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In the past, in spite of its significant development, telecommunications industry also exposes weaknesses, including: high price but poor service quality, asynchronous and unbalanced net

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INTRODUCTION

1 Necessity of the thesis

Telecommunications industry plays a definitely important role in

socio-economic development of Vietnam It is considered as a

pivotal technical-economic industry, and also be able to advance

quickly by using shortcut in industrialization and modernization

process of the country

After more than six years of Vietnam WTO accession, the

telecommunications industry of Vietnam is holding attraction for

foreign investors, and Vietnamese enterprises operating in

telecommunications industry also make investment overseas In the

past, in spite of its significant development, telecommunications

industry also exposes weaknesses, including: high price but poor

service quality, asynchronous and unbalanced network infrastructure

between rural and urban area, decreasing average income per

subcriber, undiversified services, and unprofessional customer

services Telecommunications management system and policies have

not catched up with rapid development of the industry Especially

current competition of telecommunications industry is, in fact,

happening among State-owned enterprises operating in

telecommunications: Viettel, Vinaphone and Mobifone make up over

90% total number of subscribers, income and network infrastructure

Vietnamese telecomunications industry is said to be operating in

free-market; however, in fact it under government monopoly, private

industry’s participation is still insignificant

Current telecommunications market is no longer goal mine for

enterprises to easily exploit, but entering into satureated stage in term

of number of mobile subcriber Therefore, competitiveness of

Vietnam telecommunications industry has to face many significant

difficulties and challenges

It is completely necessary to find out a set of know-how

techniques which will help managers, policy makers providing

solutions for strengthening competitiveness of Vietnam

telecommunications industry and make it become a pivotal

technical-economic industry From such emergent demand, I select topic

“Improving the competitiveness of Vietnam's telecommunications

industry” for my thesis

2 Objectives

The thesis focuses on main objectives as follow:

- To systemize basic theories in association with competitiveness enhancement of the industry in general and

in particular for typical telecommunications industry In particular: To conduct researches about competition and competiveness at sectoral level, criteria for assessing competitiveness at sectoral level, criteria for reflecting competitiveness of telecommunications, factors influencing competitiveness of telecommunications industry

- To analyze and point out weaknesses, limits of previous researching results related to competitiveness of telecommunications industry in order to identify gaps, shortcomings, issues in term of Vietnam telecommunications industry that have not been addressed in previous researches

- To analyze, assess actual competitiveness of Vietnam telecommunications industry for the past time in order to define achievements, shortcomings, advantages and disadvantages of the industry To give answer for the question: How is competitiveness of Vietnam telecommunications industry at present?

- To propose opinions, orientation and solutions in order to strengthen competitiveness of Vietnam telecommunications

industry

3 Objects and scope of the research

3.1 Object

Object of the research is the competitiveness of telecommunications industry of Vietnam However, due to integral relationship of business and manufacturing process of Vietnam telecommunications and economic development, the thesis also includes various factors

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and conditions for development of related sectors and Vietnam

economy

3.2 Scope of the research

The research aims at telecommunications enterprises not 100%

owned by foreign enterprises which are operating in Vietnam

territory and Vietnamese telecommunications enterprises which are

making business in foreign markets, regardless of economic sectors

In telecommunications, the thesis mainly presents mobile

telecommunications, fixed telecommunication and internet,

broadband of telecommunications

Most of data from 1993 up to now are mainly used for the research

Because in this period, development and competition of Vietnam

telecommunications according to market mechanism start to be

shown, especially data in respect of telecommunications from 2006

up to now when this is the booming of Vietnam telecommunications

market, and of period of its definite competition In 2010, mobile

telecommunications starts to reach saturation

4 Scientific and practical significance of the thesis

* Its contribution in term of theory

- Clarifying definitions of the industry, competition,

competitiveness and competitiveness of telecommunications

industry

- Providing set of criteria for presenting competitiveness of

telecommunications industry

- Applying expanded diamond pattern (of Michael E.Porter và

John H.Dunning) in order to evaluate six factors making

impact on competitiveness of telecommunications industry

including strategy, structure and competition in

telecommunications industry; demand of

telecommunications market; foreign investment; conditions

for manufacture input; related industrial sectors and

supporting industrial sectors for telecommunications

industry; and Government

* Practical contributions, proposal obtained from research:

