Turning off 2G waves, commercializing 5G, attracting investment in AI, semiconductors or tightening Internet management are the highlights of Vietnam's technology in 2024.
2024 witnessed many positive changes in the technology sector in Vietnam, especially in high technology such as AI, semiconductors, 5G. In addition, the issue of network security and information on the Internet also creates challenges that need to be overcome.
Tightening Internet management with user authentication requirements
Decree 147 on Management, provision and use of the Internet and information on the network was issued by the Government on November 9 and took effect from December 25, focusing on social networks, electronic information sites, electronic games and Internet resources.
In addition to changes to simplify service licensing procedures, one of the highlights of the decree is user authentication. Service providers must identify social media accounts with Vietnamese phone numbers, ensuring that "only authenticated accounts can post information" such as writing articles, commenting, and livestreaming. Similar regulations are also issued for electronic games, requiring game companies to identify users and have a technical system to manage time during the day, especially people under 18 years old cannot play a game for more than 60 minutes a day.
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Consumers watch livestream sales via social networks. Photo: Thanh Nguyen
The Decree also requires cross-border social networks to coordinate with authorities to prevent and remove harmful information, block violating pages, prevent access from Vietnamese users, and publicize content distribution algorithms.
Decree 147 was issued to replace Decree 72/2013 and Decree 27/2018, which were issued many years ago and no longer cover all electronic information issues. Meanwhile, the explosive growth of social networks, news sites, and electronic games in Vietnam in recent times has caused many negative issues such as fake news, harmful news, and widespread online scams. "Account authentication will limit the situation of 'being anonymous and therefore irresponsible' when operating online," said Director of the Department of Radio, Television and Electronic Information Le Quang Tu Do.
5G network officially commercialized
On October 15, Viettel pressed the button to launch the first 5G network in Vietnam. By December 20, VinaPhone became the second network operator to commercialize 5G. Domestic mobile Internet speed increased by more than 30% on Ookla Speedtest's statistics table, reaching more than 71 Mbps, ranking 43rd globally in October.
5G officially came to users eight years after Vietnam deployed 4G. This is the result of a long preparation process from both management agencies and domestic service providers. The first 5G call was made in 2019, before being commercially tested in 2021. In early 2024, when the spectrum auction plan was approved, the three networks spent more than VND 12,000 billion to own frequencies, completing one of the final conditions for 5G deployment.
At the beginning of the deployment, the 5G network was assessed as unstable and low coverage. However, the new generation of networks promises to create important changes such as being able to reach 1 - 1.5 Gbps, with almost zero latency, according to the announcement from the network operators. These factors not only help speed up data downloads, but also open up the possibility of realizing smart cities that the old generation of networks cannot meet due to technical limitations. Services that require instant feedback, such as self-driving cars, remote surgery, control in smart factories, services that require a lot of data such as 4K/8K video, AR can only be deployed with 5G.
Those breakthroughs make 5G not simply a new generation network connection but also an important infrastructure in the digital transformation strategy. According to the information and communication infrastructure planning, Vietnam aims to have 100% of provinces, cities, high-tech zones, concentrated information technology zones, research and development centers, innovation, industrial parks, stations, seaports, and international airports with 5G services by 2025. By 2030, 5G networks will cover 99% of the population.
The deployment of 5G also marks Vietnam narrowing the gap with the world in telecommunications as well as technological autonomy. "This is the first time Vietnam can go hand in hand with the world in applying the latest technology of the 4.0 revolution, becoming one of the earliest countries to successfully test it," said Viettel Chairman Tao Duc Thang. "Vietnam joins the top 5 first countries to produce 5G network equipment, after Sweden, Finland, China and South Korea."
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E-Government Development Index Up 15 Ranks
According to the 2024 E-Government Survey Report published by the United Nations in September, Vietnam scored 0.7709 points in the E-Government Development Index - EGDI. Compared to 0.6787 points in the previous announcement in 2022, Vietnam rose 15 ranks from 86th to 71st in the world, moving from "high" to "very high" for the first time.
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The EGDI index is compiled from three main parameters: Telecommunication Infrastructure, Human Resources and Online Services. The indicators show the extent to which the government applies information technology to improve the effectiveness and efficiency of operations, and better serve people and businesses. In Vietnam, many basic e-Government systems have been put into operation, helping to innovate state agencies and provide online services to people and businesses. These systems include the National Document Interconnection Axis launched in March 2019; the National Public Service Portal launched in late 2019; the National Reporting Information System and the Information Center serving the direction and administration of the Government and Prime Minister launched in August 2020.
Despite positive results, the implementation still has some problems, such as not forming the habit of using online public services. According to the December report of the Ministry of Information and Communications, the rate of online processing nationwide reached 45%, of which 18% was in the local sector. The Ministry aims for 70% of adults to use online public services by 2030.
"In the coming time, Vietnam will continue to implement national digital transformation to develop the economy and society, including implementing solutions to continue improving the ranking of the e-Government and Digital Government indexes of Vietnam according to the assessment of the United Nations, thereby improving the business environment and enhancing national competitiveness," said the Ministry of Information and Communications.
