Internet in Vietnam: A Guide to E-commerce, Digital Transformation, and More

Vietnam has made significant strides in its digital transformation, with a growing number of internet users and a thriving e-commerce market.

The country's internet penetration rate has increased dramatically, with over 70% of the population now online. This has enabled Vietnamese businesses to reach a wider audience and expand their customer base.

Vietnam's e-commerce market is expected to reach $35 billion by 2025, driven by the growth of online shopping and digital payments. With the rise of e-commerce, traditional retail stores are struggling to keep up.

Online shopping has become increasingly popular in Vietnam, with many consumers turning to the internet to buy everything from fashion items to electronics.

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Vietnam has a range of internet providers to choose from, each with their own strengths and weaknesses.

Viettel is the largest operator in Vietnam, offering the best coverage, especially in rural areas. Their data plans start at 5,000 VND (~$0.20) for 1 GB of data with one-day validity.

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Vinaphone is another popular option, and it's the only network that supports 5G. Their 1 GB data plan with a 10-day validity period is priced at 30,000 VND (~$1.18).

Mobifone's data plans start at around 5,000 VND (~$0.20) for a one-day plan with 1 GB of mobile data.

To get started with any of these plans, you'll need a Vietnamese number, which you can purchase for around $2 at a shop selling SIM cards. Just bring your passport and you're good to go.

If you're planning to visit rural areas, Viettel is a top option. For heavy data users, Vinaphone is a popular choice, with affordable unlimited data plans and great coverage.

Here's a quick comparison of the three providers:

Vietnam's internet infrastructure has come a long way, with a significant focus on scaling to meet the needs of a connected 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.

The country's internet capacity has increased dramatically over the years, with notable milestones including a 1,036 Mbps capacity in 2003 and a 53,659 Mbps capacity in 2009.

Here is a table showcasing the development of the internet's capacity in Vietnam:

Vietnam's internet infrastructure has come a long way, with a significant focus on scaling to meet the needs of a digital society. Official internet services were launched, and the country's internet traffic is now largely handled by the Asia-America Gateway cable, which accounts for about 60% of the country's internet traffic.

A larger Asia Pacific Gateway cable was deployed in 2016 to further boost the country's internet capacity. The table below shows the impressive growth of Vietnam's internet capacity over the years.

By 2009, the country's internet capacity had grown significantly, with a capacity of 53,659 Bit/s and a domestic bandwidth of 68,760 Bit/s.

Vietnam has an extensive mobile broadband network that reaches over 99% of the population, making it easy to stay connected on the go. The three major telecom operators in Vietnam are Viettel, Vinaphone, and Mobifone, all of which provide good 4G/LTE coverage across most major destinations.

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Viettel is Vietnam's largest telecom company, covering over 95% of the population across nearly all major population centers and provinces. Its extensive 4G/LTE and 3G network is a major contributor to Vietnam's strong mobile internet infrastructure.

Vinaphone's mobile network has a strong 4G presence in major economic regions and traffic hotspots, covering around 85% of the population. Its LTE service operates on popular 900/1800MHz bands, delivering internet speeds up to 150Mbps in places like Hanoi and Ho Chi Minh City.

Mobifone's nationwide service territory is comparable to its two main competitors, with about 70-75% 4G population coverage and over 90% for 3G. It has invested in expanding LTE on 1800MHz to provide high-speed 4G to most urban centers and provincial capitals.

In terms of connectivity speeds, Vietnam's networks can provide relatively fast internet, ranking 51st in the world for median mobile internet speeds according to recent data from Ookla's Speedtest Global Index. The average reported download speed in Vietnam was 49.12 Mbps, while the average upload speed was 20.08 Mbps.

Here's a comparison of mobile internet speeds in Vietnam and neighboring countries:

Major cities in Vietnam, such as Ho Chi Minh City and Hanoi, tend to have the fastest speeds, with Ho Chi Minh City averaging around 60 Mbps for downloads. Other populous cities and provinces like Da Nang, Hai Phong, and Binh Duong are catching up, with speeds in the 40-50 Mbps range.

Rural regions or more remote tourist sites may have reduced connectivity speeds, or rely more on 3G networks. But major urban areas, transportation hubs, and most tourism hotspots generally offer fast 4G/LTE mobile broadband nowadays.

