1. The urgent of the dissertation
In the world, the field of the television development was separated by two kind

INTRODUCTION

2. Research purpose
Basing on the theoretical and practice premise of state management of paid
television in Viet Nam, the dissertation put forward major solutions to complete state

television: free-to-air television and paid television. Free-to-air television played a
role in providing information, news, laws and basic entertainment for audience free.
Operations of free-to-air television relies on national budget. Viewers must ‘accept’
the uniformity of television channels due to the limitations of content and quality
In the condition of market economy, viewers’ needs and budget are increasing

management of paid television. To achieve the purpose, the dissertation defined these
following research tasks:
Firstly, building a theoretical framework for research and managing paid television
by the state. Defining criteria to evaluate paid television by affecting factors.
Secondly, analysing the reality of Vietnamese state management of paid

resulting television programs are required to be higher-quality and specialized in
terms of content and image.

television in the period of 2010 – 2015; building the comprehensive and detail
picturesque of paid television service in Viet Nam, figuring out the essence of state

Paid television service (called paid television) appeared in 1948 in the world
which has appeared in Viet Nam for 20 years. In the context of market economy of
Viet Nam, paid television is absolutely a new market. However, Viet Nam television
field has been developed rapidly.

television in Viet Nam” to the research object of dissertation.

- How many factors affecting state management of paid television market?

1

3. Research questions
To conduct research purposes, the dissertation is keen on answering these
following questions:
- What is paid television service? What is characteristics of paid television?
How many kinds of paid telvision?
- What is state management of paid television? What is the purpose of state
management of paid television?
- What are principles of state management of paid television?
- What are the criteria of evaluating state managemetn of paid television?
- What are government management’s bodies in controlling paid television?
What are their functions and responsibilities?
- What are contexts and situations of state management of paid television in Viet
Nam? What are strengths, weakness? Why?
- What is the opinion and direction in improving state management of paid
television in Viet Nam?
- What are the solutions and recommendations for improving state management
of paid television in Viet Nam?
2


4. Research subjects, objects and scope of research
- Research subject: the dissertation focus on state management of paid television
in Viet Nam


Chapter 3: The reality of state management of paid television in Viet Nam
Chapter 4: Solutions for completing state management of paid television in
Viet Nam
3

Chapter I
REVIEW PREVIOUS STUDIES RELATING TO THE DISSERTATION
The economic, political, society landscape is currently a multi-colour picture.
On one hand the economic downturn is spreading, on the other hand many new
nations are potential. Many economies have been unstable with conflicts resulting the
world is stressful. Vietnamese paid television has developed with many levels. Paid
television appeared in Viet Nam in 1993 with the advent of cable television services
MMDS. The field of paid television has had flourishing achievements. After working
in one of the biggest giant of cable television VTVCab, the author determined the
topic of state management of paid television in Viet Nam wishing to suggest feasible
solutions and proposals for Viet Nam market. Under the dissertation tittle, the author
chose problems of supply demand relationship of paid television, price, state
management.
1.1 Foreign Related studies
(1) Casbaa – Associations of Asian Pacific Paid Television, Vietnam’s Pay-TV
Situation “Vastly Improved”,
(2) Bengt Jonsson, “Tackling the future 2014 trends in the pay television
industry in Asia Pacific”
(3) Paul Ausick, “Streaming Video Will Continue to Pressure Pay TV in 2016”
(4) Marcia Breen, “Cable and Satellite TV Costs Will Climb Again in 2016”
(5) Phillip Swan, “2016 Prediction: Cable TV Biz to Rebound”
1.2 Domestic studies
(1) Among Vietnamese researchers who always have studies, journals on the
topic of paid television or cable television, Dr. Hoang Ngoc Huan at Viet Nam
National Television (VTV) is the most cited author. Dr Hoang Ngoc Huan’s

