Directive 09/2001/CT-TCBD implementing the Decision 158/ 2001/QD-TTg ratifying Vietnam post and telecommunications development strategy

DIRECTIVE

ON IMPLEMENTING THE PRIME MINISTER’S DECISION NO.158/ 2001/QD-TTG RATIFYING VIETNAM POST AND TELECOMMUNICATIONS DEVELOPMENT STRATEGY TILL 2010 AND ORIENTATIONS TILL 2020.

On October 18, 2001, the Prime Minister issued Decision No.158/ 2001/QD-TTg ratifying "Vietnam post and telecommunications development strategy till 2010 and orientations till 2020". The strategy determined viewpoints, objectives, orientations and major solutions for Vietnam post, telecommunications and Internet development in the period of industrialization, modernization and international economic integration.

The main objective of the strategy is quick development so that by 2001 the national information infrastructure shall be equipped with modern technologies and cover the whole nation with high flux, speed and high quality; universalization levelof Vietnam post, telecommunications and Internet services shall reach the average level of the regional countries; the society and consumers shall be provided with modern and diversified services at prices below or equal to the prices of the regional countries; post and telecommunications shall be built up into a spearhead economic branch which fruitfully operates, thus contributing to socio-economic development and ensuring the national security and defense.

To achieve the above-said objectives, there shall be necessary to synchronously implement measures mentioned in the strategy, especially for solutions aiming to bring into play all resources of the country to boost competition and take initiative in international economic integration.

Deploying the implementation of the Prime Minister’s Decision No.158/2001/QD-TTg the General Director of Post and Telecommunications units attached to the General Department of Post and Telecommunications, post, telecommunications and Internet enterprises to implement the following contents:

1. To build up and successfully implement the planning for Vietnam post and telecommunications development till 2010; the 5-year and annual plans; important investment projects.

To concentrate on mapping out the planning for Vietnam post and telecommunications development till 2010, the 5-year and annual plans according to the following development targets:

a) To formulate the national information highway of big capacity and with high speed, covering the whole country, till 2010 the national information highway shall be linked to all communes in the whole country by broad band transmission modes with modern technologies such as: optic fiber cables, VINASAT, viba, systems of wire and wireless access.

b) To speed up the development and diversify of post, telecommunications and Internet services throughout the country; by 2010 universalization level of Vietnam post, telecommunications and Internet shall reach the regional average level with charge rates below or equal to those of the regional countries.

- Till 2005, to reach 8-10 telephone subscribers per 100 people (including fix telephones and mobile phones) and about 10-12 telephone subscribers per 100 people (if including prepaid subscribers); till 2010 to reach 15-18 telephone subscribers per 100 people (including fix telephones and mobile phones) and about 20-25 telephone subscribers per 100 people (if including prepaid subscribers).

- To universalize Internet services to all universities, colleges, research institutes, big hospitals, etc… throughout the country. Till 2005, the number of Vietnam Internet users shall account for 4-5% of the total population with density of 1.3- 1.5 Internet subscribers per 100 people.

- To develop Vietnam post with fruitful and modern operations being on a par with those of the regional advanced countries. By 2010, to achieve an average service level of under 7,000 people per one service-providing place with 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) To encourage all domestic and foreign economic sectors to participate in the development of post, telecommunications and informatics industries; to enhance cooperation and exchange, participate in the international labor distribution market and effect the specialized production of a number of products in Vietnam. By 2005, to strive to raise the value content of Vietnam’s labor in its products to 30- 40% and the domestic industry (including joint-ventures) meet about 50- 60% of development demand of networks and 80% by 2010.

d) To deploy the implementation of elaborating and completing the important national projects: VINASAT project, domestic sea optic fiber cable project; optic fiber cable project of Ho Chi Minh; Duyen Hai information system project; new mobile information systems; to upgrade and modernize post exploitation centers in Hanoi, Da Nang and Ho Chi Minh city.

Planning and development plans are concrete steps of the Strategy needing implementing immediately and efficiently with high quality and they must be compatible with development situation of each stage. The Department for Economic Planning shall assume the prime responsibility in organizing and concentrating on elaborating planning on Vietnam post and telecommunications development till 2010 and the 5-year plans and at the same time, have to guide post, telecommunications and Internet units and enterprises in elaborating business strategy, the 5-year and annual development plans in conformity with the branch’s strategy and planning.

2. To elaborate and perfect legal environment and development policies:

2.1. Concentrating on elaborating systems of relevant legal documents including Ordinances, Decrees and guiding Circulars aiming to create new legal basis for the period of integration and development. The drafting committee shall complete the draft ordinance on post and telecommunications to submit the Government and the Standing Committee of the National Assembly for approval in the second quarter of 2002.

