Accelerating 5G commercialization

Beginning trials in late 2020, major Vietnamese mobile network operators have now conducted 5G technology trials in 55 out of 63 provinces and cities, reporting positive results. However, the commercialization of 5G is lagging behind.

Infrastructure is ready.

The first 5G smartphones appeared on the Vietnamese market right when Vietnam began testing 5G networks (in 2020). In July 2020, the VinSmart brand launched the Vsmart Aris 5G, the first "Made in Vietnam" 5G smartphone.

In May 2021, under the supervision of the Telecommunications Department ( Ministry of Information and Communications ), the three largest mobile network operators in the country – Viettel, VinaPhone, and MobiFone – signed an agreement to jointly test 5G networks to expedite the nationwide commercial deployment of 5G services; while also ensuring urban and social aesthetics and enhancing the efficiency of infrastructure investment by businesses. By mid-2023, more than 30% of smartphones in Vietnam supported 5G. And in the third quarter of 2023, Vietnam was among the top 10 countries with the most 5G smartphones in the world. In 2023, Viettel Group completed the research, production, and large-scale testing of its 5G product ecosystem, including hardware and software. Vietnam was among the first 5 countries to master 5G technology. By March 2024, Viettel and VNPT-VinaPhone had become the first two mobile network operators in Vietnam to successfully bid for the right to use 5G frequency bands for 15 years; they were granted licenses by the Ministry of Information and Communications to establish 5G mobile networks and provide terrestrial mobile communication services using 5G technology.

According to Global Data, telecommunications companies worldwide have recognized the benefits of reducing ownership of passive telecommunications infrastructure such as mobile phone antenna towers or fiber optic internet lines. Instead, a group of carriers can share infrastructure with each other, avoiding the need for each carrier to build its own base station (BTS), especially in low-traffic areas. 5G network technology has the advantage of being able to share BTS infrastructure.

VNPT - VinaPhone technicians assemble 5G broadcasting antennas to serve festival occasions. Photo: VNPT

The supply-demand problem needs to be solved.

So, most of the conditions for providing 5G network services in Vietnam have been met; however, the commercialization of 5G has been slow. The problem now lies with the network operators.

In business, network operators have the right to deploy services according to their profit motives. Everyone understands that deploying 5G infrastructure is very expensive, while the current business situation for network operators is no longer what it used to be. Will accelerating the commercialization of 5G continue to fall into the vicious cycle of supply and demand? Network operators need demand to provide services. Customers and service providers need readily available 5G networks to deploy. Both sides are waiting for each other.

For now, it's too early to talk about widespread 5G coverage across the entire country like 4G is currently. Mobile operators can prioritize deploying 5G in major cities and provinces with high demand, as well as in key areas of other provinces and cities. Unlike 3G and 4G, which primarily target individual users, 5G has a potential customer base of businesses, organizations, and service providers. Even government agencies need 5G, as it's one of the infrastructures supporting digital transformation, aiming to build a digital government, digital economy, and digital society.

Mobile network operators have shared with the press that they all want to prioritize 5G coverage for industrial zones, where there is a large and stable demand for 5G, especially for smart factories and smart cities. The solution for these areas is a 5G Private Mobile Network (PMN), which is becoming a global trend for smart factories. Vietnam already has its first smart factory, a production facility in Hai Phong belonging to Pegatron Group - one of the world's leading suppliers to Apple. In July 2023, Viettel's 5G PMN, developed by Viettel Group, was implemented at this FDI factory with thousands of connected devices and sensors.

Vietnam is making strong strides into the Fourth Industrial Revolution, alongside the rest of the world. Artificial intelligence (AI) and cloud platforms are considered the backbone for driving smart manufacturing. These platforms can only achieve optimal performance with high-speed, low-latency connectivity supporting a large number of devices operating simultaneously, even 24/7. Currently, 5G mobile connectivity is the only platform that meets these requirements. Digital infrastructure now includes not only broadband cable but also 5G networks.

According to the general roadmap, Vietnam must switch off 2G and then 3G networks. In the near future, mobile networks will only have two technologies: 4G and 5G. Meanwhile, the emergence of 6G mobile technology is gradually appearing according to the development pattern. Starting the commercialization of 5G in 2024 is necessary to avoid falling behind.

5G is a global trend.

According to Statista statistics, the proportion of 5G smartphones in the world's total smartphone market is estimated at 59% in 2023 and is projected to reach 68% in 2024. By 2026, 5G smartphones will dominate the market, accounting for over 80%. 5G is a global trend. Following the direction of the Ministry of Information and Communications, Vietnam aims for licensed network operators to quickly expand 5G coverage to high-tech zones, research centers, and industrial parks with application needs; by 2025, to achieve basic 5G coverage in provinces and cities with 5% of the population covered; and by 2030, to 100% of the population covered by 5G.

Source: https://nld.com.vn/day-nhanh-thuong-mai-hoa-5g-196240611205408283.htm