Keppel, an asset management firm from Singapore, and Sovico Group, a Vietnamese conglomerate, are pursuing the possible development of new underwater fiber-optic cables, which aim to connect Vietnam with Singapore and other areas.
Currently, there are four operational submarine cable systems linking Vietnam to the rest of the world: AAE-1, AAG, TGN-IA, and APG. The SEA-ME-WE 3 cable system previously connected with Vietnam, however, it was retired in early December.
Three new cables are under construction to connect Vietnam: ADC, ALC, and SJC2. Moreover, Viettel and Singtel have signed a Memorandum of Understanding (MOU) to construct the Vietnam-Singapore Cable System (VTS).
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Combatting Internet Disruptions
Vietnam has experienced frequent internet disruptions due to faults in its underwater cables. For instance, both the APG and AAE-1 cables are currently not functioning and awaiting repairs. In June, three out of five undersea cables connecting Vietnam to the world (APG, AAE-1, and TGN-IA) encountered issues, causing internet speed reductions across the country. The repair of the AAE-1 cable is still pending. In January 2023, four out of five undersea cables (AAG, IA, APG, and AAE-1) were not operational, leading to slow internet speeds across Vietnam.
In January 2024, the Prime Minister of Vietnam issued Decision 36/QD-TTg (Decision 36), approving Vietnam's Digital Infrastructure Master Plan 2030. According to this plan, Vietnam aims to add two-to-four international internet cables by 2025 and another four-to-six international undersea fiber optic cables by 2030.
Furthermore, by 2030, Vietnam plans to increase the total number of submarine cables to 15, each with a total capacity of at least 334 Tbps. Sovico Group will focus on providing high-quality products and services in various sectors to meet customer needs and integrate with the global economy. In September, Sovico Group signed an MoU with U.S.-based tech company, Supermicro, to develop a hyperscale data center in Vietnam.
Read More: Subsea Cable Maintenance Impacts Cloud Connectivity
Implementation Challenges
According to SCMP, Keppel and Sovico Group are considering laying a cable that will directly connect Vietnam with Singapore, predicted to cost an estimated USD 150 million.
The new projects led by Keppel and Sovico Group will be separate from previous investments announced by Vietnamese companies in four new undersea cables. These include the ADC and SJC2 cables, built by Japan's NEC; ALC, built by China's HMN Tech; and the Vietnam-Singapore submarine cable system announced by Vietnam's Viettel and Singapore's Singtel.
Given its proximity to China, Vietnam faces challenges in aligning with the U.S. on strategies and policies related to digital infrastructure and undersea cables. Without collaboration with China, Vietnam may struggle to achieve its goals of building new subsea cables.
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