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CMC Telecom aims to make Vietnam the region’s Digital Hub through building strong digital infrastructure and beyond

HANOI, Vietnam, Sept. 5, 2023 /PRNewswire/ — After 15 years, CMC Telecom has successfully transformed from a traditional ISP to a CSP (Converged Service Provider), contributing to making Vietnam as a Digital Hub, not only in the Asia-Pacific region but also on the global stage.

This strategy aligns with the mission of propelling Vietnam into a digitally developed nation, leveraging digital technology to serve and conquer the global arena, as affirmed by the Chairman of CMC Corporation, Mr. Nguyen Trung Chinh.


On the occasion of CMC Telecom’s 15th anniversary, the interviewer had the opportunity to speak with Mr. Nguyen Trung Chinh, Chairman of the Board/Executive Chairman of CMC Corporation, Chairman of the Board of CMC Telecom, about CMC Telecom’s ambition to build Vietnam into the Digital Hub of the region.

Interviewer: The draft plan for the national communication and information infrastructure mentioned Vietnam’s potential to become a Digital Hub. As a leader of a large digital infrastructure business in the market, how do you evaluate Vietnam’s potential to become a Digital Hub?

Mr. Nguyen Trung Chinh: Our country’s greatest potential lies in its geographic location, which plays a fundamental role in the economies, finances, and logistics of countries within and outside our region. Furthermore, we have a long coastline, which makes it convenient to invest in undersea optical cable routes and large coastal landing stations to expand connections with other countries.

The current government has various mechanisms and policies that favor the development of Science – Technology, and Innovation. In recent years, companies like CMC Telecom have continuously invested in digital infrastructure, including optical cable routes and large, modern, neutral data centers at the regional and global levels, high-tech ecosystems, and the ability to quickly develop new technologies such as cloud computing.

In addition, Vietnam owns a sizable and priceless digital human resource. In view of Vietnam’s young population, its passion for science and mathematics, and its many highly skilled programmers, I believe the country will be able to compete with other countries in the region and around the world if there are proper investments and training.

In summary, we have all the necessary conditions — The best of both worlds to become the next digital center in the region. I believe in the assessments made in the draft plan, which suggest that Vietnam has the potential to become a digital center, a Hub for connecting, storing, and processing data for the region and the world. By 2025, it will be possible to establish at least one data center to serve as a central Hub for the region and international purposes. By 2030, we can complete and develop the technology ecosystem of the Digital Hub.

Interviewer: In your opinion, what roadmaps, steps, or preparations does Vietnam need to realize the goal of becoming the Digital Hub of the region?

Mr. Nguyen Trung Chinh: As I mentioned, we have many advantages to becoming a Digital Hub. For Vietnam to reach this goal, a synchronized and multidimensional strategy is necessary to maximize its advantages and gain a competitive edge over regional competitors. Specifically, I see five key factors that are critical for us to excel:

The first is Digital Infrastructure: Vietnam needs to invest heavily in digital infrastructure, including 5G mobile networks, fixed broadband networks, undersea optical cables, large-scale neutral data centers, cloud computing infrastructure with millions of virtual servers, making a fast and efficient connection network to meet the needs of businesses and users.

The second is Human Resources: Vietnam has a significant advantage in terms of human resources. But we need to enhance the quality and quantity of the IT workforce, particularly in technology, data fields engineers, and professionals.

Third is Innovation: With our current potential in technology and human resources, we need to establish and develop innovation centers that encourage startups and potential technology projects.

The Fourth is Favorable Legal Environment and Investment: Vietnam needs to update and establish regulations and standards in line with global digital trends, providing favorable conditions for efficient and law-abiding operations. Additionally, we should offer tax incentives, financial support, and legal assistance to domestic and foreign technology companies.

The Last is Security and Information Assurance: When we become a data center Hub, building a strong and secure cybersecurity system becomes essential. This will protect the data of individuals and businesses and enhance digital trust.

Fortunately, these factors are currently being reviewed and implemented by the government and businesses, CMC Telecom is one of those businesses. I believe that Vietnam will become the Digital Hub of the region and be a key player in the Asian technology and digital sectors.

Interviewer: With the ambition to make Vietnam the Digital Hub of the region, what strategies and actions have CMC taken to realize this goal by 2030?

Mr. Nguyen Trung Chinh: Since 2017, CMC has set its vision to conquer the digital world with the slogan “Aspire to inspire the Digital World” when positioning a new strategy. Four years ago, in 2019, CMC completed the proposal to make Vietnam the world’s digital center – Digital Hub.

Thanks to the strategic direction from the Government, coupled with being the only telecommunications infrastructure company in Vietnam with foreign shareholders, CMC Telecom has taken action and gradually achieved this goal. This has been expressed through three key elements, which are also the essential conditions for the Digital Hub: Connectivity Infrastructure, DC/Cloud, and Data Services.

