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Economic conditions

Vietnam's Telecommunications Sector Prepares for WTO Membership

Strategic Insights

— 1 min read

As Vietnam prepares to join the World Trade Organisation (WTO), the country's telecommunications sector is optimistic about the challenges and opportunities that lie ahead. With eight domestic companies providing a range of services, including postal services, internet, and telecom services, the sector is gearing up to compete with multinational companies and foreign industrial groups. The Vietnam Post and Telecommunications (VNPT) corporation has already taken steps to separate telecommunications from postal services and has begun the process of equitisation, with 26 enterprises having gone through the process so far.

Key Takeaways:

  • The Vietnamese telecommunications sector is preparing for WTO membership, feeling ready to take on fierce competition with foreign companies.
  • The sector has established a competitive market with eight domestic companies providing all services, including postal services, internet, and telecom services.
  • The Ministry of Telematics has allowed non-network infrastructure owning enterprises to enter into joint ventures with foreign partners, gaining increased investment, expertise, and technological infrastructure upgrades.
  • The VNPT corporation has separated telecommunications from postal services to create conditions for the telecommunications sector to develop into an industrial consortium.
  • The corporation has sped up state-owned enterprise equitisation, with 26 enterprises having gone through the process so far.
  • Both VNPT and its mobile telephone service giants, VinaPhone and Mobiphone, plan to become joint-stock companies early next year.
  • Domestic enterprises must work on a long-term development strategy, upgrade their networks to international standards, and conduct research to launch more services to the market.
  • VNPT enterprises need to closely coordinate with each other for mutual development and increase the competitive edge of each enterprise and the entire industry.

Statistics:

  • 8 domestic companies provide a range of services, including postal services, internet, and telecom services.
  • 26 VNPT enterprises have gone through the process of equitisation.
  • Vietnam has managed to establish a competitve telecommunications market.
  • The Telematics Ministry has allowed non-network infrastructure owning enterprises to enter into joint ventures with foreign partners.
  • VNPT has sped up state-owned enterprise equitisation.

Sources:

  • Vietnam News Agency
  • VNA (Vientnamese News Agency) - May 17, 2006
  • Asia Pulse - May 17, 2006
  • (Reference to the agreement between Vietnam and the US on May 13 to technically conclude bilateral negotiations on Vietnam's WTO membership)

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