Vietnam’s Telecoms Sector Enters a New Era - Key Launches Driving Growth and Innovation
The Vietnam Telecoms Industry Report 2024-2031 provides an in-depth analysis of market dynamics, sizing, forecasts, and key trends.
Vietnam Telecoms Industry Report at a Glance
Vietnam’s telecommunications industry is flourishing, offering substantial opportunities for both local and foreign investors. The positive economic outlook, coupled with expected GDP growth of 10% from 2023 to 2030, positions Vietnam as a key market. High mobile phone penetration and the increasing adoption of fixed broadband suggest continued growth, despite challenges posed by an aging population.
Key Developments:
- Mobile Growth: Mobile subscriptions are projected to grow by 1.7% from 2024 to 2031, while fixed broadband subscriptions are expected to rise by 2.8%.
- Revenue Expansion: Mobile revenue is increasing faster than subscription growth, driven by the transition from 2G/3G to 4G data services.
- Network Upgrades: Vietnam completed its 2G shutdown in October 2024, with 3G expected to follow by 2028.
- Market Recovery: After a slowdown in 2018-2019 due to declining 2G voice/SMS revenue, the market is expected to grow through 2031, supported by rising mobile data usage.
- Capex Trends: Investment in capital expenditure (Capex) remains stable, with 5G Capex spending still to come. Fixed broadband deployments, primarily FTTH, are largely complete.
Mobile Market:
- Shifting Focus: Since early 2020, 3G and 4G subscribers have overtaken 2G users. Operators are now concentrating on data-centric services rather than traditional voice and SMS.
- 5G Growth: By 2031, 5G subscribers are projected to represent 69% of all connections, while 4G will account for 34%. The 2G network shutdown is complete, and the 3G shutdown is anticipated by 2028.
Broadband Market:
- Rapid Growth: Fixed broadband is growing rapidly, driven by investments from VNPT, Viettel, and FPT into full-fibre networks. This expansion is facilitating the transition to higher-speed, reliable connections.
- Future Potential: With fibre-optic technology investments, household broadband penetration is expected to surge, providing new opportunities for services like IPTV and e-commerce.
Telecom Infrastructure and Investments:
- High-Value Assets: Infrastructure assets, including mobile towers, data centers, submarine cables, and fibre networks, are attracting significant valuations from infrastructure and government funds.
- Investor Insights: The report includes real-world examples and industry benchmarks on how investors assess telecommunications infrastructure investments.
Market Dynamics and Consolidation:
- Government Influence: While the government controls over 90% of the market through three key players, corporate activity remains limited. Smaller operators may consolidate as competition intensifies.
- Future Mergers: As the market matures, potential consolidation may occur among smaller operators, and the government could reduce its stakes in VNPT and Mobifone by up to 50%, opening the door to private investments.
5G and Future Transformations:
- 5G Impact: While 4G brought mobile internet to the masses, 5G promises to revolutionize connectivity, powering innovations such as virtual reality, augmented reality, and autonomous vehicles. However, the exact business models and timelines for these advancements remain uncertain.
This report is an essential tool for telecom professionals, investors, and decision-makers looking to navigate Vietnam’s dynamic telecommunications market over the next decade.
Why You Should Buy The Vietnam Telecoms Industry Report:
- Target Business Opportunities and Risks: Stay informed on the latest industry trends, regulatory changes, and major deals, projects, and investments in Vietnam’s telecoms sector.
- Protect Against Future Risks: Understand potential threats to your operations and investments and take steps to safeguard your company.
- Gain Insight on Emerging Trends: Identify trends that could support, enhance, or disrupt your business activities in the market.
- Assess Market Position: Get a comprehensive view of the competitive landscape to evaluate your market standing.
- Informed Strategic Planning: Use market forecasts as a critical input for budgeting and long-term business strategy.
- Evaluate Competitors and Partners: Review the activities, strategies, and market positions of your competitors, partners, and clients.
Key Companies in the Vietnam Telecoms Industry market profiled in the report include CMC, FPT, Gmobile, Hanoi Telecom, Hutchison Asia Telecom, Mobifone, OCK, Saigon Post, Viettel, Vietnamobile, Vinaphone and VNPT.
