Vietnam’s Digital Infrastructure Surge: New Investments in Subsea Cables, Data Centers, and Starlink Fuel National Growth
October 2024 – Idem Est Research
Vietnam’s telecommunications industry is poised for accelerated growth through 2031, driven by dynamic market conditions and significant infrastructure advancements. The latest Vietnam Telecoms Industry Report from Idem Est Research outlines several transformative developments aimed at supporting sector growth, with a focus on mobile expansion, 5G adoption, digital transformation, and improved connectivity in underserved regions.
Nationwide 5G Expansion Led by Viettel
Vietnam’s leading telecom operator, Viettel, continues its ambitious 5G rollout, investing in over 5,000 new base stations nationwide. Leveraging advanced Nokia equipment, Viettel has created a high-speed, low-latency network spanning urban, suburban, and remote areas. This rollout, expected to conclude by late 2024, marks a critical leap forward for Vietnam’s connectivity landscape, supporting digital transformation goals and enabling new applications in smart cities, e-commerce, and remote education. Vietnam’s 5G customer base is projected to reach 69% of all connections by 2031, reflecting a significant boost in nationwide adoption.
Fixed Broadband and FTTH Initiatives
VNPT, another major player in Vietnam’s telecom sector, recently completed an extensive expansion of its fibre-to-the-home (FTTH) network, targeting national reach by 2025. Supported by the government’s National Digital Transformation Programme, this initiative aims to connect an additional 2.7 million households each year. With reliable, high-speed connections, VNPT is bridging the digital divide and facilitating access to digital services in Vietnam’s rural and underserved areas. These FTTH upgrades have already propelled a 14% annual growth rate in fibre connections up to 2024.
Vietnam’s Thriving Telecom Sector: Opportunities and Future Outlook
These recent advancements underscore the potential of Vietnam’s telecom market, underpinned by a government-led digital transformation strategy and robust private-sector investment. Idem Est Research forecasts sector revenue growth at an average annual rate of 2.5% through 2031. Demand for 4G and 5G data is expected to remain high, bolstered by rising smartphone adoption, an expanding middle class, and more affordable data plans.
Challenges and Opportunities Ahead
Despite this positive outlook, Vietnam’s mobile operators face challenges, including regulatory complexities, network costs, and rising competition. However, the sector remains resilient, with Vietnamese operators positioning themselves as regional leaders in telecommunications infrastructure.
Vietnam’s digital infrastructure presents a significant greenfield opportunity, with substantial investments in subsea cables, data centers, and low Earth orbit (LEO) satellite networks, including Starlink, driving the country’s digital transformation. These developments are set to expand Vietnam’s connectivity, reduce latency, and provide high-speed internet access to underserved regions, enhancing the nation’s position as a regional tech hub. As demand for reliable digital infrastructure grows, these investments are expected to fuel economic growth, support cloud services, and facilitate the adoption of advanced technologies, positioning Vietnam as a key player in Southeast Asia’s digital economy.
The long-awaited equitisation (privatisation) of VNPT and Mobifone is now underway, with the government planning to divest between 35% to 50% of these entities. To ensure a successful process, there is a critical need for clarity and certainty in the ownership of assets, including land, buildings, mobile towers, and other infrastructure across 63 provinces and cities.
The Vietnam Telecoms Industry Report 2024-2031 from Idem Est Research offers comprehensive insights into these developments and future market dynamics, empowering businesses and investors to identify emerging opportunities, mitigate risks, and leverage Vietnam’s expanding telecom infrastructure for sustainable growth.
KEY COMPANIES MENTIONED IN THIS VIETNAM TELECOMS INDUSTRY REPORT:
CMC, FPT, Gmobile, Hanoi Telecom, Hutchison Asia Telecom, Mobifone, OCK, Saigon Post, Viettel, Vietnamobile, Vinaphone, VNPT
Download the full report: https://idemest.com/reports/vietnam-telecoms-report-mobile-broadband-market-industry-analysis/
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About Idem Est Research Advisory
Idem Est Research and Advisory is a boutique telecommunications and digital infrastructure market research and advisory. Idem Est Research provides leading telecoms research helping our clients stay updated on the latest telecoms sector and digital infrastructure developments. The reports provide analyses of mobile and broadband markets, capital expenditure, forecasts, key telecom trends and thematic such as 5G and telecoms digital infrastructure, as well as other statistics of the telco industry.
Our independent approach allows us to place the trends and drivers fully into context and analyse the industry from different, unbiased perspectives. Alongside the facts and figures, Idem Est Research draws on three decades of experience to provide incisive commentary and analysis. This brings visibility to the business drivers, challenges, decision-making and future direction of the telecoms sector.
To learn more, visit http://www.idemest.com
This release was published on openPR.