Thirdly, defining the main competitive motivators of the paid television market
to guide, control and take advantage of competition whilst curbing the other side of
the tracks.
Fourthly, agreeing on the changing of policies, mechanism, management
methods toward paid television market, ensuring the flexibility and suitability with
the global integration of Viet Nam.
However, previous authors did not describe characteristics of paid television
services which could not propose solutions and implications for state management
officers. Some of these issues were just suggestive. Other issues were identified and
analysed basing on the literature review.

suggestions for state management toward paid television services in the socialism
oriented market economy.
CHAPTER 2
THEORETICAL BACKGROUND ON STATE MANAGEMENT
OF PAID TELEVISION
2.1 Paid television activities
2.1.1 Paid television activities
Paid television activities are tranfering, delivering content in the form of
television programs and value added services on the technological infrastructure of
cable station companies to subscribers following bilateral relationship contracts.
Television programs are foreign or domestic television programs which is delivered
to the subscribers. Television programs could be delivered directly to the subscriber
or on their demands.

1.3.2 Issues related to the dissertation topic
After these above results, the dissertation found some following problems of

2.1.2 Paid television characteristics
Actors of paid television activities


Products of paid television
Television programs are products of paid television market that companies
deliver with these following features
News
Sound and Image of television program
Persuasion to audience
Influence on public opinion


Paid television is a kind of viewing with fee

providers and subscribers, there are third party is technology infrastructure provider

Paid television requires high technology with high quality
Television programs are grouped in package and theme

(Internet service provider, telecommunication provider…), they do not take part in
the transaction but ensure the success of transactions.

System of paid television has high openness considered in the light of foreign product

Thirdly, purpose of state management of paid television is developing paid
television stably accompanying with ensuring the fair competion in the market to take
advantage of social resources which contribute the political responsibilities and meet
the people demand of wholesome entertainment.
Fourthly, technology environment in paid television is always changing swiftly,

Customers of paid television
End-users/customers


paid television business market is variety, sophisticated and newest high-tech applied.
2.2.2 The inevitability of state management towards paid television
Vietnam television was established in 1970 which was considered the youngest
industry. Television is a kind of journalism in general but it has many specialized
characteristics. News is the common feature of journalism.
2.2.3 Purposes of state management toward paid television
State management towards paid television start with defining purposes which is
the first base of management process
Firstly, state management toward paid television makes certain of executing the
undertakings, policies and guidance of Government and Communist Party of
Vietnam on broadcasting.
Secondly, state management towards paid television aim at protecting the fair
competition of the market, figuring out and avoiding unfair behaviours, companies
which harm the effectiveness of the market.
Thirdly, state management towards paid television protect legal right, benefit of
joining parties who provides and use paid television services.
2.2.4 Principles of state management towards paid television
The necessariy of state management toward paid television not only orignitated
from the demand of developing paid television services but the demand of protecting
effectiveness of politics, economics and national security on over the country.
Principles of democratic centralism
Principles of fair
Principles of economic and effectiveness
Principles of legislation
2.2.5 State management toward paid television features
2.2.5.1 Managing delivering paid television services
Paid television services are provided on using suitable technological
8



results of state management activities compared with proposed objectives. The
dissertation built a set of criteria in details:
a) Effectiveness 1: results of state management of paid television
a. The number of companies which was permitted to provide paid television
service

2.2.5.2 Content management of paid television
Managing content on paid television help to ensure that television channel will

b. Capability of telecommunication companies in providing paid television
services

deliver information of policies, undertakings, legislation of the Government to
people. This management also control the edition, interpretation of foreign television
channel on paid television system. The proportion and content structure are suitably
managed on the paid television system periodically. Vietnam television channels
transferred on paid television include free to air television channels (according to the
law on journalism) and television channels permitted by the Government.
2.2.5.3 Managing quality of paid television services
Paid television quality has strongly impact on customers’ beneficiaries. To
protect customers’ rights, specialized equipment which established the system of
providing services from the station to end users is managed under standards of
technical criteria. Publicizing service quality help customers not only examine
providers’ commitments but be aware of their own rights in using services.
2.2.5.4 Managing infrastructure of paid television service providing

c. Contribution of companies to national budget
b) Effectiveness 2: Achievements of telecommunication companies in paid
television activities

coordination between state agencies. Effectiveness show the power of the state and
9

b. Satisfaction of telecommunication companies with state policies on price,
cost management
c. Satisfaction of telecommunication companies with state policies on market
control
b) Efficiency 2: Satisfaction of end users (household, individuals) with paid
television services
c) Efficiency 3: The sustainability of paid television market.
a. The degree of completing management objectives on paid television services
10


b. The degree of business risk faced by telecommunication companies when

b) Capabilities of state agencies officials

joining the paid television market
c. The influence of paid television on people life

