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Vietnam Telecommunication Comprehensive Report Q1.2017

  • ID: 4308875
  • Report
  • February 2017
  • Region: Vietnam
  • 104 pages
  • Vietnam Industry Research And Consultant (PI)


  • MobiFone
  • Viettel
  • VNPT
  • VNPT VinaPhone
  • MORE
Telecommunication field of Vietnam continued having considerable growing potential, especially in the field of 3G for mobile phone and FTTH for wireline. Revenue of telecommunication industry reached VND 365.5 billion in 2016 (equal to USD 16.24 billion), increasing by 6.6% over the same period in 2015.

Revenue of Internet grew continually year by year with CAGR at 30.6% and reached the peak in 2013 when OTT services were explored by domestic and foreign providers like Zalo, Viber, Facebook… and other applications such as television, entertainment… However, growth rate of Internet’s revenue tends to decline. Demand for traditional fixed broadband services is threatened by mobile Internet services with lower cost and convenience when 4G LTE is put into operation.

Since 2010, 80 - 90% of Vietnam broadband Internet market share has lied in 3 providers, which are VNPT, Viettel, FPT Telecom. In which, VNPT always leads and reaches the highest growth from 2010.

In general, the trend of using 2G declined over the years, meanwhile, 3G continued growing in recent years. However, contribution of 2G still occupied nearly 70% of total subscription.

Based on report of OpenSignal, the mobile internet’s speed of Vietnam is in the worst group of the world. The mobile internet’s speed of Vietnam reaches 3.81 Mbps now and ranks 82/95 countries and territories surveyed. In which, download speed of MobiFone is the highest at 4.77 Mbps while Viettel has the highest upload speed at 1.52 Mbps.

However, popularity rate of 3G and 4G in Vietnam is in medium grade of the world at 82.17%.

The compound annual growth rate of mobile services revenue in the period 2010 - 2016 was 0.6% for saturation of subscription quantity and decrease in ARPU. Revenue from phone and SMS tended to fall deeply while revenue from data grew sharply. Besides, revenue of mobile services went down steadily as average revenue per user (ARPU) was falling.

The fact showed that subscription in the period 2006 - 2013 had galloping growth with annual average rate at 25.5%. In the period 2013 - 2016, mobile subscription declined with compound annual growth rate at 0.2%. Reasons were saturation of demand as well as the policy of reducing and tightly managing virtual subscriptions, spam messages, disposable SIM cards, pre-activated SIM cards of network providers.

According to statistics, with 49% of market share, Viettel still leads the market in mobile and quantity, MobiFone and VinaPhone continue rank 2nd and 3rd. Meanwhile, Vietnamobile and Gtel still rank 4th and 5th with market share under 10%.

Revenue from landline declined continually over the years. Reason were decrease in the number of subscribers and ARPU,… However, it can be seen that the stable trend of fixed subscribers in Vietnam with decreasing rate has fallen over the years.

Viettel continues being the leading enterprise in the market with much higher total revenue and profit than 2 left enterprises. Reason is that Viettel takes up the large market share in subscription quantity in the market (SMP), with about 50% of main services such as phone, SMS and Internet. Besides, Viettel has a big revenue from foreign investment as well as other fields.
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • VNPT
  • VNPT VinaPhone
  • Viettel
  • MobiFone
Note: Product cover images may vary from those shown