Vietnam boasts one of the most advanced communication infrastructures in Southeast Asia, with fiber optic network coverage reaching 72.4% and mobile network coverage at 99.7%. This robust infrastructure provides significant support for digital operations, attracting substantial foreign investment. This article provides a detailed analysis of Vietnam’s current communication infrastructure status, distribution characteristics, and practical investment advice for potential investors.

1. Overview of Vietnam’s Communication Infrastructure

1.1 Nationwide Network Coverage

Vietnam’s communication infrastructure covers the entire country, with fiber optic and mobile network coverage rates reaching 72.4% and 99.7%, respectively. The fiber optic network extends to all communes, 91% of villages, and all schools. By 2022, Vietnam’s fiber optic cables and base stations covered more than 800,000 kilometers, with 19.79 million households connected to the fiber network. The mobile network serves over 120 million users, including 94.2 million smartphone users and 82.2 million broadband users, representing 74.3% of the population. Cities like Hanoi, Ho Chi Minh City, and Da Nang have already launched 5G networks.

1.2 User Base and Market Dynamics

According to the Ministry of Information and Communications of Vietnam, the internet penetration rate in Vietnam was 94% in 2022, with users spending an average of 7 hours per day on internet-related activities. Approximately 72.1 million people use mobile internet daily, ranking 13th globally. Vietnam has seven mobile communication service providers, five of which offer 4G services, and 63 companies provide internet access services. This extensive user base presents a substantial market potential for various digital services and products.

2. Communication Infrastructure Evaluation Guide

2.1 Assessing Network Coverage

When evaluating a business location, it is essential to consider the network coverage of the area. Companies should access detailed data on fiber optic and mobile network coverage through official data from the Ministry of Information and Communications of Vietnam and by collaborating with local communication service providers.

• Method: Use GIS mapping tools to analyze network coverage in the target area, focusing on the fiber optic network’s reach and mobile network signal strength. Ensure the selected site is within a high-coverage area capable of providing stable access to high-speed internet.
• Standard: Areas with a fiber optic network coverage rate of 90% or more are rated as excellent, those with coverage between 70%-90% are rated as good, and areas below 70% require careful consideration.

2.2 Evaluating Network Quality and Speed

Network quality directly impacts the daily operational efficiency of enterprises, particularly those relying on cloud computing and big data processing.

• Method: Use tools like Speedtest to measure actual network speeds in the selected area, including download and upload speeds and network latency. Engage with multiple internet service providers (ISPs) to obtain detailed parameters of different service packages.
• Target Values: For businesses requiring high-speed data transmission, areas with a download speed of at least 50 Mbps, upload speed of at least 20 Mbps, and latency below 20 milliseconds are recommended.

2.3 Assessing Infrastructure Sustainability

For long-term investments, infrastructure sustainability is a critical factor. The Vietnamese government’s investment plans for communication infrastructure should be a key consideration for companies.

• Method: Research Vietnam’s communication infrastructure development plans, particularly future expansion projects and upgrade plans. Contact the Ministry of Information and Communications of Vietnam for the latest policy documents and investment plans.
  • Contact Information: Ministry of Information and Communications of Vietnam, Phone: +84 24 3944 6767, Email: [email protected].
• Evaluation Standard: Ensure the chosen location is within the focus area of future investment to enjoy priority in network upgrades and expansions.

3. Regional Distribution of Vietnam’s Communication Infrastructure

The distribution and development level of Vietnam’s communication infrastructure vary across different regions. The following sections provide a detailed analysis of the 5G coverage, network speed, and infrastructure quality in northern, central, and southern Vietnam, along with comparisons and ratings to guide investment site selection.

3.1 Northern Region

• 5G Coverage: Centered around Hanoi, the northern region is Vietnam’s political and economic core. The 5G network coverage in Hanoi and its surrounding provinces is relatively high, with nearly 100% coverage in Hanoi’s main commercial and industrial areas. Additionally, provinces like Bac Ninh and Thai Nguyen are gradually deploying 5G networks.
  • Rating: 5G Coverage: 9/10
  • Data Source: According to 2022 data from the Ministry of Information and Communications of Vietnam, the average 5G network coverage in Hanoi is 98%, while Bac Ninh and Thai Nguyen have a coverage rate of 85%-90%.
• Network Speed: Hanoi ranks among the top in network speed in northern Vietnam. According to Speedtest statistics, Hanoi’s average download speed in 2022 was 55 Mbps, with an upload speed of 25 Mbps and a latency of around 20 milliseconds.
  • Rating: Network Speed: 8/10
  • Data Source: Speedtest 2022 statistics indicate that Hanoi’s network speed ranks second nationwide, just behind Ho Chi Minh City.
• Infrastructure Quality: The fiber optic network infrastructure in the northern region is relatively complete, with fiber cables reaching all communes. Hanoi and its surrounding industrial parks are equipped with modern communication facilities.
  • Rating: Infrastructure Quality: 8/10
  • Data Source: The 2022 report from the Ministry of Information and Communications of Vietnam indicates that the fiber optic network penetration rate in Hanoi and surrounding areas exceeds 75%.

