Fixed broadband penetration in Vietnam is still relatively low. The main reason for this is the reduced number of fixed lines and the prevalence of the mobile platform. Fixed broadband access is dominated by DSL although fibre has concentrated public development efforts in the last few years, and growth is mostly based on expanding existing infrastructure. Growth in Vietnam’s mobile market over the past few years has been rather low, partly because of high penetration. Market expansion is also hindered by the fact that Internet speeds are generally low, partly because, although there is good connectivity via submarine cables, frequent service interruptions have given the country a reputation for unreliable connectivity. The Vietnam Telecommunication Authority (VNTA) is the regulatory agency in the country.
Vietnam is a densely populated developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization and a more open economy.
The Vietnamese authorities have been oscillating between promoting growth and emphasizing macroeconomic stability in recent years. Poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year.
Vietnam is trying to reform its economy by restructuring public investment, state-owned enterprises, and the banking sector, although Hanoi’s progress in meeting its goals is lagging behind the proposed schedule. Vietnam’s economy continues to face challenges from an undercapitalized banking sector and nonperforming loans.