- The thesis provides lessons and experience to enhance competitiveness of telecommunications industry applied in countries with the world’s leading telecommunications development such as Taiwan, China, Turkey, Brazil and so

on

- From analysis of competitiveness of Vietnam telecommunications industry, the thesis draws outstanding results and shortcomings required to be solved in order to identify actual reasons to suggest solutions for competitiveness improvement of Vietnam telecommunications industry

- The thesis analyzes and points out opportunities and challenges for Vietnam telecommunications industry which plays very important role to adjust strategy and find out solutions for telecommunications industry development

- The thesis provides six groups of solutions for competitiveness enhancement of Vietnam

telecommunications industry

- The thesis provides solutions for improving competitiveness

of the industry

5 Structure of the thesis

In addition to introduction, conclusion, reference and appendix, the thesis is divided into four chapters

Chapter 1: General overview of scientific works related to the thesis Chapter 2: Rationale for competitiveness of telecommunications industry

Chapter 3: Actual situation of competitiveness of Vietnamese telecommunications industry

Chapter 4: Orientation and solutions for strengthening competitiveness for Vietnamese telecommunications industry

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CHAPTER 1 GENERAL OVERVIEW OF SCIENTIFIC

WORKS RELATED TO THE THESIS

1.1 Research works closely related to the thesis

1.1.1 Research Works related to theoretics in respect of

the industry, competition, and competitiveness at sectoral level

- Theoretics in term of the industry: The work of Porter,

Institute of Statistical Science

- Theoretics of competition: relevant research works,

opinions, theory from online Vietnamese-language

encyclopedias, Syllabus of Marxist-Leninist political

economy (2004), OECD Forum (2000)

- Theoretics of competitiveness: online Vietnamese-language

encyclopedias, OECD (1996), The world economic forum

(2006)

- Theoretics of competitiveness at sectoral level: United

Nations (2001), Van Duren (1991)

1.1.2 Applying research works on competition,

competitiveness of telecommunications industry conducted by scholars and global organizations

- Criteria reflecting competitiveness in general: Customer

satisfaction ( Sharma & Fisher, 1997; Tracey, Vonderembse

& Lim, 1999), market share (Anderson & Soha, 1999; Lau,

2002), growth of market (Tracey, Vonderembse & Lim,

1999), sales figure (Anderson &Sohal, 1999; Li, 2000),

growth speed of sales figure (Lau, 2002; Sharma & Fisher,

1997) and labor productivity (Noble, 1997; Ross, 2002;

Sharma & Fisher, 1997)

- Applying targets, criteria for assessing telecommunications

industry of several international organizations: International

Telecommunication Union, Business Monitor International

competitiveness at sectoral level

Michael E.Porter, John H Dunning (1993), Mohammad Hosein Rezazadeh Mehrizi & Mohammad Pakneiat (2008), Yan Ling Yu

(2004) Through research works related to factors influencing

competitiveness of telecommunications industry, the thesis apply the

expanded diamond pattern (based on the pattern of Michael E.Porter)

with six key factors including strategy, structure and competition of telecommunications enterprises; conditions of manufacture input; demand of market; role of the government; related industrial sectors

and supporting industrial sectors for telecommunications industry

activities in telecommunications industry

- Manufacture and business activities of enterprises providing telecommunications services: PhD thesis related to the topic of

authors such as Le Ngoc Minh (2008), Phan Chu Minh (2002)

