Vietnam Telecom Market Analysis - Size and Forecast 2025-2029

Vietnam Telecom Market Size 2025-2029

The vietnam telecom market size is forecast to increase by USD 1.32 billion at a CAGR of 3.3% between 2024 and 2029.

• The market is experiencing significant growth, driven by the surging demand for broadband services and technological advancements in the telecommunications sector. The increasing number of internet users and the government's efforts to expand digital infrastructure are fueling the expansion of this market. However, this growth is not without challenges. Cybersecurity threats, including network attacks, are becoming more frequent and sophisticated, posing a significant risk to both service providers and consumers. Companies must invest in robust security measures to protect their networks and customer data.
• Additionally, the rapid pace of technological innovation requires continuous investment and adaptation to remain competitive. To capitalize on the market's opportunities and navigate these challenges effectively, telecom companies in Vietnam must prioritize innovation, invest in cybersecurity, and maintain a customer-centric approach.

What will be the size of the Vietnam Telecom Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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• In the dynamic telecom market, revenue generation models continue to evolve, with green telecom gaining traction as service providers prioritize energy efficiency and sustainable development. The telecom skills gap poses a challenge, necessitating strategic partnerships to bridge the gap and enhance network infrastructure investment. Subscription plans and competition analysis play crucial roles in customer acquisition cost management. Future trends include network densification, emerging technologies, and technological innovation, which require careful risk mitigation and network rollout strategy planning. Interconnect agreements and 5G use cases offer investment opportunities, while digital literacy and consumer behavior shape pricing strategies.
• Government policy and industry standards influence market penetration, and international roaming remains a significant consideration. Telecom infrastructure investment and technological adoption rates are key indicators of market health, with energy efficiency and technological innovation driving progress.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• End-user
  • Consumer
  • Business
• Type
  • Wireless
  • Wireline
• Application
  • Residential
  • Commercial
• Geography
  • APAC
    • Vietnam

By End-user Insights

The consumer segment is estimated to witness significant growth during the forecast period.

In Vietnam's telecom market, the consumer segment dominated revenue generation in 2024, expected to lead through the forecast period. The proliferation of smartphones, with over 79% of Vietnam's population using the Internet in 2023 (World Bank), significantly fueled telecom services growth. OTT applications' increasing popularity drives customers towards wireless Internet services, further accelerating communication network implementation. Additionally, the rising trend of online gaming and ultra-high-definition movie streaming is anticipated to boost consumer segment growth. The Internet of Things (IoT) devices and unified communications are transforming the business landscape, with fiber optics playing a crucial role in enhancing network efficiency.

Spectrum allocation and 5G NR are essential for supporting advanced technologies like data analytics, artificial intelligence, and machine learning. Churn rate management and network security are critical concerns for telecom providers, necessitating robust billing systems and network equipment. Smart cities and network optimization require extensive telecommunication infrastructure, including fiber optics, satellite communication, and wireless communication. Broadband access, network performance, and network slicing are essential for delivering high-quality services. Edge computing, fixed-line telephony, and smart home solutions cater to the evolving consumer needs. Data centers, cloud computing, and software-defined networking are integral to digital transformation, enabling network management, network virtualization, and capacity planning.

Data protection, network security, and network optimization are essential for maintaining customer satisfaction and trust. In the rapidly evolving telecom market, network management, open RAN, and network optimization are key trends. Frequency bands, optical transceivers, and mobile handsets are essential components of the telecommunication infrastructure. Mobile broadband, network slicing, base stations, and switching systems are vital for delivering high-performance services.

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The Consumer segment was valued at USD 3.86 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

In the dynamic and competitive the market, mobile technology continues to dominate, with 4G and 5G networks expanding rapidly. Vietnamese consumers increasingly embrace digital services, leading to surging demand for high-speed internet and affordable data plans. Telecom providers offer various packages, including voice, SMS, and data services, to cater to diverse customer needs. Fiber optics and broadband internet are also gaining popularity, especially in urban areas. The Vietnamese government supports the telecom sector through policies that encourage competition and infrastructure development. Innovative technologies like IoT, cloud computing, and AI are transforming the industry, offering new opportunities for growth. The market remains a vibrant and evolving landscape, shaped by technological advancements, regulatory changes, and consumer preferences.

What are the Vietnam Telecom Market market drivers leading to the rise in adoption of the Industry?

• The significant surge in broadband demand serves as the primary market catalyst.

• The digital transformation era has significantly boosted the demand for advanced telecom services, particularly in the realm of unified communications, IoT devices, and high-speed connectivity. Telecom companies are responding to this trend by investing in fiber optics, 5G NR, and other network technologies to deliver faster speeds and larger bandwidths. IoT devices, fueled by the increasing adoption of smart homes and industries, require robust and reliable connectivity to function optimally. Moreover, the integration of digital technologies such as data analytics, artificial intelligence, and mobile money into telecom services is driving innovation and improving customer experience.
• However, managing the complexities of these advanced services requires sophisticated billing systems and network equipment. Spectrum allocation remains a critical factor in ensuring network efficiency and capacity. As churn rate continues to be a concern for telecom providers, offering competitive pricing and superior service quality is essential to retain customers.