Table of Contents
Executive Summary
Vietnam’s telecommunications industry is poised for accelerated growth through 2031, driven by dynamic market conditions and significant infrastructure advancements. The latest Vietnam Telecoms Industry Report outlines several transformative developments aimed at supporting sector growth, with a focus on mobile expansion, 5G adoption, digital transformation, and improved connectivity in underserved regions.
Nationwide 5G Expansion Led by Viettel
Vietnam’s leading telecom operator, Viettel, continues its ambitious 5G rollout, investing in over 5,000 new base stations nationwide. Leveraging advanced Nokia equipment, Viettel has created a high-speed, low-latency network spanning urban, suburban, and remote areas. This rollout, expected to conclude by late 2024, marks a critical leap forward for Vietnam’s connectivity landscape, supporting digital transformation goals and enabling new applications in smart cities, e-commerce, and remote education. Vietnam’s 5G customer base is projected to reach 69% of all connections by 2031, reflecting a significant boost in nationwide adoption.
Fixed Broadband and FTTH Initiatives
VNPT, another major player in Vietnam’s telecom sector, recently completed an extensive expansion of its fibre-to-the-home (FTTH) network, targeting national reach by 2025. Supported by the government’s National Digital Transformation Programme, this initiative aims to connect an additional 2.7 million households each year. With reliable, high-speed connections, VNPT is bridging the digital divide and facilitating access to digital services in Vietnam’s rural and underserved areas. These FTTH upgrades have already propelled a 14% annual growth rate in fibre connections up to 2024.
Vietnam’s Thriving Telecom Sector: Opportunities and Future Outlook
These recent advancements underscore the potential of Vietnam’s telecom market, underpinned by a government-led digital transformation strategy and robust private-sector investment. The report forecasts sector revenue growth at an average annual rate of 2.5% through 2031. Demand for 4G and 5G data is expected to remain high, bolstered by rising smartphone adoption, an expanding middle class, and more affordable data plans.
Challenges and Opportunities Ahead
Despite this positive outlook, Vietnam’s mobile operators face challenges, including regulatory complexities, network costs, and rising competition. However, the sector remains resilient, with Vietnamese operators positioning themselves as regional leaders in telecommunications infrastructure.
Vietnam’s digital infrastructure presents a significant greenfield opportunity, with substantial investments in subsea cables, data centers, and low Earth orbit (LEO) satellite networks, including Starlink, driving the country’s digital transformation. These developments are set to expand Vietnam’s connectivity, reduce latency, and provide high-speed internet access to underserved regions, enhancing the nation’s position as a regional tech hub. As demand for reliable digital infrastructure grows, these investments are expected to fuel economic growth, support cloud services, and facilitate the adoption of advanced technologies, positioning Vietnam as a key player in Southeast Asia’s digital economy.
The long-awaited equitisation (privatisation) of VNPT and Mobifone is now underway, with the government planning to divest between 35% to 50% of these entities. To ensure a successful process, there is a critical need for clarity and certainty in the ownership of assets, including land, buildings, mobile towers, and other infrastructure across 63 provinces and cities.
Companies Mentioned
- CMC
- FPT
- Gmobile
- Hanoi Telecom
- Hutchison Asia Telecom
- Mobifone
- OCK
- Saigon Post
- Viettel
- Vietnamobile
- Vinaphone
- VNPT
Methodology
The publisher uses primary and secondary research as well as proprietary information sources to generate market analysis and forecasts for fixed and mobile services in terms of both subscribers and revenue. Interviews are conducted with key service providers in the region to determine current and potential market sizing as well as future service offerings. Information gathered through interviews is further cross-checked to validate the total market size.
The primary research is supplemented with a range of secondary source material, including related research, press releases, securities filings, media, Web-based materials, and trade publications.
Industry and population statistics are also leveraged for reference and to ensure consistency in the data collection. Extensive service provider primary and secondary research, together with the publisher's end-user research database, provides a strong basis for sizing and forecasting the market. The multiple reference points allow for validation of information provided by the service providers compared with that gathered from alternative sources.
Note: Forecasts are made in local currency, and no allowance is made for inflation. All numbers in this document may not be exact due to rounding.
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