Vietnam Telecom

Vietnam Telecom

The term "telecom" refers to the transmission of data, voice, text messages, audio, video, and other types of communication over significant distances through various electronic means such as wired, wireless, satellite, fiber optic cables, and so forth. In simpler terms, it involves providing communications services like phone calls, internet access, messaging (texting), television broadcasts, etc., across large geographic areas using a complex network infrastructure that spans from one point to another.

The Vietnam Telecom Market was valued at 6.3 billion in 2022 and is expected to grow at a steady rate of around 4.4% in the forecasted period (2023-2030). Vietnam has experienced rapid growth in its telecommunications sector in recent years, driven by increasing demand for mobile data services and government support for digital transformation. Moreover, government initiatives such as the "Digital Transformation Program" have encouraged investment in IT infrastructure including Telecoms among others.

• Based on service type, the market is bifurcated into mobile data services, and machine-to-machine services. Among these, mobile data services currently lead the market due to surging demand for high-speed internet connectivity. With an estimated 70% of the population owning smartphones, there is a strong need for reliable and affordable mobile data plans. Moreover, the COVID-19 pandemic has accelerated this trend as people stay at home and rely more on online platforms for entertainment, education, and work.
• Based on transmission, the market is bifurcated into wireline, and wireless. Among these, the wireless segment dominates the market owing to the widespread adoption of mobile devices and the growing popularity of mobile data services, especially among young populations.
• Based on end-users, the market is segmented into retail & ecommerce, IT & ITES, aerospace, healthcare & pharmaceutical, and others. Among these, the retail and e-commerce segment currently lead the market due to the growth of online shopping. Also, digital payments have fueled demand for reliable and fast connectivity, driving revenue for telcos catering to these sectors. Additionally, the COVID-19 pandemic has accelerated this shift towards online purchases, further boosting the segment's performance.
• For a better understanding of the market adoption of telecom, the market is analyzed for Vietnam. Vietnam's telecommunications sector has experienced remarkable growth in recent years, driven by increasing demand for advanced mobile data services and supportive government policies. The three major mobile network operators - Viettel, VNPT, and MobiFone - have invested heavily in infrastructure development and network modernization to meet rising customer needs. Additionally, foreign investors such as Japan's Sumitomo Corporation and Singapore-based Singtel have entered the market through strategic partnerships with local providers. As a result, international companies like Nokia, Ericsson, and Huawei have established themselves in the region, contributing to innovation and competition. Furthermore, the government has actively promoted initiatives like "Smart Nation" and "Digital Economy," aimed at transforming Vietnam into a connected society powered by technology. This push has led to significant investments in high-speed internet networks, cloud computing platforms, and other digital technologies. With ongoing advancements in digital technologies and supportive regulatory frameworks, the Vietnamese telecom industry is poised for continued success in the coming years.
• Some of the major players operating in the market VIETTEL; VNPT Vinaphone; MobiFone.; FPT Telecom JSC.; G-Mobile LLC; Vietnamobile; VNG Corporation; CMC Telecom; SCTV; VCTC Corporation.