State agencies officials in paid television management have responsibilities of
proposing policies, orientation for the development of paid television market which

2.2.7 Factors affecting state management on paid television activities
2.2.7.1 Macro factors
a) State policies and legislation
There are many factors affecting state management towards paid television. First
and foremost is the relationship between actors in the market (especially the


Competition is natural phenomenon; it is the conflict relationship between
individuals which resides in the same environment and has common concern. In the
area of economic, competition is the contest of rivalry between economic objects
(manufacturer, consumer) to achieve better position in manufacturing, consuming or
using to gain the most benefit.
Lessons on state management towards paid television in Viet Nam
Firstly, the state should encourage companies in the industry to coordinate and
support each other. It helps state management in the broadcasting and paid television

development…
d) Global economic integration

in particular in the consistent guidance of Law and the Government.
Secondly, policies on paid television have to motivate telecommunication companies

Under the context of global interdependence, one country operations have
influence on neighbouring countries and the rest of the world. The growing
realization that some essential goods or services could be ensured by the global
coordination. Moreover, in the global perspective the changing globalization on
services and information technology require the examination of management of
public services and the relationship between levels of state agencies and people.
2.2.7.2 State agencies factors
a) State management apparatus of paid television
State management apparatus include two aspects: system of state management
apparatus towards paid television and the coordination mechanism of these agencies.

develop high technology aiming at delivering television channel, serving the propaganda
of Vietnamese Party and the Government and meeting customers’ demands
Thirdly, the state should clearly regulate the responsibility of paid television
service providers in publicizing service quality under the law and reparing any

television under legislation and state
policies

of state management of paid television
Chapter 4

Macro
economics
factors

Management of content
of paid television

State bodies
factors

Management of service
quality of PT

Ensuring the fair competition in the
paid television

Management of
infrastructure of PT
Tele-com
company
factors

3.4. Data treatment
Secondary data was used directly or indirectly to compare and evaluate

Viet Nam has transformed from the central planning economic to multi-agent
economic since 1986. The transformation helped the nation overcome stagnations
and developed in the socialism orientation. In the context of developing market,
many kinds of supply-demand services have appeared with no exception of
television. Paid television which has developed strongly appeared in 1945 in the
world. Under the war-torn period, Viet Nam paid television has developed since 1993
with the beginning of MMDS. Fifteen years ago, there has been several MMDS cable
service providers nationwide, the biggest providers were Saigontourist in Ho Chi
Minh city and MMDS technology of cable television (VTV) in Hanoi. Since 2001,
paid television has developed with the popularity of cable television. Until 2013, Viet
Nam has had 30 cable television service providers nationwide. Cable television
service has appeared in almost province and city in Viet Nam even two or three
providers in one province. Cable television companies provided services in crowded
area or high populated density which brought high economic performance resulting
most of subscribers were located in big cities with the highest density in Ho Chi
Minh City and Hanoi and neighbouring cities.
Vietnam’s population is 90 million people with more than 20 million television
subscribers, the market penetration accounted for 25% of the population compared to the
average market penetration of 31.8% of countries in the region. Until 2015, Vietnam has
had 7 million paid television subscribers per 22 million of households which showed the
potential of market but challenges to governmental agencies to generate mechanism for
the fast and sustainable pace for paid television market in Vietnam.
4.1.2. The reality of paid television in Vietnam
Vietnam economic has eye-witnessed the impressive increase of paid television

