Vietnam - Telecoms Infrastructure, Operators, Regulations - Statistics and Analyses

Synopsis

Any review of the telecoms market in Vietnam must take into account the nature and structure of the government. Whilst nominally a communist state and therefore a centrally planned economy, it has undergone significant structural change over the years. After revising its attitude to the market economy and the role of the private sector, the government has progressively introduced some competition into the market place, building what it describes as ‘a socialist oriented market economy.’ There is no doubt that this change of policy and outlook resulted in a fresh growth momentum within the nation. Nevertheless it remains a one-party system, moving slowing in the implementing of social and economic reform and simply avoiding some reforms altogether.

The government set ambitious targets early on in the telecom sector, especially for the expansion of infrastructure. But initially it fell well short of these targets. This began to change, however, mainly on the back of an increasingly competitive mobile sector. After a period of strong growth over the last decade, the mobile market stalled in 2013 and suffered a major correction in that year. By 2015 growth had returned but was generally slower.

In the meantime, having come late to the internet, Vietnam is finally embracing the higher access speeds offered by the various broadband platforms. Although there has been a surge in subscriber numbers, fixed broadband remains a relatively small but expanding market segment. Most significantly, the arrival of mobile broadband has seen widespread access to faster internet speeds.

The significant presence of fixed-line services throughout the country had been against the global trend for a developing economy (a high point of 20% penetration in 2009); however, fixed-line numbers have declined dramatically in recent years and by 2015 penetration had fallen to slightly more than 5%.

This report presents an overview of Vietnam’s telecom market, providing information on telecom infrastructure, operators and the regulatory environment. It includes a set of the most currently available key statistics. There is also some analysis of aspects of the country’s telecoms sector.

Key developments:

  • Vietnam’s broadband market is growing strongly, on the back of the mobile broadband sector;
  • the mobile market had reached 147% penetration milestone coming into 2016;
  • the fixed-line market continues to be in decline, having dropped by 70% from its 2009 peak;
  • Vietnam’s second satellite, Vinasat-2, has been launched;
  • MobiFone, having been hived off from VNPT, by 2015 was being prepared for an IPO;
  • A revamped VNPT-Vinaphone operation was formally launched in August 2015;
  • in 2015 the MIC was preparing for 4G, but the licensing process was not expected until 2016;
  • fibre-based broadband subscribers were growing at an annual rate of 100%+ into 2015;
  • Samsung became the largest foreign investor in Viet Nam when it launched its project for a US$3 billion telephone handset manufacturing and assembling plant;
  • the MIC has set 2017 as the target date for introducing Mobile Number Portability (MNP).
  • in 2015 Vietnam’s FPT became the first 100% foreign-owned company to secure a fixed-line services licence in Myanmar.

Companies mentioned in this report:

VNPT; Vinaphone; Mobifone; Viettel; S-Fone; EVN Telecom; Vietnamobile (Hanoi Telecom); GMobile/GTel.

Table of Contents

  • 1. Synopsis
  • 2. Key statistics
  • 3. Country Overview
    • 3.1 Background
    • 3.2 World Trade Organization (WTO)
  • 4. Telecommunications market
    • 4.1 Recent developments
    • 4.2 Historical Overview
    • 4.3 Market analysis
      • 4.3.1 Mobile operators
      • 4.3.2 Foreign investment
      • 4.3.3 The government’s role
  • 5. Regulatory environment
    • 5.1 Historical overview
    • 5.2 Regulatory authority
      • 5.2.1 Ministry of Information and Communications (MIC)
      • 5.2.2 Viet Nam Telecommunications Authority (VNTA)
    • 5.3 Government policies
      • 5.3.1 Liberalisation
      • 5.3.2 Privatisation of state-owned enterprises: VNPT
      • 5.3.3 Decree limiting shares in telecom companies
    • 5.4 Telecom licences
    • 5.5 Mobile Number Portability (MNP)
  • 6. Fixed-line operators
    • 6.1 Introduction
    • 6.2 Vietnam Post & Telecommunications (VNPT)
      • 6.2.1 Overview
      • 6.2.2 Statistics
    • 6.3 Viettel
    • 6.4 FPT Telecom
    • 6.5 GTel
  • 7. Telecommunications infrastructure
    • 7.1 National telecom network
      • 7.1.1 Overview
      • 7.1.2 Statistics
      • 7.1.3 Forecasts – fixed-line subscribers – 2016; 2017; 2020
    • 7.2 New developments
      • 7.2.1 Next Generation Networks (NGNs)
      • 7.2.2 Proposed Samsung investment
    • 7.3 International infrastructure
      • 7.3.1 Background to development
      • 7.3.2 Submarine cable networks
      • 7.3.3 Satellite networks
  • 8. Related reports
  • Table 1 – Country statistics Vietnam – 2015
  • Table 2 – Telephone network statistics – 2015
  • Table 3 – Internet user statistics – 2015
  • Table 4 – Broadband statistics – 2015
  • Table 5 – Mobile statistics – 2015
  • Table 6 – National telecommunications authorities
  • Table 7 – Historical - Fixed-line subscribers and market share by operator – 2011
  • Table 8 – Historical - VNPT fixed-line subscribers and penetration – 2000 – 2005
  • Table 9 – VNPT fixed-line subscribers and penetration – 2006 – 2015
  • Table 10 – Historical - Fixed line subscribers, annual change and penetration – 1990 – 2004
  • Table 11 – Fixed line subscribers, annual change and penetration – 2005 – 2015
  • Table 12 – Forecast fixed line subscribers and penetration rates – 2016 - 2017; 2020
  • Table 13 – Total international internet bandwidth – 2003 - 2015
  • Chart 1 – Historical - Fixed-line market share by operator - 2011
  • Chart 2 - VNPT fixed-line subscribers and penetration - 2006 - 2015
  • Chart 3 - Fixed line subscribers and penetration - 2005 - 2015
  • Exhibit 1 – Vietnam - ICT Development Index
  • Exhibit 2 –MIC’s assigned policy and regulatory responsibilities

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Number of pages 26

Status Current

Last updated 7 Mar 2016
Update History

Analyst: Peter Evans

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