Vietnam’s telecommunications sector is on the cusp of a transformation, with total revenue from telecom services projected to grow at a compound annual growth rate (CAGR) of 2.6% from 2024 to 2029. According to GlobalData, this growth will largely hinge on the mobile data and fixed broadband markets, while traditional mobile voice services are expected to dwindle.
The decline in mobile voice revenue reflects changing consumer preferences and competitive strategies of mobile network operators. Many operators are now offering free voice minutes within their plans, while users increasingly flock to over-the-top (OTT) and internet communication services. This shift has led to a notable drop in average revenue per user (ARPU) in the voice segment. Contrastingly, mobile data services are set to enjoy a significant CAGR of 9.7% during this period, fueled by a surge in mobile internet subscriptions and the transition from 4G to 5G services, which promise higher revenue potential and more premium data plan options.
“4G services dominated mobile subscriptions in Vietnam in 2024 and are projected to remain the leading technology through 2029, thanks to the ongoing expansion of the 4G/LTE networks,” noted Srikanth Vaidya, Telecom Analyst at GlobalData. However, 5G adoption is accelerating rapidly as demand for high-speed connectivity rises. Telecom companies are ramping up their rollout of 5G services, supported by government initiatives aimed at expanding 5G coverage. Vietnam’s digital infrastructure strategy aspires to ensure 5G network access for 99% of its populace by 2030—an ambitious target that could turn the nation into a digital hotspot.
In the realm of fixed communication, revenue from fixed voice services is anticipated to experience a modest 0.7% CAGR, largely driven by the increasing prevalence of voice over internet protocol (VoIP) subscriptions. In contrast, the fixed broadband sector is poised for significant growth, projected at a CAGR of 1.8% from 2024 to 2029. This expansion will be bolstered by consumers increasingly opting for fiber-to-the-home (FTTH) services, as Vietnam aims to enhance its fiber broadband infrastructure and reach 80% of households by 2025.
Vaidya pointed out that Viettel leads the mobile services sector in subscriptions as of 2024 and is set to maintain its dominance. The operator has emerged as a pioneer in 5G deployment, notably launching the world’s first open RAN (O-RAN) 5G network in November 2024, utilizing locally developed hardware combined with Qualcomm Technologies’ RAN platforms. On the fixed side, VNPT continues to excel in both fixed voice and broadband segments, leveraging its robust FTTH presence and multi-play bundling strategies to enhance customer offerings. The company’s ‘GOI Home’ and ‘Home GIAI TRI’ plans are designed to deliver more value and better services to attract and retain customers.
What is driving the expected growth in Vietnam’s telecom revenue?
The growth is primarily driven by mobile data and fixed broadband services, as consumers increasingly shift toward these technologies over traditional mobile voice services.
How is the Vietnamese government supporting the expansion of 5G?
The government aims to provide 5G network access to 99% of the population by 2030, facilitating this through better infrastructure and incentives for telecom companies.
Which companies are leading in Vietnam’s telecom market?
Viettel holds the lead in mobile services due to its innovative 5G deployments, while VNPT excels in fixed voice and broadband segments through strong FTTH offerings and bundled service plans.
