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The Vietnam telecom market size is projected to increase by USD 1.60 billion at a CAGR of 4.08% between 2023 and 2028. Market growth is influenced by factors like rising demand for broadband, government efforts to foster digital economies and boost e-commerce, and increased investments in smart city initiatives. These dynamics shape the market landscape, reflecting the importance of connectivity and digital infrastructure development. As broadband demand surges, supported by government initiatives and smart city investments, the market anticipates sustained growth opportunities in the digital economy and urban development sectors.
Moreover, the market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 10 market companies, including GMOBILE.VN., Hanoi Telecom Corp., MobiFone, MULTIMEDIA CORP., Saigon Postal and Telecommunications Services Joint Stock Co., VIETTEL , and VNPT Vinaphone. Additionally, FPT Corp. company offers telecom services such as broadband internet, data solutions, fixed line, mobile services, and cloud computing.
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The market is rapidly evolving with the advent of 5G infrastructure. Telecom giants are conducting 5G commercial trials to deliver high-performance and advanced 5G services, enhancing download and upload speeds for consumers. As 5G pilot rollouts expand, the demand for 5G stations and 5G network trials intensifies. With a focus on improving the median fixed broadband download speed and median mobile download speed, the market witnesses a surge in mobile internet use and consumption of on-demand videos. This growth fuels the telecommunications market, driving up mobile penetration rates and facilitating broader internet access for users to enjoy IPTV and other digital services. As the expanding middle class embraces multimedia services, telecom companies prioritize delivering high-quality digital content to meet consumer demands. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increased demand for broadband is the key factor driving the market. The widespread use of the Internet has created an increased demand for high-speed broadband connections. This has compelled telecommunications companies to upgrade their network infrastructure to support faster speeds and larger bandwidths owing to digitalization. As the world becomes more connected, the demand for telecom services rises rapidly. People and businesses require fast and reliable high-speed internet connectivity to communicate with one another, access information and services, and carry out their daily activities. Mobile devices, such as smartphone penetration and tablets, are now used by billions of people worldwide due to internet penetration.
For example, Viettel (VIETTEL) is a major state-owned telecommunications company in Vietnam, offering a range of services, including broadband Internet. FPT (FPT Corp.) Telecom is a leading private Internet service provider (ISP) in Vietnam, offering broadband Internet services to residential and business customers. These companies provide a range of broadband plans to meet various needs and budgets. Thus, the high demand for Internet and broadband will boost the growth of the market during the forecast period.
Technological advancements is the primary trend shaping market growth. The deployment of 5G networks is a notable example, as it provides faster speeds and lower latency, enabling innovations such as the IoT and augmented reality. Another significant advancement is the expansion of fiber optic infrastructure, which improves broadband connectivity for both homes and businesses. Cloud-based services are increasingly popular, allowing for remote work and collaboration, while AI and machine learning are used for network optimization, customer service, and predictive maintenance.
Additionally, the rise of software-defined networking (SDN) and network function virtualization (NFV) allows for more flexible and cost-effective network administration. As threats grow, cybersecurity advancements such as AI-driven threat detection and blockchain for secure transactions become critical. Technological advancements are reshaping the telecom industry by improving connectivity, services, and security while also enabling innovative applications and user experiences. Thus, with technological advancements, the market is expected to witness high growth during the forecast period.
The rise in network attacks and online security threats is a major challenge that affects market expansion. As the country's digitization and reliance on telecommunications infrastructure increases, the potential impact of cyber threats grows. Security breaches can erode consumer confidence. With the growing importance of online transactions, e-commerce, and digital communication, consumers are becoming more concerned about data security. High-profile cyberattacks or data breaches can cause a loss of trust in telecom network security, making it difficult to adopt new services and technologies.
Furthermore, the telecom sector is a critical infrastructure target for cybercriminals looking to profit from vulnerabilities or advance political agendas. The costs of cybersecurity measures, as well as the need for ongoing investment in advanced technologies to counter evolving threats, may put a strain on telecom operators finances. Thus, such factors will hinder the growth of the market during the forecast period.
The market share by the consumer segment will be significant during the forecast period. The widespread use of smartphones has contributed significantly to the rapid growth of telecom services. According to the World Bank, approximately 79% of Vietnam's total population used the Internet in 2022. Furthermore, the growing popularity of over-the-top (OTT) applications encourages customers to choose wireless Internet services, which will greatly aid in the larger-scale implementation of communication networks.
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The consumer segment showed a gradual increase in the market share of USD 3.79 billion in 2018. Furthermore, the growing popularity of online gaming and watching ultra-high-definition movies is expected to drive the consumer segment's expansion during the forecast period. With an increasing number of people working remotely, the demand for high-speed Internet has risen dramatically. Many residential end-users require dependable, fast, and affordable Internet services to complete their daily tasks. Further, with the advent of 5G technology, the demand for faster and more reliable mobile services is expected to rise even further, which will positively impact the growth of the telecom market in Vietnam during the forecast period.
The wireless?segment will account for the largest share of this segment.?The global expansion of wireless communication channels has been significantly influenced by cloud computing, artificial intelligence (AI), and the Internet of Things (IoT). Wireless local area network (WLAN) systems are increasingly deployed, enabling connectivity for cellular devices in various settings. Factors like the rise in mobile device usage and the reliance on digital communication contribute to the growing demand for wireless telecom services. Wireless technologies offer a faster and more cost-effective solution compared to wireline infrastructure, particularly in areas where laying physical cables is challenging. Advancements such as 5G connectivity and augmented reality further drive the demand, leading to high growth expectations in the telecom market in Vietnam.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 and trends strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Market analysis and report of 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.
The market research report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018-2028
The market is witnessing significant growth and innovation driven by R&D investments and high-speed connectivity services provided by companies like Vietnamobile and EVNTelecom. With the emergence of 5G networks and advancements in 4G technologies by giants like Samsung Electronics and Infinera, cities like Da Nang and Hue are becoming hubs for broadband consumption and smartphone services. Regulatory bodies like the Ministry of Information and Communications (MIC) play a crucial role in granting 5G wireless services licenses and promoting OTT services and Wi-Fi solutions. However, challenges such as government control and cybersecurity regulations persist, influencing competition, price wars, and network quality while also shaping the landscape of digital transformation and telecom infrastructure investments.
Vietnam Telecom Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.08% |
Market Growth 2024-2028 |
USD 1.60 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
3.39 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
CMC Corp., FPT Corp., GMOBILE.VN., Hanoi Telecom Corp., MobiFone, MULTIMEDIA CORP., Saigon Postal and Telecommunications Services Joint Stock Co., VIETTEL, and VNPT Vinaphone |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Market Segmentation by Application
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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