Choosing Technology Suitable for the Conditions and Management Level of Our Country


4. In the conditions of open competition and the operation of a market economy, it is necessary to attach importance to the management of industries. After separating business and management, opening the market, the management of industries can only be strengthened, not weakened. The direction, supervision and inspection of the market by the state is to ensure the healthy and dynamic development of the market. For the information industry, strengthening state management must first have innovation, change in awareness and function, how to truly manage the industry, manage the market and manage the macro; At the same time, knowing how to base on the different operating times of the manufacturing industry and the exploitation business industry to build management systems with the specific characteristics of each industry. Actively encourage manufacturers and operators to take the market as a lever, reach out together, develop together, create a combined strength to promote the development of the information industry.

5. The more difficult the development task and the higher the level of reform, the more firmly we must grasp the requirement: maintaining a civilized order. The development practice of China's information industry over the past five years clearly shows that when faced with adjusting interests and conflicting issues arising in the reform process, we must firmly grasp the construction of spiritual civilization, the construction of team leaders , and the construction of the style of agencies and enterprises. Take team building to promote reform and development, and take ideological and political work to stabilize industries. Paying attention to fighting corruption, negativity and social evils is the guarantee of the spiritual civilization of agencies and enterprises. That is the ideological guarantee for the continuous development of the information industry in the new stage.

China's experience in building and developing telecommunications networks are valuable practical lessons for Vietnam's telecommunications industry in the process of economic integration and WTO accession.


1.4.1.2. Indonesia:


From 1967 to 1996, Indonesia attracted 173.6 billion USD of FDI capital. The reason Indonesia achieved such results was due to:


- Do not nationalize foreign-invested enterprises.

- Improve investment procedures, eliminate research and survey procedures, eliminate the need to explain the types and values ​​of imported machinery and many other types of licenses.

- Applying foreign investment incentive policies with a maximum tax rate of 30% to increase profits and tax deductions on holidays for foreign investors. Exemption of turnover tax on exported goods, materials and services, exemption of VAT within 5 years from the date of production and business for the fields of hotels, offices, commercial centers, public transport, reduction of income tax if profits are used for reinvestment within 5 years, reduction of turnover tax at maximum

maximum of 5 years, shortening the depreciation period of fixed assets.

- Encourage the establishment of foreign banks to facilitate the implementation of FDI projects.

- One point worth noting is that in Indonesia, FDI is implemented in the form of joint ventures only and joint venture enterprises are treated like domestic enterprises. The legal capital ratio of foreign investors in joint venture enterprises was initially 95.5% and Indonesian capital was only about 5%, but

Up to now, after several years of receiving FDI capital, Indonesia owns at least 51% of the legal capital.

Foreign investors can reinvest, transfer profits easily and operate FDI projects for a period of 30 years.

Like other countries, Indonesia has been actively opening up its telecommunications sector over the past 10 years. The origins of this problem were marked by the privatization of two state-owned telecommunications service companies, PT Telekomunikasi Indonesia (Telcom) and PT Indonesia Satellite Company (Indosat), in the early 1990s. The government was the largest shareholder in both companies. The next major competitor, PT Satelit Palapa Indonesia (Satelindo), was licensed in 1993 and began providing services in August 1994.

There are two factors that promote the process of opening up the telecommunications market of Indonesia: the agreement on basic telecommunications services that this country signed with the WTO (this schedule is relatively long compared to other developed countries, local telephone is in 2011, domestic long distance is in 2006, international long distance is in 2005) and meeting the conditions to restructure the economy in exchange for financial support from the IMF after the economic and monetary crisis.


In July 1999, the government's telecommunications policy blueprint was issued. The blueprint called for improving the performance and opening up of the telecommunications market through competition and the elimination of monopolies, increasing regulatory clarity, strengthening strategic alliances with foreign investors, and creating business opportunities for small and medium-sized enterprises. These goals were further clarified in the "telecommunications law", which eliminated the concept of "organizations", thereby eliminating Telcom's requirement to have a stake in all telecommunications operators. The Telecommunications Law clearly divides telecommunications activities into three categories: network operation, service operation, and operation of special telecommunications activities. The operation of telecommunications networks or the provision of telecommunications services can be carried out by any legal entity. A network provider may also provide telecommunications services, while a service provider may use its own network or lease network equipment from another network provider. Individuals, government agencies, special organizations or legal entities may provide special telecommunications activities for national security and broadcasting purposes.

