Digital transformation driving growth and innovation through 5G

Denis shared about the importance of 5G to economic growth and innovations in Vietnam at VIR's 5G forum on December 14

5G has the potential to accelerate the digital transformation of virtually any sector of industry or society. The next wave of socioeconomic development in Vietnam will come from innovation, science and technology, driven by the digital economy, through data. Data will become the new oil that fuels the engine of growth, which is the internet and the digital economy. And 5G in that world serves as the critical national infrastructure. The applications that will run on top of 5G will create major value for society, for consumers, and for industry.

Biggest innovation platform ever

While previous generations were centred around consumer and personal communications, 5G will serve consumers and enterprises and take the Internet of Things to the next level, where superior connectivity is a prerequisite.

According to our mobility estimates, 5G will become the dominant mobile access technology in 2027. Around 4.4 billion 5G subscriptions are forecast by the end of 2027, accounting for 49 per cent of all mobile subscriptions at that time. Networks are estimated to cover 75 per cent of the world’s population in 2027 and carry 62 per cent of all mobile data traffic. In Southeast Asia and Oceania, 5G subscriptions are expected to account for 45 per cent of all mobile subscriptions by 2027.

As a technological age, we are moving into a new space of connected machines, vehicles, wearables, and many other things. From within these spaces, entire new enterprises and business models will emerge and deliver new value opportunities across manufacturing, transport, healthcare, energy, and more. 5G will unlock the potential of the Fourth Industrial Revolution in Vietnam.

Given Vietnam’s ambitions for digitalising society, we expect 5G to play a fundamental role by increasing broadband connections, improving rural coverage thus bridging the digital divide, enabling Industry 4.0 and increasing the contribution of the digital communications sector to Vietnam’s GDP. A key component of Vietnam's socioeconomic development strategy is the digital economy, which will contribute 7 per cent of GDP in 2025 and 7.5 per cent by 2030.

A socioeconomic multiplier

The 5G infrastructure that we will be deploying in Vietnam will serve as a platform for innovation that will address the needs of the country today and well into the future.

The 5G networks will support mission-critical applications that rely on the low latency feature of 5G as well as machine to machine type communications while enhancing the end consumer experience and supporting rapidly growing data traffic.

The launch of 5G in Vietnam is promoting the government’s vision of leveraging science, technology, and innovation in driving and creating the next wave of inclusive and sustainable socioeconomic development in Vietnam.

5G mobile network capabilities will play a pivotal role in achieving this vision, supporting an accelerated adoption of Industry 4.0 across the nation. Vietnam has taken the right approach by deploying 5G in big cities and industrial areas first, to bring digital transformation to manufacturing facilities. When it comes to industries, our studies show that manufacturing, energy/utility sectors, healthcare, and public safety represent huge opportunity areas in Vietnam wherein the benefits of 5G can be realised. Wireless digitalisation of enterprises through 5G will deliver a step-change in productivity and redefine the whole digital ecosystem.

Today, globally, people and enterprises are beginning to experience the benefits of a 5G wireless service for the first time. For example, together with Telefónica Deutschland and Ericsson, Mercedes-Benz is putting in place the world's first 5G mobile network for automobile production in its Factory 56.

The use of state-of-the-art 5G network technology allows Mercedes-Benz, among other things, to optimise existing production processes in its plant with the help of new features. These include, for example, data linking or product tracking on the assembly line. With a separately-owned network, all processes can be optimised and made more robust, and if necessary, adapted at short notice to prevailing market requirements.

In fact, according to our newly-released Future of Enterprises Report, when manufacturing companies think of what advanced wireless networks they will need for ICT-enabled production tools, 5G is on top of their wish list. As we found in our research, the majority of manufacturers expect the introduction of 5G in their production system within the next five years.

This report is based on our Industry Lab Study which was conducted across 22 countries to get a deeper understanding of transformation happening in the manufacturing industry. Almost two-thirds of the surveyed manufacturers expect to be automated to at least 80 per cent within 10 years.

With our global scale and expertise, we continue to support Vietnam to deploy 5G efficiently. Today there are more than 180 5G networks live globally with more than 1,000 devices commercially available. Ericsson is proud to power over 100 live 5G networks in 46 countries today, with 169 commercial agreements signed. Subscriber uptake has good momentum and we foresee 5G will cover 25 per cent of the world's population by the end of this year. Here in Vietnam, we will be working with partners, app developers, and other ecosystem players to collaborate, innovate, and develop solutions to meet the needs of end customers as well as enterprises in Vietnam. Ericsson remains committed to supporting Vietnam to realise the full possibilities of connectivity with 5G.