What's Happening?
The Vietnam Posts and Telecommunications Group (VNPT) has launched the Vietnam-Singapore Terrestrial Network (VSTN), a fiber optic cable system connecting Vietnam to Singapore via land routes through Laos, Thailand, and Malaysia. This 3,900-kilometer network uses Dense Wavelength Division Multiplexing (DWDM) technology, offering a minimum capacity of 300 Gbit/s per wavelength, expandable to 12 Tbit/s. The VSTN serves as a backup to Vietnam's existing submarine cables, which frequently experience disruptions. By owning and controlling the terrestrial system, VNPT can quickly repair any segment without foreign reliance. The VSTN aims to enhance Vietnam's telecommunications infrastructure resilience and security.
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Why It's Important?
The VSTN is expected to significantly impact Vietnam's digital economy by encouraging private-sector investment in data centers and fintech ventures. It strengthens Vietnam's connectivity to regional data hubs, facilitating cross-border trade in digital services. The network supports Vietnam's goal of increasing its digital economy's contribution to 20% of GDP by 2025. This infrastructure development is crucial for industries like cloud services, fintech, and e-commerce, where stable connectivity is essential. The VSTN's direct land-based route to ASEAN hubs could act as a catalyst for economic growth and technological advancement.
What's Next?
VNPT plans to continue developing a multimodal transmission infrastructure ecosystem, integrating land, sea, and space routes. The VSTN's launch may prompt further investments in Vietnam's digital infrastructure, potentially leading to increased bandwidth capacity and improved internet traffic management. Stakeholders in the digital economy, including businesses and government entities, are likely to explore new opportunities for collaboration and innovation, leveraging the enhanced connectivity provided by the VSTN.
