Vietnam Faces Old-Tech Dumping Ground Future

Oct 25, 2010
(Bernama)

HO CHI MINH City -- It is time to tighten imports of technological devices because the practice is pushing Vietnam into becoming a technology dump, Vietnam's News Agency (VNA) quoted a local newspaper repprt Monday.

The Lao Dong newspaper cited an unnamed foreign telecommunications expert researching the Vietnamsese market as saying he was surprised that the USB 3G Internet connection, and high-end phones like iPhone and iPad were to be found in plenty.

But he was even more surprised that these products were used mainly as decoration by their owners who rarely used their technological features.

"It is amazing that Vietnamese could spend more than ten million dong to buy these products, then seldom use them.

"If they do use them, these products are utilised only to play games, listen to music, or surf Internet, instead of a device for work."

This is a reason why technological firms consider Vietnam a lucrative market, he says.

Vietnamese information technology experts have asserted that the "wastage" of technological devices should be seen as a serious problem.

Mobile phone service providers have invested mountains of money in connection technology systems and terminal equipment including G-Phone, HomePhone, E-Com, E-Phone, beeper, and public phones.

But after a short time, the failure of these investments becomes obvious, the experts say.

Ten years ago, many Vietnamese people were proud of having a beeper.

Though it was uncomfortable to receive messages passively, Vietnam imported this technology and its devices. But the product died a premature death.

The death of the City-phone service that was official announced by Vietnam Post and Telecom Corporation (VNPT) in September this year is more bitter and painful.

The technological infrastructure that VNPT built over many years for the Citiphone and the terminal equipment needed for the device was not cheap, but the money has gone to waste because nobody uses it anymore.

Telecom service providers have raced to import terminal equipment and offer wireless telephone services such as G-Phone, offered by VNPT using GMS technology, HomePhone by Viettel and E-Com by EVN Telecom.

They have delivered these devices free to rural, mountainous and remote areas with high expectation of making profit from fees levied for their use. But an error in gauging the market has cost the enterprises dearly.

Many households in rural areas have devices given by all three providers but they do not have a need to use them. While many have chosen to return the devices, others have simply thrown them away.

Another product or service that is all but dead is the public telephone booth.

It is estimated that there are thousands of public phone booths that have been installed but do not function anymore.

The trillions of dong invested in all the above ventures has vanished.

The latest cause for worry is the import of cheap mobile phones from China. They are popular among consumers, but they break down easily and soon become a waste product.

The Government needs to find qualitative and other entry barriers to prevent a market glut of short-lived technological devices and make citizens more aware of the harmful impacts of their consumerist behaviour, experts say.

-- BERNAMA