Decision No. 158/2001/QD-TTg dated October 18, 2001 of the Prime Ministert ratifying Vietnam post and telecommunications development strategy till 2010 and orientations till 2020

DECISION

RATIFYING VIETNAM POST AND TELECOMMUNICATIONS DEVELOPMENT STRATEGY TILL 2010 AND ORIENTATIONS TILL 2020

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the August 31, 2001 Resolution No. 10/2001/NQ-CP on the Government’s August 2001 regular meeting;

At the proposal of the General Department of Post and Telecommunications in its Report No.369/TCBD-KTKH of April 10, 2001; after considering opinions of the Ministry of Planning and Investment (Official Dispatch No.2099-BKH/CSHT of April 9, 2001), the Ministry of Science, Technology and Environment (Official Dispatch No.874/BKHCNMT-CN of April 5, 2001), the Ministry of Culture and Information (Official Dispatch No.1164/BVHTT-BC of April 3, 2001), the Ministry of Public Security (Official Dispatch No.453-CV/BCA(V11) of April 11, 2001), the Ministry of Defense (Official Dispatch No.1169/QP of April 27, 2001), the Ministry of Finance (Official Dispatch No.3237-TC/TCDN of April 10, 2001), and the Ministry of Industry (Official Dispatch No.1252/CV-KHDT of April 5, 2001) on "Vietnam post and telecommunications development strategy till 2010 and orientations till 2020",

DECIDES:

Article 1.-To ratify "Vietnam post and telecommunications development strategy till 2010 and orientations till 2020" with the following major contents:

1. Viewpoints

a/ Vietnam post and telecommunications, which, together with informatics and communication, constitute the national information infrastructure, must be a spearhead branch, developing more strongly and being regularly updated with modern technologies and techniques. The development must go in line with the efficient management and exploitation in order to create conditions for the application and promotion of information technology in all domains of the entire society, thus contributing to national socio-economic development and raising the population’s intellectual standards.

b/ To bring into play all resources of the country, create conditions for all economic sectors to participate in post, telecommunications and informatics development in an environment of fair and transparent competition, managed by the State through appropriate mechanisms. To quickly develop, occupy and stand firm on the domestic market while taking initiative in expanding business activities on the international market.

c/ To take initiative in economic integration, ensuring that development goes in parallel with the maintenance of information security and safety, contributing to firmly defending the socialist fatherland of Vietnam.

2. The strategy’s objectives:

a/ To build up and develop the national information infrastructure with modern technologies being on a par with those of the regional advanced countries, which covers the whole nation with high flux, speed and quality, as well as fruitful operation, creating conditions for the entire society to exploit and share information on the background of the already built national information highway; and lays foundation for the application and development of information technology in service of the cause of national industrialization and modernization.

b/ To provide the society and consumers with modern, diversified and abundant post and telecommunications services with prices below or equal to the average prices of the regional countries; to satisfy all demands for information in service of socio-economic development, security and defense. To universalize post, telecommunications and informatics services to all regions and parts of the country with higher and higher service quality. By 2010, the number of telephone sets and Internet users per 100 people shall reach the regional average level.

c/ To build up post and telecommunications in the trend of technological integration into a spearhead economic-technical branch which fruitfully operates and contributes more and more to the national GDP growth, thus creating more jobs for the society.

3. Orientations for development of domains

a/ Development of infrastructure of telecommunications and informatics networks

- To build and develop an advanced, modern, fruitful, safe and reliable infrastructure of the national telecommunications and informatics networks covering the whole country, including deep-lying, remote, border and island areas. To formulate the national information highway of big capacity and with high speed on the basis of integrating telecommunications, informatics and mass media technologies and services. To apply broad band-access methods to each user’s household: optic fiber cables, broad band wireless, VINASAT..., which lay foundation for the application and development of information technologies, electronic commerce, electronic government, public services and other domains.

- By 2005, all provinces and cities throughout the country shall be linked together by broad band- optic fiber cables. By 2010, the national information highway shall link to all districts and many communes in the whole country by optic cables and other broad band transmission modes; at least 30% of the subscribers will be able to access to the broad band telecommunications and Internet.

b/ Development of postal network

- To develop Vietnam post along the direction of mechanization, automation and computerization, aiming to reach the modern level of the regional advanced countries. To separate post from telecommunications so that they will operate independently and fruitfully, provide various services with international standards.

- By 2010, to achieve an average service level of under 7,000 people per one post and telecommunications service-providing place within an average service diameter of under 3 km. To achieve the target of 100% of delta communes and most of mountainous communes receiving daily papers in the day.

c/ Development of exclusive-use information networks

- To develop modern exclusive-use information networks compatible with the development of the national public networks, which, on the one hand meet the branches’ demand for exclusive information and, on the other hand, efficiently use information infrastructure of the already built public networks.

- To give priority to the development of a modern exclusive-use information network in service of the Party, the Government, defense and security; to ensure the service quality and requirements on confidentiality and information safety.

d/ Development of services

- To quickly develop, diversify and efficiently exploit different types of services based on the national information infrastructure, with a view to providing users with high-quality, safe and confidential post, telecommunications and Internet services at the charge rates below or equal to the average level of the regional countries, in service of the cause of socio-economic development, security, defense, national industrialization and modernization.

