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Dec 15, 2021 / 08:16

Vietnam to license 5G commercialization in 2022

5G is predicted to become the dominant mobile access technology in 2027.

For the successful digital transformation and economic recovery, Vietnam will strive to license 5G commercialization in 2022 and expand 5G coverage in high-tech industrial parks and areas in high demand soon.

 Delegates attend the hybrid forum. Photos: Phi Nhat

It is the determination of the Authority of Telecommunications under the Ministry of Information and Communications(MIC), who will be in charge of licensing 5G commercialization and helping Vietnam to catch up with leading countries in 5G deployment, Nguyen Phong Nha, the Department’s Deputy Director-General, underlined. 

Sharing at a hybrid at the forum “Driving Growth & Innovation through 5G” on December 14, Denis Brunetti, President & Head of Ericsson Vietnam, Myanmar, Cambodia & Laos, said given Vietnam’s ambitions for digitizing society, 5G is expected to play a fundamental role by increasing broadband connections, improving rural coverage thus bridging the digital divide, enabling Industry 4.0 and increasing contribution of digital communications sector to the country’s GDP. 

A key component of Vietnam’s socio-economic development strategy is the digital economy, which is expected to contribute 7% of GDP in 2025 and 7.5% by 2030, he said.

“As a technological age, we are moving into a new space of connected machines, vehicles, wearables, and many other things," Denis commented.

"From within these spaces, entire new enterprises and business models will emerge and deliver new value opportunities across manufacturing, transport, healthcare, energy, and 5G will unlock the potential of the fourth Industrial Revolution in Vietnam.”

According to Christophe Poisson, a representative of the Digital Sector Committee under the European Chamber of Commerce (EuroCham) in Vietnam, the world is undergoing a major shift towards the digital era, and Vietnam is taking part in it with brio. 

He underlined: “Our members are digital businesses and we have been proud to take part in Vietnam's digital transformation journey in many ways: providing digital transformation advisory services in the sectors of financial services, education, and smart city projects to name a few.”

“We standby with Vietnam’s authorities to share our expertise and perspective as digital experts, entrepreneurs, and investors to implement the most optimal policies and technologies for Vietnam to thrive in the future,” he said.

According to Ericsson’s mobility estimates, 5G will become the dominant mobile access technology in 2027. About 4.4 billion 5G subscriptions are forecast by end of 2027 accounting for 49% of all mobile subscriptions at that time. 5G networks are estimated to cover 75% of the world’s population in 2027 and carry 62% of all mobile data traffic. 

In Southeast Asia and Oceania, 5G subscriptions are expected to account for 45% of all mobile subscriptions by 2027.

 Delegates are discussing issues related to digital transformation 

Delegates at the event shared the view that the process of digital transformation is one of the key pillars for economic growth, increasing labor productivity, creating new development space, and opening up great opportunities for Vietnam to make breakthroughs and rapidly catch up with developed countries.

Vo Thanh Thong, Deputy Minister of Investment and Planning, emphasized that digital transformation becomes even more urgent when the Covid-19 pandemic has impacted and changed people's lives and habits posing unprecedented difficulties and challenges, forcing organizations, individuals, and even State management agencies to change and adapt. 

The Ministry of Planning and Investment, a pioneer in innovation and reform, has worked closely with relevant stakeholders, especially the Ministry of Science and Technology, and the MIC in jointly researching, proposing, and implementing solutions to promote the process of digital transformation and innovation of Vietnamese enterprises.

Nha from the MIC’s Authority of Telecommunications added that the ministry has submitted to the Government for promulgation Decree No. 88 on the collection of fees for granting the right to use frequency bands, pricing, licensing, and transferring the right to use frequency bands. 

“This is an important basis for auctioning and licensing 4G and 5G mobile bands, removing bottlenecks on the legal aspect of the implementation of auctions, licensing and transfer of the right to use frequency bands,” he said.

The authority will continue to coordinate with telecommunications units and businesses to evaluate the 5G network testing process, develop criteria for coverage and quality for licensing, solutions to use common infrastructure to save investment costs, and improve the efficiency of network use and exploitation.

Schools, hospitals, and tourist attractions in Hanoi set for 5G coverage by 2030

The Hanoi People’s Committee has issued a plan for the development of telecommunication infrastructure in the city, a move expected to aid the city’s quest for digitalization until 2025, with a vision to 2030.

Under the plan, Hanoi targets to provide 5G for the public by 2030, in which 100% of industrial parks, universities, research institute, schools, hospitals, and tourist attractions are covered by the next-generation network.

With the 5G network seen as the foundation for the development of the digital economy and society, Hanoi stressed the necessity to prioritize broadband development at hi-tech and industrial parks.

The city encourages all parties to join the city’s efforts for telecom infrastructure development while urging telcos to take action to ensure data security and privacy.