Nvidia opens two centers to promote AI and semiconductors in Vietnam
On December 5, the Government and Nvidia announced a cooperation to establish the AI Research and Development Center (VRDC) and the AI Data Center.
Prime Minister Pham Minh Chinh assessed this as an important milestone, demonstrating the determination and strong commitment of Nvidia CEO Jensen Huang in turning Vietnam into a "second home" with the spirit of "what you say is what you do, what you commit to, what you do, what you do, what you do, you must bring about specific results". The event also created the premise for Vietnam to become a leading AI research and development center in Asia. The centers not only play a key role in supporting AI initiatives and applications, promoting innovation and startups, but also creating job opportunities for domestic talent.
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Prime Minister Pham Minh Chinh and Nvidia CEO Jensen Huang strolled through the Old Quarter after signing the agreement to establish an AI center on December 5, 2024. Photo: Giang Huy
Vietnam is assessed to have a young, dynamic, technology-savvy workforce and is "emerging as a bright spot in Southeast Asia in terms of innovation, development and application of artificial intelligence". At the same time, the Government has identified AI as one of the priority areas in the national development strategy, pledging to create a favorable environment for leading technology corporations such as Nvidia to invest and develop long-term. Mr. Jensen Huang also commented that this is an ideal stage for Vietnam to build the future of AI. According to him, AI intelligence is trained from data, and Vietnam's data is a national resource. "Vietnam's artificial intelligence should be processed, built and operated here, for the people and industry of Vietnam," he said. In addition to the two centers, Nvidia is committed to supporting talent training as well as domestic startup projects. The company also acquired Vietnamese artificial intelligence company VinBrain. Previously in April, Nvidia also cooperated with FPT to build AI Factory in Vietnam and Japan.
Ransomware attacks Vietnamese enterprises
From the first quarter of 2024, a series of large enterprises were attacked, causing service disruptions and some units had to pay millions of USD to ransom data.
On March 24, the website and system of VnDirect Securities Company had their data encrypted and stopped working for nearly a week. Following that, many large units such as Vietnam Oil Corporation PVOIL, Vietnam Post Corporation, and a number of telecommunications and media enterprises were also recorded as infected with ransomware, causing disruptions in operations, including services related to end users.
According to a report by Viettel Cyber Security Company (VCS), in the first half of the year, the number of ransomware attacks targeting organizations and enterprises increased dramatically by 70% compared to the same period last year. In addition, more than 50 organizations were "initialized," meaning hackers had infiltrated the system to prepare for encryption activation but were detected in time. Hackers also carried out "double extortion," meaning they both encrypted and threatened to publicly release user data. Of these, 46 breaches leaked about 13 million customer data records, 12.3 GB of source code, and 16 GB of sensitive information in the first half of the year.
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At the meeting of the fourth quarter of 2024, the Department of Information Security stated that hackers "have considered Vietnam a market", meaning they can target it for profit. Ransomware is provided as a service, and anyone with bad intentions can carry it out, causing small attack groups to gradually pay attention to new areas like Vietnam, leading to an increasing number of domestic victims.
Being attacked by cyberattacks, especially ransomware, not only causes service disruptions, but also affects the finances and reputation of the unit, and even legal issues, when regulations on information security in Vietnam are increasingly tightened. However, experts said that this is also an "opportunity" to raise awareness, encourage them to review their defense capabilities, and prepare response plans, in the context of digital transformation and the operations of businesses and organizations that are increasingly linked to the cyber world.
"Turn off the signal" 2G
On October 16, network operators in Vietnam officially stopped providing 2G services to users. The second generation mobile network entered Vietnam in 1993, starting many telecommunications businesses as well as domestic mobile users, completing its mission after 31 years.
To prepare for this, the network infrastructure is ready with 4G covering up to 99.8% of the population from 2023. However, the biggest challenge is from the user side because when the signal is "turned off", devices that only support 2G networks (2G Only) will not be able to connect to the network. According to statistics at the beginning of the year, Vietnam had about 18 million 2G subscribers, a slight decrease compared to previous years.
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Nokia "brick" phones before the 2G shutdown. Photo: Luu Quy
To address that challenge, a series of measures have been implemented, such as stopping the import of 2G Only devices from 2021, not allowing the entry of new networks with "illegal" 2G phones in 2024. Millions of 4G-supporting terminals have been discounted by mobile network operators and retail chains, even given away and sent to people's homes to support the conversion.
With the approach considered "the most drastic ever", before the shutdown, network operators still had about 200,000 people who had not upgraded their devices, accounting for less than 0.2% of subscribers in Vietnam, exceeding the previously set target of less than 5%.
Shutting down 2G waves has many meanings for both users and suppliers. Users are encouraged to switch to 4G, thereby participating in the digital environment, enjoying advanced services such as electronic payments, online public services. Meanwhile, network operators are relieved of the load, preparing infrastructure and human resources for new generation network technologies such as 5G, 6G. According to the frequency planning of the Ministry of Information and Communications, 2G is currently only operating in some areas such as Truong Sa, Hoang Sa archipelagos, and DK platform. Vietnam will also turn off 3G waves in 2028
Luu Quy
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