- Telecommunications industry and several industries related to

telecommunications industry: Tran ðang Khoa (2007), Hoang Thi

Hoan (2004); Report on policy research – VNCI, số 3: Research on competition of Vietnam telecommunications industry completed in June, 2005 Nguyen Huu Dung (2002), Vu Duc Dạm (1996); Report

on Viet Nam ICT Index

- Policies, regulations to telecommunications fields: Tran Van

Thinh, Ha Noi (2007), Tran Duc Lai (2004)

- Role of telecommunications industry to socio-economic development: Mai The Nhuong, Nguyen Xuan Vinh, Nguyen Ngo

Viet, Le Dac Quang, Nguyen Huong Lan (2000)

- Varying trend of telecommunications industry: Nguyen Ngo Viet

(1999), Nguyen Van Minh (2001)

telecommunications industry

Li & Xu (2004), Chao – Chung Kang (2009), Becky P.Y Loo (2004), C’esar Mattos & Paulo Coutinho (2005), Abeysinghe & Paul (2005), Necmiddin Bagdadioglu & Murat Cetinkaya (2010)

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Through researching and surveying domestic and foreign

documents relating to competitiveness of telecommunications

industry, it is easy to see that these researches have significantly

contributed into the formation of theoretical foundation for the

industry’s competitiveness, other affecting factors and criteria for

assessment, developing trends, lessons on reformation for

improvement of competitiveness in telecommunications of other

countries over the world, etc However, there has not been any

research conducted thoroughly and systematically on

competitiveness in Vietnam telecommunications, especially from

2006 up to present, after the integration of Vietnam into WTO

1.2 Thesis objectives

The thesis gives answer to 4 main researching questions as

follows:

What factors affect competitiveness of telecommunications industry?

What criteria are used to assess it? What is the current situation of

Vietnam telecommunications industry? What can be done to improve

the competitiveness of Vietnam telecommunications?

1.3 Research methods

The thesis uses methods of statistical analysis, comparison and

synthetization from statistics of telecommunications industry to

measure and evaluate its competitiveness

Besides, the thesis uses case study and observation

CHAPTER 2 THEORETICAL BASES IN COMPETITIVE

BASE OF VIETNAM TELECOMMUNICATIONS

2.1 Concept of competitiveness and sector competitiveness

- Concept of competition: Competition means to compete, to seek

all ways, measures and means to survive, to define one’s advantages

beyond his/her competitor, other suppliers in pros, results, fame,

benefits, social status or other things that are desired by all parties

- Concept of competitiveness: competitiveness shall be understood as

an entity’s ability to control, make use of advantages and resourcesto have more effective and bigger result in comparison with the last period and with competitors

2.2 Application in researching competitiveness of Vietnam telecommunications

2.2.1 Concept of competitiveness of telecommunications industry

Competitiveness of Vietnam telecommunications industry: It means

the ability of changing structure, mechanism of internal telecommunications industry to establish and maintain stable development of the sector, improve service quality provided by sector corporates, aiming to be better and more competitive in accordance with the market mechanism Therefore, Vietnam telecommunications industry shall be able to attract capital investment, technology transferring, domestic and oversea human resources

2.2.2 Characteristics and services of telecommunications and the importance of improving competitiveness of Vietnam telecommunications industry

Telecommunications industry has 4 basic characteristics: Being a new and strongly developing industry; heavy capital investment, complicated infrastructure and vast network; Applying high and complicated science technologies, changing rapidly; Having products with short product life cycle; Having multidimensional connected services

* Main services of telecommunications industry:

This thesis focuses on studying further of three main basic and back-bone services of telecommunications industry, which are fixed telecommunications, mobile telecommunications and Internet