In terms of connectivity infrastructure, in December 2017, CMC Telecom invested VND 500 billion to build and operate the Agrid CVCS (Asean Grid – Cross Vietnam Cable System), which connects directly to important global undersea optical cable routes. For the first time, Vietnam has a land-based optical cable route directly connected to the Southeast Asian belt through Hong Kong, Singapore, Indonesia, Malaysia, Thailand, and Cambodia. This forms the basis for making Vietnam a data transfer point through a seamless, stable, and comprehensive telecommunications infrastructure. From these “arteries,” high-tech data centers and cloud computing platforms are connected to shape a Digital Hub.

In 2017, CMC Telecom was one of the first companies to proactively build the Make-in-Vietnam CMC Cloud computing platform, determined to bring data back to Vietnam’s “cloud.” We also recognized that to achieve this, we needed more storage facilities, namely international-standard data centers. In August 2022, we successfully completed this goal by opening our third data center in Tan Thuan (Ho Chi Minh City). This is the most modern and secure data center in Vietnam and the region, which adheres to Uptime Tier III standards for both design and Constructed Facility.

The final piece in the Digital Hub Vietnam puzzle is data services built on the foundation of the infrastructure. In addition, we have added two additional service areas, namely IT Outsourcing and Cyber Security, in an effort to provide even more comprehensive digital transformation solutions. Additionally, CMC Telecom’s solutions must meet the highest international standards of security and protection, allowing domestic and international organizations and businesses to store their data with confidence.

Interviewer: The existence of the Tan Thuan Data Center, in combination with the two data centers that were already in operation in Hanoi and Ho Chi Minh City, has had what kind of impact on CMC Telecom’s and Vietnam’s ambition to become a Digital Hub?

Mr. Nguyen Trung Chinh: We have provided digital transformation services to thousands of Vietnamese businesses during our operations. One thing that has been on our minds a lot is that these businesses are continually sending their data – their “digital assets” – to foreign technology giants through their platforms. Whereas, if they were to utilize domestic digital infrastructure to harness their data, it would not only bring significant value to the country’s digital economy but also ensure national information security and safety.

We aim not only to become a Digital Hub but also to create a modern, robust, and secure data center ecosystem to compete. Our hope is that businesses can bring their data back to Vietnam, given our desire to create such an ecosystem.

If the telecommunications infrastructure in the ecosystem of digital infrastructure is compared to the “blood vessels,” then the data center is the “heart” that circulates blood throughout the body. The body is strong and prepared for battle when the heart and blood vessels are in good condition. Because of this, we are constantly careful to make the best investments in these two crucial components.

The name “heart” – Data Center is not new in Vietnam. However, if we aim to make our country a Hub that can serve the region, then the standards must be raised to a higher level. That’s why CMC has made the decision to invest in building a World-Class standard Data Center ecosystem.

Along with the two data centers in Hanoi and Ho Chi Minh City that were established earlier, CMC inaugurated the Tan Thuan Data Center in August 2022. It is a state-of-the-art, top-tier, and secure data center not only in Vietnam but also in Southeast Asia. This is the first data center in the country to achieve Uptime Tier III standards in both design and Constructed Facility, with many criteria meeting Tier IV readiness. This infrastructure increases security while also improving the quantity and quality of data storage. It ensures the security of data reception, transmission, connection, storage, and processing with high traffic volumes while also adhering to internationally recognized standards.

With this data center, we take pride in bringing Vietnam one step closer to the goal of becoming the regional Digital Hub data center we are aiming for.

Interviewer: From a researcher starting from ground zero to the captain leading a technology conglomerate with over 30 years of history, what makes you most proud of CMC Telecom – one of the core members of CMC Technology Group after 15 years of development, sir?

Mr. Nguyen Trung Chinh: In terms of age, CMC Telecom can still be considered a relatively young company, with a late start compared to the establishment and development of the CMC Technology Corporation. However, what CMC Telecom has achieved has contributed significantly to the reputation of CMC as a whole and to the Information and Communication Technology (ICT) industry in Vietnam, propelling it further.

Today, CMC Telecom can proudly claim to be a pioneer in digital transformation, building a digital platform, and providing international-level cybersecurity solutions. The company’s achievements go beyond Vietnam, leaving an imprint on the international stage by serving the Top 500 global enterprises. Even during the pandemic, CMC ensured the supply of thousands of engineers to Samsung’s R&D center, playing a role in making Vietnam a strategic Hub for Samsung worldwide.

The CMC Cloud platform, developed by us over nearly a decade, now holds approximately 25% of the domestic cloud market share and has been recognized as one of the top 10 outstanding “Made in Vietnam” digital platforms. Not only does it bring Vietnamese businesses closer to the world through modern telecommunications and information technology infrastructure, but CMC Telecom is also a high-level partner in providing services from global technology giants such as AWS, Google, Microsoft, Oracle, and more to Vietnamese customers.

All of these accomplishments confirm CMC Telecom’s ideal development strategy in the area of digital infrastructure, one of the group’s four primary investment areas, and help it realize its goal of becoming a global corporation by 2025.

In the same way that a 15-year-old is at a stage of perfect strength and readiness. I am confident that CMC Telecom can be a person in 15 years. I believe that CMC Telecom will become a leading provider of digital infrastructure in both Vietnam and the region, making Vietnam as a Digital Hub of the region and world with constant efforts and the right direction of action.

To learn more about CMC Telecom: https://cmctelecom.vn/en/