Minh-Ngoc Nguyen
Research Expert covering Vietnam
Telecommunications industry in Vietnam - statistics & facts
Vietnam’s telecommunications industry has played a central role in the country’s rapid technology adoption, industrial transformation, and economic growth over the last decade. Telecommunication services, including mobile and broadband subscriptions, as well as mobile data, have become indispensable in the daily life of people in Vietnam, where the number of internet users and mobile phone users are among the highest in the Asia Pacific region.
Although local players dominate the market, several foreign companies have entered the telecommunications service market in Vietnam, mostly in the form of joint ventures with Vietnamese enterprises. These joint ventures, such as Vietnamobile, GMobile, and Itelecom, have been struggling to acquire new users despite having introduced heavy promotions, including attractive data pricing plans and unlimited voice calls. Meanwhile, the homegrown telecommunications group Viettel has expanded into neighboring markets and secured the forerunner position for mobile phone services in countries such as Laos, Cambodia, and East Timor.
Vietnam’s telecommunications infrastructure
One of the most significant achievements of the telecommunications sector in Vietnam was providing country-wide internet coverage, especially mobile internet. Mobile networks such as 3G and 4G have reached almost the entire Vietnamese population, next to an increasing number of terrestrial fixed-line broadband subscribers. Furthermore, the government has developed a concrete plan to implement and commercialize the 5G network from 2020 onwards, aiming to achieve 100% nationwide coverage by 2030. The implementation was first kicked off in urban areas and high-tech industrial zones, promising an enhanced quality of internet connection in Vietnam.Telecommunications market in Vietnam
State-owned enterprises Viettel and VNPT are the leading telecommunications service providers in Vietnam. Operated by the Ministry of Defense, Viettel dominates the mobile-cellular service segment, with over half of the total market share. Together with VNPT, the two state-owned telecommunication groups held approximately 80 percent of the broadband service market. On the other hand, the non-state Vietnamese telecommunications firm FPT Group has also gained a strong foothold within this sector.Although local players dominate the market, several foreign companies have entered the telecommunications service market in Vietnam, mostly in the form of joint ventures with Vietnamese enterprises. These joint ventures, such as Vietnamobile, GMobile, and Itelecom, have been struggling to acquire new users despite having introduced heavy promotions, including attractive data pricing plans and unlimited voice calls. Meanwhile, the homegrown telecommunications group Viettel has expanded into neighboring markets and secured the forerunner position for mobile phone services in countries such as Laos, Cambodia, and East Timor.
