Contents:

Economic and Political Environment Basic country data Economic summary Key economic data Political summary Key political data Regulatory Environment Regulator Policy maker Regulatory environment Telecom Statistics and forecasts, 2004-2013F Telecom service revenue Fixed Mobile Internet Broadband International traffic International termination rates Competitive Environment Telecom market overview Fixed market overview Mobile market overview Internet market overview Key Players Profile VNPT Saigon Postel Viettel LIST OF TABLES Vietnam key economic data, 2006-2008 Vietnam telecom statistics and forecasts, 2004-2013F Vietnam number of fixed subscribers by operator, 2006-2008 Vietnam number of mobile subscribers by operator, 2005-2008 Vietnam number of Internet subscribers by operator, 2008-February 2009 Vietnam number of broadband subscribers by operator, 2006-2008 LIST OF FIGURES Growth rate: Real GDP vs. Inflation Vietnam telephone subscribers, 2004-2013F Vietnam International telephone traffic, 2004-2013F Vietnam Internet market, 2004-2013F Vietnam International termination rates, 2004-2013F Vietnam number of subscribers by market, 2004-2013F Vietnam telecom market growth (subscribers), 2004-2013F Vietnam fixed subscriber growth by operator, 2006-2008 Vietnam fixed market share by operator, 2008 Vietnam market share by mobile operator, 2008 Vietnam mobile growth by operator, 2006-2008 Vietnam Internet market growth by operator, 2006-2008 Vietnam Internet market share by operator, 2008 Vietnam number of broadband subscribers by operator, 2006-2008 Vietnam broadband market share by operator, 2008

Summary:

Vietnam’s mobile subscribers to surpass 112 million by 2013 With a forecasted average growth rate of 10.3% over the next 5 years, bringing the number of mobile connections to 112.1 million at the end of 2013. According to the information released in the latest report “Vietnam Telecom country profile”, Vietnam is one of the world’s top 10 countries in terms of information and communications technology (ICT) growth and should remain in that list for the next 5 years. Until recently, the country’s incumbent operator VNPT enjoyed a monopoly in the fixed and mobile arena. This situation is however rapidly evolving, with 7 fixed operators, 7 licensed mobile operators and 65 ISPs. Vietnam’s fixed market has undergone a steady growth of 24.5% in the last 5 years. Nevertheless, this trend started to decrease in 2008 and should continue to do so as fixed/mobile substitution accelerates. The number of fixed customers increased by 14.4% in 2008, to reach 13.1 million. The number of fixed lines is therefore expected to grow by an average of 5.2% over the next 5 years to reach 16.9 million and a penetration of 18.2% at the end of 2013. The mobile market is the country’s most dynamic telecom sector with an average growth of 91.3% in the last 5 years, to reach 69.1 million subscribers and a penetration of 79.7% at the end of 2008. The growth rate of the last 5 years should start decreasing significantly as early as 2009, with a forecasted average growth rate of 10.3% over the next 5 years, bringing the number of mobile connections to 112.1 million at the end of 2013. At that time mobile penetration should have reached 120.8%. Akin to many other developing countries, Vietnam’s Internet market is greatly underdeveloped. “Low PC penetration (estimated at 14.0%), poor network development, beyond Hanoi and Ho Chi Minh City and high interconnection fees are all factors contributing to this situation” HOT TELECOM’s president Isabelle Paradis said. However, government efforts over the last 5 years, the advent of competition and the introduction of broadband have started to bear fruits. Internet penetration grew from 2.0% in 2004 to 7.7% in 2008 and Internet subscribers increased 5-fold from 1.7 million to 6.7 million. Broadband services are finally taking off and accounted for 30.6% of all Internet connection at the end of 2008, compared with only 3.2% in 2004. After growing by 220.0% over the last 5 years, broadband customers reached 2.0 million at the end of 2008. Significant growth is expected to continue over the next 5 years with dial-up/broadband substitution increasing steadily. Broadband subscribers are forecasted to grow at an average rate of 32.7% over the next 5 year to reach 8.4 million by the end of 2013. The number of dial-up customers is therefore expected to start decreasing from 2008 onwards and broadband customers should represent 81.9% of all Internet connections at the end of the forecasted period.

Companies Mentioned

- Saigon Postel - Viettel - VNPT