Can Vietnam become a global design center?
The introduction of 4G and 5G will be important foundations for Vietnam’s digital economy.
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According to Qualcomm Vietnam, Cambodia and Laos CEO Thieu Phuong Nam, the platform for a digital economy is a strong mobile telecommunications infrastructure.
4G was introduced one year ago. However, Nam said now is the right time for the government to begin thinking about policy, technology and ecosystem for 5G.
He cited a recent report as saying that by 2035, 5G will create a new impetus for economic development, worth US$12 trillion, by creating new services, jobs and values.
“Digital economy means all fields will utilize technology and all devices will be connected. The development of 4G and 5G mobile telecommunication infrastructure will play the decisive role in the development of the digital economy in Vietnam,” Nam said.
“4G and 5G will change a lot of industries,” he said.
To deploy 5G, Vietnam needs to have a strong 4G platform. When 5G is applied, it will have speed hundreds of times (many gigabit per second) higher and will be implemented in central cities first.
“5G will be built on the basis of 4G. The investments in 4G are very important if Vietnam wants to march toward 5G,” Nam said.
The 4G services provided by domestic mobile network operators have brought big benefits. Users have to pay a little higher for 4G, but can enjoy higher speed and bigger capacity than 3G.
When asked about Vietnamese firms’ ability to receive modern technology and grab opportunities, Nam said Vietnamese engineers are very good but Vietnam still lacks resources. It is difficult to find excellent engineers.
The other difficulty, according to Nam, is the lack of capital.
Vietnam, however, is capable of becoming a design center of the world, he said, adding that. Vietnamese firms need to design if they want to have high efficiency in the value chain.
He also mentioned the difficulty in market access, especially when Vietnamese consumers prefer foreign brands to domestic ones. Domestic firms must prove the high quality of their products.
The 4G competition has begun heating up in Vietnam. MobiFone announced it will be the first Vietnamese corporation to cooperate with major service providers in the world, such as Google, Facebook, iFlix, YouTube, Fim+, to develop and exploit fully-copyrighted content.
Some 43,000 4G BTS stations have been deployed nationwide, covering 95% of Vietnam’s population.
