Wireless Internet market slow to take off in Vietnam
HANOI - Wireless internet, or WiFi (Wireless Fidelity) technology, has been introduced to big cities in Vietnam in recent years, but the number of users of the service remains low, according to local internet service providers. A major reason for the slow growth of the technology is the lack of advertising on the part of the country's providers.
The Vietnam Data Communication Company (VDC) and Viettel are the only two of the seven internet suppliers to provide the WiFi service, but even these providers have only installed WiFi technology in international airports, big hotels and coffee shops. The providers claim the lack of users with high-tech devices capable of using the service in Vietnam is another major reason for the slow development. A survey conducted by the two providers reported that the amount of laptop users accounted for only about 2 per cent of all computer owners in the country.
According to Do Minh Phuong, Viettel Internet's director, although WiFi service boomed internationally last year, it does not mean that its popularity will immediately carry over into Vietnam. The amount of people using computers and mobile phones by which they can access the WiFi internet in Vietnam is much smaller than in developed countries.
"We can't invest in developing WiFi in a hotel when the service use volume is still too small," Phuong said. "However, development of the WiFi service remains part of the company's future development strategy." Truong Dinh Anh, FPT's director, shared the same view with Viettel on the WiFi market in Vietnam, saying the service has been introduced widely in large office buildings in other countries such as Singapore because with several hundreds of WiFi subscribers per sq.m, there is a high density of users there, according to Anh.
In Vietnam, however, there aren't many tall buildings to boost the density, which partly explains why FPT, the largest IT provider in the country, hasn't poured money into the service so far.Last year, VDC developed two new WiFi locations, one in Hanoi and another HCM City, increasing the number of areas with WiFi access in the country to 13.Devices to access wireless internet such personal digital assistants (PDAs) or Pocket PCs are still expensive and users have not become used to the idea of using their wireless computer devices when they leave the office.
In addition, the owners of existing spots have not paid attention to the competitive advantage of having WiFi capabilities.Capital Garden Hotel, a hotel in Hanoi with a WiFi room, said the service attracted many users when it was first unveiled, but now the room is empty. Noi Bai International Airport in Hanoi, which also has a WiFi area, has not put up a sign to advertise it.
Vietnam News Agency - April 14, 2005
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