* Importance of improving competitiveness of Vietnam telecommunications industry: Vietnam telecommunications play

more and more important role in socio-economic development Being

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an important technical economic sector for the modernization of the

country, Vietnam telecommunications industry is becoming

saturated Attracting investment capital is a vital condition to

improve competitiveness of telecommunications industry

2.2.3 Determination of factors affecting telecommunications

industry’s competitiveness

The thesis uses open diamond model as determining base for factors

affecting the competitiveness of telecommunications industry

Figure 2.2 Diamond model applied for the project

2.2.4 Determination of criteria showing competitiveness of

telecommunications industry

Criteria showing competitiveness of telecommunications industry

include 5 groups: number of subscribers of telecommunications

industry, revenue, quality of rendered services to meet the demand of

customers, criteria on labor productivity and criteria on developing

Strategies, structures and domestic competitiveness of the Company

Production

conditions

Demand

Relating and supporting

nment

Foreign

investme

nt

potential of telecommunications industry (ICT-OI) Each of them shall have specific target for assessment

2.2.5 Lessons from other countries over the world in

improving competitiveness of telecommunications industry

Firstly, gradually reduce control and intervention of the Government

in telecommunications industry by boosting capitalization in

telecommunications corporates owned by the state Secondly,

enhance calling out and open to foreign investors participating in Vietnamese telecommunications industry Thirdly,

telecommunications policies should focus on regulating the market in

a free way

CHAPTER 3 CURRENT SITUATION OF COMPETITIVENESS OF VIETNAMESE TELECOMMUNICATIONS INDUSTRY 3.1 Milestones of Vietnam telecommunications industry’s

development

Vietnam telecommunications industry has been through 3 stages: Exclusive telecommunications period (Prior to 1996), Opening market period with competitive environment (1996 – 2006), World integration period (from 2006 up to present)

3.2 Analysis on current competitiveness of Vietnam

telecommunications capacity 3.2.1 Analyzing competitiveness of Vietnam

telecommunications industry in accordance with following criteria:

- Criteria on subscribers of telecommunications industry:

Through analysis in fixed and mobile services in telecommunications industry and internet, it is shown that in recent years, number of subscribers in internet, fixed and mobile telecommunications has rapidly increased However,

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a remaining issue in all three fields is that the Government

controls and occupies the market Obviously, State-owned

telecom corporates has been controlling and taking the lead

in the game and in competitiveness of telecommunications

industry The competitiveness in telecommunications is

actually the competition among State-owned

telecommunications corporates Telecommunications

industry has not had competitiveness in market mechanism

due to small and weak private sectors

- Criteria on revenue of telecommunications industry: The

whole industry’s revenue has increased rapidly The revenue

of three State-owned corporates under Viettel and VNPT

corporations (Mobifone and Vinaphone) took control in the

market of Vietnam telecommunications in the last years

These three corporates take lead and control of the market in

both number of subscribers, revenue and profits The other

companies in the field are too small so that they have to

follow these three giants Revenue structure in

telecommunications services has shifted in a positive way

ARPU is low and tends to decrease

- Criteria on rendered services’ quality: The quality of

Vietnam telecommunications services is gradually improved

but not good enough, services rendering in the market are

poor and lack of creativity, and the number of unidentified

subscribers still account for a large percentage Those are

obstacles in enhancing competitiveness among products of

telecommunications industry

- Criteria on labor productivity: Labor productivity of

telecommunications industry in recent years continues to

increase quickly, some corporates with very high labor

productivity have emerged and become the leading ones,

such as: Mobifone and Viettel

- Criteria on developing potential of telecommunications

industry: In comparison with other countries in the region,

Vietnam’s opportunities are disadvantageous and low with

many remaining developing potentials in approaching and

developing information technology market in general and telecommunications in particular This shows that it is necessary to enhance competitiveness in information technology and telecommunications in the near future to shorten the gaps with other countries in the region and over the world

3.2.2 General assessment of competitiveness for Vietnamese Telecommunication industry during last time:

Based on analysis of the real current competitiveness of Vietnam Telecommunication, the thesis presents achievements and limitations

of Telecommunication’s competitiveness

(1) Advantages and Achievements:

- Attract many telecommunication enterprises and foreign

investors

With the emergence and increasing participation of foreign investors into the domestic telecommunications market, telecommunications industry will be modernized because many telecommunications giants in the world will stream into Vietnam with technology , financial resources, knowledge and broad experience to deploy telecommunications infrastructure which is one of essential point of Vietnam

- Telecommunications high growth rate

Although Vietnam is a poor country and under the process of development, Vietnam's telecommunications industry has witnessed

a great progress for just over 5 years; the telecommunications industry has had impressive growth with the explosion of mobile telecommunications and the Internet inwhich broadband also has a impressive breakthrough with the continuously increasing rate of broadband users

- Positive restructuring of income

The income of telecommunications service and the Internet increases, while income of fixed telephone service tend to fall; the proportion of mobile service revenue accounted for a large number, more than 90% This reflects the positive trend of the telecommunications market; although mobile phones and the Internet appeared after the

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fixed telephones, they gained the dominant advantage in the market

due to their convenience, modern technology, and cheaper price

- Increasing labor productivity

Labor productivity of telecommunications industry in general and

enterprises in particular had high growth and achieved good results,

although it does not prevail that of other indutries

- Service quality improved step by step

The telecommunications industry has grown quickly, but the quality

of service does not accompany with that growth There are still low

call quality, slow connection, broken connection, and impossible

connection But recently, network providers have committed for

more invsetment together with the tight control of govermental

management agencies in the measurement of service quality, which

enhance the service quality of the telecommunications industry

- Diverse types of services and contents to meet higher

customers’ requirements

High growth rate, limited scale of the market, more and more

providers appearing are three motivating factors for network

providers to improve their competitiveness by reducing price,

improving quality, upgrading products with diverse content, image

and value added services (VAS) on mobile telecommunication

network and in the Internet to maintain current customers and attract

more new customers, then increase revenue and market share

(2) Disadvantages and limitations

- High growth without deep investment; saturated subscription

of mobile telecommunications

After a period of rapid development and explosion, from 2010

Vietnam mobile telecommunication began to be saturated with

number of mobile subscribers exceeding over the total population;

and mobile telecommunications revenue declined remarkably

- Average revenue and number of ARPU subscribers

decreasing

The decrease in ARPU means profit growth rate of the

telecommunications enterprises declines and is in difficulty while

these enterprises still need a huge amount of money to maintain and

expand networks, and re-invest This clearly indicates these

enterprises must increase ARPU, or they will face many difficulties, even losses and bankruptcy in the future if they keep the race of subscription and telecommunication market share

- Negative competition, promotion and discount race, garbage

SIM

The inevitable consequence of the rat race of 7 telecommunications providers, in the context of developing economic and in the market

of only 87 million people, in which 70% of them is in agriculture area, is the breakthrough of unidentified-user SIM, unreal suscribers and the situation of the survival of the fittest and negative competition

- Low rate of broadband use

The proportion of people using Internet in Vietnam reached a high level, but the rate of broadband use in the number of internet users, despite rising continuously over the years, is still too low

- The internal competition among state-owned telecommunications enterprises

The nature of competition in telecommunications industry is the internal competition among state-owned telecommunications enterprises such as Viettel, Mobifone và Vinaphone These account for more than 90% market share in terms of number of subscribers, revenue, networks infrastructure; private businesses account for a very small percentage of the market

3.3 Factors influencing competitiveness of Vietnam

Telecommunications Industry

Factors affecting competitiveness of Vietnam telecommunications Industry over the past few years:

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Figure 3.1: Consolidation of diamond model of Vietnam

Telecommunications industry

- Lack of supporting industries, mainly foreign dependence

- Ivolved industries newly formed with low-scale, fragmented and underdeveloped

- Conditions of telecommunications manufacturing mainly depended on external sources

- Law system on telecommunicatio

ns being completed

- The trend of liberalization, open and reduce the domination of the state

- Slow privatization process, the state still controlls telecommunicatio

ns

- Unfavorable environment of telecommunicatio

n business.