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Vietnam's e-commerce sector has been growing rapidly, with the average annual growth rate moving from 16% in 2020 to 30% from 2021-2025. This growth is expected to continue, with the market valued at $13.7 billion in 2021 and projected to reach $32 billion in 2025.

Online shopping habits have changed significantly since the COVID-19 pandemic, with consumers increasingly shopping for basic necessities and fresh products online. Food and personal care products have become the e-commerce category with the highest growth in 2020, and these new habits are expected to remain even after the pandemic.

Vietnamese businesses are also leveraging international platforms to expand their reach, with Shopee International Platform hosting nearly 400,000 Vietnamese sellers and providing over 15 million products to markets in Southeast Asia.

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Varennet was a pioneering project that connected Vietnam to the internet in the mid-1990s. It was initially conceived by Rob Hurle, a retired professor of Information Technology at the Australian National University, who wanted to connect his former students to the ANU mainframes.

Dr. Hurle partnered with Tran Ba Thai of the Institute of Information Technology in Hanoi to establish a connection between Vietnam and Australia via UUCP. This marked the beginning of Vietnam's internet connectivity.

By 1996, Varennet had expanded to cover areas including Hanoi, Haiphong, Huế, Nha Trang, and Ho Chi Minh City. This infrastructure development was largely made possible through international assistance and funding.

The Australian National University, as an institution, played a significant role in the development of Varennet, collaborating with Telstra and using Australia's DEET grant funding to establish the network.

Vietnam's e-commerce sector has been growing rapidly, with a market value that's expected to reach $32 billion by 2025. This growth is largely driven by the COVID-19 pandemic, which accelerated the shift to online shopping.

In 2020, consumers in Vietnam were more willing to shop for basic necessities and fresh products online, making food and personal care the e-commerce category with the highest growth. This trend is expected to continue even after the pandemic.

The average annual growth rate of Vietnam's e-commerce market has moved from 16% in 2020 to 30% from 2021-2025. The market valued at $13.7 billion in 2021 and is expected to reach $32 billion by 2025.

Several factors contribute to this rapid growth, including the National ecommerce development master plan (2020) that supports cashless payments and the digital economy. The growth in the middle income class, reaching 13 million, has also resulted in an increase in domestic consumption through digital and electronic commerce.

Online stores such as Tiktok shop, Shopee, Tiki, Lazada, and Sendo have contributed to online purchase growth, with typical purchases including clothes, electronics, household appliances, and personal care products. These Vietnamese businesses are also increasingly leveraging international platforms to expand their reach.

Here are some key statistics on Vietnam's e-commerce market:

Shopee International Platform, for example, 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%.

Buying an eSIM from a Vietnamese operator can be a bit more complicated than purchasing one from a dedicated eSIM provider. You can buy eSIMs directly from major telecoms like Viettel, Vinaphone, and MobiFone.

These operators offer prepaid tourist eSIM plans with varying data limits and prices. For example, Viettel's SD135 plan costs 135k VND (around $5.85 USD) per month for 5GB of data per day.

One of the operators, Viettel, offers several plans, including MXH100, which costs 100k VND (around $4.3 USD) per month for 1GB of data per day, free social media data, and free calls under 10 minutes.

Another option is Vinaphone's BIG90 plan, which costs 90k VND (around $3.86 USD) per month for 1GB of data per day.

Here's a breakdown of some of the plans offered by Vietnamese operators:

Keep in mind that these plans may have varying features and limitations, so it's essential to research and compare them before making a decision.

Social media use has assumed a dominant role in Vietnam, 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.

The Vietnamese government has passed Decree 147, a law that granted the government more power to regulate social media content. This measure allows the government to more easily prosecute those who express discontent with the Vietnamese government and regulate social media platforms more broadly.

Critics claim that the anonymity granted by social media is commonly used to express discontent and political sentiments that may not otherwise be acceptable in popular discourse.

Social media use has become a dominant force in Vietnam, with YouTube, Facebook, and Zalo achieving around 90% penetration.

Generation Z primarily uses Facebook, with a staggering 97.1% penetration, while Zalo and YouTube have achieved 80.9% and 75.7% respectively.

