1           Major Regulation/Legislation

1.1          A new Post and Telecommunication Act had been approved by the standing committee of the National Assembly and proclaimed by the President. This is the highest legal document concerning post, telecommunication and information industry.

1.2          The government decree No. 90/2002/ND-CP, dated on 11/11/2002, stipulates the functions, responsibilities, and organization of the Ministry of Posts and Telematics.

1.3          The government decree No. 55/2001/ND-CP, dated 23/8/2001, issuing regulations on Internet services.

1.4          Post & Telecommunication development strategy until the year 2010

§         Had been approved by the Prime Minister (Decision No. 158).

§         Strategic objectives:

-          Develop the national information infrastructure with advanced technology. The NII should have high capacity, high service quality, nation-wide coverage.

-          Provide a wide range of postal and telecommunication services to satisfy the demand of society. The service charges should be comparable to that of other countries in the region. Services will be provided to both urban & rural areas.

-          Until the year 2010: the telephone/Internet penetration rate should reach the average rate of the region.

-          Build the post and telecommunication industry to become a leading sector, contributing an increasing portion to the overall GDP of the country.

1.5          Internet development plan for the period 2001-2005

§         Had been approved by the Prime Minister (Decision No. 33).

§         Overall objectives:

-          To accelerate the Internet development and penetration.

-          To ensure good service quality and affordable service charges.

-          To create Internet as a conducive environment for various social-economic activities.

§         Concrete objectives:

-          Until the year 2003: all R&D institutions, universities, colleges, vocational training institutions will have Internet connection.

-          Until the year 2005:

v       Internet account density: 1.5%.

v       Internet user density: 5%.

v       100% of central hospitals 50% of provincial hospitals will have Internet connection.

v       50% of high schools will have Internet connection.

-          Encourage competition:

§         Until 2005: 3-5 IXP, 30-40 ISPs and several OSPs.

2           Recent developments

2.1          The government decree No. 75/2003/ND-CP was issued on 26/6/2003.

This government decree stipulates: The position, functions, responsibility, organization and operation of post, telecommunication and IT inspecting unit. According to the decree, this inspecting unit is part of the Ministry of Posts and Telematics responsible for inspection and investigation in the field of post, telecommunication, IT industry, Internet, electronics, radio frequency management.

2.2          A regulation on the management and usage of Internet resources was issued on 26/5/2003.

Viet Nam Network Information Center - VNNIC is the organization responsible for the management and allocation of Internet resources such as domain names, IP addresses, ASN numbers etc. in Vietnam.

2.3          A Memorandum of Understanding (MoU) was signed between the Ministry of Posts and Telematics and the Ministry of Education and Training on the development of the Education Network (EDUNET).

The two parties agreed to co-operate on the development of the education network interconnected with the Internet. The Ministry of Education and Training is responsible for the development of content and applications for education and training. The Ministry of Posts and Telematics on the other hand is responsible for establishing Internet connection for universities, colleges, vocational schools and high schools. 

3           Market status

Network infrastructure providers

1.       Viet Nam Post and Telecommunication Corporation - VNPT is the incumbent operator licensed to provide a broad range of post and telecommunication services to meet market demand.

2.       Viet Nam Military Telecom Company - VIETEL is providing:

§         Fixed local, domestic long distance and international telephone service.

§         Domestic long distance and international telephone service using IP protocol.

§         Internet Exchange Service - IXP, Internet Access Service - ISP.

§         Domestic local and long distance leased line service.

§         Mobile service.

3.       Saigon Post and Telecommunication Corporation - SPT provides:

-          Fixed local telephone service (only in Ho Chi Minh City).

-          Internet Exchange Service, Internet access service,

-          Domestic long distance and international VoIP services.

-          Mobile cellular telephone service using CDMA technology.

4.       Viet Nam Shipping Telecommunication Company - VISHIPEL provides:

-          Inmarsat services and radio communication services for ships at seas.

-          Domestic and international VoIP service.

5.       Electricity Telecommunication Company - ETC: this company has just been awarded licenses to provide:

§         Domestic long distance, international VoIP service.

§         Domestic leased line service.

§         Fixed local telephone service.

§         Domestic long distance service.

§         International telephone service.

§         Mobile services.

6.       Hanoi Telecom provides:

-          Fixed local telephone service (only in Hanoi City).

-          Internet Exchange Service, Internet access service,

-          Domestic long distance and international VoIP services.

-          Mobile cellular telephone service.

Internet exchange service Providers:

1.       Vietnam Data Company - VDC.

2.       Vietnam Military Telecommunication Company - VIETEL.

3.       Finance Promotion and Technology - FPT.

4.       Electricity Telecommunication Company - ETC.

5.       Saigon Post and Telecommunication Corp. - SPT.

6.       Hanoi Telecom.

Internet access Service providers: 13

Internet Online Service Providers: 11

4           Tariffs and service charges issue

In areas where there is strong competition operators are authorized to set tariffs and service charges. MPT retains control over tariffs and service charges in monopoly areas. MPT aims to reduce service charges until they reach the regional level.

§         Tariff system has been reviewed and revised several times. The determination of service charges is based on costs to provide the service (cost based method).

§         Charges for local telephone service, domestic long distant telephone service, international telephone service, mobile telephone service, leased line service, Internet exchange service and Internet access service have been adjusted and reduced.