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Internet in Vietnam
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Internet in Vietnam
The Internet in Vietnam is growing rapidly and plays a pivotal role in the country's broader digital transformation strategy. With high smartphone penetration and mobile-first internet usage, Vietnam is embracing digital technologies not just for daily use but also to drive government reform, economic modernization, and social development. Using the internet has become a daily habit among many Vietnamese people, with multiple purposes including work, study, entertainment, and more.
Between 2001 and 2005, the number of Internet users increased from 800,000 to 3 million. By 2007, Vietnam reported Internet penetration levels of 11.5%, rising to 22.4 percent in 2008 and 45.2% in 2010. By 2013, Vietnam officials reported Internet penetration levels of 75.2%, which is about 68 million users with Wifi signals that can be found anywhere in every commercial and residential area. As of January 2021, out of its population of over 96 million people, the number of internet users reached approximately 69 million.
The mid-1990s witnessed gradual infrastructure development through predominantly international assistance. Around 1992, Rob Hurle, a retired professor of Information Technology at the Australian National University, took what is considered a founding step in connecting Vietnam to the internet with the initial hope of connecting his former students to the ANU mainframes. Partnering with Tran Ba Thai of the Institute of Information Technology (IOIT) in Hanoi, Dr. Hurle has been able to connect Vietnam and Australia via UUCP. Following the success of Dr. Hurle's venture. ANU as an institution collaborated with Telstra and, using Australia's DEET grant funding, would develop VARENet, the "Vietnam Academic Research and Educational Network" — an internal network which would by 1996 cover areas of the country including Hanoi, Haiphong, Huế, Nha Trang, and Ho Chi Minh City.
That same year, IOIT and Dr. Hurle collaborated with Canada's International Development Research Center to developed a different network called NetNam which was focused on providing connectivity to NGOs and a growing Vietnamese client base. Dr. Hurle and Tran were particularly instrumental in the development of NetNam, setting up the technological base of the network and securing the .vn domain code within the IANA DNS registry. At the time, the .vn domain code has been fully located within ANU's jurisdiction. By 1996, NetNam has had had hundreds of users consisting of academic institutions as well as NGOs.
The watershed moment for Vietnam's internet history came on November 19, 1997, when Vietnam officially launched internet service after the government established a National Internet Coordinating Committee and made Vietnam Data Communication Company (VDC), a state-owned subsidiary of Vietnam Post and Telecommunication Group (VNPT), the first licensed Internet Access Provider. After the establishment of VDC, ANU eventually transferred its ownership of the .vn domain name to VNPT. By the decade's end, internet users exceeded 100,000, representing an milestone in the development of the internet within the country.
With official internet services launched, the next decade saw a sharp focus on scaling infrastructure to meet the needs of a connected and increasingly digital society. Currently, about 60% of Vietnam's internet traffic is through the Asia-America Gateway cable. A larger Asia Pacific Gateway cable was deployed in 2016. A table showcasing the development of the internet's capacity is displayed below:
Vietnam has a rapidly growing e-commerce sector with steadily increasing market value. During the COVID-19 pandemic, Vietnamese consumers turned to online shopping more than ever before, accelerating sector's growth. Before the pandemic, travel, mobility, and accommodation were the e-commerce category with the highest consumer spending. Since the first outbreak of COVID-19 in Vietnam, consumers have been more willing to shop for basic necessities and fresh products online, making food and personal care the e-commerce category with the highest growth in 2020. These new shopping habits are expected to remain even after the pandemic. Vietnam's e-commerce market has rapidly grown since 2020, with the average annual growth rate moving from 16% in 2020 to 30% from 2021-2025. In 2021 the market valued at $13.7 billion and is expected to grow to $32 billion in 2025. There are several factors that contribute to this rapid growth, one of which is the National ecommerce development master plan (2020) that supports cashless payments and the digital economy. Another factor is the growth in the middle income class, reaching 13 million and resulting in an increase in domestic consumption through digital and electronic commerce. Additionally the internet economy boom has contributed to Vietnam's ecommerce market with a projected $43 billion growth by 2025, as well as high internet and smartphone penetration. Online stores such as Tiktok shop, Shopee, tiki, lazada, and Sendo have also contributed to online purchase growth. Typical purchases include clothes, electronics, household appliances, and personal care products. These Vietnamese businesses are also increasingly leveraging international platforms to expand their reach. For instance, Shopee International Platform hosts nearly 400,000 Vietnamese sellers, collectively providing over 15 million products to markets such as Malaysia, Singapore, the Philippines, Thailand, and Taiwan. These sellers have achieved monthly sales growth rates of 20-30%. [1]
Social media use has assumed a dominant role in Vietnamese dramatically, with around 90% penetration being achieved by YouTube, Facebook, and Zalo. Generation Z primarily use Facebook, with 97.1% penetration, while Zalo and YouTube have achieved 80.9% and 75.7% respectively. High levels of social media usage amongst Gen Z has increasingly worried critics as social media platforms have played an increasingly important part of daily life. Social media has played a significant role in Vietnam's politics under a government that commonly represses speech. Social media, and the anonymity it grants, is commonly used to express discontent and political sentiments that may not otherwise be acceptable in popular discourse. Social media has thus contributed to a decline of traditional media in Vietnam. In December 2024, the Vietnamese government passed Decree 147, a law that granted the government more power to regulate social media content. The decree forces foreign social media organizations to require all users to verify their identity during registration, and provide it to government authorities when requested. Critics claim that this measure allows the government to more easily prosecute those who express discontent with the Vietnamese government and regulate social media platforms more broadly.
