CMC Telecom and BBIX have entered into a strategic alliance to establish two Internet Exchange (IX) connectivity points in Vietnam.
This collaboration is designed to improve Internet connectivity within the nation, providing a reliable and economical IX service.
By utilizing the expertise of both CMC Telecom and BBIX, this initiative is positioned to significantly enhance network stability and optimize Internet traffic across Vietnam.
Enhancing IX Connectivity in Vietnam
On Tuesday, BBIX, the Internet Exchange division of SoftBank, announced its partnership with CMC Telecom, a provider of digital infrastructure services.
This collaboration will result in the establishment of IX connectivity points at two CMC Telecom data centers situated in Hanoi and Ho Chi Minh City.
The IX services will be carrier-neutral, ensuring low-latency and cost-effective options for Internet Service Providers (ISPs) and content providers.
According to BBIX President and CEO Hideyuki Sasaki, the goal of this partnership is to work alongside Vietnamese operators to strengthen the country’s Internet ecosystem.
This alliance is anticipated to promote network stability and provide optimized solutions for businesses seeking high-speed Internet connectivity.
Vietnam as a Regional Data Hub in Southeast Asia
Historically, Vietnam has depended on the Vietnam National Internet Exchange, overseen by the Vietnam Internet Network Information Center.
Nevertheless, the partnership between CMC Telecom and BBIX presents an alternative Internet Exchange solution that aims to enhance the quality and accessibility of Internet services within the nation.
CMC Telecom stands out as Vietnam’s sole foreign-invested telecom infrastructure provider, with a 25% ownership stake held by Malaysia’s Time dotcom. Deputy CEO Dang Tung Son highlighted that this collaboration represents a crucial advancement in positioning Vietnam as a regional data hub.
The establishment of new Internet Exchange points will not only bolster local enterprises but also foster the overall development of Vietnam’s digital ecosystem within Southeast Asia.
The Expanding Digital Economy in Vietnam
Vietnam’s digital economy is undergoing significant expansion. The US International Trade Administration (ITA) has recently indicated that the digital economy in Vietnam is expected to reach around $45 billion by the year 2025.
Projections for 2030 suggest that this figure could grow to between $90 billion and $200 billion.
As reported by the General Statistics Office of Vietnam, the digital economy accounted for over 12% of the national GDP in 2023, positioning Vietnam among the leading digital economies in Southeast Asia, just behind Singapore, Malaysia, and Thailand.
Additionally, the e-Conomy SEA 2024 report from Google, Temasek, and Bain & Company noted that Vietnam’s digital economy achieved a value of $36 billion in 2023, reflecting a 16% increase from the previous year.
The e-commerce sector played a pivotal role, contributing $22 billion to the overall digital economy.
Enhancing Digital Infrastructure
At Vietnam’s Internet Day held in Hanoi last November, Vũ Hoàng Liên, Chairman of the Vietnam Internet Association (VIA), underscored the country’s potential to emerge as a global innovation center.
He stressed the importance of upgrading data centers, cloud computing systems, and other essential digital infrastructure.
Improving these technological elements is vital for supporting Artificial Intelligence (AI) and the Internet of Things (IoT), which are essential for real-time automation and data processing.
However, reaching these objectives necessitates robust collaboration among government entities, businesses, and technology companies.
The partnership between CMC Telecom and BBIX exemplifies this vision by providing advanced connectivity solutions to bolster Vietnam’s growing digital economy.
Expert Editorial Comment
The partnership between CMC Telecom and BBIX represents a notable progression in the realm of Internet connectivity in Vietnam.
The establishment of two Internet Exchange (IX) connectivity points will bolster network reliability, streamline Internet traffic, and support Vietnam’s goal of emerging as a regional data center.
As the digital economy of the nation continues to flourish, dependable and affordable Internet services will be essential for maintaining this momentum.
