Universal service in Vietnam: An institutional approach

Applying institutional theory to look at the Program 74 (a universal service policy) in Vietnam, this paper concludes that the Vietnamese universal service policy was strongly affected by formal institutional factors (the international agreements and the directives of the Communist Party of Vietnam - CPV), in which the international agreements played a leading role and the CPV’s directives played a guarantee role. The formulation and implementation of the universal service policy in Vietnam were mainly concentrated on action at levels 2 and 3 (formal and informal institutional arrangement, and formal institutional environment). The paper recommends that nations favouring a top-down approach not based on a market-oriented regime should deregulate and emphasize the role of provincial governments as well as encourage private sectors/social organizations and rural users to be more involved in the formulation and implementation of universal service policies. Moreover, the government should set up and force the contractual relations between governmental entities and telecom providers.