What are the Vietnam Telecom Market market trends shaping the Industry?

• The telecom sector is currently experiencing significant technological advancements, which represents the prevailing market trend. These innovations include the deployment of 5G networks, the integration of artificial intelligence and machine learning, and the adoption of cloud technologies, among others.

• The Vietnamese telecom market is experiencing significant technological advancements that are transforming the consumer experience. One notable development is the deployment of 5G networks, which offer faster speeds and lower latency, enabling innovations such as the Internet of Things (IoT) and augmented reality. Another key trend is the expansion of fiber optic infrastructure, improving broadband connectivity for homes and businesses. Cloud-based services are gaining popularity, allowing for remote work and collaboration. Artificial intelligence (AI) and machine learning (ML) are being used for network optimization, customer service, and predictive maintenance. For instance, Viettel's (VIETTEL) 5G core network is built on a Cloud Native platform, combining the functions of a 4G and 5G core network into a single platform that supports both technologies.
• Network security remains a priority, with an increasing focus on open radio access networks (Open RAN) and satellite communication for remote areas. Value-added services (VAS) such as network management and network optimization are also in demand. Overall, these advancements are driving growth in the Vietnamese telecom market, providing opportunities for businesses to expand their reach and offer innovative solutions.

How does Vietnam Telecom Market market faces challenges face during its growth?

• The escalating prevalence of network attacks and online security threats poses a significant challenge to the industry's growth trajectory. It is crucial for organizations to implement robust cybersecurity measures to mitigate these risks and ensure business continuity.

• The Vietnamese telecom market faces a significant challenge from the increasing risk of network attacks and online security threats. As the country's digitization and reliance on telecommunications infrastructure expand, the potential impact of cyber threats becomes more pronounced. A security breach can lead to a loss of consumer trust in telecom services, making it challenging to adopt new technologies and services. With the growing importance of online transactions, e-commerce, and digital communication, consumers are increasingly concerned about data protection. High-profile cyberattacks or data breaches can disrupt critical services and communication channels, negatively affecting both business and government operations.
• To mitigate these risks, telecom companies in Vietnam are investing in advanced technologies such as software-defined radio (SDR), software-defined networking (SDN), microwave transmission, mobile broadband, and data centers. These technologies enable network virtualization, providing enhanced security features and improved network efficiency. Additionally, the adoption of optical transceivers and network encryption techniques further strengthens network security. Telecom companies are also focusing on mobile handset security, ensuring that devices are equipped with the latest security features and software updates. The use of secure communication protocols and encryption techniques is becoming standard practice in the industry. Overall, the Vietnamese telecom market is responding to the security challenges by investing in advanced technologies and best practices to ensure customer satisfaction and network security.

Exclusive Vietnam Telecom Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• CMC Corp
• FPT Corporation
• GMOBILE.VN.
• Hanoi Telecom Corp.
• MobiFone
• Saigon Postal and Telecommunications Services Joint Stock Co.
• Vietnam Multimedia Corp.
• VIETTEL
• VNPT Vinaphone

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Telecom Market In Vietnam

• In January 2024, Vietnam's largest telecom provider, Viettel Group, announced the launch of its 5G trial services in Hanoi and Ho Chi Minh City, marking a significant technological advancement in the country's telecom sector (Viettel press release). In March 2024, the Vietnamese Ministry of Information and Communications approved the merger of Vietnam Posts and Telecommunications Group (VNPT) and MobiFone, creating a dominant player in the fixed-line and mobile telecommunications market (Reuters).
• In May 2024, Singapore Telecommunications Ltd (Singtel) and Vietnam's military-run telecom firm, Viettel, signed a strategic partnership to explore opportunities in digital services, network infrastructure, and cybersecurity (Bloomberg). In January 2025, the Vietnamese government issued a decree to allocate 2.6 GHz spectrum for 5G services, paving the way for the commercial rollout of 5G networks (Vietnam Ministry of Information and Communications).

Research Analyst Overview

The market continues to evolve, driven by the integration of various technologies and applications across numerous sectors. In the realm of smart cities, network security assumes paramount importance, with advanced solutions ensuring data protection and network performance. Feature phones persist in the market, coexisting with the proliferation of value-added services (VAS) and 4G LTE. Cloud computing and machine learning (ML) are transforming billing systems and network management, enabling real-time data analytics and customer satisfaction. Open RAN and satellite communication are revolutionizing network optimization and broadband access, particularly in rural areas. Unified communications and digital transformation are reshaping business landscapes, while IoT devices and mobile money are altering consumer behaviors.

Network virtualization, capacity planning, and network slicing are essential components of telecommunication infrastructure, ensuring efficient spectrum allocation and wireless communication. Fiber optics and microwave transmission are vital for data centers and software-defined radio (SDR), while data protection and network virtualization are crucial for ensuring network security. Edge computing and fixed-line telephony are still relevant, with the former enabling real-time data processing and the latter providing a stable communication backbone. The market is a dynamic and intricate ecosystem, with continuous unfolding of market activities and evolving patterns. The integration of technologies such as 5G NR, data analytics, AI, and SDN is shaping the future of telecommunications, offering endless opportunities for growth and innovation.

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Telecom Market in Vietnam insights. See full methodology.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Vietnam
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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