- Drastic but negative competition

- Too many providers

- Not good quality

- State-owned enterprises dominate the market, private ones blocked

Strategy, structure and domestic competition

Manufact uring conditions

Demand conditions

Involved and supporting insdutries

The Govern ment

Foreign

investm

et

- Large demand, young and crowded population

- Lower income, less spending on telecommunication

- Mainly used simple service:

Listen, call

- Non-voice service potential

- Abundant but

low quality human

not meeting

requirements

- Lack of capital

for the

development of

telecommunicatio

ns infrastructure

- The popular

technology in the

world, quite good

capacity

- Rapid growth of

telecommunicatio

ns infrastructure,

low scale

- Many foreign enterprises

invest in small scale

- Under forms of joint

venture, purchasing shares,

not 100% foreign

- Domestic enterprises

begin to invest in other

countries, however, only in

small scale

3.4 Consolidation of advantages, disadvantages and

requirements to improve competitiveness capacity of Telecommunications

3.4.1 Advantages of telecommunications’ competitiveness

Telecommunications industry grows quickly with active restructuring

of service; telecommunications enterprises have established and well maintained customer system and market Vietnam's telecommunications industry has established and built a large network system The telecommunications industry is more competitive and is in the first step towards the free market mechanism, actively invest and develop in foreign countries to increase competitiveness and market expansion

3.4.2 Disdvantages of telecommunications’ competitiveness capacity

It has rapid but not sustainable growth, low broadband rate, ARPU decreased; human resources of telecommunications is both insufficient and unqualified; under-developed infrastructure especially broadband; lack of investment for telecommunication development by strategic and sustainable investors; State-owned telecommunications enterprises dominate the market, control and lead the market; supporting industries for inputs have not developed

3.4.3 Requirements to improve competitiveness capacity of Telecommunications

Firstly, continue to improve the quality of telecommunication services Secondly, promote competition in the telecommunications industry towards the trend of the market itself Thirdly, change from the competition in terms of quantity and revenue to deep competition

in terms of quality, profitablity and sustainablity Fourthly, increase the rate of using broadband throughout Vietnam, especially large cities and urban areas in Vietnam Fifthly, improve and enhance the rank of development level of Vietnam's telecommunication market

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CHAPTER 4 STRATEGY AND SOLUTIONS TO

IMPROVE COMPETITIVENESS OF VIETNAM

TELECOMMUNICATIONS INDUSTRY

4.1 Opportunities and threats in improving competitiveness

of Vietnam telecommunications industry

4.1.1 Background macro environment to improve the

competitiveness of Vietnam's telecommunications industry

Some bases in the macro environment as a basis for determining

opportunities and threats in improving competitiveness of Vietnam

telecommunications industry: the commitment of

telecommunications Commitment Vietnam joining the WTO, the

orientation and development objectives of Vietnam

telecommunications industry by 2020 of the Government, trends of

technology development of the telecommunications industry in

coming time

4.1.2 Opportunities and threats in improving competitiveness of

Vietnam telecommunications industry

4.1.2.1 Opportunities in improving competitiveness of Vietnam

telecommunications industry

That Vietnam joins the WTO will promote investment attracting,

freedom of telecommunications business The trend of globalization,

international cooperation and integration is an opportunity to attract

FDI, transfer technology and cooperate in telecommunications The

government tends to promote equalization, liberalization and

integration of telecommunications industry Government has the

vision and determination to make Vietnam soon becoming strong in

information technology Mechanism and policy of

telecommunications such as: telecommunications law is on the

way to be completed in accordance with WTO commitments

Vietnam has young population and rapid urbanization speed,

attractive telecommunication market with high growth economy; the

demand of mobile telecommunications and the Internet, especially broadband internet is increasing New rural in Vietnam is developing

telecommunications industry

Joining WTO, the competition becomes cut-throat with foreign telecommunications enterprises which are very powerful in capital, technology and experiences in competition globally The world economy has experiences remarkble unstability and financial crisis Vietnamese macroeconomy is likely to go through turbulences, posing many risks and difficulties Average income per capital is low whereas most population reside in wide rural area Telecommunications technologies are subject to over-heated and complicated changes

