Vietnam slashes Internet charges, but still high

~ Le Vięt Nam, aujourd'hui. ~
The Vietnam News

Vietnam slashes Internet charges, but still high
HANOI - Communist Vietnam's state-controlled Internet service providers slashed connection fees this month but admitted they remained high compared with other Asian countries and beyond the means of most people. The four providers, VDC, Netnam, FPT and Saigon Postel, cut charges earlier this month to rates ranging between 290 dong (2.06 cents) at peak hours and 150 dong (1.06 cents) overnight, from a flat 400 dong (2.85 cents) a minute, company officials said. The new rates were determined by Vietnam Post and Telecommunications (VNPT), which oversees the firms.

They are also cutting initial connection fees to 100,000-150,000 dong ($7.1-$10.6) from 270,000 dong ($19.22) and monthly subscription charges to 30,000 ($2.1) from 45,000 ($3.2). ``I think prices are still rather expensive compared with other countries,'' said a marketing executive at Netnam. ``Every ISP would like to have lower prices to get more customers.'' Users must also pay a 10 percent value added tax and local average call charges of about 150 dong (1.06 cent) a minute.

MOST SUBSCRIBERS ARE STATE ORGANISATIONS
The Netnam executive said Vietnam had about 45,000 Internet subscribers but an executive at FPT said the number still paid up could be as low as 25,000. Most subscribers are state organisations and firms. ``Ordinary people don't have enough money to be customers,'' said the first executive. ``Young people, especially, are very interested in the Internet, but it's not cheap and most don't have enough money.'' Vietnam officially hooked up to the Internet in late 1997, but access to many Web sites -- such as those operated by anti-communist overseas Vietnamese groups -- is blocked by ``firewall'' software.

On Wednesday, World Bank President James Wolfensohn said it was essential for Vietnam to fully embrace information technology and it could not become a serious player in a globalised world if it continued to censor the Internet. He said it was crucial Vietnam and its aid donors gave priority to information technology and communications in their development plans. The Netnam executive estimated about 700,000 computers were in use in Vietnam. While Vietnam has few Internet subscribers the user numbers have been steadily increasing, thanks to Internet cafes that have sprung up in Hanoi, Ho Chi Minh City and some tourist centres. These cater mainly to foreign tourists but are being used by an increasing number of young computer-savvy Vietnamese. Average per capita income in Vietnam is only about $370 per year but levels in Hanoi and Ho Chi Minh City are much higher.

Reuters - February 25, 2000.

W.Bank urges Vietnam to embrace Internet

HANOI - The World Bank president said on Wednesday it was essential for Vietnam to fully embrace information technology and it could not become a serious player in a globalised world if it continued to censor the Internet. James Wolfensohn told a business gathering in Hanoi it was crucial Vietnam and its aid donors gave priority to information technology and communications in their development plans. ``We had the agrarian revolution, we had the industrial -- do not underestimate the technological one,'' he said. ``Countries that grab this opportunity can jump a generation; countries that do not will fall back.''

Asked in a later interview with Reuters if communist Vietnam could expect to become a global player if it continued censoring politically sensitive material on the Internet, he replied: ``Well, I don't think so, but that's for the Vietnamese to decide. I don't think Vietnam is a place where you can or should dictate to the government what they do. ``I think this is a country that will make up its own mind and when they see realistically that open access to the Internet is in the country's interest, they will do it. ``My guess is that competition will force them to reach that decision some time and when they do, they will probably do it very well.''

SEES ``GREAT MOVES'' WITHIN FIVE YEAR
Wolfensohn said he thought there would be ``great moves'' in Vietnam within five years in technology and education that would allow it to compete globally. ``Certainly Vietnam can benefit from globalisation and should not pull away from it.'' He said Vietnam needed to build a knowledge-based economy. ``Global trends are such today it's impossible to consider being a competitive country without adjusting to the technological revolution because knowledge will be transfered by technology and rich and poor will be empowered by technology.''

Vietnam officially hooked up to the Internet in late 1997, but high charges in what is still one of the world's poorest countries have kept the number of subscribers low. Access to many websites -- such as those operated by anti-communist overseas Vietnamese groups -- is blocked by means of ``firewall'' software. Wolfensohn appeared unperturbed by negative assessments of Vietnam's economic reforms by disgruntled foreign investors.

``This is a process that goes on between people who want to make investments and a government that wants to have investments but needs to adjust its regulatory framework to make it more palatable,'' he said. ``The government, from what I see of them, is trying to adjust (and) my prediction is that inside 12-18 months you will see a change in the tone and each will adjust to the other.'' He rejected the idea that recent sharp declines in foreign investment followed by new aid pledges indicated a growth of a dependency rather than an enterprise culture. ``I think this is one country in the world that is least likely to have aid dependency. People do not want charity. They want an opportunity and a chance to do things themselves. That is clearly a national characteristic.''

Reuters - February 23, 2000.