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Viet Nam telecom competition stifled

The conference was organised by the Ministry of Planning and Investment (MPI) and United Nations Development Programme (UNDP) to discuss a study of telecom services in Viet Nam made under a larger project funded by the UNDP.

According to the MPI, VNPT accounted for 91 per cent of the telecom industry’s revenues earned between six service providers.

Besides, only in two of six major telecom services – mobile phone and the Internet – was there real competition, the ministry pointed out: of the other four, while there was "partial competition" in providing local call, inter-provincial call and leased line services, there was "unequal competition" in providing international call services.

VNPT’s dominance over the other players is, in large part, due to the fact it owns and manages almost all the infrastructure needed for landline telephony.

"The Viet Nam telecom sector remains a monopoly," admitted Phan Thanh Ha, deputy director, Macroeconomic Policies Department, the Central Institute for Economic Management.

The UNDP project aims to help Viet Nam rapidly enhance competitiveness in the telecom sector and examine its policies on services for WTO accession negotiations and implementation of regional and bilateral trade agreements.

According to the International Telecom Union (ITU), Viet Nam is one of the fastest-growing telecom markets in the world along with China and India.

The number of landlines and mobile telephones in the country jumped from 775,000 and 23,500 in 1995 to 4.6 million and 2.7 million respectively in 2003. It now has 9.7 million telephone subscribers, of which mobile phones account for 57 per cent.

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