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Internet in Vietnam
The Internet in Vietnam is growing rapidly and plays a pivotal role in the country's broader digital transformation strategy. With high smartphone penetration and mobile-first internet usage, Vietnam is embracing digital technologies not just for daily use but also to drive government reform, economic modernization, and social development. Using the internet has become a daily habit among many Vietnamese people, with multiple purposes including work, study, entertainment, and more.
Between 2001 and 2005, the number of Internet users increased from 800,000 to 3 million. By 2007, Vietnam reported Internet penetration levels of 11.5%, rising to 22.4 percent in 2008 and 45.2% in 2010. By 2013, Vietnam officials reported Internet penetration levels of 75.2%, which is about 68 million users with Wifi signals that can be found anywhere in every commercial and residential area. As of January 2021, out of its population of over 96 million people, the number of internet users reached approximately 69 million.
The mid-1990s witnessed gradual infrastructure development through predominantly international assistance. Around 1992, Rob Hurle, a retired professor of Information Technology at the Australian National University, took what is considered a founding step in connecting Vietnam to the internet with the initial hope of connecting his former students to the ANU mainframes. Partnering with Tran Ba Thai of the Institute of Information Technology (IOIT) in Hanoi, Dr. Hurle has been able to connect Vietnam and Australia via UUCP. Following the success of Dr. Hurle's venture. ANU as an institution collaborated with Telstra and, using Australia's DEET grant funding, would develop VARENet, the "Vietnam Academic Research and Educational Network" — an internal network which would by 1996 cover areas of the country including Hanoi, Haiphong, Huế, Nha Trang, and Ho Chi Minh City.
That same year, IOIT and Dr. Hurle collaborated with Canada's International Development Research Center to developed a different network called NetNam which was focused on providing connectivity to NGOs and a growing Vietnamese client base. Dr. Hurle and Tran were particularly instrumental in the development of NetNam, setting up the technological base of the network and securing the .vn domain code within the IANA DNS registry. At the time, the .vn domain code has been fully located within ANU's jurisdiction. By 1996, NetNam has had had hundreds of users consisting of academic institutions as well as NGOs.
The watershed moment for Vietnam's internet history came on November 19, 1997, when Vietnam officially launched internet service after the government established a National Internet Coordinating Committee and made Vietnam Data Communication Company (VDC), a state-owned subsidiary of Vietnam Post and Telecommunication Group (VNPT), the first licensed Internet Access Provider. After the establishment of VDC, ANU eventually transferred its ownership of the .vn domain name to VNPT. By the decade's end, internet users exceeded 100,000, representing an milestone in the development of the internet within the country.
With official internet services launched, the next decade saw a sharp focus on scaling infrastructure to meet the needs of a connected and increasingly digital society. Currently, about 60% of Vietnam's internet traffic is through the Asia-America Gateway cable. A larger Asia Pacific Gateway cable was deployed in 2016. A table showcasing the development of the internet's capacity is displayed below:
Vietnam has a rapidly growing e-commerce sector with steadily increasing market value. During the COVID-19 pandemic, Vietnamese consumers turned to online shopping more than ever before, accelerating sector's growth. Before the pandemic, travel, mobility, and accommodation were the e-commerce category with the highest consumer spending. Since the first outbreak of COVID-19 in Vietnam, consumers have been more willing to shop for basic necessities and fresh products online, making food and personal care the e-commerce category with the highest growth in 2020. These new shopping habits are expected to remain even after the pandemic. Vietnam's e-commerce market has rapidly grown since 2020, with the average annual growth rate moving from 16% in 2020 to 30% from 2021-2025. In 2021 the market valued at $13.7 billion and is expected to grow to $32 billion in 2025. There are several factors that contribute to this rapid growth, one of which is the National ecommerce development master plan (2020) that supports cashless payments and the digital economy. Another factor is the growth in the middle income class, reaching 13 million and resulting in an increase in domestic consumption through digital and electronic commerce. Additionally the internet economy boom has contributed to Vietnam's ecommerce market with a projected $43 billion growth by 2025, as well as high internet and smartphone penetration. Online stores such as Tiktok shop, Shopee, tiki, lazada, and Sendo have also contributed to online purchase growth. Typical purchases include clothes, electronics, household appliances, and personal care products. These Vietnamese businesses are also increasingly leveraging international platforms to expand their reach. For instance, Shopee International Platform hosts nearly 400,000 Vietnamese sellers, collectively providing over 15 million products to markets such as Malaysia, Singapore, the Philippines, Thailand, and Taiwan. These sellers have achieved monthly sales growth rates of 20-30%. [1]
Social media use has assumed a dominant role in Vietnamese dramatically, with around 90% penetration being achieved by YouTube, Facebook, and Zalo. Generation Z primarily use Facebook, with 97.1% penetration, while Zalo and YouTube have achieved 80.9% and 75.7% respectively. High levels of social media usage amongst Gen Z has increasingly worried critics as social media platforms have played an increasingly important part of daily life. Social media has played a significant role in Vietnam's politics under a government that commonly represses speech. Social media, and the anonymity it grants, is commonly used to express discontent and political sentiments that may not otherwise be acceptable in popular discourse. Social media has thus contributed to a decline of traditional media in Vietnam. In December 2024, the Vietnamese government passed Decree 147, a law that granted the government more power to regulate social media content. The decree forces foreign social media organizations to require all users to verify their identity during registration, and provide it to government authorities when requested. Critics claim that this measure allows the government to more easily prosecute those who express discontent with the Vietnamese government and regulate social media platforms more broadly.
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