Jakarta, INTI - Vietnam, a rapidly growing economy in Southeast Asia, is taking significant steps to enhance its digital infrastructure. In an era dominated by global connectivity, submarine cables are the backbone of cross-continental data transmission. Currently, Vietnam relies on four operational submarine cable systems—AAE-1, AAG, TGN-IA, and APG—to connect to the international internet. However, frequent disruptions to these cables have impacted the country’s internet quality, leading to slower speeds and unreliable connections.

To address these challenges, Vietnam is constructing three new submarine cable systems—ADC, ALC, and SJC2—and has ambitious plans to further expand its connectivity. Among the highlights is the Vietnam-Singapore Cable System (VTS), a joint venture between Viettel and Singtel, which promises to strengthen the digital ties between the two countries. These initiatives aim to meet the rising demand for data, support national digital transformation goals, and ensure Vietnam remains competitive in the global digital landscape.

Vietnam’s Current Submarine Cable Landscape
At present, Vietnam’s connectivity to the global internet relies heavily on four submarine cables. However, these systems have faced frequent technical issues, often resulting in severe internet disruptions nationwide. For instance, in June 2023, three of Vietnam’s five submarine cables—APG, AAE-1, and TGN-IA—experienced simultaneous faults, causing a noticeable decline in internet speeds.

The situation was even more dire in January 2023 when four out of five cables, including AAG, IA, APG, and AAE-1, were rendered non-operational. Such disruptions have highlighted the urgent need for a more robust and reliable digital infrastructure to support Vietnam’s growing internet demands.

Plans for New Cable Infrastructure
In response to these challenges, Vietnam has outlined an ambitious plan under its Digital Infrastructure Master Plan 2030, approved by the Prime Minister in January 2024 through Decision 36/QD-TTg. This blueprint sets a target of adding two to four international submarine cables by 2025 and four to six additional cables by 2030. By the end of the decade, Vietnam aims to have 15 submarine cables with a total capacity of at least 334 Tbps.

Key projects under construction include the ADC and SJC2 cables, developed by Japan’s NEC, and the ALC cable, constructed by China’s HMN Tech. These cables are expected to significantly enhance Vietnam’s internet capacity and reliability, reducing the dependency on older, frequently malfunctioning systems.

One of the most promising initiatives is the Vietnam-Singapore Cable System (VTS). This project, a collaboration between Viettel, Vietnam’s leading telecommunications provider, and Singtel, Singapore’s telecommunications giant, aims to provide a high-capacity alternative route for internet traffic. The system is designed to strengthen connectivity and support the digital economies of both nations.

International Collaboration and Major Investments
International partnerships have played a crucial role in Vietnam’s efforts to expand its submarine cable infrastructure. In September 2024, Sovico Group, a prominent Vietnamese conglomerate, signed a Memorandum of Understanding (MoU) with Supermicro, a U.S.-based technology firm, to develop a hyperscale data center in Vietnam. Additionally, Sovico and Keppel, a Singaporean infrastructure powerhouse, are planning a direct submarine cable link between Vietnam and Singapore. This project, estimated at USD 150 million, is expected to further bolster the region’s digital connectivity.

These projects, alongside collaborations with global tech leaders, underscore Vietnam’s commitment to building a resilient and modern digital ecosystem. They also align with the government’s vision of creating a sustainable and competitive digital infrastructure.

Geopolitical Challenges in Digital Infrastructure Development
Despite these advancements, Vietnam faces significant geopolitical challenges in its digital infrastructure development. The country’s proximity to China creates a complex dynamic, especially regarding collaboration with the United States on digital infrastructure and submarine cables. Without coordinated efforts involving China, Vietnam may find it difficult to achieve its ambitious goals for new subsea cable systems.

Moreover, geopolitical tensions in the Asia-Pacific region could affect the execution and funding of these projects. To overcome these hurdles, Vietnam must navigate its diplomatic relationships carefully while strengthening partnerships with diverse stakeholders to ensure the success of its initiatives.

The Strategic Importance of Digital Infrastructure
Enhancing submarine cable infrastructure is not merely a technical upgrade; it is a cornerstone of Vietnam’s broader economic and digital transformation. Improved connectivity will support the adoption of advanced technologies such as cloud computing, artificial intelligence (AI), and the Internet of Things (IoT). These technologies are crucial for driving innovation and boosting productivity across industries.

Reliable submarine cables will also fuel the growth of Vietnam’s e-commerce, fintech, and digital services sectors. With enhanced international connectivity, Vietnam can attract more foreign direct investment, particularly from multinational corporations seeking stable and scalable digital ecosystems in Southeast Asia. In essence, investing in submarine cable infrastructure is an investment in Vietnam’s digital future and economic competitiveness.

Commitment to Sustainability and Green Technology
In addition to expanding capacity, Vietnam’s digital infrastructure development also emphasizes sustainability. For instance, the ADC and SJC2 cable systems incorporate energy-efficient technologies to reduce environmental impact. The government has also encouraged the use of renewable energy sources in data centers and other digital facilities, aligning with global sustainability goals.

Vietnam is at a pivotal point in its digital journey. With various new submarine cable projects underway, the country is positioning itself as a leading player in the Asia-Pacific digital economy. While challenges such as frequent cable disruptions and geopolitical complexities remain, the coordinated efforts of the government, private sector, and international partners demonstrate a strong commitment to building a resilient and forward-looking digital infrastructure.

By leveraging international collaborations and prioritizing sustainable practices, Vietnam is not only addressing its current connectivity issues but also paving the way for a digitally empowered future. These efforts highlight the country’s determination to secure its place as a regional digital hub and a key player in the global technology landscape.

• Transformation
• Infrastructure
• Digital
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