Interview experts
In-depth interview
Social survey

services recent years with the enlargement of cable television, DTB-T, satellite

VND)
470.500
1992
SCTV
500.000
2003
HTVC
440.000
1999
VTVcab
420.000
2009
K+
1.500.000
2000
VTC
72.237.000
2006
MyTV
100.000.000
2013
NextTV
98.000
2005
HCATV
1.800.000
2011
An Viên

Unit


120

150

VTVCab

600

750

892

1.200

2.500

K+
VTC

120

160

190

320

550


80

An Vien

15

50

65

90

110

4.2. Organization of state management towards paid television in Viet Nam
Vietnam Government

Statistics of subscribers, television channels
TT
1
1.1
1.2
1.3
2
3
3.1
3.2
3.3
4
4.1

Number of paid television
55
35
39
36
37
providers
The number of cable television
47
27
33
30
30
provider
The number of DVBT providers
5
5
3
3
3
The
number
of
satelite
3
3
3
3
3
television providers

5
9
11
10
paid television
15

Ministry of Information and Telecommunication

Authorization of Broadcasting and electronic information
Local department of Information and Telecommunication

4.2.1.Legislation base of state management towards paid television in Viet Nam
Television in general and paid television in particular is a special kind of
journalism which is controlled and guided by the State; individuals are not permitted
to own journalism. Television and journalism in Viet Nam has been regulated by
Journalism Law promulgated in 1989 and Journalism Law Adjustment numbered
12/1999/QH10 promulgated on June 12, 1999. Adjustment Law on Journalism
emphasized that only social political organizations, organization of the State could
operate in the field of journalism. However, these organizations could cooperate with
individuals, foreign organizations to implement, execute journalism products
including newspaper, radio, television and internet news. Activities in developing
paid television market are under the Law of Journalism.

16


c) Assessing the permission for providing paid television

4.2. The reality of state management towards paid television in Vietnam

Developing harmony and suitably all kinds of radio, television in the principle of
neutral technology. Encouraging the applying of advanced technology fitting with the
promulgated technology standard and the global trend to enlarge the provision size,
enhancing quality reducing price for people in the mountainous, islands, borders area.
17

Criteria
The
clearance
level
of
information
The clearacne level of administration
2
procedure
3 Abilities of manager
4 The fairness in permission
1

No.

(Mean)

Standard
Rate
deviation

19

2,95

information. Besides, paid television has to comply the regulation on interpreting:
Movie channel: interpreting 100% content
News channel: translate 100% content
Science, education channel: interpreting 100% news program
General, entertainment channel: interpreting 100% of news, documentary program
Examining paid television quality
Planned examination
Unplanned examination
Publicizing the television service quality
Once time 6 months, Authority of broadcasting and electronic information
publicize information on service quality of paid television on website of Ministry of
Information and Technology and Authority of Broadcasting and electronic
information. Permitted companies publicize information of their service quality on
company’s website.
Publicized information includes
The situation of publicizing paid television service quality and criteria of service
quality that company published
The situation of complying the procedure of report and standard criteria of company
Results and examination of paid television quality of state management agencies
Evaluating paid television service quality
18


To evaluate the paid television service quality, the dissertation use secondary
data from servey of telecommunication companies.
Evaluation of paid television quality management of telecommunication companies
Criteria

No


3

The suitablilty of treating
with breaking law on 19
television program quality

2,95

0,621

Medium

There are four companies of providing paid television technology infrastructure
for other companies.
Technology infrastructure provider in Viet Nam
1
2
3
4

Name
VTVCab
VNPT
Viettel

Partner
Saigontourist
VSTV
An Vien
23 joint venture organization in 64 provinces (using permission

services will set the special power for new providers with bigger market, more
businesses and more challenges.
5.2. Opinions and orientation of completing state management of paid
television in Viet Nam
With the development in recent years of paid television service and development
of technology in transferring, broadcasting, Viet Nam has many service of radio,
television such as: broadcasting services, DVBT, Internet IPTV… New method of
broadcasting has not been judged by Law.
In the future, opinions of state management of paid television in Viet Nam are:
Firstly, paid television should be aware of a typical kind of service in the market
which is controlled by the State. Paid television is the supply-demand relationship as
other goods or services but its characteristics are operated to meet the demand of
television seeing like other political tasks of the State.
Secondly, paid television market management, maintain the fair competition to
take advantage of social resources in executing political tasks, publicity, information
and meeting the varied demand of beneficial entertainment of people
Thirdly, strictly management of content providing and information service
quality under the legislation of Law on journalism, infrastructure management,
broadcast service management.
Fourthly, encouraging Association of Paid television operations to enhancing paid
television service market under the State and Party undertakings, policies and laws.

