In 1984, Than was appointed Director General of the General Department of Posts. At the time, Vietnam was just beginning its Doi Moi (Renovation) period, and the postal sector was among the poorest and most outdated in the country. Its revenue came mainly from newspaper delivery and stamp sales.

Mai Liem Truc, former General Director of the General Department of Posts, recalled that Vietnam was facing a severe crisis at the time, partly due to the devastating aftermath of war and partly due to the centralized, bureaucratic, and subsidized economy. The total number of telephone subscribers was only about 100,000, with Hanoi having around 10,000 and HCMC about 30,000. 

The telecommunications network was small and entirely analog. The country faced not only an economic embargo but also a technology and telecommunications embargo, with Vietnam’s country code 84 blocked.

“The wind of innovative thinking and candid discussion reached Vietnam’s postal sector. I want to emphasize the role of former General Director Dang Van Than, who made significant contributions to this innovative mindset,” Truc recounted.

Push for modernization

At the time, numerous obstacles existed, including a severe lack of funds: the entire sector didn’t even have $1 million. While Vietnam’s analog network was still modern compared to other socialist countries, the lack of investment capital and the idea of abandoning it for new equipment raised concerns.

Despite opinions that Vietnam was too poor to invest and it could utilize analog switchboards transferred from Germany, Than made a strategic and courageous choice. He pressed forward with digitalization, rejecting the idea of clinging to outdated systems. Time would later prove him right:  his decision marked a turning point in the sector’s development.

With his leadership, the department adopted a mindset of self-reliance and innovation. It developed creative strategies to bypass the US embargo, attract foreign currency and high-tech investment, and train technical personnel. 

International telecommunications was chosen as the breakthrough segment. The department leveraged ODA, proposed flexible funding mechanisms, and took foreign loans with the government’s guarantee.

Vietnam’s telecom network was still small at the time, which meant that transitioning to digital technology would be less disruptive. It was possible to switch out the entire analog system overnight, a luxury that more developed countries with tens of millions of subscribers did not have.

At that time, 98 percent of global landline networks were still analog. Only a handful of countries had begun moving to digital. 

“Some people asked: The postal sector relies entirely on analog technology; who will manage digital systems, and where will we find funds to hire foreign experts? Later, when the sector borrowed up to $400 million for investment, many questioned whether we could repay the debt or risk bankruptcy,” Truc recalled.

“But we were confident in our capabilities. The postal sector proactively innovated, proposed policies to the government, and received strong support from the then PM Vo Van Kiet,” Truc said. 

Breakthrough success 

The leadership of the General Department of Posts then decided to conduct experiments to establish a practical foundation, learn lessons, and set development directions.

The first experiment was in international telecommunications, starting with a business cooperation project involving a small satellite station (VISTA) of OTC (now Telstra, Australia), using digital technology from July 1987 in HCMC.

Two years later, larger initiatives followed: building three high-capacity satellite ground stations in Hanoi, Da Nang, and HCMC with the most advanced technology (1989-1990); and constructing microwave systems, fiber-optic systems, and large digital switchboards in Hanoi, HCMC, Hai Phong, Quang Ninh, Nam Dinh, and other areas, gradually forming the framework of a modern telecommunications network with broadband digital microwave systems and a nationwide fiber-optic network.

By 1995, Vietnam’s telecommunications network was fully digitized across provinces and cities, with transmission, switching, and automated switchboards, while globally, less than 50 percent of networks were digitized. Technologically, Vietnam’s telecommunications network was on par with regional peers.

In 1994-1995, Vietnam committed to digital mobile telecommunications technology (GSM). In 1995, the Vietnam Posts and Telecommunications Corporation signed a Business Cooperation Contract (BCC) with Sweden’s Comvik to build what later became the MobiFone network. The government began opening the domestic market, marked by the establishment of companies like Viettel and Saigon Postel.

Thai Khang