The Indonesian government signed a Letter of Intent (LoI) with the IMF requiring Telcom and Indosat to resolve their cross-ownership conflicts. The LoI also required Telcom and Indosat to divest their ownership in non-strategic companies by the end of 2001.

The government facilitates the provision of all telecommunication services to society. The government allows foreign corporations to buy shares in service providers to attract foreign investment.


1.4.1.3. Thailand:


To encourage foreign investment in the country, the Thai government does not stipulate a mandatory condition for the capital contribution ratio of joint ventures. However, projects that allow Thailand to contribute more than 50% of capital will be granted a guarantee certificate by the investment committee. For the field of infrastructure construction, Thailand has agreed to exempt import tax on machinery and equipment. Thailand also pays special attention to improving administrative procedures to facilitate foreign investors by many ways.


times to improve licensing procedures and project implementation procedures towards encouraging foreign investors.

The Thai telecommunications industry dates back to the 19th century. In 1875, Mayjesty, King Rama V, approved the Ministry of Defense to lay a telegraph cable from Bangkok to the remote province of Samut Prakan, located on the east bank at the mouth of the Chao Phraya River, with a total length of 45 km. The first telephone service was installed in 1881. Thailand joined the ITU (the Telegraph Union at that time) on April 20, 1883 as one of the first Asian member countries , after India (1869) and Japan (1897).

The development of the telecommunications industry continued on a small scale, and by the 1930s there were several thousand telephone subscribers, mainly in the capital. The Main Electricity Department (PTD), an arm of the government, was directly responsible for telecommunications services. In 1954, the telephone service was separated from the PTD and became the Telephone Organization of Thailand (TOT) (initially serving the capital metropolitan area).

Bangkok and nationwide development a few years later). In late 1997, the activities

The postal, currency, telegraph, telex, international telecommunications and other services were split off and TOT became the Telecommunications Authority of Thailand (CAT). As a result, PTD was significantly reduced in size, although it remained responsible for frequency management.

Thailand's remarkable network growth was largely influenced by two factors. First, the policy shift in the early 1990s toward a

The TOT and CAT's decision to transfer network development to private companies under Build-Transfer-Operate (BOT) arrangements. Second, the effects of the financial crisis of the late 1990s. By September 2001, Thailand had reached a fixed-line density of nearly 10 and the number of mobile users exceeded that of fixed-line users. After a slow growth and decline in mobile in 1997-1999, network growth stabilized again.


Table 1.6 Build-Transfer-Operate Agreements (as of September 2000)


Service

Project

Transfer Partner

but

Duration

( year)

Licensing

by

Match date

copper

Status


Phone

2.6 million

landline in Bangkok


Telecom Asia


25


TOT


1992

3 rough

change to provide

public phone,

VAS, PCS


1.5 million

landline in the provinces


TT&T


25


TOT


1993


Telephone

maths


Phone


Lenso


15


CAT


1994



Phone

long way

Optical cable

along the track

Com-link

20

TOT

1991


Optical cable

sea

Jasmine

20

TOT

1991


Legend of the Condor Heroes

crystal in water


Acumen


15


TOT


1996


isbn

Acumen

15

TOT

1991


VSAT

SiamSat

22

CAT

1994


VSAT

WorldSat

22

CAT

1995


VSAT

Usat

22

CAT


End

1998

Data

whether


DataNet

Advanced Data

Network


25


TOT


1990

Revised 1997

Video-text


Lines Technology

15

TOT

1993

Cancelled in 1997


Move

cell movement

NMT 900,

GSM 900

AIS

25

TOT

1990


AMPS 800,

GSM 1800

TACS

27

CAT

1990

Revised 1996

Digital GSM 1800

Wireless Comm.


17


CAT


1996

Acquired by CP

Orange

Digital DCS

1800

DPC

16

CAT

1996

AIS buy

Maybe you are interested!

