Vietnam Telecom Market

Vietnam Telecom Market Size:

Vietnam telecom market is projected to exhibit a growth rate (CAGR) of 1.35% during 2024-2032. There are various factors that are driving the market, which include improvements in network technologies such as fifth generation (5G) technology, rising adoption of smartphones among individuals, and integration of advanced technologies for improved services.

Vietnam Telecom Market Analysis:

• Major Market Drivers: One of the key market drivers are favorable government initiatives. Moreover, the increasing utilization of internet services is acting as a growth-inducing factor.
• Key Market Trends: The market demand is impelled owing to numerous primary trends, which include improvements in network technologies and the rising reliance on smartphones.
• Competitive Landscape: Some of the major market players in the Vietnam telecom industry are provided in the report.
• Challenges and Opportunities: One of the key challenges hindering the market growth are cybersecurity threats. On the other hand, the thriving e-commerce sector and increasing utilization of mobile payments represent some recent opportunities.

Vietnam Telecom Market Trends:

Improvement in Network Technologies

On 22 August 2022, MobiFone deployed Ericsson's Spectrum technology and undertook carrier aggregation between its existing 1800Mhz with 2600Mhz frequencies for the first time in the pilot of high-speed fifth generation services in Hue, Vietnam. MobiFone also introduced new services that maximize the potential of 5G such as cloud gaming, 8K video, virtual reality (VR), and extended reality. In addition, the 5G services being offered as part of the trial, leveraging Ericsson Spectrum sharing and carrier aggregation technologies that are extending 5G coverage by around 30%, increasing network capacity while transforming the end-user experience. Furthermore, improvements in network technologies including 5G networks are contributing to the Vietnam telecom market growth. 5G networks offer high bandwidth and quicker data rates than the fourth generation (4G) and other earlier generations. People can benefit from smoother and more responsive connectivity. This is especially advantageous for bandwidth-intensive applications like online gaming and video streaming.

Rising Adoption of Smartphones

As per the Vietnam Briefing, 71 million users had mobile broadband subscriptions and almost 19 million users had fixed broadband subscriptions in 2021, marking a 4% and 14.6% increase year on year (YOY) respectively. The growing popularity of smartphones in the country is driving the telecom market due to their enhanced convenience. Moreover, the availability of inexpensive smartphones on the market enables a broader range of individuals, including those in rural and low-income areas, to easily obtain them. In addition to this, the availability of affordable smartphones range in the market allows individuals including those in rural and low-income regions to access them conveniently. As prices of these gadgets continue to reduce, more people can purchase smartphones, which is leading to higher adoption rates and increasing Vietnam telecom market share. Apart from this, smartphones can offer numerous features and functionalities that surpass the standard tasks like placing calls and sending texts. They are multipurpose tools for information access, entertainment, and communication. Individuals can access social media, browse the web, play games, view movies, check emails, and finish activities while on the go, which makes routines more efficient and easier for the user.

Integration of Advanced Technologies for Enhanced Services

The incorporation of advanced technologies for improved services is offering a positive Vietnam telecom market outlook. Artificial intelligence (AI) is integrated into telecom networks and services for improved user experience, streamlined operations, and increased performance. Telecommunications industry players in the country are employing these advanced technologies to recognize fraud, automate services for users, improve network efficiency, and perform predictive maintenance. AI-powered analytics are beneficial in improving user experience because it assists operators in informed decisions making, extracting valuable insights from large datasets, and providing customized services to users. Moreover, smart meters, asset tracking, environmental monitoring, and connected healthcare are several IoT applications that need reliable and scalable connectivity solutions. There is an increase in the utilization of IoT devices and applications, which contributes to market expansion. Furthermore, top players in the market are forming collaborations and partnerships to provide superior services to end users, thereby catalyzing telecom demand in Vietnam. For example, on 1 August 2022, Comviva, a major player in mobility solutions globally, revealed a strategic collaboration with Vietnamobile, a top telecom operator in Vietnam, to enhance AI-driven smart user interaction. As part of the partnership, Comviva will assist Vietnamobile in providing personalized and relevant messages in real time and on a large scale using MobiLytix™ real time marketing.

Vietnam Telecom Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with Vietnam telecom market forecast at regional and country levels for 2024-2032. Our report has categorized the market based on services and application.

Breakup by Services:

• Voice Services 
  • Wired
  • Wireless
• Data and Messaging Services
• OTT and PayTV Services
   

The report has provided a detailed breakup and analysis of the market based on the services. This includes voice services (wired and wireless), data and messaging services, and OTT and PayTV services.

Voice services are traditional telecom offerings that enable users to make and receive phone calls via a network. Circuit-switched technology is used to deliver them, allocating a specific channel for the duration of the conversation.

Sending and receiving digital data over networks is one of the telecommunications services covered by data and messaging services. Moreover, these services include email, multimedia messaging, internet access, and other apps that need a superior bandwidth solution. Data and messaging services are offered using packet-switched technology, which divides data into packets and sends them over a network efficiently.