- To speed up the universalization of postal, telecommunications and Internet services throughout the country. Besides the basic fixed services, to promote the development of mobile services, Internet, e-commerce, services for e-Government, public services, community services and other value-added services.

By 2010, the average telephone density shall reach 15-18 telephones/100 people; more than 60% of households will have telephones on average, which shall be 100% in urban centers; to widely provide Internet services to research institutes, universities, schools and hospitals throughout the country.

e/ Market development

- To bring into play all the country’s internal resources in combination with efficient international cooperation for market expansion and development. To continue eliminating domains where enterprises hold monopoly, strongly shift to the competitive market, create conditions for all economic sectors to participate in postal, telecommunications and Internet services while firmly maintaining the leading role of the State-run economic sector. The new enterprises (besides the leading ones) will hold a share of 25-30% of Vietnam post, telecommunications and Internet market by 2005, and 40-50% by 2010.

- To actively exploit the domestic market while expanding operations to international market. To take initiative in economic integration along the roadmap already committed multilaterally or bilaterally.

f/ Scientific and technological development

- To update modern and advanced technologies in building the national information infrastructure. The selected technologies must be the forerunners, compatible and suitable with the technological integration trend.

- To step up the research and application of scientific and technological achievements in all domains: equipment, networks, services, industries, management, human resources... To master the imported technologies, then proceed to create more and more products with Vietnamese technologies.

g/ Development of post, telecommunications and informatics industries

- To encourage domestic and foreign economic sectors to participate in the development of post, telecommunications and informatics industries; and various forms of foreign investment with the transfer of high technologies, including form of 100% foreign capital.

- To enhance the acceptance of the transferred modern technologies; step by step proceed to master both hardware and software engineering, make products of international quality. To raise the home-made equipment production capacity, thus meeting 60% of Vietnam’s demand for use of post, telecommunications and informatics equipment by 2005 and 80% by 2010. To accelerate the process of raising the value content of Vietnam’s labor in its products to 30-40% by 2005 and 60-70% by 2010. To enhance cooperation and exchange, participating in the international labor distribution market, effect the specialized production of a number of products in Vietnam; to promote the export of products to overseas markets.

- To pay attention to prioritizing the mobilization of capital and investment in human resources for the development of software engineering. By 2010, the software’s turnover is expected to make up over 30% of the total turnover of post, telecommunications and informatics industries. To quickly increase the software’s proportion in products; step by step penetrate into regional and international markets through labor distribution and production specialization.

h/ Development of human resources

- To train and develop skillful and qualified human resources that can master modern technologies and techniques and manage the economy in a sound manner.

- By 2010, to raise the productivity and quality of labor in service of Vietnam post and telecommunications to the level of the regional advanced countries.

4. Major solutions

a/ To continue renewing policies to mobilize domestic resources and attract foreign resources

- To speed up the elaboration of the Post and Telecommunications Ordinance and Law and the formulation of a system of relevant legal documents so as to create conditions for strongly shifting post and telecommunications to the competitive market; to take initiative in effecting the door-opening process and international economic integration.

- To quickly adopt and promulgate specific policies and measures to boost competition, create conditions for all economic sectors to participate in post, telecommunications and Internet development. To permit the qualified domestic enterprises to participate in the market of providing basic services, value-added services and services of applying domestic and international information technology. To expand the competitive market on the basis of bringing into play the leading role of State enterprises. To adopt policies to ensure the effective operation of market mechanism; policies of regulatory character in service of business, public utility and service universalization. To early map out and announce the roadmap of opening post, telecommunications and Internet market according to the time table set for each specific service.

- To renew the charge rate policy so as to ensure the establishment of a really competitive market, create motive force for enterprises to strive to raise the efficiency of their production and business activities and reduce their products and services prices. In 2001-2002, to strive to reduce almost all charge rates of Vietnam post, telecommunications and Internet services to the levels below or equal to the average level of the regional countries.

- To adopt appropriate policies and measures with a view to exploiting and mobilizing resources of all branches and localities participating in development of the national information infrastructure; to raise the capability of servicing the community, and increase the service-accessing possibilities for people in the society.

- To effectively manage national natural resources such as: radio frequency spectrum, number and code storage; zone and domain names and addresses, and commercial rights, thereby creating equality for operations of enterprises.

b/ To renew the organization, enhance and raise the effectiveness, of the State management apparatus, and effectiveness of macro management instruments and policies

- To build up and perfect a uniform State management apparatus for post, telecommunications and information technology, suited to the technological integration trend, ensuring that the management capability be on a par with the growth rate. To speed up the administrative reform and exercise the State management effectively and fruitfully in an open and competitive environment.

- To exercise management according to law, reduce administrative measures, enhance "post-inspection" measures, not to interfere deep into production and business activities of enterprises. To pay attention to the orientation and forecast; associate the planning and plans with the system of mechanisms, policies and market, ensuring the healthy and equal development. To protect the State’s, consumers and enterprises interests.