and self-complete with the technology of: DVBT, IPTV, satellite, cable with the most

5.2.1. Directions for completing state management of paid television in Viet Nam
Firstly, completing legislation framework on broadcasting service step by step to
create the synchronization in legislation system and establish the mechanism of

19



5.3. Solutions on completing state management of paid television in Viet Nam
5.3.1. Group solutions on educating, nurturing state management knowledge
on paid television for state agencies’ officers
Party and State indicate that information telecommunication is a flag economic
sector which is prioritized, encouraged, supported by the State in a form of
developing information industry, enhancing the establishing and developing

including: cable (analog, digital and IPTV), DVBT, DTH and mobile television.
Compared with other services, business in paid television services become one of
fastest growth industry. Ho Chi Minh City is a fastest increase market with more than
1 million subscribers. The capital city of Hanoi ranks second with 120 million
subscribers, Da Nang city has 80 thousand subscribers and Hai Phong city has 70
thousand subscribers.
Especially, one of the newest technology is IPTV television which four
companies are in the trial implementation including VNPT, Viettel, VTC and FPT.
Accompanied with free-to-air television, paid television system contribute in
creating one more method of information transferring. With varied content in
specialized television channel, paid television has been a useful entertainment
method serving for varied audience. Developing paid television in recent years has
motivated to increase the quality of broadcasting programs with regard to free-to-air

information society. With the core competence of information technology, Viet Nam
will change the social economic structure to become a nation of advanced technology
on economic knowledge and information contributing in successfully implementing
the cause of modernization and industrialization.
Educating, nurturing should follow, update the content of state management
Educating, nurturing should adapt with the object of specialization management
Educating, nurturing should base on combination of foreign experience and
domestic experience



of paid television under the market orientation … All shortcomings are need to be
corrected and adapted with the future trend.
5.3.2.1.3. Solutions on completing paid television service quality

- Increasing the examinatin activities of companies in the field of paid television
- Compelting the policies and investment suitable with paid television market
- Increasing international cooperation in state management of paid television
5.3.2.1.4.Solutions on completing infrastructure management for providing paid
television services
When the Government officially promulgated regulation on paid television
activities, services providers will coordinate and contract strategically in developing
paid television all over the country. This is the meaningful first step in executing the
Government project on digitalizing broadcasting.
In the next stage, the State should encourage paid television service providers
use the same infrastructure and exploit one content stock.
To provide paid television, the television station has to ask permission for
establishing telecommunication infrastructure. If companies have their own
infrastructure, they are obviously permitted to provide services. The management of
content, services, television network and telecommunication networks is not uniformed.
5.3.2.1.5. Solutions on completing paid television price management
All paid television service providers agreed on regulations of the floor price for
building and implementation common price. President of Association of Vietnam
paid television said that floor-price would be built basing on the production cost
which help avoid dumping price and accepting the strategic losing in competition.
Applying floor-price to stabilizing the market in the developing period. Without
floor-price, there will be disorders in price competition, standards of technology,
content and programs.
Association of Viet Nam paid television proposed state agencies to promulgate

organization of self-business: maintaining current regulations, no setting income
limitation to ensure the salary for labours.

market working for political tasks and essential propaganda information.
Thirdly, completing regulations on business organizing, services in operations,
policies on financing and taxing for paid television market.
Fourthly, renewing the mechanism, policies supporting building transferring
infrastructure for service providers to reach island, mountainous, border area where
ethnic minorities are residing and for Vietnamese foreigners
23

24