Vietnam's Internet Speeds Surge, Paving the Way for Digital Economy Growth

According to the latest SpeedTest Global Index, Vietnam has made remarkable strides in internet connectivity, with mobile internet speed rising from 20th to 10th globally in July 2023. The country also improved its fixed broadband ranking, moving up to 7th place worldwide, with a median download speed of 307.11 Mbps, significantly higher than the global average of 127.70 Mbps.

This advancement positions Vietnam as one of the fastest-growing markets in internet infrastructure, surpassing countries like New Zealand and Malaysia. The median mobile internet download speed in Vietnam reached 205.58 Mbps, nearly double the global average of 109.73 Mbps. The United Arab Emirates currently leads with a staggering 663.50 Mbps.

The growth in Vietnam's internet speed is attributed to the widespread commercialization of 5G networks over the past two years, which has been a critical factor in enhancing mobile internet performance. Data from the Ministry of Science and Technology's i-Speed platform indicates that 5G access speeds have also improved, averaging over 462 Mbps in July.

Phan Vũ Tuấn, Vice President of the Ho Chi Minh City Electronic and Telecommunications Association, described this progress as a positive outcome of targeted investment cycles aimed at expanding 5G networks, increasing fiber optic connections to households, and enhancing international bandwidth capacity. He noted that Vietnam's telecommunications infrastructure has advanced ahead of the overall digitalization of its economy.

“To achieve this success, service providers have had to overcome numerous technological challenges and ensure business efficiency.”Vũ Hoàng Liên, President of the Vietnam Internet Association

Vũ Hoàng Liên, President of the Vietnam Internet Association, emphasized that this achievement reflects the government's long-term commitment to developing infrastructure that supports economic growth and societal needs. He stated that service providers have had to overcome numerous technological challenges and ensure business efficiency, which has enhanced the country's reputation and attractiveness for investment.

Improving internet speed is not just about faster browsing; it is essential for a robust digital economy. This infrastructure supports cloud computing, artificial intelligence, big data, e-commerce, digital services, and various technological applications across sectors. According to GS-TS Võ Xuân Vinh, Director of the Business Research Institute at the University of Economics in Ho Chi Minh City, the internet is critical for the digital economy, akin to how transportation infrastructure supports traditional economic activities.

The Vietnamese government has approved a program for digital economy and society development from 2026 to 2030, aiming for the digital economy to contribute approximately 30% of GDP by 2030 and to assist at least 500,000 small and medium-sized enterprises in digital transformation. The low costs of telecommunications and internet services in Vietnam further enhance accessibility, making it easier for individuals and businesses to leverage these advancements.

“The internet is critical for the digital economy, akin to how transportation infrastructure supports traditional economic activities.”GS-TS Võ Xuân Vinh, Director of the Business Research Institute

Phan Vũ Tuấn noted that the economic implications of Vietnam's internet ranking will most significantly impact small businesses and household enterprises rather than large corporations that already have dedicated connections. With improved bandwidth, market entry costs for digital businesses decrease, allowing small enterprises to sell online in real-time and migrate operations to cloud platforms without heavy investments in servers.

For the media and digital content sectors, this improvement allows local content producers to compete on a more level playing field with regional counterparts, as they can now offer higher quality products without compromising on technical standards. However, experts caution that while improved internet speed is necessary, it is not the sole indicator of a thriving digital economy. The true measure lies in the contribution to GDP, the number of operational digital businesses, and the volume of legally utilized data.

Moreover, the SpeedTest Global Index rankings are based on user-generated data, reflecting both network quality and the evolution of device usage. Therefore, while these rankings provide valuable international benchmarks, they should not be viewed as the only measure of telecommunications service quality. Moving forward, experts recommend focusing on three key areas: facilitating genuine digital transitions for small and medium enterprises, developing domestic data centers and cloud infrastructure to retain data and value within Vietnam, and refining regulations regarding data, payments, and copyright to ensure legal compliance across digital platforms.

As Vietnam seeks to foster high economic growth, national infrastructure—both physical and digital—must stay ahead of the curve. The digital infrastructure, particularly internet connectivity, is essential for enhancing economic efficiency and fostering innovation. Therefore, this development presents a significant opportunity for Vietnam's digital economy to thrive and to position itself on the global digital map.