
system
+ Media: propaganda to attract and improve social
awareness of the significance of the project
+ Local authorities: reserving slots of land to build
telecenters; creating favorable conditions for project
staff
- Foreign firms and organizations: providing
information, experience sharing, technology transfer,
donations in PCs, labs and training
- Beneficiaries: local-dwellers and students encouraged
to use ICT facilities and services at no or limited costs
IV. Benefits, barriers

1. Benefits:
- For Government: Capable to speed up realization of
ICT goals set for 2010 while still minimizing cost
- For VNPT: performing business and public
obligation functions, penetrating deeper to the rural
market where the majority lives
- For related sectors:
+ Education and training: improved teaching and
learning quality
IV. Benefits, barriers

+ Local authorities: wide and more affordable

communications facilities built and run at VNPT’s
expenses and services provided either free or at low
cost => more comfortable for local administration and
life
+ Private sector, ICT firms, foreign companies and
organizations: giving a hand to the development of
Vietnam in general and ICT infrastructure in particular;
marketing brands and improving prestige, winning
better Government confidence, better position in local
scenario
- The have-nots: wide and cheaper ICT access at door,
making life much easier
IV. Benefits, barriers

2. Barriers
- Limited State finance, low GDP and per capita
income
- Low spending power, limited intellectual level
- Inadequate, ineffective legal system and
documents
- More incentives needed for private sector and
firms, foreign companies and organizations
V. Lessons

- Mobilizing, making most of all available internal forces

- Calling for all supports from private sector, related
branches, international companies , organizations
- Strong determination of Government, clear goals set
for certain periods
- Great efforts from VNPT as key infrastructure builder
and biggest service provider in Vietnam
- Improved social awareness of role of ICT => greater
demands for ICT services
VI. Conclusion

- Digital divide a fact in the world and Vietnam, to be

rectified to achieve equality
- A single country, organization, company or partner
unable to handle, all sided participation and concerted
efforts needed from all parties involved
- Project achieving encouraging results, basis for
future continuation
- More support and help needed from local
stakeholders and international partners.
Thank you for your attention!

Email: nmvan@vnpt.com.vn