The high levels of social media usage amongst Gen Z have raised concerns among critics, who worry about the impact of social media on daily life.

Social media has played a significant role in Vietnam's politics, particularly under a government that commonly represses speech.

Critics claim that social media has contributed to the decline of traditional media in Vietnam, as it provides a platform for people to express themselves freely.

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.

This move has been met with criticism, as it allows the government to more easily prosecute those who express discontent with the Vietnamese government.

Vietnam's government enforces strict controls over the internet.

The National Assembly of Vietnam passed a data protection law in November 2024, limiting cross-border data transfers and imposing stringent data processing rules.

This law led international tech firms to express concern about internet freedom in the country.

Government officials aggressively pressure global internet companies to comply with content moderation requests.

In Vietnam, authorities have forced social media platforms to remove posts promoting political dissent.

Blogger Bùi Văn Thuận was sentenced to eight years in prison for engaging in antistate speech under Article 117 of the penal code in November 2022.

Six members of the Tinh That Bong Lai temple were sentenced between three and five years in prison for YouTube videos they posted in July 2022.

Vietnam's cybersecurity law enacted in 2019 requires technology companies to hand over information to authorities upon request and store user data domestically.

The government deployed Force 47, a cyber unit made up of 10,000 members, in 2017 to counter perceived anti-state narratives.

Vietnam consistently ranks among the most repressive countries for internet freedom in the world.

Reporters Without Borders ranked Vietnam 174th out of 180 territories and countries in their 2024 World Press Freedom Index.

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If you're traveling to Vietnam, having reliable internet access is a must. You can get internet in Vietnam as a tourist through various options, including international data roaming, local SIM, eSIM, pocket WiFi, and public WiFi hotspots.

Using free WiFi is recommended when watching YouTube, making video calls, or playing games, as the internet speed is generally quite fast and you don't need to worry about using up your data allowance.

However, relying solely on free WiFi poses a huge security risk to your personal data, so it's not recommended for tasks that require secure internet access.

Some tourists prefer using 4G internet in Vietnam, but it's recommended to use only light, low-bandwidth applications such as checking news, chatting with friends, or navigating with Google Maps to save your data allowance and avoid incurring additional charges.

If you're looking for a convenient and affordable option, consider purchasing an eSIM, which offers unlimited data and eliminates browsing worries. You can get an eSIM for as low as $1.55/day, and it's easy to activate via QR code.

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For a more detailed comparison of the different options, check out the table below:

You can purchase a SIM card in Vietnam at the airport, convenience stores, or official carrier stores, or order one online before your trip. Most tourist SIM cards aren't designed for top-ups, so know exactly how much data you'll be using upfront.

There are several options for purchasing a SIM card in Vietnam, including local SIM cards and eSIMs. Local SIM cards can be picked up at the airport or purchased online, but you'll need your passport to register and may need to activate it in person.

eSIMs, on the other hand, can be purchased online and activated remotely, providing convenient mobile internet access without the need for a physical SIM card. eSIMs are a great option for travelers, as they offer flexible pricing plans and reliable coverage.

Some popular eSIM providers in Vietnam include Holafly, which offers flexible pricing plans and reliable coverage. Holafly's eSIM plans start at 1 day and go up to 90 days, with prices ranging from $0.20 to $0.60 per day.

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If you prefer a local SIM card, you can consider purchasing a Tourist "Prepaid" SIM with a data package from providers Viettel, Vinaphone, or Mobifone. These data-only SIMs offer wallet-friendly rates tailored to foreign travelers visiting Vietnam.

Here are some examples of data packages available from Mobifone:

When purchasing a SIM card, be sure to research the different types of SIMs available to select the one that best suits your needs. You can also inquire about SIM packages and prices at the SIM counter, such as the Vinaphone Tourist SIM VinaPhone, which offers free 50 minutes calling within Vietnam, 50 free SMS, and free 1GB data for daily and continuous use for 15 days.

Internet rates in Vietnam are very affordable, with prepaid data options from Vietnamese carriers offering wallet-friendly prices compared to roaming. The exchange rate is 1 USD = 23,500VND, making it a great value for tourists.