4.2 Direction to improve competitiveness for Vietnamese

telecommunications industry

Firstly, in order to improve the competitiveness for the telecommunications industry, it is necessary to take advantages of opportunities, enhancing strengths, triumphing over weakness and overcoming challenges Secondly, telecommunications industry is the economic-technical sector of great importance, which should be preferentially invested, deserving to its significant role in the economic development of the country Thirdly, system of State’s documents, legislation and policies in relation to improvement of telecommunication competitivenss shall be suitable to international regulations and agreements by which Vietnam has abide Fourthly, raising telecommunications competitiveness shall be based on encouraging internal competition for better products, services and quality Fivethly, hastening liberalization and privatization of telecommunications market with specific route and steps Sixthly, keep on promoting internet wide spreading, introducing internet to rural areas, in which broadband internet takes the critical importance

4.3 Key solutions to improve competitivenss for Vietnamese

telecommunications industry

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4.3.1 Continue to strengthen the legal framework and

policies in order to create a healthy competitive

environment in the telecommunications sector

Solution is to finalize policys towards telecommunications

liberalization in accordance with the WTO integration trend and

commitments Enhance equitizing domestic telecommunications

enterprises to raise competitiveness of the industry

4.3.2 Better human resources quality in telecommunications

industry

The State should provide budget for training forms of graduate,

post-graduate, vocational school in telecommunications and information

technology major Step up cooperation in education and training with

institutions in countries having a booming telecommunications and

technology Socialize training work of telecommunication workforce

with a varitey of training forms Diversify, renovate strongly in terms

of contents, curriculum, teaching method, textbook, lesson plan,

increasing time for practice and application in training insititutions in

telecommunications and information technology Improve

competency and qualification for the team of lecturers, teachers, and

experts teaching and training telecommunications

Schools, educational institutions training telecommunications human

resources shall make close connection between training in school

with practical experience at enterprises Enhance the staff of state

managers in telecommunications Strenthen international cooperation

to develop human resources for telecommunications

4.3.3 Continue to promote the improvement of infrastructure

planning telecommunication networks to 2020 and build a

strategy to develop the telecommunications sector to 2020

To promote the improvement of infrastructure planning

telecommunication networks, first of all need to focus on promoting

and developing a shared network infrastructure for the

telecommunications industry combined with state enterprises and

foreign investment in telecommunications infrastructure Encourage

attract investors to develop telecommunications infrastructure, high technology and broadband

Complete strategy to develop the telecommunications sector in 2020

by communications plan developed countries by 2020

4.3.4 Heighten development research and application of modern

science and technology in telecommunications to diversify telecommunication products and improve service quality

Further cooperation, technology transfer and development cooperation with countries all over the world which have been successfully launching broadband telecommunications

Enhance cooperation with researching institutions, universities and Vietnamese firms cooperating with foreign researching institutions, universties and enterprises in transfer of science and technology, especially hi-technology and environmentally friendly technology Keep on proving the role of commercial promotion in telecommunications of relevant minitries, industry

The Government should control better with more openess in recognizing patent, invention of Vietnam in technology, new technique in telecommunications Bring into play the role and better effectiveness of the State agencies in supporting and promoting transfer of modern telecommunication technology

of global value chains, promoting the development of industry support for the telecommunications industry

Apply modern technology to strongly develop production of telecommunication terminal devices Developing supportive industry for telecommunition shall focus on the industry of producing electronic and telecommunication devices, software and digital content for telecommunication, to diversify SIM services to be introduced to the market It is recommended that the State should give priority in funding, technology, location and such policies such

as taxation exemption or reduction for small and medium sized enterprises engaging in telecommunications supportive industries, especially hi-tech and environmentally friendly fields The State

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