In a significant stride toward enhancing its digital economy, Vietnam has launched the Vietnam-Singapore Terrestrial Network (VSTN), a 3,900-kilometer fiber-optic cable system marking the country’s first land-based connection to Singapore. Traversing Laos, Thailand, and Malaysia, this ambitious infrastructure project by the Vietnam Posts and Telecommunications Group (VNPT) promises to reduce Vietnam’s reliance on vulnerable submarine cables, strengthen regional connectivity, and position the nation as a growing hub for digital services in Southeast Asia.
A Resilient Alternative to Subsea Cables
Vietnam’s internet infrastructure has long depended on five undersea cables, including major systems like AAG, APG, AAE-1, and the recently completed SJC-2, which collectively span over 65,000 kilometers. However, these cables are prone to frequent disruptions, with each experiencing an average of over ten incidents annually. At times, the country has lost up to 73% of its bandwidth when multiple cables failed simultaneously, exposing a critical vulnerability in its telecommunications network.
The VSTN, utilizing Dense Wavelength Division Multiplexing (DWDM) technology, offers a robust alternative. With an initial capacity of 4 terabits per second (Tbit/s), expandable to 12 Tbit/s, the network can transmit a minimum of 300 gigabits per second (Gbit/s) per wavelength. Fully owned and operated by VNPT, this terrestrial system allows for quicker repairs compared to subsea cables, which often require specialized vessels and favorable sea conditions—a process that can take between two to twelve months. As a recent analysis highlighted, land-based cables offer a significant advantage in terms of repair speed and operational control, enhancing the resilience and security of Vietnam’s digital infrastructure. 
Strategic Regional Connectivity
Beyond serving as a backup to undersea cables, the VSTN establishes direct links to key data hubs across Southeast Asia, connecting VNPT’s technical center in Da Nang with major facilities such as IDC Telehouse in Thailand, MY01 Cyberjaya and Equinix JH01 in Johor Bahru, Malaysia, and Equinix and Global Switch in Singapore. This connectivity is pivotal, as Singapore serves as a central internet exchange point for the region, hosting numerous data centers and acting as a gateway to global digital traffic.
The terrestrial link not only bolsters Vietnam’s access to this network but also opens new avenues for cross-border trade in digital services. By creating a stable, land-based route to major ASEAN hubs, the VSTN is poised to act as a catalyst for industries reliant on uninterrupted connectivity, such as cloud services, fintech, and e-commerce. This development aligns with Vietnam’s broader ambition to increase the digital economy’s contribution to 20% of its GDP by 2025, a target that demands robust infrastructure to handle rising internet traffic and support business expansion.
Economic Implications and Private Sector Growth
The launch of the VSTN is expected to stimulate private-sector investment in Vietnam’s burgeoning data center and fintech sectors. As the country strengthens its digital links with regional powerhouses like Singapore, it becomes an increasingly attractive destination for technology-driven enterprises. The network’s capacity to provide reliable, high-speed connectivity addresses a critical need for businesses operating in data-intensive fields, potentially positioning Vietnam as a competitive player in the ASEAN digital landscape.
Moreover, the VSTN complements VNPT’s existing multimodal transmission ecosystem, which spans land, sea, and space. In addition to its undersea cables, VNPT operates two telecommunications satellites, Vinasat-1 and Vinasat-2, further diversifying Vietnam’s connectivity options. This integrated approach underscores a proactive strategy to safeguard national telecommunications against both natural and geopolitical risks, ensuring that disruptions in one medium do not cripple the entire system.
Challenges and Opportunities Ahead
While the VSTN marks a significant achievement, it is not without challenges. The project’s long-term success will depend on sustained investment in maintenance and upgrades to keep pace with escalating bandwidth demands. Additionally, as Vietnam deepens its integration into regional digital networks, it must navigate complex issues of data sovereignty and cybersecurity, particularly given the sensitivities surrounding cross-border data flows in Southeast Asia.
Nevertheless, the opportunities outweigh the hurdles. The terrestrial link offers Vietnam a chance to redefine its role in the region’s digital economy, moving beyond its historical dependence on subsea cables to a more diversified and resilient infrastructure model. For local businesses, particularly in fintech and e-commerce, the enhanced connectivity could translate into faster transaction speeds, improved service delivery, and greater access to international markets.
A Broader Vision for Vietnam’s Digital Future
The introduction of the VSTN is a testament to Vietnam’s commitment to building a modern, sustainable digital ecosystem. It reflects a broader vision of technological self-reliance and regional collaboration, aligning with the government’s strategic goals under initiatives like the National Digital Transformation Program. By investing in infrastructure that supports both domestic growth and international partnerships, Vietnam is laying the groundwork for a future where its digital economy can rival those of its ASEAN neighbors.
For policymakers, the network’s rollout also raises important questions about balancing economic ambitions with regulatory frameworks that protect national interests. As data traffic surges through the VSTN, ensuring robust cybersecurity measures and equitable access for smaller enterprises will be critical to maximizing its benefits. Partnerships with regional stakeholders, including Singapore’s well-established tech sector, could provide valuable expertise in addressing these challenges.
Impact on ASEAN’s Digital Landscape
The VSTN’s implications extend beyond Vietnam’s borders, contributing to the broader ASEAN goal of seamless digital integration. By linking key hubs across Laos, Thailand, Malaysia, and Singapore, the network fosters a more interconnected regional economy, where data flows as freely as goods and services. This could serve as a model for other ASEAN nations grappling with similar issues of connectivity and infrastructure resilience, potentially inspiring similar terrestrial projects elsewhere in the region.
For Vietnam, the project is a stepping stone toward greater economic diversification. As traditional industries face global uncertainties, the digital sector offers a pathway to sustainable growth, job creation, and innovation. The VSTN, with its capacity to support high-volume data transfers, positions Vietnam to capitalize on emerging trends like artificial intelligence, big data analytics, and the Internet of Things—fields that are expected to drive the next wave of economic transformation in Southeast Asia.
Looking Forward
As Vietnam continues to roll out the VSTN and expand its digital infrastructure, the impact on its economy and regional standing remains a story to watch. The terrestrial network represents not just a technological advancement, but a strategic pivot toward resilience and connectivity in an increasingly digital world. Whether this ambitious project will fully deliver on its promise to transform Vietnam’s digital landscape is yet to be seen, but its launch signals a bold step forward for a nation determined to carve out a leading role in ASEAN’s tech-driven future.