3.2 Central Region

• 5G Coverage: Represented by Da Nang, the central region currently has relatively low 5G coverage but is developing rapidly. The main commercial and tourist areas in Da Nang have achieved 5G network coverage, but surrounding provinces like Quang Nam and Hue have lower coverage rates, primarily in urban core areas.
  • Rating: 5G Coverage: 6/10
  • Data Source: According to a 2022 report by the Ministry of Information and Communications of Vietnam, Da Nang has about 70% 5G coverage, while surrounding provinces have less than 50%.
• Network Speed: Da Nang’s network speed is slightly lower than Hanoi and Ho Chi Minh City. According to Speedtest statistics, Da Nang’s average download speed is 45 Mbps, upload speed is 20 Mbps, and latency is 25 milliseconds.
  • Rating: Network Speed: 7/10
  • Data Source: Speedtest 2022 statistics show that Da Nang ranks fourth nationwide in network speed.
• Infrastructure Quality: The fiber optic network coverage in the central region is relatively sparse, especially in remote areas, where communication infrastructure is gradually improving. Da Nang has high fiber optic network coverage, but infrastructure development lags in Quang Nam and Hue.
  • Rating: Infrastructure Quality: 6/10
  • Data Source: The 2022 report from the Ministry of Information and Communications of Vietnam states that the fiber optic network penetration rate in the central region is about 60%, indicating room for improvement compared to the northern and southern regions.

3.3 Southern Region

• 5G Coverage: The southern region, especially Ho Chi Minh City, is Vietnam’s most developed economic area, with the highest 5G network coverage. Ho Chi Minh City has almost complete 5G coverage in all commercial, industrial, and densely populated areas, while neighboring provinces like Binh Duong and Dong Nai are rapidly expanding their 5G networks.
  • Rating: 5G Coverage: 10/10
  • Data Source: According to the Ministry of Information and Communications of Vietnam, 2022 data show that Ho Chi Minh City has a 5G coverage rate of 99%, while Binh Duong and Dong Nai have a coverage rate of about 85%-90%.
• Network Speed: Ho Chi Minh City’s network speed ranks first nationwide, with an average download speed of 60 Mbps, upload speed of 30 Mbps, and latency of just 15 milliseconds.
  • Rating: Network Speed: 9/10
  • Data Source: Speedtest 2022 data show that Ho Chi Minh City has the highest network speed in Vietnam, making it suitable for companies requiring high data transmission speeds.
• Infrastructure Quality: The communication infrastructure in the southern region is highly developed, with the fiber optic network almost covering all industrial parks and urban areas. Ho Chi Minh City and its surrounding areas have high-quality infrastructure, which will continue to receive significant investment from the government and private enterprises.
  • Rating: Infrastructure Quality: 9/10
  • Data Source: The 2022 report from the Ministry of Information and Communications of Vietnam indicates that Ho Chi Minh City’s fiber optic network penetration rate exceeds 85%, leading nationwide.

4. Investment Recommendations and Opportunities Analysis

4.1 Site Selection Recommendations

Based on network coverage and quality, companies should choose locations that align with their business needs.

• Method: Combine the previous network coverage, quality, and sustainability assessment results to select the best region for the company’s long-term development needs. It is recommended to sign preliminary agreements with local communication service providers before making a decision to ensure optimal services.
  • Service Provider Contact: Viettel (Phone: +84 24 6255 6789, Email: [email protected]) and VNPT (Phone: +84 24 8000 1111, Email: [email protected]) are Vietnam

the two major communication service providers in Vietnam and should be considered for service agreements.

4.2 Opportunities for Digital Transformation

Vietnam’s extensive coverage and fast networks provide an excellent environment for companies looking to implement digital innovations, such as remote work, smart manufacturing, and online services.

