Market Trends of Vietnam Telecom Industry
This section covers the major market trends shaping the Vietnam Telecom Market according to our research experts:
Growing demand for Wireless Services
- The increasing population, communication services, and rising adoption of smartphone services have driven the growth of the Vietnamese Telecom Market. The growth would be further supported by regulatory authorities, which play a significant role in adopting a 5G network in the country.
- The government has forward-looking plans to expand its network coverage from 3G and 4G to 5G networks. For instance, the Ministry of Information and Communications (MIC) reported that it finished installing 5G stations using open radio access network (ORAN) technology with download and upload speeds of 900 Mbps and 60 Mbps.
- The Vietnamese government has plans to issue 5G wireless services licenses by the end of this year. Further, this year, the Department of Telecommunications will strengthen management and monitor the implementation of licenses granted to businesses. At the same time, inspect the implementation of regulations in the telecommunications sector and develop a set of 5G licensing standards. The demand for deploying Wi-Fi solutions will significantly grow, creating new opportunities for the telecom market.
- According to the Ookla Speedtest Global Index, Vietnam ranked 47th with a median fixed broadband download speed of 78.87 Mbps in October 2022. Smartphone penetration is growing significantly and thus increasing the demand for high-speed wireless services.
- Government authorities are working with private telecom service providers to expand wireless broadband connections. For instance, as part of its National Digital Transformation Programme, the government aims to enable faster and higher-quality wireless internet services for consumers.
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Growing demad for OTT Services
- According to the GroupM Vietnam report, YouTube was the leading OTT streaming service in rural areas in Vietnam at 46 %. Meanwhile, the local platform FPT Play was the second most-used service, with 27% of the respondents using this OTT service. This indicates that Pay-TV services revenue is likely to drop in the next five years because of a steady decline in DTH subscriptions and emerging competition from OTT service providers.
- A rising number of mobile subscribers will significantly increase the demand for OTT (over-the-top) services. For instance, DatVietVAC launches its new streaming service VieON (video-on-demand and television service), in Vietnam.
- International OTT platforms, such as Netflix and Amazon Prime, offer on-demand video services for customers, thus creating new growth opportunities for the Vietnam OTT services market.
- According to the Ookla Speedtest Global Index, Vietnam ranked 53rd with a median mobile download speed of 39.48 Mbps in October this year. Customers are migrating to mobile-based OTT services, thus creating new growth opportunities for the telecom market.
- According to GSMA, Mobile internet use in the country nearly doubled from 27% of the population in 2014 to 53% in the last year. Adults in the country are increasingly using mobile internet. The increasing internet penetration will further increase the demand for OTT services.
- During the COVID-19 outbreak, people adopted work-from-home practices and spent more time watching videos, games, and other forms of entertainment at home. OTT service providers offering on-demand videos are anticipated to further drive the growth of the Vietnamese telecom market.
