Vietnamese Telco Revenues Tipped to Grow Over Remainder of Decade

The growth of the mobile data and fixed broadband segments will see telecom services revenue in Vietnam increase at a compound annual growth rate (CAGR) of 4.7% through 2028, according to GlobalData.
GlobalData’s Vietnam Telecom Operators Country Intelligence Report reveals that mobile data service revenue will continue to increase at CAGR of 12% over the forecast period, driven by the continued growth in mobile internet subscriptions, especially the increased adoption of 4G services, the projected rise in 5G subscriptions, and subsequent increase in mobile data average revenue per user (ARPU).
On the other hand,  mobile voice service revenue will decline during the forecast period. This is due to the steady decline in circuit-switched subscriptions and a decrease in mobile voice service ARPU, with users increasingly shifting to OTT communication platforms.
“4G services accounted for a majority share of the overall mobile subscriptions in 2023 in Vietnam and will remain the leading mobile technology through 2028 thanks to the continued expansion of 4G/LTE network in the country,” said Sarwat Zeeshan, Telecom Analyst at GlobalData. “However, 5G subscriptions will increase at a faster pace over the forecast period, driven by the growing availability and demand for high-speed connectivity services with telcos’ plans for 5G network rollouts and the government’s 5G coverage plans. For instance, the government plans to achieve nationwide 5G coverage by 2030.”
In the fixed communication services segment, fixed voice service revenue will decline over the forecast period due to losses in circuit-switched subscriptions and declining fixed voice ARPU. Fixed broadband service revenue, on the other hand, will grow at a CAGR of 2.7% through 2028, driven by the steady growth in fibre broadband subscriptions on the back of expanding fibre broadband network coverage.
Growing demand for higher-speed broadband connectivity and the expansion of fibre-optic network infrastructure by the government across the country will support fibre broadband subscriptions’ growth over the forecast period. The Vietnamese government plans to expand fibre internet infrastructure to 80% of households and 100% of communities by the end of 2025.
“Viettel led the mobile services segment in terms of subscriptions in 2023 and will continue to hold the top position throughout the forecast period, thanks to its strong focus on LTE/4G/5G network expansions,” said Zeeshan. “Viettel aims for a nationwide 5G coverage by 2024. VNPT topped the fixed voice and fixed broadband segments. In the fixed broadband segment, VNPT will maintain its leadership through to 2028, supported by its strong position in the FTTH segment and focus on offering discounted multi-play bundles, combining fixed broadband, mobile, and pay-TV services.”

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