Ericsson to enable Vietnam’s 5G future

How will 5G benefit Vietnam’s economic development, especially in manufacturing and retail?

Denis Brunetti, president of Ericsson Vietnam, Myanmar, Cambodia, and Laos

5G will pave the way for increased investments in smart manufacturing capabilities in the country, supporting the government’s vision and focus on driving an increased and sustainable productivity growth rate of 7 per cent per year by 2025.

By wisely taking a strategic decision to focus on science, technology, and innovation, and embracing the accelerated adoption of Industry 4.0 through 4G Narrowband-IoT and 5G capabilities, Vietnam is well on its way to creating a digital ecosystem that will attract foreign direct investment (FDI) in high-tech and drive the next wave of inclusive and environmentally sustainable socio-economic development across the nation.

As a critical national infrastructure and innovation platform, 5G will favourably impact many industries, including manufacturing, agriculture, public safety, and retail. As an example, the growing retail industry will increasingly leverage e-commerce solutions and platforms to reach more customers efficiently and cost effectively, providing improved services and shopping convenience via mobile connectivity.

Over the past 30 years, a significant proportion of Vietnam’s $350 billion FDI and phenomenal socio-economic development journey has been driven by the traditional economy fuelled by labour, land and natural resources. In contrast, the new digital economy will be created by scientific and technological advancements and innovation, particularly in areas such as 5G, AI, cloud computing, and big data.

This emerging digital economy will create new industries, many of which we may not even be able to imagine today, creating a broad range of new jobs across existing and new industries that will require new capabilities and skills centred around science, technology, and engineering.

Coupled with Vietnam’s National Innovation Center initiative, the government’s investment in sustainably growing the nation’s start-up ecosystem will also contribute significantly to the country’s innovation capacity and the establishment of a thriving digital economy leveraging 5G as the enabling platform.

How can Ericsson help the country develop the 5G networks, and help communications services make the best use of it?

As a trusted and long-term strategic partner in Vietnam’s ICT industry, Ericsson is committed to working alongside leading mobile service providers, such as Viettel, VNPT Group, Mobifone, and Vietnamobile, to expand 4G network coverage and capacity whilst also preparing for the commercial introduction of 5G through a series of technical and commercial trials.

Ericsson has been supporting Vietnamese mobile service providers with technical 5G trials since 2019, leveraging our technology leadership, strategic partnerships, and expansive 4G base - which can seamlessly and efficiently be upgraded to 5G capabilities when required.

We are proactively working with mobile service providers to ensure Vietnam is at the forefront of 5G developments, sharing our technical capabilities, market insights, and thought leadership.

In addition, Ericsson also recognises the need to lead the market in forging strategic 5G ecosystem partnerships that include cross industry players, bringing them together with mobile service providers to deliver compelling digital transformation engagements and new revenue streams.

For instance, automotive 5G production is now a reality for German electric microcar company e.GO Mobile AG at its Aachen complex, enabled by 5G connectivity from Ericsson and Vodafone Germany. Ericsson is also teaming up with Telefónica Germany to enable 5G car production via a private network for Mercedes-Benz. The 5G network will enable the car maker to boost flexibility, production precision, and efficiency as digitalisation becomes a reality in car production. We are in the process of exploring similar opportunities in Vietnam.

What are your company’s plans in Vietnam to cash in on increasing technology demands and increase competitiveness amid enforcement of the EU-Vietnam Free Trade Agreement (EVFTA)?

Ericsson Vietnam is well positioned to tap into the benefits and value of the EVFTA, and I am proud and honoured to have contributed to the EVFTA through my former role as co-chairman of the European Chamber of Commerce in Vietnam.

Ericsson views 5G as critical national infrastructure and as an innovation platform that will support the country’s national ambition to connect industries to the internet as part of the Fourth Industrial Revolution, helping them to be more productive and efficient through mobility and digital transformation.

We are already investing in a variety of emerging technologies, such as AI and automation in the network solutions we are providing our customers in Vietnam. We are encouraged by the favourable terms and conditions incorporated in the EVFTA, particularly in relation to intellectual property rights protection, investment protection, and environmentally sustainable development.

We are planning to strategically partner and collaborate with world leading manufacturing companies to support them in introducing smart manufacturing facilities to Vietnam. The EVFTA will further accentuate the need for accelerated expansion of 4G networks, coupled with the introduction of 5G capabilities to Vietnam starting this year.

Through the EVFTA, the country’s focus on social, economic, and environmental sustainability will further increase Vietnam’s international competitiveness as it aims to become a high-income economy by 2045. The EVFTA will also open up many more opportunities for Vietnamese firms to increase innovation capacity and quality standards in order to promote and sell their products and services to the 500 million strong EU population, helping further integrate Vietnamese companies into the global supply chains of EU companies.

Ericsson is committed to supporting Vietnam’s mobile service providers and their customers in realising these benefits through 4G and 5G capabilities.