OTT and PayTV services are accessed by individuals that are usually available on computers, smart TVs, tablets, and smartphones. These services offer a wide range of channels and programming options, including entertainment, sports, news, and movies. The market is also growing as a result of the rising acceptance of OTT and PayTv services due to their improved flexibility, convenience, and abundance of content selections.

Breakup by Application:

• Consumer
• Business
   

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes consumer and business.

Telecom services cater to consumer’s primary communication needs. Individuals require mobile data services, which can be attributed to the widespread use of smartphones, along with the accessibility of inexpensive data plans. They can access social media, the internet, stream video, and other online services on their smartphones, all because of mobile data services. OTT messaging apps and social media sites provide free or inexpensive communication solutions. OTT video streaming services are high in demand due to the availability of high-speed internet, coupled with the need for on-demand entertainment content. Besides this, the utilization of mobile payment methods and thriving e-commerce platforms changed purchasing patterns of people in the country. Additionally, telecom providers play a crucial role in facilitating mobile commerce through partnerships with e-commerce providers and offering mobile payment services.

Telecom operators provide a range of connectivity solutions to businesses in Vietnam, including fixed-line broadband, dedicated internet access, and virtual private networks (VPNs). These services enable businesses to establish reliable and high-speed connections for internal communication, data exchange, and access to cloud-based applications and services. Additionally, unified communications (UC) solutions integrate various communication tools and channels such as voice calling, video conferencing, instant messaging, and email into a single platform. Telecom operators offer UC services to businesses, enabling them to streamline communication, improve collaboration, and enhance productivity across distributed teams and remote workers. Apart from this, cloud computing services including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS), are adopted by businesses in Vietnam to access scalable computing resources, storage, and applications on-demand.

Breakup by Region:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam
   

The report has also provided a comprehensive analysis of all the major markets in the region, which include Northern Vietnam, Central Vietnam, and Southern Vietnam.

Northern Vietnam is home to several universities, research institutes, and technology parks, fostering innovation. There is a rise in the demand for high-speed internet and advanced communication tools in these universities.

Companies in the Central Vietnam are focusing on engaging in conducting trials for 5G networks. They are aiming to provide enhanced user experience to the masses. Additionally, telecom operators are investing in expanding and upgrading their networks in the region to meet the increasing demand for high-speed internet access and mobile services.

There is an increase in the utilization of mobiles and ease of internet facilities in Southern Vietnam. Moreover, the development of smart cities in Southern Vietnam is propelling the market growth. Furthermore, expansion of broadband connectivity and expanding 5G networks are bolstering the market growth.

Competitive Landscape:

• The report has also provided a comprehensive Vietnam telecom market analysis of the competitive landscape in the market. Detailed profiles of all major companies have been provided. 
• Top players in the market are introducing advanced technologies to enhance the satisfaction of individuals. Furthermore, key players are engaging in partnerships and making agreements to improve their services as well as enhance market expansion. On 17 May 2022, Vietnam Posts and Telecommunications Group (VNPT), a leading provider of digital and telecommunications services in Vietnam, and Casa Systems, a leading provider of physical and cloud-native infrastructure technology solutions for mobile, cable and fixed networks, signed a Memorandum of Understanding (MoU) to explore 5G capabilities and pave the way for next-generation network services in Vietnam. The partnership will focus on cementing VNPT’s leadership position at the forefront of Vietnam’s digitalization efforts and driving 5G monetization opportunities. As part of the agreement, both companies will explore the potential of 4G and 5G technologies across various use cases including public and private networks, in-building solutions and home networking. With an extensive end-to-end portfolio for all access types, Casa Systems offers a variety of products including cloud-native 4G and 5G core and radio access network solutions, fixed wireless access, fiber extension, Industrial the Internet of Things (IoT), and cable and broadband aggregation solutions.

Vietnam Telecom Market News:

• 12 September 2022: Infinera announced that Viettel Network Corporation, a member of Viettel Group, the largest telecommunications service provider in Vietnam selected Infinera’s Optical Timing Channel 2.0 (OTC2.0) solution to prepare its synchronization network for Viettel’s 5G pilot rollout. Infinera’s technology enables Viettel to seamlessly build a network that offers 5G services with ease, high resiliency, and high performance across its distribution network.
• 13 December 2021: Samsung Electronics Co., Ltd. and Viettel today announced that the companies have started 5G commercial trials in Da Nang, the largest city in the Central Vietnam region. In the trial, Viettel aims to use Samsung’s advanced 5G solutions to power its commercial network and to enable users in Da Nang to experience the full benefits of 5G services. The companies will verify the high-performance and advanced capabilities made possible by Samsung’s 4G and 5G network solutions.

Vietnam Telecom Market Report Scope:

Key Questions Answered in This Report:

• How has the Vietnam telecom market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Vietnam telecom market?
• What is the breakup of the market on the basis of services?
• What is the breakup of the market on the basis of application?
• What are the various stages in the value chain of the Vietnam telecom market?
• What are the key driving factors and challenges in the Vietnam telecom market?
• What is the structure of the Vietnam telecom market, and who are the key players?
• What is the degree of competition in the Vietnam telecom market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam telecom market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam telecom market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam telecom industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.