Viettel Group Report: Decoding a Rare Success Among Vietnamese Enterprises

  • ID: 1798239
  • Report
  • Region: Vietnam
  • 53 Pages
  • Bien Ngoc Nguyen
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The Economist Intelligence Unit in a recent report has stated: “Vietnam's reputation as one of the most vibrant emerging markets is quickly being undermined by macroeconomic instability and serious financial troubles at one of the country's large state-owned enterprises (SOEs), the Vietnam Shipbuilding Industry Group (Vinashin). In late December Vinashin defaulted on the first scheduled repayment of an eight-year US$600m international syndicated loan that was arranged in 2007. Vinashin had asked its creditors for a postponement of the first scheduled principal repayment of US$60m, to no avail, and the government decided against providing Vinashin with any direct financial assistance to meet its debt repayment obligations. Vinashin's debt-driven expansion plans were a central part of the government's tactics to create a series of powerful state-owned conglomerates to guide the development of Vietnam’s economy. At first Vinashin was successful, and its core business grew rapidly with the firm amassing stacks of foreign orders. However, during the global economic crisis the firm’s order book shrank, and in mid-2010 it was on the brink of collapse with US$4.4bn in debts and a discredited management team, several of whom, including its former chairman and chief executive officer, Pham Thanh Binh, were arrested for allegedly masking the extent of the firm’s financial problems and violating government management rules.”

The above remark seems true about the downgrades and the damage to investor confidence on the Vietnamese government and large state-owned enterprises (SOEs) generally, but there is always an exception. VIETTEL is an SOE which has done its country and the Vietnamese people proud. Take, for an example, Dr. Nguyen Cong Phu, General Director of APAVE Vietnam and Southeast Asia, has stressed with his staffs: “VIETTEL’s success is making Vietnam and the Vietnamese proud.” Among 21 SOEs which were formed in 1991 called “GROUP 91”, VIETTEL contributed 21.9% of total profit before taxes in 2010.

The publisher will decode such rare success in this comprehensive report. First, the publisher will review some historical milestones of VIETTEL Group including the operator’s achievements, awards, and recognition. Second, they will take a deep look at details of the Group: name, website, logo, main office location, legal back ground, corporate governance, group features, charter capital, lines of businesses, management, staffs, revenues, subsidiaries and affiliates, subscribers, and network capacity. The publisher will see several unique characteristics from a military-based enterprise which is growing very fast to become one of the most powerful groups in the world. Although VIETTEL is a late mover in markets such as Vietnam, Cambodia, and Laos, but VIETTEL has ushered in a telecommunications revolution in just a few years in these countries using the same approach of focusing on rural customers.

Next, readers will have the opportunity to review the foundation from which VIETTEL has built its strategic planning. A traditional SWOT analysis is performed. Key issues such as group values, leadership and group culture are also addressed. The publisher then can determine how VIETTEL’s strategy might look like. They also has opportunities to go beyond traditional boundaries of strategic thinking of enterprises by entertaining ourselves with new school of thoughts from VIETTEL. They can see that without those “soft” values rooted back into the group philosophy and principles of doing business and corporate social responsibility programs there might not have such a VIETTEL today. The love and passion are part of VIETTEL culture: being solicitous, assisting others, and inspiring a passion in each other to overcome challenges.

The next and interesting part is about how VIETTEL executes its strategy in reality. The publisher will review how the core group strategies as well as supplements such as strategic alliance and partnership, diversification into other areas, vertical integration, horizontal integration, and geographical expansion are implemented. They could advocate the right strategic marketing decision which is to provide telecommunications services only after the infrastructure is ready to ensure that the “product” offering is complete. Finally, the publisher also give their comments on what VIETTEL could act in order to have a better performance.

The reason the publisher chose to write about VIETTEL is mainly because the operator impresses us the most with a differentiate way of growing and winning competition. Their strategy is explicit but no one else could ever imitate. VIETTEL is in fact a good example for any enterprise in terms of drafting and executing their strategies effectively. More importantly, they have learned from this enterprise given their combined Eastern and Western philosophies in doing business. The publisher is glad to present this case study which makes Vietnam and Vietnamese people proud to interested parties.
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1 Executive Summary

2 Report Objectives

3 Viettel’S Milestones And Achievements
3.1 Historical Milestones
3.2 Achievements
3.3 Awards And Recognition

4 Group Details
4.1 Group Name, Website, Logo, And Main Office Location
4.2 Legal Background And Group Governance
4.3 Group Features
4.4 Charter Capital
4.5 Lines Of Businesses
4.6 Management
4.7 Staffs
4.8 Subsidiaries And Affiliates
4.9 Revenues
4.10 Network Capacity
4.10.1 Fiber Optic Transmission Network
4.10.2 Mobile Network

5 Viettel Group’S Strategic Planning
5.1 Swot Analysis
5.2 Group Values
5.2.1 Misssion
5.2.2 Business Principles
5.2.3 Codes Of Conduct
5.2.4 Strategic Directions
5.2.5 Value Statements
5.3 Leadership And Group Culture
5.4 Group Strategy

6 Viettel’S Execution Of Group Strategy
6.1 Establishment Of Core Competencies In Broadband And Mobile
6.2 Selective Engagement Of Business Partners
6.3 Overseas Market Participation
6.3.1 Viettel Global Strategy
6.3.2 Viettel In Cambodia
6.3.3 Viettel In Laos
6.3.4 Viettel In Myanmar
6.3.5 Viettel In Haiti
6.3.6 Viettel In Mozambique
6.3.7 Viettel In Peru
6.3.8 Viettel In Ukraine
6.3.9 Viettel In Bangladesh
6.4 Vertical Integration Into Manufacturing Subscribers Equipments
6.5 Horizontal Expansion Into Providing Business Process Outsourcing Services
6.6 Diversification Into Real Estates And Financial Services

7 Room For Improvements
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The report is a comprehensive research about VIETTEL Group, the leading Vietnamese telecommunications operator and so far the most successful state-owned enterprise in Vietnam. The report addresses every single aspect of the growth path of the operator including, but not limited to the followings:
- Overall key developments of VIETTEL from its starting point as a newcomer of the Vietnamese telecommunications industry to a telecommunications giant till date;
- Company details which provide essential information on legal background, corporate governance, special features, charter capital, lines of business, management, staffs, subsidiaries and affiliates, revenues, profits, subscriber base, and network capacity of VIETTEL;
- Comprehensive description of and deep analysis on strategic planning issues at VIETTEL including SWOT analysis and close review of the group’s “software” consisting of values, culture, leadership, and strategy;
- Diligence on how VIETTEL performs strategy execution in reality concerning a rapid development in core businesses, strategic alliances and partnership, geographical expansion, vertical and horizontal integration, and diversification in selected areas;
- Comments on rooms for further improvement for VIETTEL.
- A detail look on every market component in the wireless sector including key industry figures such as market share, subscribers, and revenues in the past several years in VIETTEL’s key markets like Vietnam and Cambodia;

The report is very much helpful for policy makers and regulators, potential investors and business partners, suppliers of network and subscribers’ equipments, content and media providers, network providers, financial institutions, academic researchers, students, and businesses who wish to know and learn more about VIETTEL Group.

Join people who would benefit the most from the report, C-level executives, strategy planners, financial planners, business development executives, and sales and marketing staffs.

The report helps prevent readers from making costly mistakes thanks to comprehensive analysis with supporting evidence. The report provides thoughtful answers to the following questions: 1) what the big picture about the VIETTEL Group and Vietnamese mobile telecommunications industry is and 2) what we can learn from VIETTEL Group.
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