Choosing Technology Suitable for the Conditions and Management Level of Our Country



Texting


Phone Link


Advanced Paging


15


TOT


1990

Cancel the division

annual revenue share

1997

Page Phone

Hutchison

15

TOT

1990


World Page

World Page

15

TOT

1994


Digital

Packlink

15

CAT

1990


Alpha-

numbers

Lenso

25

CAT

1990

Modify

1995

CT2

Fonepiont

Phone

Point

10

TOT

1991

tyrant

1998

Enter

route

trunking


World Radio


United


15


CAT


1992


Data

whether

dynamic


Nework Consultant


20


CAT


1994



One of the policy issues that the National Telecommunications Commission (NTC) will have to address is the new rules on foreign investment and ownership. The new Telecommunications Law appears to create a foreign ownership ceiling of 25%. This is higher than the WTO commitments (which cap it at 20%) but much lower than the current situation where foreign operators such as CP Orange and Hutchison have 49% ownership. It is also lower than that of other countries in the region.

Table 1.7 Five contracts with the largest revenue



Company

Contract term

copper

Expiration time

Revenue portion paid to business

state industry

Telecom Asia (landline, Bangkok)

25 years

2016

16%

TT&T (fixed, the

conscious)

25 years

2016

43.1%

AIS (mobile)

25 years

2016

25%

TAC (mobile)

27 years

2018

20%

Shin Satellite

30 years

2021

10.5%

ITU Source



Foreign ownership

expected and current

49% 49%

30%

Expected limit 25%

18%

20%

12%

Company

Thailand

Foreign Partners

TT&T

TA

AIS DTAC

CP

Orange

Taiwan

TT&T Verzion SingTel Telenor Orange Hutchison

Level of water ownership allowed

international service

49%

49%

40%

30%

25%

Thailand Malaysia Philippines India Korea


Figure 1.6 Foreign Ownership of Telecommunications in Thailand



outside;

But there are also some problems that arise, including:

- Looking for Thai investors to sell to foreign investors


- Convince local investors to take on a large portion of the investment

if the company has to be refinanced;

- Dealing with the consequences of the transfer.

The equitization of SOEs, TOTs and CATs is another victim of the above mentioned university policy paralysis. Although the Ministry of Transport and the MoTC gave the green light for equitization in May 1999, little progress has been made. One of the bottlenecks has been the chaotic transfer process.

In theory, the equitization process is carried out in two phases: Phase 1: SOE corporatization according to company law;

Phase 2: Equitization, through the establishment of joint stock companies, sales to strategic partners and IPOs to reduce government holdings below 30%.


The current uncertainty about foreign ownership restrictions is affecting the search for strategic partners. Some foreign investors will be willing to make large capital investments without securing a controlling interest in the company.


1.4.2. Lessons for Vietnam:


Through the reality of receiving FDI capital at home and abroad, we have drawn the following conclusions:

learned many useful lessons.


1.4.2.1. Choosing technology suitable for the conditions and management level of our country

The document of the 9th National Congress of our Party also reaffirmed: "Diversify the state capitalist economy in the forms of joint ventures and associations between the state economy and domestic and foreign private capitalist economies, bringing practical benefits to investors and businesses. Create favorable conditions for the economy with foreign investment capital to develop smoothly, focusing on exports, building economic and social infrastructure associated with attracting modern technology, creating more jobs. Improve the economic and legal environment to strongly attract foreign investment capital".

Through FDI, we have received many advanced technologies and machinery that can somewhat keep up with other countries in the region. Although the technology level is not high, it is suitable for our management capacity and conditions.

FDI capital is closely linked to the interests of foreign investors in production and business activities in our country, so investors often focus on bringing advanced technologies to bring high labor productivity, compete with domestic products to gain high profits. But thanks to that, our country also attracts many modern equipment and technologies, contributing to improving the production capacity of existing facilities, creating new production capacity. Moreover, the appearance of foreign enterprises with superior techniques and technologies creates a competitive pressure forcing domestic enterprises to improve technology and techniques, contributing to improving the general level of the national economy. In addition, due to the influence of direct investment as a form of capital import

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