Local SIM cards from providers like Viettel, Vinaphone, and Mobifone offer reasonable mobile broadband rates. For example, Viettel's 5GB/7 days package costs 79,000 VND ($3.30 USD), while Vinaphone's 10GB/15 days package costs 149,000 VND ($6.30 USD).

Vietnam eSIM plans also offer flexible and affordable internet access. GIGAGO Vietnam eSIM, for instance, offers varying data packages with prices starting from 150,000 VND ($6.51 USD).

Public WiFi is free, but it's not recommended for reliable connectivity and security reasons. Roaming rates from Vietnamese carriers are also available, but they can be pricey, with 1GB/1day packages costing around 149,000 VND ($6.30 USD) from Vinaphone.

Here's a summary of the internet rates and options in Vietnam:

Portable internet options in Vietnam offer a range of choices for tourists and travelers.

You can rent a pocket WiFi, which is ideal for groups or those with multiple gadgets that require active internet connections. Pocket WiFi costs vary depending on the provider, data plan, and speed needed, with some services like TraveWiFi offering delivery to the US and Europe for $7.95 per day.

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If you'd rather not carry another device, consider an eSIM plan with data tethering allowance. The Holafly eSIM for Vietnam, for example, offers 500 MB per day to share with others.

For a more affordable option, you can purchase a data SIM card from providers like Viettel, Vinaphone, or Mobifone. Their "Prepaid" SIMs offer wallet-friendly rates tailored to foreign travelers visiting Vietnam, with plans starting at 5,000 VND ($0.20) for 500MB of data for 24 hours.

Here are some popular data SIM card plans:

Free Wi-Fi is also widely available in public places, but be aware that the internet speed can be slow and there may be security risks to your personal data.

Vietnam has an extensive mobile broadband network that reaches over 99% of the population.

The three major telecom operators in Vietnam are Viettel, Vinaphone, and Mobifone, all of which provide good 4G/LTE coverage across most major destinations.

Viettel covers over 95% of the population, making it the largest telecom company in Vietnam with an extensive 4G/LTE and 3G network nationwide.

Vinaphone's mobile network has strong 4G presence in major economic regions and traffic hotspots, covering around 85% of the population.

Mobifone's nationwide service territory is comparable to its two main competitors, with about 70-75% 4G population coverage and over 90% for 3G.

Here's a brief overview of the major telecom operators in Vietnam:

Rural or remote areas may have reduced connectivity speeds, or rely more on 3G networks, but major urban areas, transportation hubs, and most tourism hotspots generally offer fast 4G/LTE mobile broadband.

If you're traveling as a group or need to share data with multiple devices, renting a pocket WiFi is a great option.

You can rent a pocket WiFi device from providers like WiFi4Asia, and costs vary depending on the provider, data plan, and speed you need.

Delivery fees, deposits, and damage insurance can add to your total costs, so be sure to factor those in.

Pocket WiFi plans from TraveWiFi start at $7.95 for 1 GB per day, and they offer delivery to the US and Europe.

The Holafly eSIM for Vietnam offers 500 MB per day to share with others, making it a great alternative to renting a pocket WiFi device.

Here are some pocket WiFi rental options in Vietnam:

Decree 147 has come into force in Vietnam, requiring tech giants to verify user identities and hand over data to authorities.

This new law affects all social media sites, including Facebook and TikTok, which must verify users' accounts via phone numbers or Vietnamese identification numbers.

The data collected will be stored alongside users' full names and date of birth.

Tech giants must also remove any content deemed "illegal" by the government within 24 hours.

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Critics argue that Decree 147 is the latest attack on freedom of expression in Vietnam.

Activist Dang Thi Hue believes the decree will be used to publicly suppress those with different viewpoints.

Former political prisoner Le Anh Hung says the decree is a sign of infringement on basic freedoms, with a vague line between what is legal and what is not.

The decree builds on Vietnam's 2018 cybersecurity law, which was criticized by the US, EU, and internet freedom advocates.

Only verified accounts can livestream under Decree 147, impacting social commerce on sites like TikTok.

Game publishers are required to enforce a time limit of an hour per game session and 180 minutes a day for all games to prevent addiction.

This law also includes curbs on gaming for under-18s.

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