2.2. To elaborate the appropriate policy system in order to ensure that post, telecommunications and Internet market shall develop and operate effectively:

a) Regarding the market opening, bringing into play all the country’s internal resource, boosting competition and raising the competitiveness of Vietnam post, telecommunications and Internet enterprises.

- The market opening must ensure the national information infrastructure, including public and specialized-use networks. Vietnam Post and Telecommunications Corporation shall have to organize fruitful management and exploitation of public networks already invested and built by the State and at the same time, create favorable conditions for new enterprises and socio-economic organizations in the link and joint use of network infrastructure.

- For the domain of building up telecommunications network infrastructure in the period from now to 2005, there shall be necessary to push 5 enterprises with already granted permits to quickly deploy networks and provide services and at the same time, to restrict the consideration of new enterprise establishment in order to fruitfully use already and nearly invested infrastructure and save telecommunications resources and there shall be also necessary to consider granting more permits to the existing enterprises in the building of network and provision of domestic and international long-distance telecommunications services.

- For the domain of service provision, it should be to enhance the granting of permits for service provision enterprises to participate in the market, to promote cooperation and boost healthy competition. Till 2005, to basically shift from monopoly to competition in domains of providing telecommunications and Internet services, new enterprises shall hold a share of 25-30% of Vietnam post, telecommunications and Internet market.

By 2020, the Postal Policy Department shall early map out and announce the roadmap of opening post, telecommunications and Internet service market, especially policies and conditions of granting permits as well as the number of licenses for various forms of services to create conditions for enterprises to participate in the market.

- To elaborate and promulgate linking regulations: the Postal Policy Department shall quickly perfect linking regulations to create conditions for new enterprises to participate in the networks of providing services. This shall be implemented in the second quarter of 2020.

- To effectively manage national natural resources:

In the second quarter of 2020, the Postal Policy Department shall perfect the planning on numbering of the national telecommunications together with transparent and fair management policies to fruitfully use telecommunication number storage.

In 2020, the Radio Frequency Department shall complete the registration and ensure that VINASAT project shall have the satellite orbit position. It shall map out the specific planning on using frequencies and grant licenses to use frequencies according to the planning, create conditions for enterprises to fruitfully use frequency resource in the radio information development.

In the first quarter of 2020 VNNIC Internet information center shall elaborate and promulgate regulations on Internet resource management and use, and at the same time, quickly upgrade and modernize networks of resource management, host computer systems which manage domain names according to the ratified projects aiming to raise the management capability of resources, domain names and national addresses to create equal environment for promotion of Vietnam Internet development.

b) Regarding policies on universalizing services and providing public-utility activities:

- The strategy shall pay attention to post, telecommunications and Internet development for rural, mountainous, deep-lying and remote areas.

- Post, telecommunications and Internet enterprises shall have to implement service universalization and providing public-utility activities according to the State regulations.

The Department of Economy and Planning and the Postal Policy Department shall perfect mechanisms and policies related to service universalization and public-utility activity provision such as: policies on commercial rights, mechanisms of regulatory character, investment policies and elaborate regulations of the service universalization fund.

c) Regarding the charge rate policies:

To adopt appropriate policies on managing the charge rate to promote post, telecommunications and Internet development to achieve the objective that till 2002 most the charge rates of Vietnam post, telecommunications and Internet services shall be reduced to the levels below or equal to the charge rates of the regional countries, thus promoting the service universalization, raising the competitiveness of all economic sectors and improving investment environment. Post, telecommunications and Internet enterprises shall have to raise productivity, quality, effectiveness and reduce cost price to reduce service charge rates, especially international telecommunications charges, channel hiring charges, mobile charges and Internet charges. Depending on the competitive levels of services, the State shall adopt appropriate management policies: to directly manage the charge rates of services being effected by monopoly and the charges shall be determined on the basis of cost price; for really competitive services, enterprises shall have the right to take initiate in setting the charge rates.

The Department of Economy and Planning shall assume the prime responsibility and coordinate with the Government Pricing Committee in researching contents which amending and adjusting Decision No.99/1998/QD-TTg on management of post and telecommunications charge rates to submit the Prime Minister in the second quarter of 2002.

d) Regarding management of post, telecommunications and Internet quality and protection of customers’ interests:

The Department of Science, Technology and International Cooperation shall assume the prime responsibility and coordinate with Post and Telecommunications Quality Management Center in early perfecting the elaboration and announcing the systems of quality standards and appropriate management mechanisms of networks, services, materials, equipment, projects in order to ensure stable operations of networks, protect customers’ interests, raise enterprises’ responsibilities for their networks, services and goods and enhance the society’s supervision to post, telecommunications and Internet quality.

