On February 19, the National Assembly voted to pass a resolution on piloting special policies aiming at making breakthroughs in the development of science, technology, innovation, and digital transformation.

A notable aspect of this resolution is the allocation of state budget funds to support the businesses that develop 5G networks rapidly.

The telcos that ‘develop 5G networks rapidly’ are those that can develop a minimum of 20,000 5G BTS accepted and put into use from the day the resolution comes into effect to the end of December 31, 2025. 

The total amount of support for telcos will not exceed the total auction proceeds from the auctions of radio frequency usage rights carried out in 2024. 

The support for one 5G station is 15 percent of the average equipment cost for a 5G station to be purchased in 2025.

The resolution also outlines policies for the development of international submarine cable routes with investment by Vietnamese telcos, either as capital contributors or as investors. 

Accordingly, investment projects on international submarine cable routes with landing stations in Vietnam will follow procedures stipulated for investment projects in Vietnam in conformity with laws on investment, and must meet requirements for national defense and security.

The resolution allows the appropriate agencies to make decisions in using DAC (direct appointment of contractor) mode to implement bid packages belonging to investment projects for implementation in 2025-2030, to meet the development requirements of telecommunications infrastructure.

If DAC is not chosen, the selection of contractors for investment project implementation will be carried out in accordance with international practices agreed upon or signed between Vietnamese telecommunication companies and foreign organizations involved in the investment of international submarine fiber optic cables.

Speaking before various associations, clubs, and ICT companies on February 19, 2025, Minister of Information and Communications Nguyen Manh Hung said that Vietnam needs rapid development of telecommunications network with nationwide coverage, yet investments are slow with only about 5,000 stations developed each year. 

For the first time, the state would give financial support of up to 15 percent of the investment value, if telecom operators manage to set up at least 20,000 5G stations in 2025.

Talking about the policy on developing international submarine cables by Vietnamese telcos either as capital contributors or investors, Hung stated that Vietnam's existing submarine cables are few and risks exist for some routes. 

Vietnamese companies are making investment and seeking new directions and routes to ensure the safety and sustainability of telecommunication networks. The newly passed resolution by the National Assembly sets up policies to develop international submarine telecommunication cables with Vietnamese telecommunications companies' involvement either as capital contributors or investors.

Rita Mokbel, Chair of the Board of Directors of Ericsson Vietnam, said 5G will play a crucial role in advancing Vietnam's digital infrastructure. It has the potential to be a transformative factor in various industries, enabling automation, enhancing productivity, and optimizing resource management. 

Industries such as manufacturing, logistics, and smart cities will benefit the most. A dedicated 5G network infrastructure will allow companies to innovate and reduce costs while creating new revenue opportunities for telecom operators.

"5G will be an essential tool for Vietnam to achieve the goal of building a digital economy, expected to contribute 20 percent to the country’s GDP by 2025," said Mokbel.

Viettel, one of the three largest mobile network operators, said it currently has over 6,500 5G BTS, covering 100 percent of the capitals of all 63 provinces and cities, Industrial Zones, tourist areas, ports, airports, hospitals, and universities. 

Viettel’s 5G network speed can reach 700Mbps-1Gb, which is 10 times faster than 4G and the latency is nearly zero. 

Its NSA 5G network with speed up to 20 times higher than 4G provides services which require prompt reaction such as self-propelled vehicles, remote surgeries, remote control in smart factories, and virtual reality classrooms.

Viettel said that its total 5G subscriptions reached 5.5 million just five months after launch, which shows the huge appeal and potential of 5G in Vietnam.

Thai Khang