• Method: Companies should leverage Vietnam’s 5G networks and fiber optic coverage for digital innovation. This could involve implementing cloud-based solutions or IoT technologies for enhanced operational efficiency. Early engagement with the Ministry of Information and Communications can provide insights into available policy support and subsidies for digital transformation projects.
  • Contact Information: Ministry of Information and Communications of Vietnam, Phone: +84 24 3944 6767, Email: [email protected].

4.3 Partnering with Communication Service Providers

To ensure the highest quality communication services, companies are advised to establish long-term relationships with major local communication service providers.

• Method: Before investing, companies should negotiate with local communication service providers to secure exclusive enterprise service packages. Long-term service contracts can often secure better pricing and priority support.
  • Contact Information: As mentioned above, Viettel and VNPT are the key communication service providers, and companies can approach them to secure comprehensive network service support.

5. Policies and Support for Vietnam’s Communication Industry

5.1 Government Policy Support

The Vietnamese government is heavily invested in developing its communication infrastructure and has launched several policies to support investors. For example, from November 27 to December 1, 2023, the Vietnamese Minister of Information and Communications, Nguyen Manh Hung, engaged in cooperative exchanges with several relevant Chinese departments and enterprises. During meetings with Chinese Minister of Industry and Information Technology Jin Zhuanglong, both countries shared experiences in managing and developing digital infrastructure, particularly regarding 5G commercialization and ICT industry development. This indicates that the Vietnamese government actively seeks international partnerships to further advance its communication industry.

• Policy Details: Vietnam’s government has outlined specific tax incentives and financial support for new communication facility construction and network expansion projects in the “National Communication Development Plan.” The Ministry of Information and Communications also plans to co-host a seminar on data management with China’s National Data Bureau in 2024, aiming to promote data market development.
  • Contact Information: Enterprises can contact the Ministry of Planning and Investment of Vietnam for specific policy support information, Phone: +84 24 3825 4760, Email: [email protected].

5.2 Investment Incentives

To attract foreign investment in the communication sector, the Vietnamese government offers several incentives, including land use fee exemptions and infrastructure construction subsidies. Building on experiences in data management and economic digitalization from cooperation with China, Vietnam is exploring new incentive measures to encourage more foreign companies to invest in digital infrastructure.

• Specific Measures: Eligible companies can apply for up to 15 years of corporate income tax exemption and land use fee exemptions. The government also provides subsidies for communication facility construction, with specific amounts determined by the project scale and location. In 2023, during a smart city management project in Shenzhen, China and Vietnam jointly explored how to use over 250,000 cameras to enhance city management efficiency, demonstrating Vietnam’s strong potential in digital transformation.
  • Contact Information: Relevant incentives can be consulted through the Ministry of Industry and Trade of Vietnam, Phone: +84 24 2220 2222, Email: [email protected].

5.3 Compliance Guidelines for Businesses

Investing in Vietnam’s communication sector requires companies to comply with local laws and regulations to ensure legal operations. In 2023, the Ministry of Information and Communications of Vietnam discussed with various Chinese institutions and companies how to enhance regulatory capabilities in media management, cybersecurity, and data management to ensure legal compliance amidst the rapid development of the digital economy.

• Legal Requirements: Vietnam’s “Law on Telecommunications” and “Law on Cybersecurity” provide the primary legal frameworks, and businesses must ensure that data storage, user privacy, and network security comply with regulations. Vietnam also discussed with China’s Postal Administration how to improve the digitalization of postal and logistics services through transformation and upgrading, ensuring compliance with international standards in future development.
  • Contact Information: Businesses can contact the National Cybersecurity Center of Vietnam for the latest compliance requirements, Phone: +84 24 3934 8567, Email: [email protected].

6. Conclusion and Outlook

6.1 Prospects for Vietnam’s Communication Infrastructure

With continued investment in communication infrastructure by the Vietnamese government, Vietnam’s network coverage and quality are expected to improve further in the coming years. The comprehensive rollout of 5G networks, in particular, will provide robust support for digital transformation across various industries.

6.2 Investment Recommendations

Based on the analysis above, investors should prioritize the southern and northern regions to leverage local network advantages fully. Companies interested in investing in the central region should plan ahead and collaborate with local governments to ensure network infrastructure meets future needs.

6.3 Long-Term Strategic Planning

Investors in Vietnam should develop a long-term communication strategy, closely monitor government policies and market changes, and collaborate closely with the government and communication service providers. This approach will ensure that their network needs are met over the long term and prepare for future expansion.

By providing a comprehensive understanding of the methods for evaluating communication infrastructure and the current state of Vietnam’s communication infrastructure, this article offers investors detailed guidelines and practical advice for finding the best investment paths in the Vietnamese market and achieving sustainable development.