The Inspectorate of Post and Telecommunications General Department shall quickly elaborate Circulars guiding the Government’s Decree No.69/2001/ND-CP in implementing Ordinance on protecting customers’ interests in the field of post, telecommunications and Internet so that the Circular shall probably be promulgated and applied in 2002.

3. To enforce the post, telecommunications and Internet Law:

- The Radio Frequency Department, Regional Departments of Post and Telecommunications, the Post and Telecommunications Quality Management Center, Vietnam Internet Information Center, Information Center and the Inspectorate of Post and Telecommunications General Department shall have to enhance guidance and dissemination of legal documents and the State’s policies for society, enterprises and customers. Post, telecommunications and Internet enterprises shall have to research, observe, and at the same time, guide service users to implement the State regulations.

- Regional Departments of post and telecommunications shall enhance the State management over provision of activities of post, telecommunications and Internet in their geographical areas and coordinate with local administrations in mapping out plannings and plans on post and telecommunications development in areas.

- The Radio Frequency Department shall have to enhance examination and inspection to ensure safe and legal operations of radio information; closely coordinate with ministries, branches attached to Radio Frequency Committee, especially the Ministry of Defense, the Ministry of Public Security in maintaining operations of radio information systems of civilian, defense and policies agencies, restricting and taking measures against jamming and violations of law in radio information. To coordinate frequency with neighboring countries as well as international frequency organizations to ensure the national interests and security.

- The Inspectorate shall have to guide and coordinate with units in inspecting and examining the implementation of legislation on post, telecommunications and Internet and radio frequency operations.

4. To renew organization of management, production and business activities:

4.1. For post, telecommunications and Internet enterprises:

a)Vietnam post and telecommunications Corporation:

To speed up the organization renewal of production and business activities and raise the competitiveness along the direction:

- To enhance independent cost-accounting to basic services and member units in order to raise the autonomy and the operation efficiency of each member as well as of the Corporation. To speed up the implementation of plan on separating post from telecommunications so that they will operate independently and effectively by 2003.

- To perfect the network organization to raise productivity, quality and efficiency of operations, overcome limitations of network organization and management according to the administrative boundary, thus raising the efficiency of network investment and exploitation, and at the same time, saving telecommunications and Internet resources.

- To accelerate the equitization of member enterprises, including service-providing enterprises.

b) New post, telecommunications and Internet enterprises shall be necessary to concentrate on the development and effective use of resources in order to deploy the grated permits.The development investment in post and telecommunications requires careful resource preparations, especially finance and human resource. Enterprises shall appraise their advantages as well as disadvantages in the process of exploiting and providing post and telecommunications services, quickly apply appropriate measures to renew production and business activities, raise the operation efficiency and actively contribute to the implementation of the strategy’s development objectives.

4.2. To renew the State management organization:

- To concentrate on building up a uniform State management apparatus for post, telecommunications and information technology, in line with the technological integration trend; to satisfy quick development requirement according to the strategy’s objectives, have capacity to fruitfully manage post, telecommunications and Internet market and shift form monopoly to competition. The Personnel Department shall assume the prime responsibility and coordinate with the Government’s Personnel Committee and concerned ministries and branches in perfecting the project on uniform State management in the domain of post, telecommunications and information technology (including the project on establishing the Ministry of Post and Informatics) to submit the Government in the first quarter of 2002.

5. Human resource development:

To train and develop human resource with knowledge on profession, operation and economic management is one of the first measures to develop.

The State together with enterprises shall concentrate on investment in modernizing specialized training centers, upgrade material foundations and equipment, renovate teaching materials, update network development level, enhance training and retraining the existing working personnel, train in advance a contingent of personnel compatible with the development objectives, diversify forms of training and fostering. To implement a rational treatment policy in order to attract talents and gray matter sources from inside and outside the country, to contribute to the branch development.

The implementation of the Government’s Decision No.158/2001/QD-TTg is very important and significant and it shall determine the growth and sustainable development of post, telecommunications and Internet in the period of "integration and development". The units of the branch must early grasp thoroughly contents and spirit of the Government’s Decision No.158/2001/QD-TTg for each staff in the branch and for the society.

The General Director of post and telecommunications shall request the heads of units attached to the General Department of post and telecommunications, post, telecommunications and Internet enterprises to strictly implement this Directive.