- To establish necessary premises for post, telecommunications and informatics in the process of participating in AFTA and APEC, implementing Vietnam- US Bilateral Trade Agreement and joining WTO.

c/ To continue renewing the organization and management of production and business and other activities of enterprises

- To renovate enterprises according to the objective of "productivity, quality and efficiency"; to raise the competitiveness of enterprises operating in the fields of post, telecommunications and informatics. To promote the leading role of the State-run economic sector, formulate powerful post, telecommunications and informatics consortiums; to create posture and strength for successful international integration and competition.

- To accelerate the restructuring of enterprises operating in the fields of post and telecommunications, based on classifying them into different categories: enterprises with 100% State-owned capital; enterprises where the State holds dominant or special equities; and enterprises of all socio-economic sectors. To step by step eliminate the cross-subsidy regime, effect independent cost-accounting, clearly determine public-service and business tasks. To equitize post, telecommunications and informatics enterprises according to the specific schedule.

- To accelerate the process of restructuring investment, step by step separate post from telecommunications.

d/ To mobilize and efficiently use capital sources

- In the 2001-2020 period, to mobilize around VND 160-180 trillion (equivalent to USD 11-12 billion) for investment in the development of post, telecommunications and informatics, of which around VND 60-80 trillion (USD 4-6 billion) is to be mobilized in the 2001-2010 period. Of the total investment capital, the mobilized domestic capital is estimated to represent 60% while the foreign capital accounts for remaining 40%.

- The State shall adopt policies on commercial rights towards post and telecommunications for enterprises operating in this field; policies to regulate the network development in rural, mountainous, deep-lying and remote areas. Enterprises shall mobilize by themselves capital sources for investment in network development and service provision, and at the same time, be obliged to provide popularization and public-utility services at the State’s request.

- Regarding the domestic capital: To accelerate the renovation of enterprises, restructure production and investment, create conditions for enterprises to operate efficiently so as to increase their accumulation capability with domestically- arising capital sources and development reinvestment. To enhance the attraction of investment capital from all domestic economic sectors; to apply appropriate solutions to encourage branches and localities to take part in post, telecommunications and informatics development; to set up the service universalization fund for the universalization of post, telecommunications and Internet services, especially in rural, deep-lying and far-flung areas.

- Regarding foreign capital: To take advantage for the full exploitation of foreign capital sources; to encourage foreign direct investment forms, especially the investment in post, telecommunications and informatics industries, investment in service provision and other investment forms suited to the branch’s door-opening process and international economic integration. To set aside part of the ODA capital source for post, telecommunications and informatics development in rural, deep-lying and remote areas.

e/ To promote international cooperation in service of development

- To further take initiative in participating in all operations of international organizations so as to gather, supplement knowledge and experiences and make practical contributions, thereby raising Vietnam’s position, prestige and interests on the international arena.

- To take initiative in the process of opening door for international economic integration. To diversify activities of cooperation with foreign countries in order to take advantage of external resources (investment capital, technologies, techniques, personnel training...) and create competition on post, telecommunications and Internet. To create all conditions for domestic enterprises to stand firm on the domestic market and expand business to international and regional markets.

f/ To enhance the building of a contingent of personnel

- To train and retrain the existing personnel. To train in advance a contingent of personnel compatible with the development objectives; diversify forms of training and fostering. To modernize specialized training centers, upgrade material bases and facilities; renovate textbooks; update new knowledge. To continue building the Post and Telecommunications Technology Institute along the direction of actively participating in the human resource training for post, telecommunications and information technology; to enhance international cooperation in human resource training.

- To adopt appropriate training policies in order to have a contingent of economic and technical experts; and a contingent of excellent business managers in the international competitive environment, paying special attention to the contingent of telecommunications and informatics software experts.

- To implement a rational treatment policy in order to attract talents and gray matter sources from inside and outside the country, to be contributed to the post, telecommunications and informatics development.

Article 2.-Organization of implementation

1. To assign the General Department of Post and Telecommunications to assume the prime responsibility and coordinate with the ministries, branches and People’s Committees of the provinces and centrally-run cities in implementing "Vietnam post and telecommunications development strategy till 2010 and orientations till 2020".

2. Based on the development objectives and orientations of this strategy, the General Department of Post and Telecommunications shall elaborate and organize the implementation of an overall planning on post, telecommunications and Internet development till 2010 as well as the five-year and annual development plans in conformity with the national socio-economic development plan; guide, inspect and supervise the implementation of the Strategy; propose necessary solutions to the Prime Minister for decision, thus creating conditions for the fruitful implementation of this strategy; make preliminary review of five-year implementation of the strategy and final review thereof in the conclusion year.

3. The ministries, branches and People’s Committees of the provinces and centrally-run cities shall, according to their respective functions, tasks and powers, have to coordinate with the General Department of Post and Telecommunications in performing tasks and realizing objectives of the Strategy; ensure uniformity and conformity with the implementation of the branch’s and localities socio-economic development plans.

Article 3.-This Decision takes effect 15 days after its signing.

Article 4.-The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decision.